Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2017
May 15, 2017
Company name:
Stock listed on:
Securities code:
Representative:
Contact:

Takara Leben CO., LTD.
Tokyo Stock Exchange, First Section
8897 (URL http://www.leben.co.jp)
Kazuichi Shimada, President, Representative Director
Masashi Yamamoto, General Planning Division
Tel. +81-3-5324-8720
Scheduled date of annual general meeting of shareholders: June 27, 2017
Scheduled date for commencement of dividend payment:
June 28, 2017
Scheduled date for release of annual securities report:
June 27, 2017
Supplementary materials on financial results:
Yes
Briefing for financial results:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million)

1. Consolidated Financial Results for the Year Ended March 31, 2017 (From April 1, 2016 to March 31, 2017)(1) Consolidated operating results(Percentage figures represent year-on-year changes)
Net sales

Operating income

Millions of yen

Year ended March 31, 2017
Year ended March 31, 2016

% Millions of yen

103,599
76,268(Note) Comprehensive income:

35.8
(0.9)

10,349
7,563

Profit (loss) attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen%

36.8(18.3)

9,496
6,708

41.6
(21.4)

6,107
4,308

41.8
(24.7)

Fiscal year ended March 31, 2017: ¥6,124 million (43.5%)
Fiscal year ended March 31, 2016: ¥4,266 million ((25.7)%)
Earnings
per share
yenYear ended March 31, 2017
Year ended March 31, 2016

yen

56.14
38.99

(Reference) Equity in net income of affiliates:

Ratio of earnings toshareholders’ equity

Diluted earnings
per share

Ratio of ordinary
income to total assets
%

55.85
38.82

Ratio of operating
income to net sales

%

17.4
13.3

%

7.0
5.8

10.0
9.9

Fiscal year ended March 31, 2017: ¥36 million
Fiscal year ended March 31, 2016: ¥65 million(2) Consolidated financial position
Total assets

Net assets

Millions of yen

March 31, 2017
March 31, 2016

Net assets per share

Millions of yen

139,874
129,744(Reference) Shareholders’ equity:

Equity ratio%

36,792
33,677

yen

26.2
25.8

339.29304.71March 31, 2017: ¥36,635 million
March 31, 2016: ¥33,536 million(3) Consolidated cash flows
Cash flow fromoperating activities

Cash flow frominvesting activities

Millions of yen

Year ended March 31, 2017
Year ended March 31, 2016

Cash flow fromfinancing activities

Millions of yen

22,644
2,428

Cash and cash equivalents
at end of year

Millions of yen(27,540)(19,816)

Millions of yen

6,129
19,66329,62328,3902. Dividends
Annual dividends per share(Record date)

Q1

Q2

Q3

yen

yen

Year-end
yen

Total
dividends(annual)

Total

yen

Dividend
payout ratio(consolidated)

yen Millions of yen

Year ended March 31, 2016
Year ended March 31, 2017

‒
‒

4.00
5.00

‒
‒

9.00
10.00

13.00
15.00

Year ending March 31, 2018
(forecast)

‒

5.00

‒

10.00

15.00

1,430
1,622

Ratio ofdividends to
net assets(consolidated)

%

%

33.3
26.7

4.4
4.6

25.7

3. Forecast of Consolidated Financial Results for the Year ending March 31, 2018 (From April 1, 2017 to March 31,
2018)(Percentage figures represent year-on-year changes)

Net sales

Operating income

Millions of yen

Full year

110,000%

6.2

Millions of yen

10,550%1.9

Ordinary income
Millions of yen

9,500

Net income
per share

Net income%

0.0

Millions of yen

6,300

%

3.1

Yen

58.35

* Notes(1) Changes in significant subsidiaries during the current fiscal year (Changes in specified subsidiaries resulting inchanges in scope of consolidation): None
New: None (Name) Excluded: None (Name) (2) Changes in accounting policies and accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatements:

Yes
None
None
None

(Note) For details, please see “4. Consolidated Financial Statements and Major Notes, (5) Notes to the Consolidated Financial
Statements, (Changes in Accounting Policies)” on page 19.

(3) Number of shares issued and outstanding (common stock)(i) Number of shares issued and outstanding at end of year (including treasury stock)(a) As of March 31, 2017:
124,000,000 shares(b) As of March 31, 2016:
126,000,000 shares(ii) Number of treasury stock at end of year(a) As of March 31, 2017:16,022,507 shares(b) As of March 31, 2016:
15,938,307 shares(iii) Average number of shares during the year(a) Fiscal year ended March 31, 2017:
108,790,777 shares(b) Fiscal year ended March 31, 2016:
110,491,726 shares* Summaries of consolidated financial results are not subject to audit.
* Explanation of the proper use of the financial results forecasts and other matters
The forward-looking statements presented above are based on the information available at the time of the release ofthis report and are not intended to guarantee that the Company will achieve such figures. Actual results may differ
from these forecasts due to various factors in the future.

 Contents of Attachment
1. Overview of Operating Results, Etc. ···································································································(1) Overview of Operating Results for the Fiscal Year ended March 31, 2017 ···················································(2) Overview of Financial Position for the Fiscal Year ended March 31, 2017 ··················································(3) Overview of Cash Flows for the Fiscal Year ended March 31, 2017 ··························································(4) Future Outlook ························································································································
2. The Takara Leben Group ·················································································································
3. Basic Concept of Selection of Accounting Standards ·················································································
4. Consolidated Financial Statements and Major Notes ··················································································(1) Consolidated Balance Sheet ··········································································································(2) Consolidated Statements of Income and Comprehensive Income ·······························································
Consolidated Statement of Income ······························································································
Consolidated Statement of Comprehensive Income ·········································································(3) Consolidated Statement of Changes in Shareholders’ Equity ···································································(4) Consolidated Statement of Cash Flows ····························································································(5) Notes to the Consolidated Financial Statements ··················································································(Notes Regarding the Going Concern Assumption) ·············································································(Significant Basis for Preparation of the Consolidated Financial Statements) ·············································(Changes in Accounting Policies) ·································································································(Additional Information) ············································································································(Consolidated Balance Sheet) ·····································································································(Consolidated Statement of Income) ·····························································································(Consolidated Statement of Comprehensive Income) ··········································································(Consolidated Statement of Changes in Shareholders’ Equity) ·······························································(Consolidated Statement of Cash Flows) ··························································································(Rental Properties, etc.) ············································································································(Segment Information) ·············································································································(Per Share Information) ············································································································(Significant Subsequent Events) ··································································································
5. Other ········································································································································(1) Changes of Officers ··················································································································(2) Production, Orders Received and Sales ····························································································

