Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2015
May 11, 2015
Company name: Takara Leben CO., LTD.
Stock listed on: Tokyo Stock Exchange, First Section
Securities code: 8897 (URL http://www.leben.co.jp)
Representative: Kazuichi Shimada, President, Representative Director
Contact: Toshiya Kitagawa, Director, Executive Officer and Chief of Business Planning OfficeTel. +81-3-5324-8720
Scheduled date of annual general meeting of shareholders: June 24, 2015
Scheduled date for commencement of dividend payment: June 25, 2015
Scheduled date for release of annual securities report: June 24, 2015
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, 2015 (From April 1, 2014 to March 31, 2015)(Percentage figures represent year-on-year change)(1) Consolidated operating results
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%

Year ended March 31, 2015

76,956

6.9

9,257

(5.5)

8,540

(7.0)

5,718

(2.6)

Year ended March 31, 2014

71,963

10.9

9,798

54.0

9,181

58.5

5,869

44.1

(Note) Comprehensive income: Fiscal year ended March 31, 2015: ¥5,744 million ((2.1)%)
Fiscal year ended March 31, 2014: ¥5,869 million (43.7%)

Ratio ofRatio of operating
Diluted earnings Ratio of earnings toordinary income income to net
per shareshareholders’ equity
to total assets
sales

Earnings
per share
Year ended March 31, 2015

Yen

Yen

%

%

%

50.61

50.44

19.7

8.6

12.0

10.7

13.6

22.9
Year ended March 31, 2014
50.64
50.53
(Reference) Equity in net income of affiliates: Fiscal year ended March 31, 2015: ¥5 million

Fiscal year ended March 31, 2014: ¥139 million(Note) On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. “Earnings per share” and “Diluted earnings per share”
are calculated, assuming that the stock split had taken place at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2015

101,738

31,18930.6

279.11March 31, 2014

95,891

27,13828.2

237.53(Reference) Shareholders’ equity: March 31, 2015: ¥31,111 million
March 31, 2014: ¥27,084 million(Note) On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. “Net asset per share” is calculated, assuming that thestock split had taken place at the beginning of the previous consolidated fiscal year.

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalent at end ofyear

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2015

(8,155)(7,998)6,314

26,114

Year ended March 31, 2014

22,996(4,568)(366)

35,954

2. Dividends
Annual dividends per share
Q1(Record date)

Q2

Yen

Yen

Q3

Year-end

Yen

Total

Total
dividends(annual)Dividends
payout ratio(consolidate)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen Millions of yen%%

Year ended March 31, 2014

—

1.50

—

3.50

5.00

572

9.9

2.3

Year ended March 31, 2015

—

2.00

—

4.00

6.00

671

11.9

2.3

Year ending March 31, 2016
(forecast)

—

4.00

—

6.00

10.00

13.7

3. Forecast of Consolidated Financial Results for the Year ending March 31, 2016 (From April 1, 2015 to March 31, 2016)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

93,800 21.9

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen

Net income%

Yen

13,350 44.2

12,400

45.2

8,150

42.5

73.11

Net income per share*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): None
New: None
Excluded: None (Name) (2) Changes in accounting policies and accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatements: None
(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, 2015 : 128,000,000 shares(b) As of March 31, 2014 : 130,000,000 shares(ii) Number of treasury stock at end of year(a) As of March 31, 2015 : 16,531,307 shares(b) As of March 31, 2014 : 15,974,807 shares(iii) Average number of shares during the year(a) Fiscal year ended March 31, 2015 : 112,990,042 shares(b) Fiscal year ended March 31, 2014 : 115,903,076 shares
On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. The number of shares is calculated, assuming that thestock split had taken place at the beginning of the previous consolidated fiscal year.

(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(Percentage figures represent year-on-year change)(1) Non-consolidated operating results
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%

Year ended March 31, 2015

68,819

2.5

8,783

(6.3)

8,137

(6.2)

5,401

(2.1)

Year ended March 31, 2014

67,158

11.0

9,378

58.0

8,672

61.8

5,516

48.0

Earnings per share

Diluted earnings
per share

yen

yen

Year ended March 31, 2015

47.81

47.65

Year ended March 31, 2014

47.60

47.49

(Note) On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. “Earnings per share” and “Diluted earnings per share”
are calculated, assuming that the stock split had taken place at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2015

93,13028,56030.6

255.53

March 31, 2014

92,56524,92026.9

218.08(Reference) Shareholders’ equity: March 31, 2015: ¥28,483 million
March 31, 2014: ¥24,867 million

2. Forecast of Non-Consolidated Financial Results for the Year ending March 31, 2016 (From April 1, 2015 to March 31, 2016)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

81,800 18.9

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

yen

12,900 46.9

12,200

49.9

8,000

48.1

71.77

Net income per share* Status of Audit ProceduresThis summary of consolidated financial results for the year ended March 31, 2014 is not subject to audit procedures under the
Financial Instruments and Exchange Act, and the audit procedures for the consolidated financial statements are not complete at
the time of the disclosure.

* Explanation about 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 of this reportand are not intended to guarantee that the Company would achieve such figures. Actual results may differ from these forecasts
due to various factors in the future.

○Contents of Attachment
1. Analysis of Operating Results and Financial Position………………………………………………………………………

2(1) Analysis of Operating Results……………………………………………………………………………………………
(2) Analysis of Financial Position……………………………………………………………………………………………

2
4(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Year……………………………………
(4) Business Risks……………………………………………………………………………………………………………

6
6

2. The Takara Leben Group……………………………………………………………………………………………………
3. Management Policy…………………………………………………………………………………………………………

8
10(1) Basic Management Policy ………………………………………………………………………………………………
(2) Medium and Long-Term Business Strategies……………………………………………………………………………

1010(3) Issues to be Addressed ……………………………………………………………………………………………………
4. Basic Idea on Selection of Accounting Standards…………………………………………………………………………

11
12

5. Consolidated Financial Statements……………………………………………………………………………………………
(1) Consolidated Balance Sheet………………………………………………………………………………………………

1313(2) Consolidated Statements of Income and Comprehensive Income………………………………………………………
Consolidated Statement of Income…………………………………………………………………………………

15
15

Consolidated Statement of Comprehensive Income…………………………………………………………………
(3) Consolidated Statement of Changes in Shareholders’ Equity……………………………………………………………

1617(4) Consolidated Statement of Cash Flows …………………………………………………………………………………
(5) Notes to the Consolidated Financial Statements…………………………………………………………………………

19
21(Note Regarding the Going Concern Assumption) …………………………………………………………………
(Significant Basis for Preparation of the Consolidated Financial Statements…………………………………………

21
21(Consolidated Balance Sheet)…………………………….……………………………………………………………
(Consolidated Statement of Income)……………………………………………………………………………………

23
24(Consolidated Statement of Comprehensive Income)…………………………………………………………………
(Consolidated Statement of Changes in Shareholders’ Equity) …………………………………………………………

26
26(Consolidated Statement of Cash Flows) ………………………………………………………………………………
(Rental Properties, etc.)………………….………………………………………………………………………………

28
30(Segment Information) …………………………………………………………………………………………………
(Per Share Information)…………………………………………………………………………………………………

30
33(Significant Subsequent Events)…………………………………………………………………………………………
6. Non-consolidated Financial Statements………………………………………………………………………………………

34
35(1) Balance Sheet ……………………………………………………………………………………………………………
(2) Statement of Income..……………………………………………………………………………………………………

3538(3) Statement of Changes in Shareholders’ Equity…………………………………………………………………………
(4) Notes to the Non-Consolidated Financial Statements ……………………………………………………………………

40
42(Note Regarding the Going Concern Assumption) …………………………………………………………………
(Significant Accounting Policies)………………………………………………………………………………………

42
42(Balance Sheet) ……………………..…………………………………………………………………………………
(Statement of Income)…………………………………………………………………………………………………

43
44(Significant Subsequent Events)…………………………………………………………………………………………
7. Other …………………………………………………………………………………………………………………………

45
46(1) Changes of Officers………………………………………………………………………………………………………
(2) Production, Orders Received and Sales….………………………………………………………………………………

