Q1 (FY2023) Annual Securities
Report(First Quarter of the 51st Fiscal Year)from April 1, 2022
to June 30, 2022

Takara Leben Co., Ltd.
Tekko Building 16F 1-8-2, Marunouchi, Chiyoda-ku, Tokyo, Japan

Contents

Page
Cover

Part I. Company Information

1

I.

Company Overview

1

1. Trends in Major Management Indicators, Etc.

1

2. Businesses

1

Business Overview

2

1. Business Risks

2

2. Management’s Analysis of Financial Position, Operating Results and Cash Flows2

3. Important Contracts Etc. Related to Management

4

Information on the Reporting Company

5

1. Stock Information

5

II.

III.

IV.

(1) Total Number of Shares, Etc.

5(2) Information on the Share Acquisition Rights, Etc.

5

①Details of the Stock Option Plan

5

②Other Subscription Rights

5(3) Exercise of Moving Strike Convertible Bonds, Etc.

5(4) Changes in Number of Shares Issued and Capital, Etc.

5(5) Status of Major Shareholders

5(6) Information on Voting Rights

6

2. Officers

6

Financial Information

7

1. Quarterly Consolidated Financial Statements

8(1)Quarterly Consolidated Balance Sheets

8(2)Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

10

Quarterly Consolidated Statements of Income

10

Quarterly Consolidated Statements of Comprehensive Income

11

2. OtherPart II. Information Concerning Guarantors of the Reporting Company[Quarterly Review Report]

19
20

[Cover][Filing]

Q1 (FY2023) Annual Securities Report[Applicable provision]

Article 24-4-7(1) of the Financial Instruments and Exchange Act[Submitted To]

Director-General of the Kanto Local Finance Bureau[Date of submission]

August 10, 2022

[Quarterly Accounting Period]First Quarter of the 51st Fiscal Year (from April 1, 2022 to June 30, 2022)[Company name]

Takara Leben CO., LTD.

[Company Name in English]

Takara Leben CO., LTD.

[Representative]

Kazuichi Shimada, Representative Director, CEO and President Executive Officer[Address of head office]Tekko Building 16F 1-8-2, Marunouchi, Chiyoda-ku, Tokyo, Japan[Telephone]+81-3-6551-2130[Contact]

Masashi Yamamoto, Director, CFO, Managing Executive Officer and Executive General
Manager of Administration Headquarters[Contact address]

Tekko Building 16F 1-8-2, Marunouchi, Chiyoda-ku, Tokyo, Japan[Telephone]+81-3-6551-2130[Contact]

Masashi Yamamoto, Director, CFO, Managing Executive Officer and Executive General
Manager of Administration Headquarters[Place for public inspection]

Kitakanto branch of Takara Leben Co., Ltd. (4-4-1 Takasago, Urawa-ku, Saitama-shi, Saitama)
Takara Leben Osaka Branch (4-2-16, Koraibashi, Chuo-ku, Osaka-shi, Osaka)
Tokyo Stock Exchange, Inc. (2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)

Part I. [Company Information]
I. [Company Overview]
1. [Trends in Major Management Indicators, Etc.]
Fiscal term

50th fiscal year
First Quarter Consolidated
Cumulative period

51st fiscal period
First Quarter Consolidated
Cumulative period

50th fiscal year

Accounting period

from April 1, 2021
to June 30, 2021

from April 1, 2022
to June 30, 2022

from April 1, 2021
to March 31, 2022

Net sales(Millions of yen)

18,33728,325

162,744

Ordinary income (loss) (△)(Millions of yen)

△1,271

398

10,258

Quarterly net loss (△) attributable toowners of parent or quarterly net income
attributable to owners of parent(Millions of yen)

△1,080206

6,215

Quarterly comprehensive income (loss)(Millions of yen)

△888

134

6,293

Net assets(Millions of yen)

52,70058,06959,601

Total assets(Millions of yen)

229,499

243,519

223,473

Quarterly Net Loss (△) per Share or
Quarterly Net Income per Share

(Yen)

△9.94

1.89

57.10

Quarterly (current term) net income pershare (fully diluted)

(Yen)

-

1.88

56.69

(%)

22.8

23.7

26.5

Equity Ratio(NOTE)1. We have prepared the quarterly consolidated financial statements, and accordingly, we have not provided a description of trends in major
management indicators, etc. of the Company submitting the financial statements.
2. Diluted net income per share for the first quarter of the 50th fiscal year is not presented because the Company posted a loss per share,
although there were dilutive shares.
3. The provisional accounting treatment for business combinations conducted in the first quarter of the previous fiscal year was finalized at theend of the previous fiscal year. The relevant major management indicators for the first quarter of the previous fiscal year are the amounts
after reflecting a material revision to the initial allocation of the acquisition cost due to the finalization of the provisional accounting
treatment.

2. [Businesses]
There have been no material changes in the nature of the businesses operated by our group (we and our affiliates) during the first quarter of the
fiscal year under review. There have also been no changes in major affiliated companies.
The Company has changed the classification of reportable segments from the first quarter of the fiscal year under review. The details aredescribed in "Ⅳ Financial Information, 1. Quarterly Consolidated Financial Statements, Notes (Segment Information, etc.)."-1-Ⅱ. [Business Overview]
1. [Business Risks]
There have been no significant changes in the occurrence of new business or other risks or in the business and other risks described in theannual securities report for the previous fiscal year during the first quarter of the current fiscal year.

