Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2013 (Japan GAAP)
January 27, 2014

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Yoshio Murayama, President and Representative Director, CEO
Toshiya Kitagawa, Director, Executive Officer and Marketing Planning Office Manager
Tel: +81-3-5324-8720

Scheduled date for release of Quarterly Report:
Scheduled date for commencement of dividend payments:
Has the Company prepared supplementary briefing materials for the Quarter:
Has the Company held briefings concerning its quarterly financial results:

February 10, 2014
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2013
(April 1-December 31, 2013)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales
Millions of yen

Nine months ended December 31, 2013

38,269Nine months ended December 31, 2012

55,003Operating Income

Ordinary Income

Net Income%

Millions of yen%

Millions of yen(30.4)

3,528(41.0)

2,952(47.3)%

1,973 (48.6)

75.9

5,984

128.9

5,597

182.2

3,837

Millions of yen

%

120.5

(Note) Comprehensive income: Nine months ended December 31, 2013: ¥1,970million ((48.6)%) / Nine months ended December 31,
2012: ¥3,834million (120.3%)
Net Income per
Share

Diluted Net Income
per Share

Yen

Yen

Nine months ended December 31, 2013

16.98

16.94

Nine months ended December 31, 2012

31.52

31.50

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

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

As of December 31, 2013

83,03323,735

28.5

As of March 31, 2013

75,01324,14732.2<Reference> Shareholders’ equity at end of period: December 31, 2013: ¥23,681 million / March 31, 2013: ¥24,131 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2013

-

5.00

Year Ending March 31, 2014

-

1.50

Year-End
Yen-

Year Ending March 31, 2014 (Forecast)

Total

Yen

Yen

10.00

15.00

3.00

4.50

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

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

Full year

Operating Income

Ordinary Income

Net Income per
Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

72,250

11.3

9,500

49.3

8,715

50.5

5,380

32.1

46.35

(Note) Has the Company changed its consolidated forecast during this quarter: No(Note) The cancellation of treasury stock ( 386,070 shares) on May 15, 2013 and the implementation a stock split at a ratio of 1:4
for common stock effective as of July 1, 2013, were decided by a resolution at the Board of Directors meeting held on May 13,
2013.

4. Other Matters(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No
Newly consolidated companies (--) Newly excluded companies (--)
(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: No
B. Changes in accounting policies other than those in (1): No
C. Changes in accounting estimates: No
D. Restatement: No(4) Number of shares issued (common stock)a. Number of shares outstanding at the end of the period (including treasury stock)b. Number of shares of treasury stock at the end of the periodc. Average number of shares during the period (quarter year-to-date)a.

As of December 31, 2013:

132,000,000

As of March 31, 2013:

sharesb.
c.

As of December 31, 2013:

shares

16,372,907 shares

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

Nine months ended December 31, 116,232,624 shares

Nine months ended December 31,

121,738,360

2012:

shares2013:(Note)

133,544,280

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

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

(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial
Instruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed a quarterly review procedure for consolidated financial statements based on the Financial
Instruments and Exchange Act.
(Note) Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials are
based on information currently available to the Company and on certain assumptions deemed to bereasonable. Actual business results may differ substantially due to a number of factors.

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

Attachments Table of Contents
1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter ........................................... 2(1) Qualitative Information Pertaining to Consolidated Operating Performance ...................................................... 2(2) Qualitative Information Pertaining to Consolidated Financial Position .............................................................. 3(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ............................................ 3
2. Summary Information (Notes) .................................................................................................................................. 4(1) Changes to Material Subsidiaries during the Third -Quarter Year-to-Date Period .............................................. 4(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ............................................................................................................................................. 4(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement .......................................... 4
3. Quarterly Consolidated Financial Statements ........................................................................................................... 5(1) Quarterly Consolidated Balance Sheets ............................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income .................................................................................................................................................................. 7
Quarterly Consolidated Statements of Income
Third -Quarter Year-to-Date Period ................................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
Third -Quarter Year-to-Date Period ................................................................................................................... 8(3) Notes on Quarterly Consolidated Financial Statements....................................................................................... 9(Notes on Assumption of Going Concern) .......................................................................................................... 9(Notes on A Significant Change in Shareholders’ Equity) .................................................................................. 9-1-

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

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
In the Third-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2014, sales
from the real estate sales business amounted to ¥33,947 million, down 33.2% on a year-on-year basis. This
reflected sales in the new built-for-sale condominium business, as well as sales in the newly-built detachedhousing business and resale business.
Gross margin ratio increased 2.6% compared with the end of the previous consolidated fiscal year to 23.9%.
The significant increase was mainly attributed to price revision.
In the real estate rental business, sales totaled ¥1,266 million, up 16.9% on a year-on-year basis. This reflectedsales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 34,649 units of residential
condominiums were ¥2,038 million, up 6.2% on a year-on-year basis.
Sales from other businesses amounted to ¥1,017 million, down 13.4% on a year-on-year basis, mainly
attributable to commissions from real estate agency services and revenues from orders for repair work.
As a result, Net sales for the Third-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥38,269 million, down 30.4% on a year-on-year basis; Operating income amounted to ¥3,528 million, down
41.0% on a year-on-year basis; Ordinary income amounted to ¥2,952million, down 43.2% on a year-on-yearbasis; and Net income amounted to ¥1,973 million, down 48.6% on a year-on-year basis.
b. Overview
The built-for-sale condominium business delivered 831 units including solar-powered condominiums ( Leben
Revale Machida Lusia Tower and LEBEN Tsukuba kenkyugakuen ).
The Company also made Sunwood Corporation its equity method affiliate on November 27, 2013. Both theCompany and Sunwood Corporation have adopted a policy of pursuing synergies by taking advantage of theirrespective strengths in the future.
In the mega-solar business, the Company anticipated the commencement of the operations of 10 facilities,
including those that had already started operating, as at the end of the third quarter of the consolidated fiscal year
under review.
c. Contracted ratio status
With regard to sales performance in the third-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 1,688 units, compared with a full-year target of 1,710 units scheduled for delivery.
In addition, in terms of units scheduled for delivery in the next term, contracts for 566 units have been concluded,
maintaining robust sales performance.