46
46

－

1 －

1．Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
Overview
During the consolidated fiscal year ended March 31, 2015, the Japanese economy showed an upward trend in capital
expenditures and exports following the government’s various economic policies and the BOJ’s additional easy monetary
policy. Such government’s growth strategy to get out of deflation achieved certain positive results including improvement ofcorporate earnings and employment conditions, and the economy has been on a moderate recovery trend.
In the real estate industry, the number of new units placed in the national market in 2014 was 83,205, down 21% year-onyear, and the number of units sold in the Tokyo Metropolitan area also decreased. Meanwhile, sales price surged in
downtown area in response to the selection of Tokyo as the host of the 2020 Tokyo Olympics and Paralympics, which
resulted in continued shift of first-time buyers’ interests from downtown area to suburban areas.
Under such circumstance, the Company has established certain position in the industry with its experience in the suburbsof Tokyo for more than 40 years, and purchases housing lots by utilizing its unique marketing method. In downtown areas inlocal cities, the Company established a sales base for eastern Japan in Sendai, Miyagi, and for western Japan in Matsuyama,
Ehime, and has steadily expanded supply area by meeting demands of active senior generation for replacement or additionalpurchase.
With its ‘Leben Heim’ series of in-house planned new condominiums as its main brand, the Company will remaincommitted to its basic concept of ‘ideal, affordable housing that anyone can buy with confidence’ as well as its corporate
vision of ‘thinking of happiness; making happiness’ and its corporate mission of ‘creating together with eager minds, sincere
efforts and ample talent,’ and continue to work on product plans capturing the needs of the time and promote businessactivities focusing on its customers as its ultimate supporters.
(i) Operating Results for the Year Ended March 31, 2015a) Performance review
At the parent level, Takara Leben Co., Ltd., the built-for-sale condominium business delivered 1,620 units (including
units sold under the joint venture), such as “Leben Yokohama Shiomidai Solanote,” the Company’s largest “solar-powered
condominium.” Also, the Company ranked first in the ranking of the number of ‘solar-powered condominiums (available
in each individual home unit)’ units supplied in Japan in 2014 for the fourth consecutive year.
The detached housing business delivered 250 units, and the Company achieved the target in the medium-term businessplan of 250 units.
The renovation business delivered 35 units.
Sales in the real estate rental business exceeded the initial plan as we purchased five units during the current fiscal year.
As a result, the Company recorded net sales of ¥68,819 million (up 2.5% year-on-year), operating income of ¥8,783
million (down 6.3% year-on-year), ordinary income of ¥8,137 million (down 6.2% year-on-year), and net income of¥5,401 million (down 2.1% year-on-year).
At Leben Community Co., Ltd., the number of units managed under consignment expanded steadily to 38,700 units.
Especially, units entrusted from other companies accounted for approximately 40% of the increase during the fiscal year asa result of the efforts to secure other companies’ properties. Peripheral operations, including renovation, merchandise
sales, and repair work, also showed a steady growth.
Takara Property Co., Ltd., engaging in rental management business, recorded sales essentially in line with the plan.
Takara Asset Management Co., Ltd. has been preparing for listing on the infrastructure fund market.
At Tafuko Co., Ltd., business expanded essentially as planned, supported by steady commission income.
Takara Leben Realnet Co., Ltd., which became a group company in June 2014, is engaged in real estate sales agency
and real estate distribution businesses.
Nikko kensetsu Co., Ltd., which became a group company in October 2014, is engaged in general construction andrental management business mainly in Yokohama.
Takara Leben Tohoku Co., Ltd., which became a group company in January 2015, is engaged in commissioned realestate marketing agency business for properties located in Sendai, Miyagi.
Jyutakujyouhoukan Co., Ltd., which became a group company in January 2015, is engaged in rental managementbusiness and real estate distribution business mainly in Matsuyama, Ehime.
In As Partners Co., Ltd., total of twelve nursing care facilities including two new facilities are operating and capacity
utilization remained high at approximately 88%.
The Company and Sunwood Corporation sold and delivered their first joint development property Leben Tama
Nagayama Garden Hills.
－

2 －As a result of the above, the Group recorded net sales of ¥76,956 million (up 6.9% year-on-year), operating income of¥9,257 million (down 5.5% year-on-year), ordinary income of ¥8,540 million (down 7.0% year-on-year), and net incomeof ¥5,718 million (down 2.6% year-on-year).
b) Performance by Business Segment＜Real Estate Sales Business＞
Sales from the real estate sales business amounted to ¥66,907 million, up 1.7% year-on-year, including sales of¥56,639 million for 1,620 new build-for-sale condominium units and sales of ¥10,267 million from sales of detachedhouses and renovation and resale business.
＜Real Estate Rental Business＞
Revenues from the real estate rental business amounted to ¥2,898 million, up 70.8% year-on-year, including rent
revenues from the rental of apartments, condominium units, and offices.
＜Real Estate Management Business＞
Revenues from real estate management business representing management fees from 38,700 units undermanagement amounted to ¥2,978 million, up 8.7% year-on-year.
＜Other Business＞
Revenues from other businesses amounted to ¥4,172 million, up 135.9% year-on-year, including revenues fromconstruction work, large-scale repair work and revenues from electric power selling in mega-solar business.
c) Performance Review by Item
＜Net Sales＞
Net sales of the real estate sales business amounted to ¥66,907 million, including sales of 1,620 new built-for-salecondominium units and sales from new detached housing and renovation and resale business.
Revenues from the real estate rental business amounted to ¥2,898 million, including rent revenues from the rental ofapartments, condominium units, and offices.
Revenues from the real estate management business representing management fees from 38,700 units undermanagement amounted to ¥2,978 million.
Revenues from other businesses include revenues from construction work, large-scale repair work and revenues fromelectric power selling in mega-solar business and amounted to ¥4,172 million.
As a result, net sales for the consolidated fiscal year ended March 31, 2015 amounted to ¥76,956 million, up 6.9%
year-on-year.
＜Cost of Sales＞
Cost of sales increased by 9.1% to ¥58,645 million as the number of units delivered in the detached housing sales
business increased by 141 units from the previous fiscal year to 250 units.
＜Selling, General and Administrative Expenses＞
Despite the continued cost-cutting efforts, selling, general and administrative expenses increased from the previous
fiscal year by 7.8% to ¥9,053 million due to an increase in selling expenses resulting from increased number of units
delivered and acquisition of subsidiaries.
＜Non-Operating Income and Expenses＞
Non-operating income decreased by 22.8% from the previous fiscal year to ¥233 million due to a decrease in income
from equity method investment.
Non-operating expenses increased by 3.4% from the previous fiscal year to ¥951 million due to an increase ininterest expense as a result of new borrowings for projects.
＜Extraordinary Gains and Losses＞
Extraordinary gains decreased by 69.8% from the previous fiscal year to ¥99 million as no legal settlement wasreceived in the current fiscal year.
－

3 －Extraordinary losses decreased by 6.9% from the previous fiscal year to ¥61 million due to a decrease in impairment
loss.
As a result, net sales for the consolidated fiscal year ended March 31, 2015 amounted to ¥76,956 million, up 6.9%
year-on-year, operating income amounted to ¥9,257 million, down 5.5% year-on-year; Ordinary income amounted to¥8,540 million, down 7.0% year-on-year; and net income amounted to ¥5,718 million, down 2.6% year-on-year.
(ii) Outlook for the Year Ending March 31, 2016
Based on the new medium-term business plan announced on May 11, 2015, the business plan for the fiscal year
ending March 31, 2016 was drafted as follows.
In the real estate sales business, the new built-for-sale condominium operation will aggressively promote the supply
of condominiums in downtown areas in local cities and expect to deliver 1,452 units.
The detached housing business will expect to deliver 234 houses.
The renovation business will continue to promote purchases at appropriate prices, based on the proper judgment of
the market trend, in order to supplement its new built-for-sale condominium operations.
The real estate rental business intends to improve its stable stock business through well-selected purchases.
The real estate management business has set a target for management contract to be 40,800 units and aims at further
expansion of peripheral operations such as large-scale repair work.
Based on the above, the Company’s performance projections for the year ending March 31, 2016 are as follows:
Net sales:¥93,800 million (up 21.9% year-on-year)

Operating income: ¥13,350 million (up 44.2% year-on-year)
Ordinary income:¥12,400 million (up 45.2% year-on-year)

Net income:¥8,150 million (up 42.5% year-on-year)(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery)
Units scheduled for