2. [Management’s Analysis of Financial Position, Operating Results and Cash Flows]
Forward-looking statements in the text are based on judgments made as of the end of the current quarterly consolidated accounting period.
As the provisional accounting treatment for business combinations conducted in the first quarter of the previous fiscal year was finalized at theend of the previous fiscal year, comparisons and analyses with the same quarter of the previous fiscal year are based on amounts after reflecting
significant revisions to the initial allocation of acquisition costs due to the finalization of the provisional accounting treatment.
(1)Management's discussion
In the first quarter of the current fiscal year, the outbreak of the new coronaviral contagious disease (COVID-19) was on a brisk trend, but
continued to warrant vigilance due to its renewed expansion. The outlook for the global economy as a whole continues to be uncertain due
to the effects of rapidly advancing financial market fluctuations and heightened geopolitical tensions caused by Russia's invasion of
Ukraine, among other factors, on material prices.
In accordance with the "Notice of Changes in Business Segments" announced on March 14, 2022, the Group changed the classification ofsegments from the previous 5 business segments to 4 business segments from the first quarter of the current fiscal year. In addition, theresults for the first quarter of the previous fiscal year in the discussion of each segment below have been reclassified in the new segments.
(Millions of yen)Segment nameFirst quarter

First quarterof the previous fiscal yearof the current fiscal year

Net sales

Operating

Net sales

incomeComparison

Operating

Net sales

incomeOperatingincomeReal Estate Business

14,930△1,00024,835

809

9,905

1,809

Energy Business

2,646

22

2,643

△163

△3

△186

Asset Management Business

200

52

250

73

50

21

Other Businesses

560

24

595

△122

35

△147

Total

18,337△900

28,325

597

9,988

1,497

①Operating Results by Segment
In the Real Estate Business, net sales in this business were 24,835 million yen (up 66.3% from the same period of the previous year) due
to new built-for-sale condominiums, new detached house, renewal resale, liquidation, real estate rental, real estate management and realestate other etc.
In the Energy Business, net sales of the business were 2,643 million yen (0.1% down from the same quarter of the previous year) due torevenue from the sale of electricity generated by power generation facilities.
In the Asset Management Business, due to management fees and other factors, net sales in this business were 250 million yen (up 25.3%
from the same quarter of the previous year).
Net sales of the other businesses were 595 million yen (6.3% up from the same quarter of the previous year) mainly due to construction
subcontracting.
As a result, the business results for the first quarter of the fiscal year under review were net sales of 28,325 million yen (up 54.5% fromthe same quarter of the previous year), operating income of 597 million yen (operating loss of 900 million yen in the same quarter of theprevious year), ordinary income of 398 million yen (ordinary loss of 1,271 million yen in the same quarter of the previous year), and net
income attributable to owners of parent of 206 million yen (net loss attributable to owners of parent of 1,080 million yen in the same quarterof the previous year).

-2-②Progress of contracts
Regarding the sales results for the first quarter of the current fiscal year, the contract was concluded for 1,433 units compared to the 1,780
units scheduled to be delivered for the full fiscal year, and the progress ratio was 80.5%.
(Contract Status Table for New Built-for-Sale Condominiums)
Scheduled number ofunits to be delivered in

Number of units undercontract to be scheduled

Contract progress ratio

Units under contract

delivery for the current(%)

from April to Junethe current term

term

Previous term

1,800

1,268

70.4

514

Current term

1,780

1,433

80.5

635

(2)Qualitative Information on Consolidated Financial Position
Financial position
The Group's assets, liabilities and net assets at the end of the first quarter of the fiscal year under review increased by 20,046 million yen
from the end of the previous fiscal year to 243,519 million yen, mainly due to an increase in inventories associated with new purchases.
(Current assets)
Current assets were 165,909 million yen, an increase of 23,284 million yen from the end of the previous fiscal year, mainly due to anincrease in inventories associated with new purchases.
(Fixed assets)
Fixed assets decreased by 3,230 million yen from the end of the previous fiscal year to 77,561 million yen, mainly due to the transfer ofbusiness assets to real estate for sale and power generation facilities for sale, despite the steady purchase of business assets.
(Current liabilities)
Current liabilities increased by 8,862 million yen from the end of the previous fiscal year to 83,873 million yen due to an increase in
short-term borrowings and a transfer of short-and long-term borrowings.
(Fixed liabilities)
Fixed liabilities increased by 12,715 million yen from the end of the previous fiscal year to 101,576 million yen mainly due to an increasein borrowings associated with new purchases.
(Net assets)
Total net assets decreased by 1,532 million yen from the end of the previous fiscal year to 58,069 million yen, mainly due to dividends ofretained earnings exceeding the amount of quarterly net income attributable to owners of the parent.
(3)Business and financial issues to be addressed with priority
There have been no material changes in the business and financial issues that our Group should prioritize during the first quarter of thecurrent fiscal year.
(4)Research & Development Activities
Not applicable.
(5)Major factors affecting performance
Our Group's mainstay real estate sales business tends to be influenced by buyer sentiment and supplier supply trends. Purchaser
confidence is affected by economic trends, interest rate trends, housing taxes, consumption taxes, land price trends, and other factors.
Supplier supply trends are also susceptible to fluctuations in land purchase prices, prices of general contractors and other outsourcing
contractors, the collapse of subcontractors, and financial trends. As a result, fluctuations in these trends could materially affect operating
results.

-3-

3. [Important Contracts Etc. Related to Management](Company Split in Accordance with Transition to a Holding Company Structure)
At a meeting of the Board of Directors held on May 30, 2022, we resolved to conclude an absorption-type company split agreement with our
100% subsidiary, Takara Leben West Japan Co., Ltd. (the corporate name will be changed to Takara Leben Co., Ltd. on October 1, 2022).
As a result of the transition to a holding company structure, on October 1, 2022 (planned), we changed corporate name to "MIRARTHHOLDINGS, Inc." and resolved to change its business objective to conform to the post-holding company structure business. The related proposal
was approved at our 50th Ordinary General Meeting of Shareholders held on June 24, 2022.