–1–

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1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Fiscal Year ended March 31, 2017
During the fiscal year under review, the Japanese economy maintained moderate upward momentum amid the improving
trends of corporate earnings and employment conditions, underpinned by various economic measures implemented by thegovernment and the monetary easing policy of the Bank of Japan. Meanwhile, the global economy still required attention,
given that it was increasingly uncertain due to the weaker-than-expected economy in Europe, reflecting the Brexit
decision in the United Kingdom, and slower growth in emerging economies in Asia.
In the Real Estate sales market, where the Company operates, the values that customers adopted in the purchase of realestate began changing due to a fall in the number of units supplied in the Tokyo metropolitan area and a rise in sales prices
in urban areas. In particular, customers’ needs for location and convenience became pronounced. As a result, sales
progress showed a bipolarized tendency of ups and downs. The market conditions remained generally firm because
consumer interest in buying homes was still high thanks to continued measures to support home-buying and low interest
rates, and demand was increasing particularly among active seniors. In addition, while the number of new condominiums
supplied in Japan declined for the third consecutive year in 2016, the Company was ranked in the top 10 for the fourthconsecutive year, suggesting that it plays a role in supplying condominiums stably in the real estate sales market.
In this environment, the Company formulated a new medium-term management plan “Takara Leben Next Stage 2019” inMay 2015 and is focusing on promoting the plan’s slogan: “Beginning of a New Era: Diversifying the Flow Business andExpanding the Stock and Fee-based Businesses.” In the real estate sales business, its core business, the Company supplies
properties not only in the Tokyo metropolitan area, but also in local central cities. In the detached housing business, Nikko
Kensetsu Co., Ltd., a consolidated subsidiary, changed its company name to Nikko Takara Corporation Co., Ltd. to focus
on the detached housing business.
In the stock and fee-based businesses, the Company established Takara Leben Infrastructure Fund, Inc. in the mainstay
power generation business for the purpose of further expanding its businesses, and listed it on the infrastructure fundmarket of the Tokyo Stock Exchange as the first fund on June 2, 2016. In the real estate rental business and managementbusiness and other business, the Company will work to build multiple revenue sources not bound by the core real estate
sales business by exerting synergetic effects in the Group as a whole.
With its “Leben” series of self-designed new built-for-sale condominiums as its main brand, the Company will continue topromote business activities with an emphasis on its customers by working on product plans that accurately capture thetime background, always adhering to its basic concept of “ideal, affordable housing that anyone can buy with confidence,”
as well as its corporate mission of “thinking of happiness; creating happiness.”
In the consolidated fiscal year under review, the Company recorded net sales of ¥103,599 million (up 35.8% year on year),
operating income of ¥10,349 million (up 36.8% year on year), ordinary income of ¥9,496 million (up 41.6% year on year)
and profit attributable to owners of parent of ¥6,107 million (up 41.8% year on year).
(i) Performance by Business Segment<Real Estate Sales Business>
Revenues from the real estate sales business amounted to ¥79,638 million, up 25.6% year on year, as a result of revenuesof ¥52,988 million from the sales of new built-for-sale condominiums and revenues of ¥26,650 million from the sales of
new detached houses and used condominiums, etc.
<Real Estate Rental Business>
Revenues from the real estate rental business amounted to ¥5,056 million, up 17.4% year on year, including rent revenues
from rental of apartments, condominium units, and offices.
<Real Estate Management Business>
Revenues from the real estate management business representing management fees from 44,656 units under management
amounted to ¥3,665 million, up 9.0% year on year.
<Electric power generation business>
Revenues from the electric power business amounted to ¥11,108 million, up 1,120.9% year on year, including revenue
from sales of power generation facilities and revenue from sales of electric power.
<Other Business>
Revenues from other business totaled ¥4,130 million, down 4.1% year on year, including revenues from contracts for–2–

construction works and orders for large-scale repair works, etc.
(ii) Performance Review by Item
<Net Sales>
In the real estate sales business, net sales amounted to ¥79,638 million, reflecting sales of 1,503 units of new built-for-salecondominiums as well as 275 units of new detached houses and used condominiums.
In the real estate rental business, net sales stood at ¥5,056 million due to rental revenues of apartments, condominiums
and offices, etc.
In the real estate management business, net sales came to ¥3,665 million due to management fees, etc. from 44,656 units
managed.
In the power generation business, net sales were ¥11,108 million, including revenues from sales of power generation
facilities and revenue from sales of electric power.
In other business, net sales were ¥4,130 million, reflecting contracts for construction works and orders for large-scale
repair works, etc.
As a result of the above, net sales in the consolidated fiscal year under review increased to ¥103,599 million, up 35.8%
year on year.
<Cost of Sales>
Cost of sales increased 39.9% year on year, to ¥81,729 million, mainly due to sales of business assets and power
generation facilities.
<Selling, General and Administrative Expenses>
Selling, general and administrative expenses increased 12.2% year on year, to ¥11,520 million, chiefly owing to anincrease in personnel associated with business expansion, despite the continued implementation of thorough measures toreduce expenses, as in the previous fiscal year.
<Non-Operating Income and Expenses>
Non-operating income declined 3.8% year on year, to ¥252 million, due to the reduction of equity method affiliates by one
in the previous fiscal year.
Non-operating expenses decreased 1.1% from the previous fiscal year, to ¥1,105 million, attributable to a fall in interest
rates, despite an increase of ¥9,556 million in total loans payable.
<Extraordinary Gains and Losses>
Extraordinary gains stood at ¥13 million due to the generation of gain on reversal of subscription rights to shares.
Extraordinary losses increased 282.4% year on year, to ¥963 million, mainly as a result of posting impairment losses.
As a result of the above, net sales amounted to ¥103,599 million, up 35.8% year on year, in the consolidated fiscal year
under review. Operating income came to ¥10,349 million, up 36.8% year on year, and ordinary income was ¥9,496
million, up 41.6% year on year. Profit attributable to owners of parent was ¥6,107 million, up 41.8% year on year.
(2) Overview of Financial Position for the Fiscal Year ended March 31, 2017
With regard to the status of assets, liabilities and net assets of the Group for the consolidated fiscal year under review,
total assets increased ¥10,130 million from the end of the previous fiscal year, to ¥139,874 million.
<Current assets>
Current assets rose ¥10,831 million from the end of the previous fiscal year, to ¥86,585 million, primarily reflecting thetransfer of some non-current assets to real estate for sale and power generation facilities for sale.
<Non-current assets>
Non-current assets declined ¥707 million from the end of the previous fiscal year, to ¥53,237 million, mainly due to thetransfer of some non-current assets to real estate for sale and power generation facilities for sale, despite the purchase ofbusiness assets.

–3–

<Current liabilities>
Current liabilities increased ¥7,623 million from the end of the previous fiscal year, to ¥50,482 million, chiefly
attributable to an increase in short-term loans payable and the transfer of long-term loans payable to short-term loans
payable.
<Non-current liabilities>
Non-current liabilities declined ¥608 million from the end of the previous fiscal year, to ¥52,599 million, mainly as aresult of the repayment of long-term loans payable.
<Net assets>
Net assets increased ¥3,115 million from the end of the previous fiscal year, to ¥36,792 million, chiefly because therecorded amount of profit attributable to owners of parent exceeded the amounts of dividend of surplus and purchase oftreasury shares.
(3) Overview of Cash Flows for the Fiscal Year ended March 31, 2017
Cash and cash equivalents (“funds”) as of March 31, 2017 amounted to ¥29,623 million, an increase of ¥1,233 million
from March 31, 2016.
< Cash flows from operating activities>
Net cash provided by operating activities was ¥22,644 million (cash provided of ¥2,428 million in the previous fiscal
year). The major component was a decrease in inventories.
< Cash flows from investing activities>
Net cash used in investing activities was ¥27,540 million (cash used of ¥19,816 million in the previous fiscal year),mainly due to the purchase of property, plant and equipment.
<Cash flows from financing activities>
Net cash provided by financing activities was ¥6,129 million (cash provided of ¥19,663 million in the previous fiscal
year), primarily attributable to an increase in loans payable.
(Reference) Changes in Cash Flow Indicators
FY2015/3