Of which, number ofdelivery during thecontracts signed (units) contracts signed of

Number of

fiscal year ending

units scheduled

March 31, 2016

for delivery after(units)March 31, 2017

Total number ofcontracts signed(units)(units)
As of March 31, 2015

1,452

829

116

945

(iii) Progress of the Mid-Term Management Plan, etc.
The Company developed the new mid-term management plan “Takara Leben Next Stage 2019” in May 2015 and set two
main measures: “Diversifying flow businesses” and “Expanding stock and fee-based businesses.” In the fiscal year ending
March 31, 2019, the final year of the new plan, the Company aims at profit ratio of 65% for the flow business and 35% for thestock and fee business.
(iv) Achievement of Targeted Operating Index
The Company manages business with a focus on equity and cash and deposit balance. The previous mid-term management
plan announced in September 2012 sets goals for the final year of the plan ending March 31, 2016 to be ¥33 billion for both
cash and deposit and equity. At March 31, 2015, cash and deposit and equity were ¥26,281 million and ¥31,111 million,
respectively, which the Company believes is the sufficient level to achieve the goals in one year.
The new mid-term management plan announced in May 2015 sets the target of ROE at 20% or more.
(2) Analysis of Financial Position
With regard to assets, liabilities, and net assets of the Group as of March 31, 2015, total assets amounted to ¥101,738
million, an increase of ¥5,847 million from March 31, 2014, mainly due to purchase of business assets and acquisition ofsubsidiaries, partially offset by a decrease in cash and deposits resulting from settlement of notes payable.
－

4 －(i) Analysis of Assets, Liabilities and Net Assetsa) Current assets
Current assets decreased by ¥5,205 million from March 31, 2014 to ¥67,319 million mainly due to a decrease in cash
and deposits resulting from settlement of notes payable.
b) Non-current assets
Non-current assets increased by ¥11,034 million from March 31, 2014 to ¥34,400 million mainly due to purchase ofbusiness assets and acquisition of subsidiaries.
c) Current liabilities
Current liabilities decreased by ¥3,110 million from March 31, 2014 to ¥34,600 million mainly due to a decrease innotes payable.
d) Non-current liabilities
Non-current liabilities increased by ¥4,907 million from March 31, 2014 to ¥35,948 million mainly due to anincrease in borrowings associated with new purchases and acquisition of subsidiaries.
e) Net assets
Net assets increased by ¥4,051 million from March 31, 2014 to ¥31,189 million as net income for the year exceeded
distribution of surplus and acquisition of treasury stock.
(ii) Analysis of Cash Flows
Cash and cash equivalents (“funds”) as of March 31, 2015 amounted to ¥26,114 million, a decrease of ¥9,840 million
from March 31, 2014.
a) Cash flows from operating activities
Net cash used in operating activities was ¥8,155 million (Year ended March 31, 2014: ¥22,996 million), mainly
attributable to a decrease in accounts payable, trade.
b) Cash flows from investing activities
Net cash used in investing activities was ¥7,998 million (Year ended March 31, 2014: ¥(4,568) million), mainly
attributable to purchase of fixed assets.
c) Cash flows from financing activities
Net cash provided by financing activities was ¥6,314 million (Year ended March 31, 2014: ¥(366) million), mainly
attributable to an increase in borrowings.
(iii) Changes in Cash Flow Indicators
FY2013/3

FY2014/3

FY2015/3

Equity ratio (%)

32.2

28.2

30.6

Equity ratio at market value (%)

58.3

37.9

70.6

Debt repayment period (years)

39.8

1.6

-

Interest coverage ratio (times)

1.1

28.0

-

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.
－

5 －* 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.

－

6 －(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years
Returning profits to the shareholder is one of the most important tasks for the Company, and the Company has thefundamental policy of striving to sustain stable levels of dividends at levels deemed appropriate based on due considerationof corporate performance trends and of the amount of internally retained funds required to expand and strengthen business
operations. While the previous mid-term management plan set a policy to allocate over 30% of the bottom line to dividends
and treasury stock acquisition, the new mid-term management plan aims at 35% or more.
Specifically, the plans for dividends are set as follows:Year ended March 31,
2015 (forecast)

1st half dividend

Year-end dividend

Total

¥2.0

¥4.0

¥6.0

1st half dividend

Year-end dividend

Total

¥4.0

¥6.0

¥10.0

Ordinary
dividends

Year ending March 31,

Ordinary

2016 (forecast)dividends

The Company does not decide dividends based solely on specific benchmarks but on a comprehensive assessment, withan aim to make the Company attractive for long-term investment by numerous shareholders.
(4) Business Risks
The following items present potential risk for the operating results, share price, financial position, etc. of the Group.
Forward-looking statements hereby are based on the assessment by the Group as of the end of the current consolidated
fiscal year.
a) Earthquakes and other natural disasters
Earthquakes and other natural disasters may directly damage the Company or the construction companies used forexecution, or may make it difficult for these construction companies to procure building materials. Any of these events
may delay construction work, as well as hamper sales and collection activity of the Company, and thus impact theperformance and financial position of the Group.
b) Legal regulations
The business of the Group is subject to the National Land Use Planning Act, Building Lots and Buildings Transaction
Business Act, Building Standards Act, City Planning Act, Money Lending Control Act, Act on Advancement of Proper
Condominium Management, Long-Term Care Insurance Act and other applicable national laws as well as applicableordinances, etc., of the various local governments. Should these laws, ordinances, etc., be revised or new ones created, thismay create new burdens for the Group and potentially impact its performance and business development.
c) Degree of dependency on borrowing
Purchase of land is funded primarily by loans from financial institutions, and the ratio of interest-bearing debt to total
assets is 48.0% at the end of the current consolidated fiscal year. Thus, in case the funding is restricted or interest rates
increase rapidly due to worsened financial conditions, the performance and financial position of the Group may beaffected.
d) Home buyer sentiment
The Company’s core business, new built-for-sale condominiums, tends to be swayed by changes in home buyer
sentiment, which is affected by factors such as the overall economy, residential tax regulations, consumption taxes, land
prices, and interest rates. A pronounced deterioration in home buyer sentiment may impact the performance and financial
position of the Group.

－

7 －e) Impact of home loans
In purchase of condominiums, etc., our customers often make use of home loans from home financing support
organizations and financial institutions, and therefore credit crunch caused by unfavorable changes in financial conditions
may potentially impact the performance and financial position of the Group.
f) Impact of supply trends
Sales of new build-for-sale condominiums, a core business of the Group, are greatly affected by supply trends, such as
fluctuations in land procurement cost and subcontracting cost and financial conditions. For these reasons, conditions which
has a significant impact on supply trends may potentially impact the performance and financial position of the Group.
g) Impact of competition
The Group sells real estate in and around the Tokyo Metropolitan Area, and an excessive price competition in this area
may prolong marketing activities or cause sales at the estimated price to be difficult. Such situations may potentially
impact the performance and financial position of the Group.
h) Subcontractors
The Group entrusts the construction of its condominiums to building contractors. However, increases in building
material costs and labor costs may raise building contract costs, thus depressing profitability. Also, construction
companies entrusted with the construction work may become insolvent, which may delay construction work or force theconstruction company to default on its contract. Any of these events, as well as failure by the construction company toprovide the due compensation in the future, may impact the performance and financial position of the Group.
i) Opposition to condominium construction from surrounding residents
When constructing condominiums, the Group carefully considers the environment surrounding the construction location,
reviews relevant national laws and local ordinances when creating a development plan, and holds information sessions for
local residents prior to the start of construction in order to facilitate understanding. However, issues such as construction
noise, sunlight block or environmental disruption may sometimes lead to an opposition campaign against the construction
by surrounding residents and cause the change of plans, construction delays, and additional costs, etc., which may
potentially impact the performance and financial position of the Group.
j) Possibility of lawsuits
When constructing condominiums, the Group takes careful considerations from a variety of perspectives; however,lawsuits may be brought against the Group as a result of building defects, soil contamination, etc., and as a result, thebuilding plans may have to be changed. Such cases may potentially impact the performance and financial position of theGroup.
k) Personal information
The Group handles a large amount of personal information in the course of selling and managing condominiums, etc.
Extreme care is taken in handling and administering such information through measures such as implementation ofsoftware designed to prevent personal information leak, creation and maintenance of relevant rules, creation of employees
manuals, and provision of employee training seminars; however, if a leak of personal information occurs, it may potentially
impact the performance and financial position of the Group.