-4-

Ⅲ. [Information on the Reporting Company]
1. [Stock Information](1)[Total Number of Shares, Etc.]①[Total number of shares]
Type

Number of authorized shares (shares)

Common stock

248,000,000
Total

248,000,000②[Issued shares]

Type

Number of shares issued at the
Number of shares issued as of theend of the current first quarter
filing date (shares)(shares)(August 10, 2022)(As of June 30, 2022)

Stock exchange on which
the company is listed

Details

The number of shares constituting
Common121,000,000

stock

121,000,000

Tokyo Stock Exchange

1 unit is 100 shares, which is thePrime market

standard for us with no limitationon the content of rights.

Total

121,000,000

121,000,000--(2)[Information on the Share Acquisition Rights, Etc.]①[Details of the Stock Option Plan]
Not applicable.
②[Other Subscription Rights]
Not applicable.
(3)[Exercise of Moving Strike Convertible Bonds, Etc.]
Not applicable.
(4)[Changes in Number of Shares Issued and Capital, Etc.]

Date

Change in the
total number ofissued shares(shares)from April 1, 2022
to June 30, 2022-

Total number of Change in capital Balance of capitalshares outstanding
stock
stock
(shares)(Millions of yen) (Millions of yen)
121,000,000

-

4,819

Change in legal
capital surplus(Millions of yen)

Balance of legal
capital surplus(Millions of yen)

-

4,817

(5)[Status of Major Shareholders]
There are no items to be stated because the current quarterly accounting period is the first quarter accounting period.

-5-(6)[Information on Voting Rights]
The status of voting rights as of the end of the first quarter of the current fiscal year is based on the shareholder register as of theimmediately preceding record date (March 31, 2022) because the details of the list of shareholders cannot be confirmed.
①[Issued shares]
As of June 30, 2022
Category

Number of voting rights(units)Number of shares (shares)

Shares without voting rights
Shares with limited voting rights(including treasury shares)
Shares with restricted voting rights(other than the above)

Details

-

-

-

-

-

-

-

-

The number of shares constituting 1 unit

Shares with full voting rights

Common stock(including treasury shares)

11,948,800-

is 100 shares, which is the standard for us
with no limitation on the content ofrights.

Shares with full voting rights(other than the above)
Shares less than 1 unit

Common stock

109,003,900

1,090,039

Common stock

47,300-Shares less than 1 unit (100 shares)

121,000,000

-

-

-

1,090,039-

Number of issued shares
Voting rights of all shareholders

Same as above(NOTE) The column of "Shares with full voting rights (other)" includes 1,600 shares held in the name of the Japan Securities Depository Center,
Inc. In addition, the "Number of voting rights" column includes 16 voting rights of shares with full voting rights held under the name ofJapan Securities Depository Center, Inc.
②[Treasury stock, etc.]
As of 30 June, 2022
Name ofshareholder

Address of shareholder

Takara Leben

1-8-2, Marunouchi,Co., Ltd.

Chiyoda-ku, Tokyo

Total

-

Number of shares
held under theshareholder’s name(shares)Number of shares
held under othershareholders’ names(shares)

Total number ofshares held
(shares)

11,948,800-

11,948,800

9.88

11,948,800-

11,948,800

9.88

Ratio of shares held tototal number of sharesissued (%)(NOTE) As of the end of the first quarter of this fiscal year, we were able to confirm the actual ownership of 11,948,807 treasury stocks.

2. [Officers]
Not applicable.

-6-Ⅳ. [Financial Information]
1. Method of Preparing Quarterly Consolidated Financial Statements
The quarterly consolidated financial statements of the Company are prepared in compliance with the Ordinance on Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements (Ordinance of the Cabinet Office No. 64 of 2007).

2. Audit Certification
Pursuant to Article 193-2-1 of the Financial Instruments and Exchange Act, we have been subject to quarterly reviews by Grant Thornton Taiyo
LLC. of our consolidated financial statements for the first quarter of the current fiscal year (from April 1, 2022 to June 30, 2022) and the firstquarter of the current fiscal year (from April 1, 2022 to June 30, 2022).

-7-

1. [Quarterly Consolidated Financial Statements](1)[Quarterly Consolidated Balance Sheets](Millions of yen)
End of 1st quarter of the fiscal year
under review(As of June 30, 2022)

End of previous fiscal year
(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable-trade and contract assets
Real estate for sale
Power generation facilities for sale
Real estate for sale in progress
Costs incurred on uncompleted contracts
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures (net)Land
Other (net)Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets

33,4282,886※1 32,616※1 1,001※1 58,036
12※1 14,919△275

31,5606,023※1 48,550※1 3,596
63,59963
12,790△275

142,625

165,909※1 9,553※1 7,754※1 36,948※1 37,394※1 17,237※1 15,695

63,73960,8431,561※1 948

1,479
954

2,510

2,433

Investments and other assets
Other
Allowance for doubtful accounts※1 14,554※1 14,297

△12

△12

Total investments and other assets

14,542

14,28480,792

77,561

Total fixed assets
Deferred assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term loans payable
Income taxes payable
Allowance
Other
Total current liabilities
Fixed liabilities
Long-term loans payable
Bonds payable
Allowance
Liabilities related to retirement benefits
Other
Total Fixed liabilities
Total liabilities