FY2016/3

FY2017/3

Equity ratio (%)

30.6

25.8

26.2

Equity ratio at market value (%)

70.6

56.5

38.3

Debt repayment period (years)

－

29.0

3.5

Interest coverage ratio (times)

－

2.4

24.0

Equity ratio: Shareholders’ equity/Total assets
Equity ratio at market value: Equity market capitalization/Total assets
Debt repayment period: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest expense* These indicators are all calculated using consolidated financial data.
* Interest-bearing debt includes all debts recorded on the consolidated balance sheet on which interest is paid.
* For FY2015/3, debt repayment period (years) and interest coverage ratio (times) are omitted due to negative operating
cash flows.
(4) Future Outlook
Based on the new medium-term management plan announced on May 11, 2015, the Company estimate the business planfor the next fiscal year as follows.
In the sales operations of new built-for-sale condominiums in the real estate sales business, we expect the delivery of
1,600 units by promoting active supply in the downtown areas in local cities.
In the detached housing business, we expect the delivery of 160 units.
–4–In the renovation business, we will continue to work on measures to supplement the new built-for-sale condominium
business by purchasing condominiums at an appropriate price while making an accurate decision on the market trends.
In the real estate rental business, we will seek to establish the more stable stock business through carefully selectedpurchases.
In the real estate management business, we have set the target number of units managed under consignment at 47,900
units and aim to further expand peripheral operations such as large-scale repair works.
As a result of the above, the Company forecasts the financial results for the next fiscal year as follows:
Net sales:¥110,000 million(up 6.2% year on year)

Operating income:Ordinary income:¥10,550 million¥9,500 million(up 1.9% year on year)(up 0.0% year on year)

Profit attributable to owners of parent:¥6,300 million(up 3.1% year on year)(New built-for-sale condominium business: Number of units to be delivered and contracts signed)
Number of contracts
Number of units to be
Of which, number ofsigned of the number of Total number of contracts
delivered in FY2018/3
contracts signed (unit) units to be delivered in orsigned (units)(units)after FY2019/3 (units)
As of March 31,
2017

1,600

526

28

554

(i) Progress of the Medium-Term Management Plan, etc.
The Company adopted a new medium-term management plan “Takara Leben Next Stage 2019” in May 2015 and set“diversification of flow business” and “expansion of stock and fee-based businesses” as its core strategies. The Company
aims to increase the profit ratio to 65% in the flow business and 35% in the stock and fee-based businesses in the fiscal
year ending March 31, 2019, the final year of the plan.
(ii) Achievement of Target Management Indicators
The Company manages business with a focus on shareholders’ equity and the balance of cash and deposits. In the new
medium-term management plan developed in May 2015, we have set the target ROE at 20% or more.

–5–

2. The Takara Leben GroupThe Takara Leben Group, consisting of the Company, eleven consolidated subsidiaries and one affiliate, operates the real estatebusiness primarily in the Tokyo metropolitan area, including Tokyo, Saitama, Chiba, and Kanagawa prefectures.
The Company mainly engages in the planning, development, and marketing of “Leben-series” new built-for-sale condominiums.
Leben Community Co., Ltd., a consolidated subsidiary, primarily engages in comprehensive management services forcondominium buildings.
Takara Asset Management Co., Ltd., a consolidated subsidiary, will primarily engage in the investment management business.
Takara Leben Tohoku Co., Ltd., a consolidated subsidiary, is engaged in the real estate sales business mainly in eastern Japan.
Takara Leben Realnet Co., Ltd., a consolidated subsidiary, is engaged in real estate distribution businesses.
Takara Property Co., Ltd., a consolidated subsidiary, primarily engages in the rental management business.
TAFUKO Co., Ltd., a consolidated subsidiary, primarily engages in the loan collection agency business and other commissionbased businesses.
Nikko Takara Corporation Co., Ltd., a consolidated subsidiary, primarily engages in the detached housing business and theconstruction contract business.
Nikko Property Co., Ltd., a consolidated subsidiary, primarily engages in the rental management business.
Takara Leben West Japan Co., Ltd. (previously Jyutakujyouhoukan Co., Ltd.), a consolidated subsidiary, is engaged in the realestate sales business and the real estate management business, etc. mainly in western Japan.
Sunwood Corporation, an affiliate accounted for by the equity method, is primarily engaged in the planning, development, andmarketing of new built-for-sale condominiums, etc. mainly in central Tokyo.
(1) Real estate sales business
The Company is primarily engaged in the planning, development and marketing of “Leben-series” new built-for-salecondominiums in the suburbs of the Tokyo metropolitan area. In addition, Sunwood Corporation, an affiliate accounted for by
the equity method, is primarily engaged in the planning, development, and marketing of new built-for-sale condominiums, etc.
mainly in central Tokyo.
(2) Real estate rental business
The Company is engaged in the rental business for apartments, condominiums, and offices in the Tokyo metropolitan area. In
addition, Takara Property Co., Ltd. and Nikko Property Co., Ltd., consolidated subsidiaries, are engaged in the rental
management business.
(3) Real estate management business
Leben Community Co., Ltd., a consolidated subsidiary, provides comprehensive management services for built-for-salecondominiums.
(4) Power generation business
The Company is engaged in the electric power generation business using renewable energy nationwide.
(5) Other businesses- Loan collection agency businessTAFUKO Co., Ltd., a consolidated subsidiary, provides a loan collection service.
- Nursing care businessIn addition, Leben Community Co., Ltd., a consolidated subsidiary, provides a rehabilitation-focused day-care nursing service.
- Construction business
Nikko Takara Corporation Co., Ltd., a consolidated subsidiary, is engaged in the construction business.
- Other businesses
The Group is also engaged in businesses other than the above, including the commissioned real estate marketing agency
business and the investment management business.
The Group’s businesses are orga0nized as follows.

–6–Leben Community Co., Ltd.

Takara Leben Tohoku Co., Ltd.

Takara Leben West Japan Co., Ltd.

Takara Leben CO., LTD.

Nikko Takara Corporation Co., Ltd.

Takara Leben Realnet Co., Ltd.

Consolidated subsidiaries
Takara Property Co., Ltd.

Nikko Property Co., Ltd.

TAFUKO Co., Ltd.

Takara Asset Management Co., Ltd.

Affiliate accounted for by the equity method
Sunwood Corporation–7–

3. Basic Concept of Selection of Accounting Standards
The Group has adopted the Japanese accounting standards to ensure comparability with our domestic competitors.