－

8 －2. The Takara Leben GroupThe Takara Leben Group, consisting of the Company, ten consolidated subsidiaries and two affiliates, operates real estatebusiness primarily in the Tokyo metropolitan area, including Tokyo, Saitama, Chiba, and Kanagawa prefectures.
The Company mainly engages in 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 investment
management business.
Takara Leben Tohoku Co., Ltd., a consolidated subsidiary, is engaged in 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 rental management business.
Takara Investments Co., Ltd., a consolidated subsidiary, will primarily engage in real estate asset management business.
TAFUKO Co., Ltd., a consolidated subsidiary, primarily engages in loan collection agency business and other commissionbased businesses.
Nikko kensetsu Co., Ltd., a consolidated subsidiary, is engaged in general construction business mainly in Yokohama,
Kanagawa.
Jyutakujyouhoukan Co., Ltd., a consolidated subsidiary, is engaged in real estate sales business and real estate managementbusiness mainly in western Japan.
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, is primarily engaged in claims servicing business pursuant to the Act
on Special Measures concerning the Claims Servicing Business.
As Partners Co., Ltd., an affiliate accounted for by the equity method, primarily operates residential facilities with nursing
capabilities for elderly people.
Sunwood Corporation, an affiliate accounted for by the equity method, primarily engages in planning, development, andmarketing of new built-for-sale condominiums, etc. mainly in the Tokyo Metropolitan area.
(1) Real estate sales business
The Company is primarily engaged in planning, development and marketing of ‘Leben-series’ new built-for-salecondominiums in the suburbs of the Tokyo metropolitan area. Also, Sunwood Corporation, an affiliate accounted for by theequity method, is primarily engaged in planning, development, and marketing of new built-for-sale condominiums, etc. mainlyin the Tokyo Metropolitan area.
(2) Real estate rental business
The Company is engaged in rental business for apartments, condominiums, and offices in the Tokyo metropolitan area. Also
Takara Property Co., Ltd., a consolidated subsidiary, is engaged in rental management business.
(3) Real estate management business
Leben Community Co., Ltd., a consolidated subsidiary, provides comprehensive management service for built-for-salecondominiums.
(4) Other businesses
・Loan collection agency businessTAFUKO Co., Ltd., a consolidated subsidiary, provides loan collection service.
・Claims servicing business
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, is engaged in claims servicing business pursuant to the Act on
Special Measures concerning the Claims Servicing Business.
・Nursing care business
As Partners Co., Ltd., an affiliate accounted for by the equity method, operates residential facilities with nursing capabilities
for elderly people. Also, Leben Community Co., Ltd., a consolidated subsidiary, provides rehabilitation-focused day-carenursing service.
・Other businesses
The Group is also engaged in other businesses such as commissioned real estate marketing agency business. In the future, theGroup plans to engage in investment management and real estate asset management businesses.

－

9 －The Group’s businesses are organized as follows.
Leben Community Co., Ltd.
Comprehensive management service

Takara Asset Management Co., Ltd.
Investment management businessTakara Leben Tohoku Co., Ltd.
Real estate sales businessTakara Leben Realnet Co., Ltd.
Real estate distribution businessTakara Leben CO., LTD.

Takara Property Co., Ltd.
Rental management business

Consolidated subsidiaries
Takara Investment Co., Ltd.
Investment management businessTAFUKO Co., Ltd.
Loan collection agency business

Nikko kensetsu Co., Ltd.
General construction businessJyutakujyouhoukan Co., Ltd.
Real estate sales business

Marunouchi Servicer Co., Ltd.
Claims servicing business

As Partners Co., Ltd.
Nursing care business

Affiliates accounted forby the equity method

Sunwood Corporation
Real estate sales business

－

10 －

3. Management Policy(1) Basic Management Policy
The followings are the Company’s corporate vision and corporate mission.

Takara Leben’s Corporate Vision: The Way We Should Be

Thinking of Happiness. Making HappinessAs a builder, we take your happiness more seriously than anyone else;
when we build for you, we build to make your living dreams come true.
When we develop, we consider the well-being of the community moredeeply than anyone else; the world gets new towns where all people live
in comfort.
To build a happy future, we plan and work more fruitfully than anyone
else; we propose earth-friendly, sustainable development for theenvironment.
Thinking of Happiness. Making Happiness.
That’s Takara Leben’s corporate vision.

Takara Leben’s Corporate Mission: The Beliefs We Value

Creating Together
with Eager Minds
Putting our heads together with customers, eagerly,
to think up and create new market values

with Sincere Efforts
Prizing the sincere efforts of our partners,
for the comfort and security of living together

with Ample TalentPrizing the talents of every corporate member,
for the rich and seamless development of a shared tomorrow.

(2) Medium and Long-Term Business Strategy＜Overview of Strategies＞
The Company developed the new mid-term management plan “Takara Leben Next Stage 2019” in May 2015 for theperiod ending March 31, 2019, with a theme of ‘Beginning of a new era for Takara Leben” and two main measures listed
below.
・Diversifying flow businesses
・Expanding stock and fee-based businesses＜Specific Strategies＞
A. Basic Policy
By maximizing the Group’s strengths, the Company aims to diversify flow businesses and expand stock and fee-based
businesses, and achieve profit ratio of 65% for flow businesses and 35% for stock and fee-based businesses.
B. Individual Strategies(i) Diversifying flow businessesa) New built-for-sale condominium business in the Tokyo Metropolitan area－

11 －

Due to a surge of condominium price in the metropolitan area, first-time buyers have shifted to suburban areas,
which resulted in increasing demands for condominiums with good locations and upscale specifications in theseareas. As the exodus of first-time buyers from the metropolitan area to the suburbs is still expected to increase, theCompany plans to supply high value-added condominiums with solar-power, etc. in good locations at appropriate
prices, and aims at stable annual supply of 1,200 units.
b) New built-for-sale condominium business in downtown areas in local cities
In downtown areas in local cities, we will expand our business with active seniors as the main target. As
demand for condominiums located in central areas is expected to increase in the future once the second-generation
baby boomers begin to retire, the Company aims at annual supply of 1,000 units.
c) Redevelopment & Rebuilding Business
Through rebuilding, redevelopment, and scrap & build businesses, the Company aims at stable annual supply of
about 300 units.
d) Detached house business
The Company will establish short-, mid-, and long-term business cycles, ensure creating value for town throughdevelopment of complex facilities including condominiums and supplying condominiums in good locations, andaim at annual supply of 500 units, in a complementary role in the condominium business.
e) Business charged with effective use of land
The Company plans to provide one-stop solution for the entire process from proposal of land effective
utilization, design/construction and operational management/maintenance, with the aim of expanding both flow
and stock businesses.
(ii) Expanding stock and fee-based businessesa) Mega-solar businessWe set the operation goal of 130 MW for FY2019/3. In addition, Takara Asset Management Co., Ltd. aims forlisting of an investment corporation on the infrastructure market as soon as possibleb) Real estate rental businessWe will proactively acquire used properties located near railway stations. Through scrap & build operations,such acquired properties will be sold to active seniors or to REIT as new rental properties.
c) Real estate management business
The Company will proactively acquire management of build-for-sale housing conducted by other companies,
and aim for 50,000 managed housing units.
d) Real estate rental and management businessGroup companies will enhance rental management business in each area, aiming for 6,200 managed housing
units.
e) Real estate distribution businessWith effective use of resources available in the Group, we will strengthen the business structure to respond to
replacement needs of active seniors that are expected to increase going forward and aim to achieve annual sales of¥1.0 billion.
(3) Issues to be Addressed
The Company considers its immediate priority to be cultivation of human resources. Especially, in order to establish
sustainable organization, it is absolutely imperative to cultivate middle-level personnel. Through providing trainings
according to employee level and reinforcing corporate culture, we aim to build stronger organization while maintaining the
speedy decision making.