-8-

55

47

223,473

243,519

15,411
14,1892,168
25,298
2,089
1,115
14,73812,48927,083
2,120
25,400277
928
15,57375,01083,87381,923
4,070
160
984
1,722

94,620
4,060
159
1,019
1,716

88,860101,576

163,871

185,450

(Millions of yen)
End of 1st quarter of the fiscal year
under review(As of June 30, 2022)

End of previous fiscal year
(As of March 31, 2022)
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on other securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interest
Total net assets
Total liabilities and net assets

-9-

4,819
4,817
53,395△4,456

4,819
4,817
52,074△4,45658,57557,254

548
0
△14

464
3
△13

534

454

197
294

197
162

59,60158,069223,473

243,519

(2)[Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income][Quarterly Consolidated Statements of Income][First Quarter Consolidated Cumulative Period](Millions of yen)
1st quarter of previous fiscal year
(from April 1, 2021
to June 30, 2021)

1st quarter of fiscal year under review(from April 1, 2022
to June 30, 2022)

Net sales
Cost of sales

18,337
14,57028,32522,485Gross profit

3,766

5,839

Selling, general and administrative expenses

4,667

5,242

Operating income (loss) (△)

△900

597

21
76
9
49

5
71
19
67
52

155

216

436
65
25

360
53

Non-operating income
Interest income
Dividend income
Commission received
Gain from equity method investment
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Losses from equity method investment
Miscellaneous expenses

526

414

Ordinary income (loss) (△)

Total non-operating expenses△1,271

398

Quarterly net income (loss) (△) before income taxes and minority
interests△1,271

398

158
△352

143
40

Total income and other taxes

△194

184

Quarterly net income (loss) (△)△1,077

214

Quarterly net income attributable to non-controlling interests

3

8

Quarterly net income (loss) (△) attributable to owners of theparent△1,080206

Income taxes
Income tax adjustments- 10 -

[Quarterly Consolidated Statements of Comprehensive Income][First Quarter Consolidated Cumulative Period](Millions of yen)
1st quarter of previous fiscal year
(from April 1, 2021
to June 30, 2021)
Quarterly net income (loss) (△)
Other comprehensive income
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Quarterly comprehensive income(Comprising)
Quarterly comprehensive income attributable to owners of theparentQuarterly comprehensive income attributable to noncontrolling interests- 11 -

1st quarter of fiscal year under review(from April 1, 2022
to June 30, 2022)△1,077

214

187
0
0

△84
3
1

188

△80

△888

134

△891

125

3

8

[Notes](Additional Information)(Impact on accounting estimates due to the impact of the new Corona Virus infectious disease)
There were no material changes in the impact on the accounting estimates of the impact of the new Corona Virus infectious disease
described in the annual securities report for the previous fiscal year during the first quarter of the fiscal year under review.
(Notes to Quarterly Consolidated Balance Sheets)※1 Change in the purpose of holding assets
Previous fiscal year (As of March 31, 2022)
Due to a change in the purpose of holding a portion of real estate owned from resale to leasing, real estate for sale in progress of 95
million yen and real estate for sale of 581 million yen were transferred to buildings and structures of 449 million yen and land of 227
million yen in the fiscal year under review.
In addition, due to a change in the purpose of holding some of the real estate owned from development and leasing to resale, during the
fiscal year under review, 4,181 million yen for buildings and structures, 31 million yen for furniture and fixtures ("Other (net)" for property,
plant and equipment), 5,168 million yen for land, 1,117 million yen for construction in progress ("Other (net)" for property, plant andequipment), and 0 million yen for software ("Other" for intangible assets) were transferred to real estate for sale and real estate for sale inprogress. Certain of these assets were sold in the fiscal year under review, and of the 10,500 million yen transferred to real estate for sale,
8,800 million yen was recorded as cost of sales.
In addition, due to a change in the purpose of holding some mega-solar power generation facilities for resale, prepaid expenses of 69
million yen ("Other" in current assets), buildings and structures of 598 million yen, machinery, equipment and vehicles of 10,502 million
yen ("Other (net)" in property, plant and equipment), land of 4,219 million yen, construction in progress of 1,000 million yen ("Other (net)")in property, plant and equipment), leasehold interests of 172 million yen ("Other" in intangible assets), and long-term prepaid expenses of
932 million yen ("Other" in investments and other assets) were transferred to power generation facilities for sale in the fiscal year underreview. Some of these assets were sold in the fiscal year under review. Of the 17,497 million yen transferred to power generation facilities
for sale, 16,495 million yen was recorded in cost of sales.
Current First Quarter (As of June 30, 2022)
Due to a change in the purpose of holding some of the real estate owned from development and leasing to resale, buildings and structuresof 2,807 million yen, tools, furniture and fixtures of 32 million yen ("Other, net" of property, plant and equipment), and land of 2,232
million yen were transferred to real estate for sale in the first quarter of the current fiscal year. Some of these assets were sold in the firstquarter of the current fiscal year. Of the 5,072 million yen transferred to real estate for sale, 9 million yen was recorded in cost of sales.
In addition, due to a change in the purpose of holding some of the mega-solar power generation facilities for resale, machinery,equipment and vehicles of 1,946 million yen ("other, net" in property, plant and equipment), construction in progress of 421 million yen("other, net" in property, plant and equipment), and long-term prepaid expenses of 214 million yen ("other" in investments and other assets)
were transferred to power generation facilities for sale in the first quarter of the current fiscal year.
2 Contingent liabilities
Guarantees for loans from financial institutions
End of previous fiscal year
(As of March 31, 2022)
Joint and several guarantee obligations to financial
institutions, etc. until the completion of the registration of
the establishment of mortgages on our group customer
housing loans

9,846 million yen

End of 1st quarter of the fiscal year
under review(As of June 30, 2022)
3,960 million yen

Minato Vietnam Co., Ltd.