–8–

4. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2016)(March 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Real estate held for sale
Power generation facilities for sale
Real estate held for sale in progress
Costs incurred on uncompleted contracts
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total tangible fixed assets
Intangible fixed assets
Goodwill
Lease assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Total assets*2*2*2. *3*2. *3*2. *3*2*2. *3*2. *3

*2

*2

*1

*1

–9–

28,515963
4,073–
36,134
116
62
5,924
(38)
75,753

14,725(3,516)
11,20913,399(996)
12,402152(117)
35
24,750
243
(114)
129
710
49,237
1,006
76
428
1,512
379
49
60
2,728
(22)
3,195
53,94545
129,744*2*2*2, *3*2, *3*2, *3**2, *3*2, *3*2. *3*2. *3

*2
*2

*2

*1

29,780
1,331
9,658
7,885
32,390
15
99
5,549
(124)
86,585

17,742(3,506)
14,235
5,125
(525)
4,600
148
(93)
55
23,821
231
(144)
87
4,346
47,146
889
42
459
1,391
1,228
31
72
3,375
(9)
4,699
53,23751
139,874(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2016)(March 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term borrowings
Current portion of bonds
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Advance received
Allowance for bonuses
Allowance for compensation for complete work
Deferred tax liabilities
Other
Total current liabilities
Noncurrent liabilities
Long-term borrowings
Bonds
Lease obligations
Allowance for directors’ retirement benefits
Liabilities related to retirement benefits
Asset retirement obligations
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains (losses) on available-for-salesecurities
Total accumulated other comprehensive income
New share subscription rights
Total net assets
Total liabilities and net assets

*2

*2

*2

– 10 –

12,037
7,412–
12,410
93
1,113
3,110
297
330
786
5,267
42,85950,147
200
131
32
307
21
555
1,811
53,207
96,066

*2
*2
*2

*2
*2

*2

12,173
16,49060
13,098
51
2,976
2,234
323
405
269
2,399
50,482
48,439
1,640
85
56
331
22
39
1,984
52,599103,081

4,819
4,817
29,011(5,100)33,5484,819
4,817
32,970(5,976)
36,630

(11)

4

(11)
140
33,677
129,744

4
157
36,792
139,874(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2015
(From April 1, 2016
to March 31, 2016)
to March 31, 2017)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commissions received
Income from equity method investment
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Miscellaneous losses
Total non-operating expense
Ordinary income
Extraordinary gains
Gain on reversal of subscription rights to shares
Total extraordinary gains
Extraordinary losses
Impairment loss
Loss from compensation for complete work
Office transfer expenses
Loss on liquidation of subsidiaries and associates
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Net income attributable to owners of parent*1*2

76,26858,433
17,835
10,2727,563*2103,599
81,72921,86911,52010,349

3
4
93
65
96
262

15
27
106
36
65
252

996
121
1,117
6,708

1,036
69
1,105
9,496

–
–

13
13

–
252
–
–
252
6,456
1,508
639
2,148
4,308
4,308

– 11 –

*1

*3

*4
*5

651
170
95
45
963
8,547
3,519
(1,080)
2,439
6,107
6,107

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2015
(From April 1, 2016
to March 31, 2016)
to March 31, 2017)
Net income
Other comprehensive income
Net unrealized gains (losses) on available-for-salesecurities
Total other comprehensive income
Comprehensive income(Comprising)Comprehensive income attributable to parent

*1

4,308

6,107

(42)

16

(42)
4,266
4,266

– 12 –

*1

16
6,124
6,124

(3) Consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Shareholders’ equity

Balance at beginning of year

Capital stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders’equity

4,819

4,817

26,251(4,806)31,081

Changes during the year
Dividends from surplus

(886)

(886)

Net income attributable toowners of parent

4,308

4,308

Acquisition of treasury
stock

(970)

(970)

Disposition of treasury
stock

55

36

92

Cancellation of treasury
stock

(640)

640

–

Transfer from retained
earnings to capital surplus

584

Change in scope of equity
method

(584)

–

(78)

(78)

Net changes of items otherthan shareholders’ equity
Total changes during theyear
Balance at end of year

–

–

2,760

(29)

2,466

4,819

4,817

29,011(5,100)33,548

Accumulated other comprehensive income

Balance at beginning of year

Unrealized gains (losses)
on available-for-salesecurities

Total accumulated othercomprehensive income

30

30

New share subscription
rights77

Total net assets

31,189Changes during the year
Dividends from surplus(886)

Net income attributable toowners of parent

4,308

Acquisition of treasury
stock

(970)

Disposition of treasury
stock

92

Cancellation of treasury
stock

–

Transfer from retained
earnings to capital surplus–

Change in scope of equity
method(78)

Net changes of items otherthan shareholders’ equity

(42)

(42)

63

20

Total changes during the
year

(42)

(42)

63

2,487

Balance at end of year

(11)

(11)

140

33,677– 13 –

Current Consolidated Fiscal Year (From April 1, 2016 to March 31, 2017)(Millions of yen)
Shareholders’ equity

Balance at beginning of year

Capital stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders’equity

4,819

4,817

29,011(5,100)33,548Changes during the year
Dividends from surplus(1,532)(1,532)

Net income attributable toowners of parent

6,107

6,107

Acquisition of treasurystock(1,754)(1,754)

Disposition of treasury
stock

129

132

261

Cancellation of treasury
stock

(746)

746

–

Transfer from retained
earnings to capital surplus

616

–

(616)

Change in scope of equity
method–Net changes of items otherthan shareholders’ equity
Total changes during theyear
Balance at end of year

–

–

3,958

(875)

3,082

4,819

4,817

32,970(5,976)

36,630

Accumulated other comprehensive income

Balance at beginning of year

Unrealized gains (losses)
on available-for-salesecurities

Total accumulated othercomprehensive income

(11)

(11)

New share subscription
rights140

Total net assets

33,677

Changes during the year
Dividends from surplus(1,532)

Net income attributable toowners of parent

6,107

Acquisition of treasurystock(1,754)

Disposition of treasury
stock

261

Cancellation of treasury
stock

–

Transfer from retained
earnings to capital surplus–

Change in scope of equity
method–Net changes of items otherthan shareholders’ equity

16

16

16

33

Total changes during the
year

16

16

16

3,115

Balance at end of year

4

4

157

36,792– 14 –

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2015
(From April 1, 2016
to March 31, 2016)
to March 31, 2017)
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill(Decrease) increase in allowances
Increase in liabilities related to retirement benefits
Interest and dividend income
Gain on reversal of subscription rights to shares
Equity-based compensation cost
Interest expense
Increase (decrease) in accounts receivable – trade
Decrease (increase) in operating loans
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable –trade
Increase (decrease) in advances received
Other
SubtotalInterest and dividend received
Interest paid
Income taxes paid
Net cash (used in) provided by operating activities
Cash flows from investing activities
Payments into time deposits
Withdrawals from time deposits
Decrease (increase) in short-term loans receivable
Acquisition of tangible fixed assets
Proceeds from sale of tangible fixed assets
Acquisition of intangible fixed assets
Acquisition of investment securities
Proceeds from sale of subsidiaries and affiliates’ stocks
Outflow from acquisition of subsidiaries’ stock
resulting in change in the scope of consolidation
Other
Net cash used in investing activities

6,456
1,192
–
117
232
51
(7)
–
155
996
(30)
33
(2,600)

8,547
2,397
651
117
197
24
(43)
(13)
291
1,036
(367)
85
12,5292,013

136(1,036)(1,756)5,817
7(1,032)(2,364)
2,428

(875)
568
25,28343(942)(1,739)22,644(135)
176
4(19,739)
16
(23)
(200)
84

(202)
171
8
(23,860)
–
(62)
(832)
–

–
0
(19,816)– 15 –*3(2,755)(6)(27,540)

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2015
(From April 1, 2016
to March 31, 2016)
to March 31, 2017)
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
Acquisition of treasury stock
Dividends paid
Net cash provided by financing activities(Decrease) increase in cash and cash equivalent
Cash and cash equivalent at beginning of year
Cash and cash equivalent at end of year*1