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

－

12 －

5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2014)(March 31, 2015)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable, trade
Real estate held for sale※3

Real estate held for sale in progress
Costs incurred on uncompleted contracts

35,964

※2

405
1,156

※2, ※332,288－※2

Deferred tax assets
Other

408
2,345

Allowance for doubtful accounts
Total current assets

26,281
※2

933
4,901

30,444
244

※2

189
4,362

※2

(43)

(37)

72,52467,3198,114

10,490(3,006)(3,619)Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net

5,108※2, ※3

Machinery, equipment and vehicles

6,870

※2,※3

1,135

Accumulated depreciation

4,248

(61)

Machinery, equipment and vehicles, net

※2

1,074

(377)
3,870

※2

Tools, furniture and fixtures

177

220

Accumulated depreciation

(148)

(188)

Tools, furniture and fixtures, net

※2

Land

28

14,100※2, ※3

Lease assets
Accumulated depreciation

※2

135
(31)

Lease assets, net

230
(75)

104
816

31

18,758※2,※3

154

Construction in progress

※2

725

Total tangible fixed assets

21,23330,412

－

1,123
82

※2

Intangible fixed assets
Goodwill
Lease assets

92

Other

※2

Total intangible fixed assets

421

※2

421

513

1,627

226
73

223
55

Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Other

※1

44
1,384

※1

46
2,042

Allowance for doubtful accounts

(109)

(6)

Total investments and other assets

1,619

2,361

23,366

34,400－18

95,891

101,738

Total fixed assets
Deferred assets
Total assets

－

13

－

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2014)(March 31, 2015)
Liabilities
Current liabilities
Notes and accounts payable, trade

20,6922,590※2 5,101

Short-term borrowings
Current portion of long-term borrowings※2

10,023※2※2

4,742
10,378

Lease obligations
Income taxes payable

62
3,356

108
1,928

Advance received
Allowance for bonuses

4,043
229

4,146
265

Allowance for compensation for complete work
Other

158
1,475

150
2,857

Total current liabilities

37,711

34,600Noncurrent liabilities
Bonds

－

Long-term borrowings
Lease obligations※2

29,861
149

200
33,235
148※2

Allowance for directors’ retirement benefits
Liabilities related to retirement benefits

26
220

29
255

Asset retirement obligations
Deferred tax liabilities

24
117

20
813

Other
Total noncurrent liabilities
Total liabilities

642

1,245

31,04135,94868,75270,549

4,819

4,819

4,817
21,623

4,817
26,251(4,179)(4,806)27,08031,081

4

30

4

30

53

77

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on available-for-salesecurities
Total accumulated other comprehensive income
New share subscription rights
Total net assets
Total liabilities and net assets

－

14

－

27,13831,18995,891

101,738(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, 2013
(From April 1, 2014
to March 31, 2014)

to March 31, 2015)

71,96353,763

Net sales
Cost of sales※1

18,199Gross profit
Selling, general and administrative expenses※2

Operating income

8,400

76,956
58,645
18,311

※2

9,053

9,798

9,257

4
4

3
4

114
139
－

112
5

Non-operating income
Interest income
Dividend income
Commissions received
Income from equity method investment
Deposit settlement gain
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense

40

48
58

302

233

832

892

Miscellaneous losses

87

59

Total non-operating expense

920

951

9,181

8,540

Ordinary income
Extraordinary gains
Gain on sale of fixed assets－－

Gain on sale of investment securities
Gain on negative goodwill

0
16

※3

－

Legal settlement received

330

82
－

Total extraordinary gains

330

99

39

－

Extraordinary losses
Loss on sale of fixed assets
Loss on disposal of fixed assets※4

Impairment loss
Loss on valuation of investment securities

※6

※5

0
17
－

30
0

※5
※6

9

9
※7 20

66

61

Income before income taxes and minority interests

9,444

8,577

Income taxes – current

3,390

1,973

Income taxes – deferred

185

886

Total income taxes

3,575

2,859

Income before minority interests

5,869

5,718

Net income

5,869

5,718

Loss from legal proceedings※7

Total extraordinary losses

－

15

－

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2013
to March 31, 2014)
Income before minority interests

5,869

5,718

0

26

Other comprehensive income
Net unrealized gains on available-for-sale securities
Total other comprehensive income※1

Comprehensive income(From April 1, 2014
to March 31, 2015)

0

※1

26

5,869

5,744

5,869

5,744

(Comprising)Comprehensive income attributable to parent

－

16

－

(3) Consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2013 to March 31, 2014)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of year

Capital surplus

Retained earnings

4,947

16,991

4,819

Treasury stock(2,630)Total shareholders’equity24,127

Changes during the year
Dividends from surplus

(472)

(472)

Net income

5,869

5,869

Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasury
stock
Cancellation of treasury
stock
Transfer from retained
earnings to capital surplus(2,496)(2,496)

25

26

52

(920)

920

－

765

(765)

－

Net changes of items otherthan shareholders’ equity
Total changes during the
year

－

(130)

4,632

(1,548)2,952

Balance at end of year

4,819

4,817

21,623(4,179)27,080

Accumulated other comprehensive income
New share subscription
Unrealized gains (losses)
Total accumulated otherrightson available-for-salecomprehensive income
securities
Balance at beginning of year

3

3

16

Total net assets

24,147

Changes during the year
Dividends from surplus(472)

Net income

5,869

Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasury
stock
Cancellation of treasurystock－(2,496)52－

Transfer from retained
earnings to capital surplus
Net changes of items otherthan shareholders’ equity

－
0

0

36

37

Total changes during the
year

0

0

36

2,990

Balance at end of year

4

4

53

27,138－17－

Current Consolidated Fiscal Year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of year

Capital surplus

Retained earnings

4,817

21,623

4,819

Treasury stock(4,179)Total shareholders’equity27,080Changes during the year
Dividends from surplus

(624)

(624)

Net income

5,718

5,718

92

92

Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasurystock(1,217)(1,217)2

29

32

Cancellation of treasury
stock

(560)

560

－

Transfer from retained
earnings to capital surplus

557

(557)

－

－

4,628

(627)

4,001

4,819

4,817

26,251(4,806)31,081

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

Accumulated other comprehensive income
Unrealized gains (losses) Total accumulated other New share subscription
rightson available-for-salecomprehensive income
securities
Balance at beginning of year

4

4

53

Total net assets

27,138Changes during the year
Dividends from surplus(624)

Net income

5,718

Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasurystock(1,217)

Cancellation of treasury
stock

－

Transfer from retained
earnings to capital surplus－

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

92

32

26

26

24

50

26

26

24

4,051

30

30

77

31,189－18－

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

Cash flows from operating activities
Net income before income taxes and minority
interests
Depreciation and amortization

9,444

8,577

437

717

Impairment loss
Amortization of goodwill

17
－

0
46

Gains on negative goodwill
Increase (decrease) in allowances

－
124

(82)
(19)

Increase in liabilities related to retirement benefits
Interest and dividend income

41
(8)

25
(8)

Equity-based compensation cost
Interest expense

88
832

55
892

Loss on disposal of fixed assets
Loss (gain) on sale of tangible fixed assets

0
39

30
(0)

Loss on valuation of investment securities
Gain on sale of investment securities

－
－

9
(16)

Legal settlement received
Increase in accounts receivable, trade

(330)
(81)

－
(484)

Decrease in operating loans
Decrease (increase) in inventories

56
2,051

73
(911)

Increase (decrease) in accounts payable, trade
Increase in advance received

12,772
87(10,717)
73

Other

(425)

(1,979)Subtotal

25,149(3,716)

Interest and dividend received
Interest paid
Income taxes paid
Amount of legal settlement received
Net cash provided by (used in) operating activities

8

8

(821)
(1,669)(1,014)(3,433)330－

22,996(8,155)

(0)
9

(32)
27

4
(646)

16
－

(3,856)
12(7,681)
1

(29)
(59)

(19)
(1)

－

56

Cash flows from investing activities
Payments into time deposits
Withdrawals from time deposits
Decrease in short-term loans
Purchase of stocks of subsidiaries and affiliates
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 investment securities
Outflow from acquisition of subsidiaries’ stock
resulting in change of the scope of consolidation
Inflow from acquisition of subsidiaries’ stock
resulting in change of the scope of consolidation
Other
Net cash used in investing activities

－

19

－

－

※3

(732)

－

※3

375

(2)

(8)

(4,568)(7,998)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2013
(From April 1, 2014
to March 31, 2014)
Cash flows from financing activities
Net (decrease) increase in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings

to March 31, 2015)
(38)