917

1,003

WISE ESTATE 3 Co., Ltd.

564

593

11,327

5,557

Total

- 12 -

3 In order to efficiently procure working capital, the Group has entered into overdraft agreements and loan commitment agreements with 67
financial institutions (64 in the previous fiscal year). The balance of undrawn lines of credit under these agreements is as follows:
End of previous fiscal year
(As of March 31, 2022)
Maximum Overdraft Amount and Total Loan
Commitments

77,471 million yen

Loan balance
Net amountEnd of 1st quarter of the fiscal year
under review(As of June 30, 2022)
83,899 million yen

41,63450,69935,83733,199(Notes to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the first quarter of the current fiscal year have not been prepared. Depreciation(including amortization related to intangible assets excluding goodwill) and amortization of goodwill related to the first quarter of the current
fiscal year are as follows:
1st quarter of previous fiscal year
(from April 1, 2021
to June 30, 2021)
Depreciation and amortization

1st quarter of fiscal year under review(from April 1, 2022
to June 30, 2022)

823 million yen

496 million yen

82

82

Amortization of goodwill(Shareholders' Equity)
I Previous 1st Quarter (from April 1, 2021 to June 30, 2021)
1. Matters concerning dividends
Dividends paid
(Resolution)

Class of shares

Total dividends

Per share(Millions of yen) dividends (yen)Record Date

Effective date

March 31, 2021

June 28, 2021

Record Date

Effective date

March 31, 2022

June 27, 2022

Source ofdividends

June 25, 2021
AnnualShareholders'Common stock

1,086

10

Retained earnings

Meeting
2. Significant changes in the amount of shareholders' equity
Not applicable.
II First Quarter Under Review (from April 1, 2022 to June 30, 2022)
1. Matters concerning dividends
Dividends paid
(Resolution)

Class of shares

Total dividends

Per share(Millions of yen) dividends (yen)Source ofdividends

June 24, 2022
AnnualShareholders'Common stock

1,526

14

Meeting
2. Significant changes in the amount of shareholders' equity
Not applicable.

- 13 -

Retained earnings

(Segment information, etc.)[Segment Information]
I Previous 1st Quarter (from April 1, 2021 to June 30, 2021)
1. Information on net sales and income (loss) by reportable segment and revenue decomposition information(Millions of yen)
Reportable segments
Real Estate

EnergyBusiness

Business

Asset

OthersManagement(NOTE)1

Total

Total

Business

Net sales
Revenue arising from contracts

13,4882,646

200

16,335560

16,896

Other revenue

1,441

-

-

1,441

-

1,441

Net sales to customers

14,9302,646

200

17,777560

18,337

-

6

-

6

-

6

14,9302,653

200

17,783560

18,343△1,000

22

52

△925

24

△900

with customers

Intersegment net sales or transfers
Total
Segment income (loss) (△)(NOTE)1. "Others" is a business segment that is not included in reportable segments and includes rehabilitation-focused day service
business, construction subcontracting business, hotel business, etc.
2. Segment information for the first quarter of the consolidated fiscal year under review is disclosed based on the amountafter reflecting a significant revision to the initial allocation of the acquisition cost due to the finalization of theprovisional accounting treatment described in "Notes (Business Combinations, etc.)."
2. Information on impairment loss on noncurrent assets and goodwill by reportable segment(Significant changes in the amount of goodwill)In the first quarter of the fiscal year under review, all of the issued shares of ACA Clean Energy Co., Ltd. (renamed Leben Clean
Energy Co., Ltd. on June 22, 2021) were newly acquired and made a consolidated subsidiary. As a result, the amount of goodwill
increased by 907 million yen in the Energy Business segment.
The amount of goodwill is after reflecting the allocation of the acquisition cost due to finalization of the provisional accounting
treatment.

- 14 -

II First Quarter Under Review (from April 1, 2022 to June 30, 2022)
1. Information on net sales and income (loss) by reportable segment and revenue decomposition information(Millions of yen)
Reportable segments
Real Estate

EnergyBusiness

Business

Asset

Others (Note)

Management

Total

Total

Business

Net sales
Revenue arising from contracts

23,3722,643

250

26,266595

26,862Other revenue

1,463

-

-

1,463

-

1,463

Net sales to customers

24,8352,643

250

27,730595

28,325

-

-

-

-

-

-

24,8352,643

250

27,730595

28,325

809

△163

73

719

△122

597

with customers

Intersegment net sales or transfers
Total
Segment income (loss) (△)(NOTE)"Others" is a business segment that is not included in reportable segments and includes rehabilitation-focused day service
business, construction subcontracting business, hotel business, etc.
2. Changes in reportable segments(Changes in reportable segments)
With the aim of further enhancing our corporate value, we plan to shift to a holding company structure on October 1, 2022, witha view to clarifying profitability and business responsibilities for each segment by transitioning to a pure holding company structure
and to effectively utilizing management resources.
Accordingly, in the first quarter of the current fiscal year, the 5 segments of the Real Estate Sales Business, Real Estate Rental
Business, Real Estate Management Business, Energy Business, and Other Businesses, which were previously disclosed asreportable segments, have been changed to 4 segments: Real Estate Business, Energy Business, Asset Management Business, andOther Businesses. In addition, the allocation method of company-wide expenses has been reviewed.
Segment information for the first quarter of the previous fiscal year has been prepared and disclosed based on the revised
reportable segment classification.