– 16 –

2,670
41,201(22,256)
200
(200)
(96)
(970)
(884)
19,6632,275
26,11428,390*1

9,077
42,456(43,477)
1,477
–
(118)
(1,754)(1,531)6,129
1,233
28,39029,623

(5) Notes to the Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable.
(Significant Basis for Preparation of the Consolidated Financial Statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 12
Names of consolidated subsidiaries
Leben Community Co., Ltd.
Takara Asset Management Co., Ltd.
Takara Leben Tohoku Co., Ltd.
Takara Leben Realnet Co., Ltd.
Takara Property Co., Ltd.
Takara Investments Co., Ltd.
TAFUKO Co., Ltd.
Nikko Takara Corporation Co., Ltd.
Nikko Property Co., Ltd.
Jyutakujyouhoukan Co., Ltd.
ACMP2 LLC.
ACMP3 LLC.
Nikko Kensetsu Co., Ltd. changed its company name to Nikko Takara Corporation Co., Ltd. on April 1, 2016.
Jyutakujyouhoukan Co., Ltd. changed its company name to Takara Leben West Japan Co., Ltd. on April 1, 2017.
Marunouchi Servicer Co., Ltd., which was a consolidated subsidiary, has been excluded from the scope of consolidationin the consolidated fiscal year under review because of its liquidation.
Takara Investments Co., Ltd. resolved to liquidate on February 6, 2017, and the liquidation was completed on April 17,
2017.
In the consolidated fiscal year under review, ACMP2 LLC. and ACMP3 LLC. have been included in the scope of
consolidation as a result of the acquisition of the equity interests of members and equity interests of silent partners inthese LLCs by the Company.
(2) Names of major nonconsolidated subsidiaries
Not applicable.
2. Application of the equity method(1) Number of affiliates accounted for by the equity method: 1
Name of affiliate
Sunwood Corporation(2) Non-consolidated subsidiaries not accounted for by the equity method
Not applicable.
3. Fiscal year of consolidated subsidiaries
All consolidated subsidiaries have the same fiscal year-end as the consolidated fiscal year-end.
4. Accounting policies(1) Valuation basis and method for major assets(i) Securities
a. Debt securities held to maturity
Debt securities held to maturity are stated at amortized cost using the straight-line method.

– 17 –

b. Available-for-sale securities
With fair value
Securities with fair value are marked to market based on the market value at the consolidated fiscal year-end.
(Unrealized gains and losses are directly recorded in Net assets and cost of securities sold is calculated using themoving-average method.)
Without fair value
Securities without fair value are stated at cost based on the moving-average method.
(ii) Inventories
Inventory is stated at cost based on the specific identification method.
(Book value is written down due to decline in profitability.)(2) Depreciation method for major depreciable assets(i) Tangible fixed assets (excluding lease assets)
Tangible fixed assets are depreciated using the declining-balance method. However, the straight-line method is used forbuildings (excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached tobuildings and structures acquired on or after April 1, 2016.
Individual useful lives are as follows:
Buildings and structures

3 – 50 years

Machinery, equipment and vehicles
4 – 17 years(ii) Intangible fixed assets (excluding lease assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of five years.
(iii) Lease assets
Lease assets under the finance lease arrangements where the ownership is transferred to lessees
Lease assets with ownership transfer are depreciated using the same depreciation method as fixed assets owned.
Lease assets under the finance lease arrangements where the ownership is not transferred to lessees
Lease assets without ownership transfer are depreciated using the straight-line method over the lease term with noresidual value.
(iv) Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight-line method.
(3) Accounting for major allowances(i) Allowance for doubtful accounts
For the estimated uncollectible amount, allowance for performing receivables is recorded based on the actual loss ratio,
and allowance for certain receivables with doubtful collectibility is recorded based on the individual assessment ofcollectibility.
(ii) Allowance for bonuses
In order to provide for bonuses to be paid to employees, the estimated bonus amount attributable to the current
consolidated fiscal year is recorded.
(iii) Allowance for compensation for complete work
Allowance for compensation for complete work is recorded in order to provide for losses arising from defects after thedelivery of self-executed constructions or compensation service costs based on the historical costs related to repair
work of self-executed constructions.
(iv) Allowance for directors’ retirement benefits
Allowance for directors’ retirement benefits is provided in the amount payable at the current consolidated fiscal
year-end in accordance with the regulations on directors’ retirement benefits (internal regulations).
(4) Accounting for retirement benefits
The Company and its consolidated subsidiaries calculate liabilities related to retirement benefits and pension costs using
the simplified method in which the amount of retirement benefits payable for voluntary termination at the end of the year
is treated as retirement benefit obligations.
(5) Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over ten years.
However, goodwill of minor amounts is charged to income in the period of acquisition.
(6) Scope of cash and cash equivalent on the consolidated statement of cash flows
Cash and cash equivalent consist of cash at hand, demand deposits, and short-term investments with an original maturityof three months or less that are readily convertible to cash and subject to an insignificant risk of changes in value.
– 18 –

(7) Other significant matters for the preparation of the consolidated financial statements
Accounting for consumption taxes
National and local consumption taxes are accounted for using the tax exclusive method. Non-deductible consumption
taxes relating to assets are charged to income in the year of acquisition.
(Changes in Accounting Policies)(Application of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Following the revision to the Corporation Tax Act, the Company adopted the “Practical Solution on a Change in Depreciation
Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016) effective from the consolidated fiscal year under review,and changed the depreciation method for facilities attached to buildings and structures acquired on or after April 1, 2016 from thedeclining-balance method to the straight-line method.
The impact of the change on the Company’s income and loss for the consolidated fiscal year under review is minor.
(Additional Information)(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March
28, 2016) effective from the consolidated fiscal year under review.
(Consolidated Balance Sheet)*1. Items related to non-consolidated subsidiaries and affiliates are as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2016)

Current Consolidated Fiscal Year
(March 31, 2017)

Investment securities

200–

Investments and other assets, Other (Affiliates’
stock)

748

755*2. Assets pledged as collateral and corresponding liabilities are as follows.
(1) Assets pledged as collateral(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2016)

Current Consolidated Fiscal Year
(March 31, 2017)

Cash and deposits
Notes and accounts receivable – trade

28
150

10
252

Real estate held for sale
Power generation facilities for sale

1,151
–

7,442
1,624

Real estate held for sale in progress
Buildings and structures

33,4909,981

29,082
12,710Machinery and equipment
Tools, furniture and fixtures

10,704
0

3,424
0

Land
Leased assets (tangible)

20,310–18,065
2

23
224

273
224

76,065

73,112

Construction in progress
Other (intangible fixed assets)
Total– 19 –

(2) Corresponding liabilities(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2016)

Current Consolidated Fiscal Year
(March 31, 2017)

Short-term borrowings
Current portion of long-term borrowings

3,820
11,74911,831
10,528Current portion of bonds
Long-term borrowings–
46,31060
42,169

–
–

1,440
449

61,88066,479

Bonds
Other (non-current liabilities)
Total*3. Change in purpose of asset holding