1,687

19,170(16,432)

22,349(15,778)－

Redemption of bonds
Repayment of lease obligations

(98)

(30)
(73)

Acquisition of treasury stock
Dividends paid

(2,496)(471)(1,217)
(624)

(366)

6,314

Net cash (used in) provided by financing activities
Increase (decrease) in cash and cash equivalent

18,061(9,840)Cash and cash equivalent at beginning of year

17,89335,954

Cash and cash equivalent at end of year

※1

－

20

－

35,954※1

26,114

(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: 10
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 kensetsu CO., LTD.
Jyutakujyouhoukan Co., Ltd.
Marunouchi Servicer Co., Ltd.
During the three months ended June 30, 2014, Oasis Corporation was included in the scope of consolidation as aresult of share acquisition. Oasis Corporation changed its name to Takara Leben Realnet Co., Ltd.
During the three months ended December 31, 2014, Nikko kensetsu Co., Ltd. was included in the scope of
consolidation as a result of share acquisition.
During the three months ended March 31, 2015, Live Net Home Co., Ltd. and Jyutakujyouhoukan Co., Ltd. were(2)

included in the scope of consolidation as a result of share acquisition. Live Net Home Co., Ltd. changed its name to
Takara Leben Tohoku Co., Ltd.
Names of major nonconsolidated subsidiaries
Not applicable.

2．Application of the equity method(1)

Number of affiliates accounted for by the equity method:2
Name of the affiliates
AS PARTNERS Co., Ltd.
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.
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)

－

21

－

(2) Depreciation method for major depreciable assets(i) Tangible fixed assets (excluding lease assets)
Tangible fixed assets (excluding lease assets) are depreciated using the declining balance method, except forbuildings (excluding leasehold improvement) acquired after April 1, 2008, which are depreciated using the straightline method.
Individual useful lives are as follows:
Individual useful lives (years)
Buildings and structures

3 - 50Machinery, equipment and vehicles

4 - 17(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 assessmentof collectibility.
(ii) Allowance for bonuses
In order to provide for bonuses to be paid to employees, 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
the delivery 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 yearend 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 end of year istreated 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 deposit, and short-term investments with an original maturityof three months or less that are readily convertible to cash and subject to insignificant risk of changes in value.
(7) Other significant matters for 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.
However, Consumption taxes of tax-exempt consolidated subsidiaries are accounted for using the tax inclusive method.

－

22

－

(Consolidated Balance Sheet)※1 Assets relating to affiliates are as follows:
Previous Consolidated Fiscal Year
(March 31, 2014)

Current Consolidated Fiscal Year
(March 31, 2015)¥885 million¥881 million

Investments and other assets, Other (Affiliates’ stock)※2 Assets pledged as collateral and corresponding liabilities are as follows.
(1)Assets pledged as collateralPrevious Consolidated Fiscal Year
(March 31, 2014)(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2015)

Cash and deposits
Notes and accounts receivable, trade

－
－

21
409

Real estate held for sale
Real estate held for sale in progress－
29,640592
23,876

Other (current assets)
Buildings and structures

4,302

267
5,805

Machinery and equipment
Tools, furniture and fixtures

631
0

3,070
0

Land
Construction in progress
Other (intangible fixed assets)

10,268710

14,489
549

224

224

45,77849,307－Total(2) Corresponding liabilities

Previous Consolidated Fiscal Year
(March 31, 2014)
Short-term borrowings
Current portion of long-term borrowings
Long-term borrowings
Total(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2015)

2,197

3,032

4,797
28,8295,296
31,66735,82439,996※3 Change in purpose of asset holding
Previous consolidated fiscal year (as of March 31, 2014)
In line with the decision to reclassify part of real estate held for development and rent to real estate held for resale,
Buildings and structures of ¥38 million and Land of ¥27 million were reclassified to Real estate held for sale.
Current consolidated fiscal year (as of March 31, 2015)
In line with the decision to reclassify part of real estate held for development and rent to real estate held for resale,
Buildings and structures of ¥252 million and Land of ¥445 million were reclassified to Real estate held for sale.
4

Contingent liabilities (Guarantee liability)
Guarantee liability for borrowings from financial institutions by companies other than consolidated subsidiaries(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(March 31, 2014)(March 31, 2015)

Joint and several guarantees in favor of
financial institutions until the customers’
residential mortgage loans are registered
Aruka Co., Ltd.
Total

－

23

－

7,301

12,073

26

－

7,327

12,073

5

The Group maintains overdraft and credit lines agreement with 14 financial institutions (March 31, 2014: 11) in order toensure efficient funding of operating capital. The unused balance of borrowings under these agreements at consolidated
fiscal year-end is as follows:(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2014)

Total maximum amount of overdraft and credit lines
Outstanding borrowing balance
Difference

Current Consolidated Fiscal Year
(March 31, 2015)

5,950
3,622

8,213
4,683

2,327

3,529

(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

Current Consolidated Fiscal Year

(From April 1, 2013 to March 31, 2014)(From April 1, 2014 to March 31, 2015)
－

(151)

※2 Selling expenses account for approximately 52% and General and administrative expenses account for approximately 48%
for the year ended March 31, 2014, and 46% and 54%, respectively, for the year ended March 31, 2015.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

Advertising expenses

2,838

2,781

Sales promotion expenses
Salaries
Provision for allowance for bonuses

1,450
1,341

1,394
1,560

276
46

320
57

1

3

22

17

Retirement benefit costs
Provision for allowance for directors’ retirement
benefits
Provision for allowance for doubtful accounts※3

The breakdown of Gain on sale of fixed assets is as follows.

(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

Machinery, equipment and vehicles
Total
※4

－

0

－

0

The breakdown of Loss on sale of fixed assets is as follows.

(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2013

Current Consolidated Fiscal Year
(From April 1, 2014

to March 31, 2014)

to March 31, 2015)

Buildings and structures
Total

－

24

－

39

－

39

－

※5

The breakdown of Loss on disposal of fixed assets is as follows.

(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2013

Current Consolidated Fiscal Year
(From April 1, 2014

to March 31, 2014)

to March 31, 2015)

Buildings and structures－

30

Tools, furniture and fixtures
Software

0
0

0
－

Total

0

30

Rentalproperties

Idle assets※6 Impairment loss
Previous consolidated fiscal year (From April 1, 2013 to March 31, 2014)
During the year ended March 31, 2014, the Group recorded impairment loss of ¥17 million on the following assets orasset groups due to the decline in market value of rental properties.
AmountUse
Type
Location(Millions of yen)
Land

Furukawa, Ibaraki

0

Land

Hakone-machi, Ashigara-shimogun, Kanagawa

1

Land

Oyama, Tochigi

8

Land

Tsukuba, Ibaraki

5

Land

Matsudo, Chiba

1

Total

17

The amount consists of Land of ¥17 million.
Rental properties and idle assets are grouped based on an individual property.
The recoverable amount is measured using net sale value and value in use. Net sale value is assessed based on theappraisal value by a real estate appraiser and value in use is calculated by discounting future cash flows at a rate of 6%.
Current consolidated fiscal year (From April 1, 2014 to March 31, 2015)
During the year ended March 31, 2015, the Group recorded impairment loss of ¥0 million on the following assets orasset groups due to the decline in market value of idle assets.
AmountUse
Type
Location(Millions of yen)

Idle
assetsLand

Hakone-machi, Ashigara-shimogun, Kanagawa

0

Total

0

The amount consists of Land of ¥0 million.
Idle assets are grouped based on an individual property.
The recoverable amount is measured using net sale value, which is assessed based on the appraisal value by a realestate appraiser.
※7

Loss from legal proceedings
Previous consolidated fiscal year (From April 1, 2013 to March 31, 2014)
Loss from legal proceedings represents attorney’s fee of ¥9 million
Current consolidated fiscal year (From April 1, 2014 to March 31, 2015)
Loss from legal proceedings represents ¥20 million of legal settlement related to legal proceedings filed against theCompany.

－

25－

(Consolidated Statement of Comprehensive Income)※1 Reclassification adjustments of other comprehensive income and their tax effects.