- 15 -

(Business Combinations, etc.)
Significant revision of the initial allocation of the acquisition cost in comparative information
The business combination with ACA Clean Energy Co., Ltd. (which changed its name to Leben Clean Energy Co., Ltd. on June 22, 2021)
that took place on April 13, 2021 was accounted for on a provisional basis in the first quarter of the previous fiscal year, but was finalized at
the end of the previous fiscal year.
In conjunction with the finalization of this provisional accounting treatment, the comparative information included in the quarterly
consolidated financial statements for the first quarter of the current fiscal year reflects significant revisions to the initial allocation of
acquisition costs. As a result, goodwill decreased by 655 million yen, and power generation facilities for sale increased by 767 million yen,machinery and equipment increased by 176 million yen ("other" in property, plant and equipment) and deferred tax liabilities increased by
289 million yen ("other" in non-current liabilities).
As a result, in the consolidated statements of income for the first quarter of the previous fiscal year, cost of sales increased by 5 million
yen, selling, general and administrative expenses decreased by 16 million yen, and operating loss, ordinary loss and loss before income
taxes decreased by 11 million yen each.
(Revenue Recognition)
Information disaggregating revenue from contracts with customers is presented in "Notes (Segment Information, etc.)."(Per Share Information)
Quarterly net income per share or quarterly net loss per share and the basis for calculation, diluted quarterly net income per share and thebasis for calculation are as follows.
1st quarter of previous fiscal year
(from April 1, 2021
to June 30, 2021)(1) Quarterly net income per share or quarterly net loss (△) per
share

1st quarter of fiscal year under review(from April 1, 2022
to June 30, 2022)△ 9.94 yen

1.89 yen△1,080206--

Quarterly net income attributable to owners of the parent
or quarterly net loss attributable to owners of the parent(△) related to common stock (Millions of yen)

△1,080206

Average number of shares of common stock outstanding
during the period (Thousands of shares)

108,655

109,051-

1.88 yen

Quarterly adjustments to net income attributable to ownersof parent(Millions of yen)--

Increase in common stock (thousands)-

726(Basis of calculation)
Quarterly net income attributable to owners of the parent
or quarterly net loss attributable to owners of the parent(△)(Millions of yen)Amounts not attributable to common shareholders(Millions of yen)(2) Quarterly diluted net income per share(Basis of calculation)

Summary of dilutive shares that were not included in thecalculation of diluted net income per share because they had
no dilutive effect, and which had a significant change from theend of the previous fiscal year--

(NOTE)1. Diluted net income per share for the first quarter of the previous fiscal year is not presented because the Company posted a net loss
per share, although there were dilutive shares.
2.Quarterly net loss per share for the first quarter of the previous fiscal year is calculated based on the amount after reflecting thesignificant revision of the initial allocation of the acquisition cost due to the finalization of the provisional accounting treatment
described in "Notes (Business Combinations, etc.)."- 16 -

(Significant Subsequent Events)(Issuance of Stock Compensation-type Stock Options)
At a meeting of the Board of Directors held on July 29, 2022, the Company resolved to issue stock acquisition rights as stock-based
compensation-type stock options to our directors and our executive officers in accordance with Article 236, 238 and 240 of the Companies
Act.
1. Reasons for granting stock acquisition rights as stock compensation-type stock options
The purpose of this report is to further clarify the linkage between our business performance and stock value and executive
compensation and salaries, and to further increase our willingness to contribute to improving medium-to long-term business performanceand corporate value.
2. Summary of the stock acquisition rights
I. Class A Stock Acquisition Rights(1)Allotment date of stock acquisition rights
August 23, 2022
(2)Number of new share acquisition rights
7,562 units (100 shares per unit)(3)Persons entitled to the Stock Acquisition Rights and the number of such persons
7 of our directors and 7 of our executive officers(4)Amount to be paid for stock acquisition right
The amount to be paid for the stock acquisition rights shall be the fair value calculated by the Black-Scholes Model on the date ofallotment of the stock acquisition rights. In addition, the Company shall pay to the Subject Persons to whom Share Options havebeen allotted (hereinafter referred to as "Holders of Share Options") a monetary remuneration equivalent to the total amount of suchAmount To Be Paid In, and shall cause such Share Options to be acquired by offsetting such Remuneration Claims with thepayment obligation for the Amount To Be Paid In for the Share Options.
(5)Kinds and numbers of shares which provide for granting options
756,200 shares of our common stock
In the event that we split our common stock or reverse share split after the date of allotment of the stock acquisition rights
stipulated in (1) above, the number of granted shares shall be adjusted according to the following formula, and any fraction lessthan 1 share resulting from the adjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stocksplit
In addition, in the event we carry out a merger, company split, share split, or share consolidation, in the event free allotment ofshares is made, or in the event it is necessary to adjust the number of granted shares in accordance with the foregoing, the numberof granted shares shall be appropriately adjusted within a reasonable limit.
Provided, however, that the adjustment in this item shall be made only with respect to the number of the Share Options which are
the subject of the Share Options not exercised at such time out of the Share Options.
(6)Assets to be contributed at the time of exercise of the rights
The amount shall be 1 yen per share that can be delivered upon exercise of the Stock Acquisition Rights and multiplied by the
total number of Granted Shares.
(7)Period for exercising subscription rights
From August 24, 2022 to August 23, 2062. Provided, however, that in the event the last day of the Exercise Period falls on aholiday, the next business day shall be the last day of such Exercise Period.
(8)Conditions of execution of subscription rights①Holders of Share Options may exercise all Share Options allotted to such holders of Share Options on or after the Issue Date.
②Notwithstanding ①above, in the event the Subject Person to whom the Share Options have been allotted falls under any of thefollowing items, such Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. The Company loses the position of either of its directors or executive officers due to voluntary retirement, etc. (excluding
retirement due to expiration of term of office, resignation due to our convenience, or retirement) within 1 year from thedate of allotment of the Stock Acquisition Rights.