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

(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Number of contracts
Units scheduled for delivery Number of contracts signed signed in the same period(units)(units)of the previous fiscal year
(units)Year Ending March 31,
2014Year Ending March 31,
2015

1,710

1,688

1,673

1,740

566

576

(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the second-quarter consolidated
ac0counting period under review, total assets were ¥83,033 million, an increase of ¥8,019 million compared withthe end of the previous consolidated fiscal year. The increase mainly reflected an increase in cash and deposits
and purchasing of business assets.
(Current Assets)
Current assets increased ¥5,387 million compared with the end of the previous consolidated fiscal year to¥61,320 million. This mainly reflected an increase in cash and deposits as a result of delivering new build-for-salecondominium units.
(Non-current Assets)
Non-current assets increased ¥2,631 million compared with the end of the previous consolidated fiscal year to¥21,713 million, mainly reflected, due to purchase of business assets.
(Current Liabilities)
Current liabilities increased ¥3,415 million compared with the end of the previous consolidated fiscal year to¥32,440 million, mainly as a result of an increase in advances received on contracts concluded and due to anincrease of short-term borrowings.
(Non-current Liabilities)
Non-current liabilities increased ¥5,017 million compared with the end of the previous consolidated fiscal yearto ¥26,857 million, mainly due to an increase in borrowings in conjunction with new purchases.
(Net Assets)
Total net assets decreased ¥412 million compared with the end of the previous consolidated fiscal year to¥23,735 million. The decrease was attributed to the net assets for the second quarter was less than distribution of
surplus and purchase of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on October 28, 2013.

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

2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period
The Company had no pertinent matters to report.
(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated Financial
Statements
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
The Company had no pertinent matters to report.

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

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

As of December 31, 2013ASSETS
Current assets:
Cash and deposits

17,911

21,695323

393

Real estate held for sale

2,067

1,003

Real estate held for sale in progress

33,30835,219

Other

2,353

3,043

Allowance for doubtful accounts

(32)

(36)

55,932

61,320

Buildings and structures (net)

5,011

5,067

Land

12,471

13,799122

817

17,606

19,683551

519

Notes and accounts receivable, trade

Total current assets
Fixed assets:
Tangible fixed assets

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

1,036

1,620

Allowance for doubtful accounts

(112)

(110)

Total investments and other assets

924

1,509

19,081

21,71375,013

83,033

Notes and accounts payable, trade

7,920

7,698

Short-term borrowings

Total fixed assets
Total assets
LIABILITIESCurrent liabilities:

2,629

6,370

Current portion of long-term borrowings

11,375

10,095

Income taxes payable

1,608

869

277

201

Reserve
Other

5,214

7,204

Total current liabilities

29,02532,440Noncurrent liabilities
20,84925,792

Reserve

202

239

Other

788

825

21,84026,85750,86659,298Long-term borrowings

Total noncurrent liabilities
Total liabilities-5-

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

(Millions of yen)
As of March 31, 2013

As of December 31, 2013

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,947

4,817

Retained earnings

16,991

18,251

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

Total shareholders’ equity

24,127

23,680

3

0

3

0

16

53

24,14723,73575,013

83,033

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-

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

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Third-Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2012

Nine Months Ended
December 31, 2013

Net sales

55,00338,269

Cost of sales

43,017

28,814Gross profit

11,985

9,455

Selling, general and administrative expenses

6,000

5,926

Operating income (loss)

5,984

3,528

Interest income

33

Dividend income

Non-Operating income:44Commissions received

92

56

Income from equity method investment

78

14

Miscellaneous income

50

12Total Non-Operating income

228

92

Interest expense

603

632

Miscellaneous losses

1235

Non-Operating expenses:

Total Non-Operating expenses

615

668

5,597

2,952

Settlement received－

330

Reserve for directors' retirement benefits

53－

Gains on negative goodwill

66－

Total extraordinary gains

120

330

Loss on sales of noncurrent assets－

39

Loss on disposal of fixed assets

21

0

Other

1

9

Total extraordinary losses

2349

Net income (loss) before income taxes

5,694

3,233

Income taxes, inhabitant taxes and business taxes

1,797

938

58

321

Total income and other taxes

1,856

1,260

Income (loss) before minority interests

3,837

1,973

Net income (loss)

3,837

1,973

Ordinary income (loss)
Extraordinary gains

Extraordinary losses

Income tax adjustments-7-

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

Quarterly Consolidated Statements of Comprehensive Income
Third -Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2012
Income (loss) before minority interests

Nine Months Ended
December 31, 2013

3,837

1,973

Net unrealized gains on available-for-sale securities

(2)

(2)

Total other comprehensive income

(2)

(2)

3,834

1,970

3,834

1,970

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-

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

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
The Company had no pertinent matters to report.
(Notes on A Significant Change in Shareholders’ Equity)
In the Third quarter of the consolidated fiscal year under review, the Company purchased treasury stock at¥2,000 million, by resolution of the meeting of the Board of Directors held on May 13, 2013. And 386,070 sharesof treasury stock were cancelled.
In addition to the above, with the disposal of treasury stock through the exercise of stock options representing¥26 million, the number and amount of treasury stock at the end of the third quarter of the fiscal year under review
were ¥4,207 million, respectively.

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