(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

0

42

－

(16)

0
－

26
－

0

26

0

26

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(Consolidated Statement of Changes in Shareholders’ Equity)

Previous consolidated fiscal year (From April 1, 2013 to March 31, 2014)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2013
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2014
(Shares)

Shares issued and outstanding
Common stock (Note 1, 2, 3)

33,386,070

99,000,000

2,386,070

130,000,000

Total

33,386,070

99,000,000

2,386,070

130,000,000

Common stock (Notes 1, 4, 5)

3,505,271

14,881,606

2,412,070

15,974,807

Total

3,505,271

14,881,606

2,412,070

15,974,807

Treasury stock(Notes) 1. As of July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock.
2. The increase in number of common stock outstanding of 99,000,000 shares is due to stock split.
3. The decrease in number of common stock outstanding of 2,386,070 shares is due to cancellation of treasury stock
based on the resolution by the Board of Directors meeting.
4. The increase in number of common stock in treasury stock of 14,881,606 shares is due to market purchase of
2,601,900 shares based on the resolution by the Board of Directors meeting, acquisition of odd-lot shares of 103
shares, and stock split (at 1:4) of 12,279,603 shares.
5. The decrease in number of common stock in treasury stock of 2,412,070 shares is due to exercise of stock optionof 26,000 shares and cancellation of treasury stock of 2,386,070 shares based on the resolution by the Board of
Directors meeting.
2. New share subscription rights and treasury new share subscription rights
Class of sharesClassification

Submitting
company New share subscription(Parent
company)

Number of shares to be issued upon exercise of

to be issued
new share subscription rights
Balance at
Number of March 31, 2014
Description of new share upon exercise Number ofshares at
subscription rightsof new share(Millionsshares at
Increase
Decrease
March 31,
April
1,
2013
(Shares)(Shares)
subscriptionof yen)2014(Shares)(Shares)rightsrights as stock options
Total

－

－

－

－

－

53

－

－

－

－

－

53

－

26

－

3．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June20, 2013
Board of Directors
meeting on October28, 2013

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

298

Common stock

173

Record date

Effective date10

March 31, 2013

June 21, 2013

1.5

September 30, 2013

December 10, 2013

(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 of yen)

Board of Directors Common
meeting on June 23,
stock
2014

399

SourceDividend pershare (Yen)

Retainedearnings

3.5

Record date

Effective date

March 31, 2014

June 24, 2014

Current consolidated fiscal year (From April 1, 2014 to March 31, 2015)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2014
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2015
(Shares)

Shares issued and outstanding
130,000,000－

2,000,000

128,000,000

130,000,000－

2,000,000

128,000,000

Common stock (Notes 2, 3)

15,974,807

2,668,500

2,112,000

16,531,307

Total

15,974,807

2,668,500

2,112,000

16,531,307

Common stock (Note 1)
Total
Treasury stock(Notes) 1. The decrease in number of common stock outstanding of 2,000,000 shares is due to cancellation of treasury stock
based on the resolution by the Board of Directors meeting.
2. The increase in number of common stock in treasury stock of 2,668,500 shares is due to acquisition of treasury
stock based on the resolution by the Board of Directors meeting.
3. The decrease in number of common stock in treasury stock of 2,112,000 shares is due to exercise of stock optionof 112,000 shares and cancellation of treasury stock of 2,000,000 shares based on the resolution by the Board of
Directors meeting.
2. New share subscription rights and treasury new share subscription rights
Class of shares
to be issued

Classification

Number of shares to be issued upon exercise of
new share subscription rights
Balance at
Number of
Description of new share upon exercise Number ofMarch
31, 2015
shares at
subscription rightsof new share
shares at
Increase
Decrease
March 31, (million yen)
(Shares)
subscription April 1, 2014 (Shares)
2015(Shares)(Shares)rightsSubmitting
company(Parent

New share subscription
rights as stock options

－

－

－

－

－

77

－

－

－

－

－

77

company)
Total

－

27

－

3．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June23, 2014
Board of Directors
meeting on October27, 2014

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

399

Common stock

225

Record date

Effective date

3.5

March 31, 2014

June 24, 20142

September 30, 2014

December 9, 2014

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year
The following dividend is expected to be approved.
Total dividends
Class of(Resolution)
to be paid
Sourceshares(Millions of yen)
Board of Directors Common
Retainedmeeting on June 24,445
earnings
stock
2015

Dividend pershare (Yen)4

Record date

Effective date

March 31, 2015

June 25, 2015

(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, 2013
(From April 1, 2014
to March 31, 2014)

to March 31, 2015)

Cash and deposits
Time deposits with maturity in excess of three months

35,964(10)

26,281(166)

Cash and cash equivalent

35,954

26,1142 Significant non-cash transactions(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2013
(From April 1, 2014
to March 31, 2014)

to March 31, 2015)

65

697

The amounts transferred from fixed assets to Real estate held
for sale due to change in the purpose of real estate holding※3 Major components of assets and liabilities of the company newly included in the scope of consolidation as a result of
acquisition of shares
Previous consolidated fiscal year (From April 1, 2013 to March 31, 2014)
Not applicable

－

28

－

Current consolidated fiscal year (From April 1, 2014 to March 31, 2015)
Details of assets and liabilities at the time of consolidation of the company newly included in the scope of consolidation
as a result of acquisition of shares, purchase price of the stock, and outflow (net increase) from acquisition of shares are as
follows:(1) Takara Leben Tohoku Co., Ltd.
(Millions of yen)
Current assets

278

Fixed assets

5

Goodwill82

Current liabilities(325)

Noncurrent liabilities(40)

Purchase price of newly consolidated subsidiary’s stock0

Cash and cash equivalent of newly consolidated subsidiary’s stock(18)

Difference：Cash inflow due to acquisition of newly consolidated subsidiary’s shares

18(2) Takara Leben Realnet Co., Ltd.
(Millions of yen)
Current assets

50

Fixed assets

298

Current liabilities(133)

Noncurrent liabilities(122)

Negative goodwill(82)

Purchase price of newly consolidated subsidiary’s stock

10

Cash and cash equivalent of newly consolidated subsidiary’s stock(37)

Difference：Cash inflow due to acquisition of newly consolidated subsidiary’s shares

27(3) Nikko kensetsu Co., Ltd.
(Millions of yen)
Current assets

653

Fixed assets

570

Goodwill

707

Current liabilities(1,355)

Noncurrent liabilities(559)

Purchase price of newly consolidated subsidiary’s stock

16

Cash and cash equivalent of newly consolidated subsidiary’s stock(346)

Difference：Cash inflow due to acquisition of newly consolidated subsidiary’s shares

329(4) Jyutakujyouhoukan Co., Ltd.
(Millions of yen)
Current assets

643

Fixed assets

2,291

Goodwill

380

Current liabilities(317)

Noncurrent liabilities(1,951)

Purchase price of newly consolidated subsidiary’s stock

1,047

Cash and cash equivalent of newly consolidated subsidiary’s stock(314)

Difference：Cash inflow due to acquisition of newly consolidated subsidiary’s shares

732

－

29

－

(Rental Properties, etc.)
The Company and its certain consolidated subsidiaries own office buildings (including land) and condominiums for rent inTokyo and other areas. During the consolidated fiscal year ended March 31, 2014, net rent income from these rental properties
amounted to ¥705 million (rent income is recorded in Net sales and major rent expenses are recorded in Cost of sales), andimpairment loss amounted to ¥17 million (recorded in Extraordinary losses). During the consolidated fiscal year ended March
31, 2015, net rent income from these rental properties amounted to ¥721 million (rent income is recorded in Net sales and major
rent expenses are recorded in Cost of sales), and impairment loss amounted to ¥0 million (recorded in Extraordinary losses).
The carrying amount of these rental properties on the Consolidated Balance Sheet, changes during the year and market value
are as follows:(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2013

Current Consolidated Fiscal Year
(From April 1, 2014

to March 31, 2014)

to March 31, 2015)

Consolidated Balance Sheet
Beginning balance
Changes during the year
Ending balanceMarket value at end of year

17,381

18,088707

5,686

18,08823,774

19,74825,336(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents acquisition cost, net of accumulated depreciation2.

and amortization and accumulated impairment loss.
Of the changes during the year, the major increases during the year ended March 31, 2014 include acquisition ofreal estate (¥1,262 million), and major decreases include reclassification to Real estate held for sale (¥65 million),
Depreciation (¥244 million), and Impairment loss (¥17 million). The major increases during the year ended March
31, 2015 include acquisition of real estate (¥4,082 million), an increase in scope of consolidation (¥2, 536million),and major decreases include reclassification to Real estate held for sale (¥697 million) and Depreciation (¥297

million).
3. Market value at end of year is based on the appraisal value by a third party real estate appraiser.
(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 isavailable 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 build-for-sale condominiums. The Group’s reportable segments
consist of three business segments: “Real estate sales business,” “Real estate rental business” and “Real estate managementbusiness.”“Real estate sales business” primarily engages in construction and sales of new build-for-sale condominiums and detachedhouses and condominium renovation.
“Real estate rental business” provides office and residential condominiums rental service, and “Real estate managementbusiness” provides condominium management service.
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 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.