- 17 -

4. In the event any of our directors and executive officers is lost due to dismissal or disciplinary action by a resolution of thegeneral meeting of shareholders or a resolution of the board of directors, or in the event it is reasonably recognized that it isinappropriate to have the Board of Directors exercise the Stock Acquisition Rights.
5. When the Subject Person requests to waive his/her rights③ In the event of the death of a holder of a new stock reservation right, only if the new stock reservation right belongs to only 1 ofthe legal heirs of the holder of the new stock reservation right (hereinafter referred to as the "heirs"), the heirs may exercise
the new stock reservation right in accordance with this contract under the conditions of the following items. Provided,
however, that a person who is deemed to have committed a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and nolater than the last day of the exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
(9)Matters concerning the increase in capital and capital legal reserve when stock is issued upon the exercise of stock option①The amount of capital to be increased in the event shares are issued upon the exercise of share warrants shall be 1 half of theupper limit of capital increase calculated in accordance with Paragraph 1 of Article 17 of the Rules for Corporate Accounting,and any fraction less than 1 (1) yen as a result of the calculation shall be rounded up to the nearest 1 (1) yen.
②The amount of capital reserve to be increased in the event of the issuance of shares upon the exercise of share warrants shall be
the amount obtained by subtracting the amount of capital to be increased as set forth in ①above from the maximum amountof capital increase, etc. as set forth in ①above.
II. Class B Stock Acquisition Rights(1)Allotment date of stock acquisition rights
August 23, 2022
(2)Number of new share acquisition rights
1,880 units (100 shares per unit)(3)Persons entitled to the Stock Acquisition Rights and the number of such persons
7 of our directors and 7 of our executive officers(4)Amount to be paid for stock acquisition right
The amount to be paid for the stock acquisition rights shall be the fair value calculated by the Black-Scholes Model on the date ofallotment of the stock acquisition rights. In addition, the Company shall pay to the Subject Persons to whom Share Options havebeen allotted (hereinafter referred to as "Holders of Share Options") a monetary remuneration equivalent to the total amount of suchAmount To Be Paid In, and shall cause such Share Options to be acquired by offsetting such Remuneration Claims with thepayment obligation for the Amount To Be Paid In for the Share Options.
(5)Kinds and numbers of shares which provide for granting options
188,000 shares of our common stock
In the event that we split our common stock or reverse share split after the date of allotment of the stock acquisition rights
stipulated in (1) above, the number of granted shares shall be adjusted according to the following formula, and any fraction lessthan 1 share resulting from the adjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stocksplit
In addition, in the event we carry out a merger, company split, share split, or share consolidation, in the event free allotment ofshares is made, or in the event it is necessary to adjust the number of granted shares in accordance with the foregoing, the numberof granted shares shall be appropriately adjusted within a reasonable limit.
Provided, however, that the adjustment in this item shall be made only with respect to the number of the Share Options which are
the subject of the Share Options not exercised at such time out of the Share Options.
(6)Assets to be contributed at the time of exercise of the rights
The amount shall be 1 yen per share that can be delivered upon exercise of the Stock Acquisition Rights and multiplied by the
total number of Granted Shares.
(7)Period for exercising subscription rights
From August 24, 2022 to August 23, 2062. Provided, however, that in the event the Subject Person to whom Share Options havebeen allotted loses any of our directors and executive officers' positions due to any reason other than death, such Subject Person- 18 -

shall be required to exercise such rights within 10 days from the day following the date of such loss. If the last day of the Exercise
Period falls on a holiday, the next business day shall be the last day of the Exercise Period.
(8)Conditions of execution of subscription rights①The owner of the stock reservation right may exercise the stock reservation right allocated to the stock reservation right from the
day following the day when the new stock reservation right holder loses both the position of our director and the execution
officer.
②Notwithstanding ①above, in the event the Subject Person to whom the Share Options have been allotted falls under any of thefollowing items, such Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. The Company loses the position of either of its directors or executive officers due to voluntary retirement, etc. (excluding
retirement due to expiration of term of office, resignation due to our convenience, or retirement) within 1 year from thedate of allotment of the Stock Acquisition Rights.
4. In the event any of our directors and executive officers is lost due to dismissal or disciplinary action by a resolution of thegeneral meeting of shareholders or a resolution of the board of directors, or in the event it is reasonably recognized that it isinappropriate to have the Board of Directors exercise the Stock Acquisition Rights.
5. When the Subject Person requests to waive his/her rights③ In the event of the death of a holder of a new stock reservation right, only if the new stock reservation right belongs to only 1 ofthe legal heirs of the holder of the new stock reservation right (hereinafter referred to as the "heirs"), the heirs may exercise
the new stock reservation right in accordance with this contract under the conditions of the following items. Provided,
however, that a person who is deemed to have committed a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and nolater than the last day of the exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
(9)Matters concerning the increase in capital and capital legal reserve when stock is issued upon the exercise of stock option①The amount of capital to be increased in the event shares are issued upon the exercise of share warrants shall be 1 half of theupper limit of capital increase calculated in accordance with Paragraph 1 of Article 17 of the Rules for Corporate Accounting,and any fraction less than 1 (1) yen as a result of the calculation shall be rounded up to the nearest 1 (1) yen.
②The amount of capital reserve to be increased in the event of the issuance of shares upon the exercise of share warrants shall be
the amount obtained by subtracting the amount of capital to be increased as set forth in ①above from the maximum amountof capital increase, etc. as set forth in ①above.