Previous consolidated fiscal year (as of March 31, 2016)
Due to the change in the purpose of asset holding from development and lease to resale for some of the real estate held,
buildings and structures of ¥638 million, tools, furniture and fixtures of ¥0 million and land of ¥1,495 million have beentransferred to real estate held for sale and real estate held for sale in progress in this consolidated fiscal year.
Current consolidated fiscal year (as of March 31, 2017)
Because of the change in the purpose of asset holding from resale to lease for some of the real estate held, real estate held
for sale in progress of ¥616 million has been transferred to buildings and structures of ¥141 million and land of ¥475
million in this consolidated fiscal year.
In addition, following the change in the purpose of asset holding from development and lease to resale for some of the realestate held, buildings and structures of ¥2,699 million, tools, furniture and fixtures of ¥0 million and land of ¥6,997
million have been transferred to real estate held for sale and real estate held for sale in progress in this consolidated fiscal
year.
In addition, due to the change in the purpose of asset holding to resale for some of the mega solar power generation plants,buildings and structures of ¥578 million, machinery, equipment and vehicles of ¥10,706 million and land of ¥1,626
million have been transferred to power generation facilities for sale in this consolidated fiscal year. Because some of theseassets were sold in this consolidated fiscal year, ¥5,025 million of ¥12,911 million of the assets that have been transferred
to power generation facilities for sale are recorded in cost of sales.
4. Contingent liabilities (Guarantee liability)
Guarantee liability for borrowings from financial institutions by customers of the Company(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2016)

Current Consolidated Fiscal Year
(March 31, 2017)

Joint and several guarantees in favor of
financial institutions until the customers’
residential mortgage loans are registered
Total

8,168

9,405

8,168

9,405

5. The Group maintains overdraft and credit line agreements with 27 financial institutions (March 31, 2016: 23) in order to ensure
the efficient funding of operating capital. The unused balance of borrowings under these agreements at the consolidated fiscal
year-end is as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2016)
Total maximum amount of overdraft and credit
lines
Outstanding borrowing balance
Difference– 20 –

Current Consolidated Fiscal Year
(March 31, 2017)

17,716

20,2808,444

12,997

9,271

7,282

(Consolidated Statement of Income)*1. Inventories are stated at the amount after the write-down reflecting the decline in profitability. Loss on valuation of
inventories included in Cost of sales is as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2015 to March 31, 2016)

Current Consolidated Fiscal Year
(From April 1, 2016 to March 31, 2017)
(138)

212

*2. Selling expenses account for approximately 46% and General and administrative expenses account for approximately 38% for
the year ended March 31, 2016, and 59% and 62%, respectively, for the year ended March 31, 2017.
Major components of Selling, general and administrative expenses and their amounts are as follows.
Previous Consolidated Fiscal Year
(From April 1, 2015
to March 31, 2016)(Millions of yen)
Current Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)

Advertising expenses
Sales promotion expenses

2,641
1,391

2,693
1,532

Salaries
Provision for allowance for bonuses

1,849
353

1,997
425

Retirement benefit costs
Provision for allowance for directors’

78

78

5

24

16

114

retirement benefits
Provision for allowance for doubtful accounts*3. Impairment loss

Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.
Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Mainly due to the declining profitability of rental properties, the Group recorded impairment losses (¥651 million) for thefollowing assets or asset groups in the consolidated fiscal year under review.
Use

Type

Warehouses Land and buildings

Location

Amount(Millions of yen)

Saitama, Saitama

7

Land

Koriyama, Fukushima

27

Land

Saitama, Saitama

2

Land and buildings

Itabashi-ku, Tokyo

71

Buildings

Tsurugashima, Saitama

44

Land and buildings

Kasukabe, Saitama

143

Land

Tsukuba, Ibaraki

3

Land
Rentalproperties Land and buildings

Nagano, Nagano

65

Koto-ku, Tokyo

142

Land

Toshima-ku, Tokyo

3

Land

Shinagawa-ku, Tokyo

36

Land and buildings

Kawagoe, Saitama

104

Idle
assets

Total

651

The breakdown by item is land of ¥247 million and buildings of ¥404 million.
The Group classifies warehouses, idle assets and rental properties by individual property.
The recoverable amount is measured using net sale value, which is assessed based on the appraisal value by a real estateappraiser.
– 21 –

*4. Office transfer expenses
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.
Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Office transfer expenses represent the amortization of guarantee deposits of the Company and office transfer expenses ofsome of the consolidated subsidiaries.
*5. Loss on liquidation of subsidiaries and associates
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.
Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Loss on liquidation of subsidiaries and associates was due to the liquidation of Marunouchi Servicer Co., Ltd. and Takara
Investments Co., Ltd.
(Consolidated Statement of Comprehensive Income)*1. Reclassification adjustments of other comprehensive income and their tax effects(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2015
to March 31, 2016)

Current Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)

Unrealized gains (losses) on available-for-salesecurities:
Recognized during the current year
Reclassification adjustments
Before tax effects
Tax effects
Unrealized gains (losses) on available-for-salesecurities
Total other comprehensive income– 22 –

(42)
–

16
–

(42)

16

–

–

(42)

16

(42)

16

(Consolidated Statement of Changes in Shareholders’ Equity)
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)
1. Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2015
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2016
(Shares)

Shares issued and outstanding
Common stock (Note 1)

128,000,000–

2,000,000

126,000,000

Total

128,000,000–

2,000,000

126,000,000

Common stock (Notes 2, 3)

16,531,307

1,531,000

2,124,000

15,938,307

Total

16,531,307

1,531,000

2,124,000

15,938,307

Treasury stock(Notes) 1. The decrease in the number of common stock outstanding of 2,000,000 shares is due to the cancellation oftreasury stock based on the resolution made at the Board of Directors meeting.
2. The increase in the number of common stock in treasury stock of 1,531,000 shares is due to the acquisition oftreasury stock based on the resolution made at the Board of Directors meeting.
3. The decrease in the number of common stock in treasury stock of 2,124,000 shares is due to the exercise of stock
options of 124,000 shares and the cancellation of treasury stock of 2,000,000 shares based on the resolution
made at the Board of Directors meeting.
2. New share subscription rights and treasury new share subscription rights
Class of
Number of shares to be issued upon the exercise ofsharesnew share subscription rights
to be issued
Number of
Number ofClassifi- Description of new shareupon theshares atshares at
cationsubscription rights
exercise of
Increase
Decrease
April 1,March 31,
new share(Shares)(Shares)
2015
2016
subscription(Shares)(Shares)rightsBalance at
March 31,
2016
(Millions ofyen)

Submitting
company New share subscription(Parent
rights as stock options
company)

–

–

–

–

–

140

Total

–

–

–

–

–

140

3. Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June24, 2015
Board of Directors
meeting on October
26, 2015

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

445

Common stock

440

Record date

Effective date4

March 31, 2015

June 25, 20154

September 30, 2015

December 8, 2015

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year(Resolution)

Class ofsharesTotal dividends
to be paid
(Millions ofyen)

SourceDividend pershare (Yen)

Board of Directors
meeting on June 27,
2016

Commonstock

990

Retainedearnings

9– 23 –

Record date

Effective date

March 31, 2016

June 28, 2016

Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)
1. Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2016
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2017
(Shares)

Shares issued and outstanding
Common stock (Note 1)

126,000,000–

2,000,000

124,000,000

Total

126,000,000–

2,000,000

124,000,000

Common stock (Notes 2, 3)

15,938,307

2,471,000

2,386,800

16,022,507

Total

15,938,307

2,471,000

2,386,800

16,022,507

Treasury stock(Notes) 1. The decrease in the number of common stock outstanding of 2,000,000 shares is due to the cancellation oftreasury stock based on the resolution made at the Board of Directors meeting.
2. The increase in the number of common stock in treasury stock of 2,471,000 shares is due to the acquisition oftreasury stock based on the resolution made at the Board of Directors meeting.
3. The decrease in the number of common stock in treasury stock of 2,386,800 shares is due to the exercise of stock
options of 386,800 shares and the cancellation of treasury stock of 2,000,000 shares based on the resolution
made at the Board of Directors meeting.
2. New share subscription rights and treasury new share subscription rights
Class of
Number of shares to be issued upon the exercise ofsharesnew share subscription rights
to be issued
Number of
Number ofClassifi- Description of new shareupon theshares atshares at
cationsubscription rights
exercise of
Increase
Decrease
April
1,
March
31,
new share(Shares)(Shares)
2016
2017
subscription(Shares)(Shares)rightsBalance at
March 31,2017
(Millions ofyen)

Submitting
company New share subscription(Parent
rights as stock options
company)

–

–

–

–

–

157

Total

–

–

–

–

–

157

3. Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June27, 2016
Board of Directors
meeting on October24, 2016

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

990

Common stock

542

Record date

Effective date9

March 31, 2016

June 28, 20165

September 30, 2016

December 6, 2016

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year
Total dividends
Class ofto be paid
Dividend per(Resolution)
SourceRecord date
Effective dateshares(Millions ofshare (Yen)yen)
Board of Directors
CommonRetainedmeeting on June 27,
1,079
10March 31, 2017
June 28, 2017stock
earnings
2017– 24 –

(Consolidated Statement of Cash Flows)*1. A reconciliation of Cash and cash equivalent and the account balance on the Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2015
(From April 1, 2016
to March 31, 2016)
to March 31, 2017)
Cash and deposits
Time deposits with maturity in excess of three months

28,515(125)

29,780(156)

Cash and cash equivalent

28,39029,623

2. Significant non-cash transactions(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2015
(From April 1, 2016
to March 31, 2016)
to March 31, 2017)
The amounts transferred from Real estate held for sale andReal estate held for sale in progress to fixed assets due tochange in the purpose of real estate holding
The amounts transferred from fixed assets to Real estate held
for sale and Real estate held for sale in progress due to change
in the purpose of real estate holding
The amounts transferred from fixed assets to power generation
facilities for sale due to change in the purpose of real estateholding

–

616

2,134

9,697

–

12,911*3. Major components of assets and liabilities of the company newly included in the scope of consolidation as a result of theacquisition of shares
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.
Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Details of assets and liabilities at the time of the consolidation of the companies that have recently become consolidated
subsidiaries as a result of the acquisition of the equity interests of members and the equity interests of silent partners,
and their relationship with expenditure (net amount) for investment are as follows:
ACMP2 LLC. and ACMP3 LLC.
(Millions of yen)
Current assets
66
Fixed assets

2,714

Current liabilities(3)

Noncurrent liabilities(0)

Acquisition price of equity interests of members and equity interests of silent partners
Cash and cash equivalent of newly consolidated subsidiary’s stock
Difference: Cash inflow due to acquisition of newly consolidated subsidiary’s shares– 25 –

2,777(21)(2,755)(Rental Properties, etc.)
The Company and its certain consolidated subsidiaries own office buildings for lease (including land) and condominiums forlease in Tokyo and other areas. During the consolidated fiscal year ended March 31, 2016, net rent income from these rental
properties amounted to ¥952 million (rent income is recorded in net sales and major rent expenses are recorded in cost of sales).
During the consolidated fiscal year ended March 31, 2017, net rent income from these rental properties amounted to ¥1,041
million (rent income is recorded in net sales and major rent expenses are recorded in cost of sales), and impairment losses cameto ¥643 million (recorded in extraordinary losses).
The carrying amount of these rental properties on the Consolidated Balance Sheet, changes during the year and market value areas follows.
Previous Consolidated Fiscal Year
(From April 1, 2015
to March 31, 2016)(Millions of yen)
Current Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)

Consolidated Balance Sheet
Beginning balance

23,77433,447

Changes during the year

9,672

3,319

Ending balance

33,44736,76634,36638,197

Market value at end of year

(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents the acquisition cost net of accumulated
depreciation and amortization and accumulated impairment loss.
2. Of the changes during the year, the major increases during the year ended March 31, 2016 include the acquisitionof real estate (¥12,225 million), and major decreases include transfer to real estate held for sale and real estate held
for sale in progress (¥2,134 million) and depreciation (¥363 million). The major increases during the year ended
March 31, 2017 include the acquisition of real estate (¥14,446 million), and major decreases include transfer toreal estate held for sale and real estate held for sale in progress (¥9,697 million), depreciation (¥731 million) and
impairment losses (¥643 million).
3. Market value at the end of the year is based on the appraisal value by a third party real estate appraiser.
4. Assets under construction are not included in the above table as it is not practicable to obtain their market value.
(Segment Information)a. Segment Information
1. Overview of reportable segments
The reportable segments of the Group are components of the Company for which separate financial information is available
that is evaluated regularly by the Board of Directors in deciding how to allocate resources and in assessing performance.
The Group’s core business is construction and sales of built-for-sale condominiums. The Group’s reportable segments
consist of three business segments: the real estate sales business, the real estate rental business and the real estate
management business.
The real estate sales business primarily engages in construction and sales of new built-for-sale condominiums and detachedhouses and condominium renovation.
The real estate rental business provides the office and residential condominiums rental service, and the real estate
management business provides the condominium management service.
The electric power generation business engages in electric power generation using renewable energy.
Starting in the consolidated fiscal year under review, the electric power generation business, which was previously included
in “Other,” has been changed to be stated as a reportable segment as a result of reviewing its business management category.
The disclosed segment information for the previous consolidated fiscal year has been prepared based on the reportablesegments for the consolidated fiscal year under review.
2. Calculation methods of net sales, income or loss, assets, liabilities and other items by reportable segment
Accounting policies for the reportable business segments are consistent with those described in “Significant Basis for
Preparation of the Consolidated Financial Statements,” except for the valuation of inventories.
Inventories are stated at the value after the write-down, reflecting the decline in profitability.
Reportable segment income represents operating income.
Inter-segment sales and transfers are valued at market prices.
– 26 –

3. Net sales, income or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Reportable segments
Real estatesales
business

Electric
Real estate Real estate
power
rentalmanagement
generation
businessbusinessbusiness

Total

Other
(Note)Total

Net sales
Net sales to externalcustomers
Inter-segment sales andtransfers
Total

63,383

4,307

3,362

909

71,962

4,305

76,268

129

12

159

–

301

413

715

63,512

4,319

3,521

909

72,264

4,719

76,983

Segment income (or loss)

6,450

652

97

(158)

7,041

823

7,865

Segment assets

45,292

34,714373

16,47696,857

1,397

98,255

Segment liabilities

47,33624,478571

17,48589,871

802

90,674

Depreciation andamortization

109

383

6

668

1,167

14

1,182

Interest expense

526

267

–

153

948

10

958

Increase in tangible andintangible
fixed assets

41

12,5602

10,10022,705–22,705

Other items(Note)“Other” represents business segments that are not included in any reportable segments and includes the construction
contract business, the repair work business and the mega solar business.

Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Millions of yen)
Reportable segments
Real estatesales
business

Electric
Real estate Real estate
power
rentalmanagement
generation
businessbusinessbusiness

Total

Other
(Note)Total

Net sales
Net sales to externalcustomers
Inter-segment sales andtransfers

79,638

5,056

3,665

11,10899,4694,130

103,599

284

57

211

–

552

1,059

1,611

Total

79,923

5,113

3,876

11,108100,0225,189

105,211

Segment income

5,665

987

158

2,971

9,783

708

10,491

Segment assets

48,52038,079170

20,542

107,313

1,565

108,878

Segment liabilities

53,276

26,795620

15,527

96,219897

97,117

Depreciation andamortization

96

732

6

1,506

2,341

20

2,362

Interest expense

439

353

–

202

995

4

1,000

Increase in tangible andintangible fixed assets

75

13,8371

6,727

20,642

51

20,693

Other items(Note)“Other” represents business segments that are not included in any reportable segments and includes the construction
contract business, the repair work business and the mega solar business.

– 27 –

4. Reconciliation of the total reportable segments and the amount on the consolidated financial statements (difference
adjustments)(Millions of yen)
Current Consolidated
Fiscal Year

Previous Consolidated
Fiscal YearNet sales
Total reportable segments
Net sales of “Other” category
Elimination of inter-segment transactions
Net sales on the consolidated financial statements

72,264
4,719(715)

100,0225,189(1,611)

76,268103,599(Millions of yen)
Current Consolidated
Fiscal Year

Previous Consolidated
Fiscal Year

IncomeTotal reportable segments
Income of “Other” category
Elimination of inter-segment transactions
Amortization of goodwill

7,041
823
(184)
(117)

9,783
708
(24)
(117)

Operating income on the consolidated financial
statements

7,563

10,349(Millions of yen)
Current Consolidated
Fiscal Year

Previous Consolidated
Fiscal Year

AssetsTotal reportable segments
Assets of “Other” category
Elimination of amounts due from the parent
administrative divisionCorporate assets (Note)

96,857
1,397

107,313
1,565(2,492)(3,916)33,981

34,911

Total assets in the consolidated financial statements

129,744

139,874(Note)

Corporate assets represent assets not attributable to any reportable segments and primarily consist of cash anddeposits, assets attributable to the administrative division, and deferred tax assets.

Liabilities
Total reportable segments
Liabilities of “Other” category
Elimination of amounts due to the parent
administrative divisionCorporate liabilities (Note)
Total liabilities in the consolidated financial statements(Note)

89,871
802

96,219897(1,699)(2,630)

7,092

8,594

96,066103,081

Corporate liabilities represent liabilities not attributable to any reportable segments and primarily consist of
borrowings.

Other items

Depreciation andamortization
Amortization of goodwill
Interest expense
Increase in tangible andintangible fixed assets(Note)(Millions of yen)
Current Consolidated
Fiscal Year

Previous Consolidated
Fiscal Year

Total reportablesegments

Other(Millions of yen)
Consolidated financial
statements

Adjustments

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

1,167

2,341

14

20

9

35

1,192

2,397

–

–

–

–

117

117

117

117

948

995

10

4

39

37

998

1,037

22,705

20,642

–

51

50

120

22,756

20,814

Adjustments for increase in tangible and intangible fixed assets represent goodwill incurred but not allocated toreportable segments, capital expenditure for the headquarters building and the elimination of inter-segment
transactions.

– 28 –

b. Impairment loss on fixed assets by reportable segment
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.
Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Electric
Real estate
Real estate
Real estate
power
sales
rentalmanagement
Other
generation
businessbusinessbusinessbusiness
Impairment
loss

–

643

–

Corporate /Elimination

–

–

7

Total

651

(Per Share Information)
Previous Consolidated
Fiscal Year
(From April 1, 2015
to March 31, 2016)

Current Consolidated
Fiscal Year
(From April 1, 2016
to March 31, 2017)

Net assets per share¥304.71¥339.29

Earnings per share¥38.99¥56.14

Diluted earnings per share¥38.82¥55.85(Notes) The basis for the calculation of earnings per share and diluted earnings per share is as follows.
Previous Consolidated
Fiscal Year
(From April 1, 2015
to March 31, 2016)

Current Consolidated
Fiscal Year
(From April 1, 2016
to March 31, 2017)

Earnings per share
Net income attributable to owners of parent(millions of yen)Amount not attributable to common stockholders(millions of yen)
Net income attributable to owners of parent withrespect to common stock(millions of yen)

Average number of shares during the year
(thousand shares)

4,308

6,107

–

–

4,308

6,107

110,491

108,790

–

–

482

562

(482)

(562)

–

–

Diluted earnings per share
Adjustments to net income attributable to owners ofparent(millions of yen)

Increase in number of common stock(thousand shares)(Of those, new share subscription rights(thousand shares)
Overview of dilutive shares not included in the calculation ofdiluted earnings per share due to its anti-dilutive effect– 29 –

(Significant Subsequent Events)(Transfer of Assets)
The Company entered into a sale and purchase agreement with Takara Leben Infrastructure Fund Inc. on April 4, 2016 regarding
the transfer of mega solar power generation plants owned by the Company.
1. Reason for transfer
Takara Asset Management Co., Ltd., a wholly owned subsidiary of the Company, will transfer the power generation plants to
Takara Leben Infrastructure Fund, Inc., which is entrusted with asset management, based on a sponsor support agreement. The
Company will continue to support Takara Leben Infrastructure Fund, Inc. on a full scale as the sponsor and contribute to thedevelopment of the infrastructure fund market.
2. Description of transferred assets and use before transfer
7 mega solar power generation plants
3. Name of transferee
Takara Leben Infrastructure Fund Inc.
4. Date of transfer
Scheduled transfer date: June 1, 2017
5. Transfer price¥12,607 million (Total of 7 plants)– 30 –

5. Other(1) Changes of Officers
To be disclosed when the information to be disclosed is determined.
(2) Production, Orders Received and Sales(i) Number of units contracted during the year
Previous Consolidated Fiscal Year
(From April 1, 2015
to March 31, 2016)

Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)

Year-on-Year(%)

Number of units

Amounts(Millions of yen)

Number of units

Amounts(Millions of yen)

Real estate sales business

1,575

55,523

1,576

72,068

129.8

Total

1,575

55,523

1,576

72,068129.8

Current Consolidated
Fiscal Year-End(March 31, 2017)
Amounts
Number of units(Millions of yen)

Year-on-Year(%)(Note) The above amounts do not include consumption tax.
(ii) Balance of contract

Segment name

Previous Consolidated
Fiscal Year-End(March 31, 2016)
Amounts
Number of units(Millions of yen)

Real estate sales business

842

27,307575

19,737

72.3

Total

842

27,307575

19,73772.3(Note) The above amounts do not include consumption tax.
(iii) Net sales
Current Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)

Segment nameYear-on-Year(%)

Real estate sales business(millions of yen)

79,638125.6

Real estate rental business(millions of yen)

5,056

117.4

Real estate management business(millions of yen)

3,665

109.0

Electric power generation
business(millions of yen)

11,1081,220.9(millions of yen)

99,469138.2(millions of yen)

4,130

95.9

(millions of yen)

103,599135.8

Total reportable segments
Other
Total

(Notes) 1. Inter-segment transactions are eliminated.
2. The above amounts do not include consumption tax.

– 31 –