2. [Other]
Not applicable.

- 19 -

Part II. [Information Concerning Guarantors of the Reporting Company]
Not applicable.

- 20 -

Independent Auditors' Quarterly Review ReportAugust 8, 2022

Takara Leben Co., Ltd.
To the Board of Directors
Grant Thornton Taiyo LLC.
Tokyo Office
Designated Limited
Li a b i l i t y P a r t n e r s
Managing Partner

Certified Public
Accountant

Tooru Yurue

Designated Limited
Li a b i l i t y P a r t n e r s
Managing Partner

Certified Public
Accountant

Takafumi Shimokawa

Auditor's conclusion
Based on the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, we have reviewed the quarterly consolidated
financial statements for the first quarter of the consolidated fiscal year from April 1, 2022 to March 31, 2023 (from April 1, 2022 to June 30, 2022) andthe first quarter of the consolidated cumulative period (from April 1, 2022 to June 30, 2022), that is, the quarterly consolidated balance sheet, thequarterly consolidated statements of income, the quarterly consolidated statements of comprehensive income, and the notes of Takara Leben Co., Ltd.,
which are listed in the "Financial Information" section.
In our quarterly review, we were not permitted in all material respects to present fairly the financial position of Takara Leben Co., Ltd. andconsolidated subsidiaries as of June 30, 2022, and the results of their operations for the first quarter then ended, in conformity with the standards for
preparation of the quarterly consolidated financial statements generally accepted in Japan.
Rationale for the auditor's conclusion
We conducted our quarterly reviews in accordance with quarterly review standards generally accepted in Japan. Our responsibilities under thequarterly review criteria are described under the caption "Auditor's Responsibility for Quarterly Reviews of the Quarterly Consolidated Financial
Statements." We are independent from the Company and its consolidated subsidiaries and fulfill our other ethical responsibilities as auditors inaccordance with the Code on Professional Ethics in Japan. We believe that the evidence supporting the statements is available.
Responsibilities of Management, Corporate Auditors and the Board of Corporate Auditors to the Quarterly Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial statements in accordance with thestandards generally accepted in Japan. This includes the design, implementation, and maintenance of internal control as management determines isnecessary to enable the preparation and fair presentation of quarterly consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare thequarterly consolidated financial statements based on the going concern assumption and for disclosing matters concerning a going concern based on thestandards for preparing the quarterly consolidated financial statements generally accepted in Japan.
The responsibility of the corporate auditors and the Board of Corporate Auditors is to oversee the execution of the directors' duties in thedevelopment and operation of the financial reporting process.

Auditor's Responsibility for the Quarterly Review of the Quarterly Consolidated Financial Statements
The auditor's responsibility is to independently express a conclusion on the quarterly consolidated financial statements in the Company's quarterly
review reports based on the auditor's quarterly review.
The auditors shall make judgments as professional experts and maintain professional skepticism through the quarterly review process in accordancewith the standards of the quarterly review generally accepted in Japan and carry out the following:・ Conduct questions, analytical procedures, and other quarterly review procedures primarily for management, those responsible for financial andaccounting matters. The quarterly review procedure is a limited procedure compared with the audit of the financial statements for the year
performed in accordance with auditing standards generally accepted in Japan.
・ In cases where the Company determines that material uncertainties with respect to events or circumstances that raise substantial doubt withrespect to matters relating to the going concern assumption, the Company will conclude whether, based on the evidence obtained, matters that it
believes are not fairly presented in the quarterly consolidated financial statements in accordance with the standards for preparing the quarterly
consolidated financial statements generally accepted in Japan are disallowed. In addition, when significant uncertainties regarding the Company's
ability to continue as a going concern are identified, the Company is required to alert the reader to the notes to the quarterly consolidated financial
statements in its quarterly review reports or express a limited conclusion or negative conclusion on the quarterly consolidated financial statements
if the notes to the quarterly consolidated financial statements regarding material uncertainties are not appropriate. The auditor's conclusion isbased on evidence obtained through the date of the quarterly review report, but future events and circumstances may prevent the entity fromcontinuing as a going concern.
・ Evaluate whether the presentation of the quarterly consolidated financial statements and the notes to the consolidated financial statements do not
permit matters that we believe are not in accordance with the standards for preparing the quarterly consolidated financial statements generally
accepted in Japan, as well as whether the presentation, composition and content of the quarterly consolidated financial statements, including
related notes, and any matters that cause us to believe that the quarterly consolidated financial statements do not fairly present the underlying
transactions and accounting events.
・ Obtain evidence on the financial information of the Company and its consolidated subsidiaries in order to express a conclusion on the quarterly
consolidated financial statements. The auditor is responsible for directing, supervising and implementing the quarterly review of the quarterly
consolidated financial statements. The auditor is solely responsible for the auditor's conclusion.
The auditor shall report to the auditor and the Board of Corporate Auditors on the scope of the planned quarterly review and the timing of its
implementation, as well as important findings in the quarterly review.
The auditors shall report to the auditors and the board of auditors on compliance with the provisions on professional ethics in Japan regarding
independence, matters that are reasonably likely to affect the independence of the auditor, and where safeguards are in place to eliminate or mitigate
impediments.
Interests
The Company and Consolidated Subsidiaries have no interest in the Auditing Corporation or Operating Partners that should be stated pursuant to theprovisions of the Certified Public Accountants Act.
Above

(NOTE) 1. The original copy of the above quarterly review report is kept separately by our (quarterly annual securities report filing company).
2. XBRL are not included in the scope of quarterly reviews.