－

30

－

3．Net sales, income or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2013 to March 31, 2014)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness

Other
Total

(Note)Total

Net sales
Net sales to external customers

65,757

1,696

2,739

70,194

1,768

71,963

－

58

9

68

109

178

65,757

1,755

2,749

70,262

1,878

72,141

Segment income

8,667

663

127

9,458

350

9,808

Segment assets

35,75018,543296

54,591

3,862

58,453

Segment liabilities

55,251

9,242

234

64,7283,334

68,063

Depreciation and amortization

104

246

2

352

76

429

Interest expense

569

195

－

765

30

796

Increase in tangible and intangible
fixed assets

79

1,337

0

1,417

2,707

4,125

Inter-segment sales and transfers
Total

Other items(Note)“Other” represents business segments which are not included in any reportable segments and includes repair workbusiness and mega solar business.

Current consolidated fiscal year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness

Total

Total

Other
(Note)Net sales
Net sales to external customers

66,907

2,898

2,978

72,784

4,172

76,956

Inter-segment sales and transfers

－

89

13

103

701

805

66,907

2,988

2,991

72,887

4,874

77,762

Segment income

7,983

668

142

8,794

593

9,387

Segment assets

39,53824,985371

64,895

8,598

73,494

Segment liabilities

45,631

14,345365

60,343

8,596

68,939Depreciation and amortization

96

273

3

373

304

678

Interest expense

572

211

－

784

78

862

Increase in tangible and intangible
fixed assets

73

6,526

28

6,628

3,929

10,557

Total

Other items(Note)“Other” represents business segments which are not included in any reportable segments and includes repair workbusiness and mega solar business.

－

31

－

4．Reconciliation of the total reportable segments and the amount on the consolidated financial statements (difference
adjustments)(Millions of yen)
Net sales

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments

70,262

72,887

Net sales of “Other” category
Elimination of inter-segment transactions

1,878
(178)

4,874
(805)

Net sales on the consolidated financial statements

71,963

76,956(Millions of yen)

IncomePrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Income of “Other” category
Elimination of inter-segment transactions
Amortization of goodwill
Operating income on the consolidated financial
statements

9,458
350

8,794
593

(9)
－

(83)
(46)

9,798

9,257
(Millions of yen)

AssetsPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Assets of “Other” category

54,591
3,862

64,895
8,598

Elimination of due from parent administrative divisionCorporate assets (Note)(199)
37,636(1,017)29,261

Total assets on the consolidated financial statements

95,891

101,738(Note) Corporate assets represent assets not attributable to any reportable segments and primarily consist of cash anddeposits, assets attributable to administrative division, and deferred tax assets.
(Millions of yen)
Liabilities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Liabilities of “Other” category

64,7283,334

60,343
8,596

Elimination of due to parent administrative divisionCorporate liabilities (Note)

(495)
1,184

(909)
2,519

Total liabilities on the consolidated financial statements

68,75270,549(Note) Corporate liabilities represent liabilities not attributable to any reportable segments and primarily consist of
borrowings.

Other items

Total reportablesegments
Previous
Current
FY
FY

Other

Adjustments

Previous
FY

Current
FY

Previous
FY

Current
FY(Millions of yen)
Consolidated financial
statements
Previous
Current
FY
FY

Depreciation andamortization

352

373

76

304

8

39

437

717

Amortization of goodwill

－

－

－

－

－

46

－

46

Interest expense

765

784

30

78

42

33

838

896

Increase in tangible and
1,417
6,628
2,707
3,929
38
1,321
4,163
11,879intangible fixed assets(Note) Adjustments for increase in tangible and intangible fixed assets represent goodwill incurred but not allocated toreportable segments, capital expenditure for the headquarter building and elimination of inter-segment transactions.

－

32

－

b．Impairment loss on fixed assets by reportable segment
Previous consolidated fiscal year (From April 1, 2013 to March 31, 2014)(Millions of yen)
Real estate sales
business

Real estate rental
business

Real estate
managementbusiness－

17－

Impairment loss

Corporate /Elimination

Other
－

Total

－

17

Current consolidated fiscal year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Real estate sales
business

Real estate rental
business

Real estate
managementbusiness－0－

Impairment loss

Corporate /Elimination

Other
－

Total

－

0

(Per Share Information)
Previous Consolidated
Fiscal Year
(From April 1, 2013
to March 31, 2014)

Current Consolidated
Fiscal Year
(From April 1, 2014
to March 31, 2015)

Net assets per share¥237.53¥279.11

Earnings per share¥50.64¥50.61

Diluted earnings per share¥50.53¥50.44(Notes) 1. On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. Earnings per share and diluted
earnings per share are calculated, assuming that the stock split had taken place at the beginning of the previous
consolidated fiscal year.
2. Basis for calculation of earnings per share and diluted earnings per share is as follows.
Previous Consolidated
Fiscal Year
(From April 1, 2013
to March 31, 2014)

Current Consolidated
Fiscal Year
(From April 1, 2014
to March 31, 2015)

5,869

5,718

－

－

Net income attributable to common stock (millions of yen)

5,869

5,718

Average number of shares during the year (thousand shares)

115,903112,990

Net income adjustments (millions of yen)－－

Increase in number of common stock (thousand shares)

252

381

(Of those, new share subscription rights (thousand shares))

(252)

(381)

Overview of dilutive shares not included in calculation of diluted
earnings per share due to its anti-dilutive effect－－Earnings per share
Net income (millions of yen)Amount not attributable to common stockholders(millions of yen)

Diluted earnings per share

－

33

－

(Significant Subsequent Events)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 13, 2015 to issue new share subscription rights as stock options forequity-based compensation to directors and executive officers of the Company, pursuant to Articles 236, 238 and 240 of theCompanies Act.
Please refer to news release dated April 13, 2015, “Announcement concerning issuance of stock options for equity-based
compensation (Class A new share subscription rights),” for more detail.
(Acquisition of treasury stock)
The Board of Directors resolved at the meeting held on May 11, 2015 to acquire treasury stock and on specific procedures ofacquisition, pursuant to provisions of Articles 156 of the Companies Act which shall be applied by replacing phrases in accordancewith provision of Article 165, Paragraph 3 of the Companies Act.
1. Purpose of acquisition of treasury stock
As a measure to improve capital efficiency towards an increase in shareholders’ value
2. Details of the resolution by the Board of Directors meeting regarding acquisition of treasury stock(1) Class of shares to be acquired(2)

Common stock of the Company
Total number of shares that may be acquired
2,000,000 shares (maximum)(Ratio to the total number of shares issued and outstanding (excluding treasury stock): 1.79%)(3)

Acquisition period
From May 12, 2015 to March 31, 2016(4)

Total amount of acquisition cost of shares¥1,500 million (maximum)(5)

Acquisition method
Market purchase at Tokyo Stock Exchange

－

34

－

6．Non-Consolidated Financial Statements(1) Balance Sheet(Millions of yen)Previous Fiscal Year
(March 31, 2014)

Current Fiscal Year
(March 31, 2015)

AssetsCurrent assets
Cash and deposits

34,557※１ 23,768

7340※１ 1101,152※1 32,228※１,※２ 4,892

Advance payments
Prepaid expenses

249
920

1,721
1,003

Short-term loans
Short-term loans to affiliates

4
－

3
270

Deferred tax assets
Other

375
438

※１ 944

Allowance for doubtful accounts

(8)

(17)

70,032

63,085

7,491

7,885

Accounts receivable, trade
Other receivables
Real estate held for sale
Real estate held for sale in progress

Total current assets

140※１ 30,108139

Fixed assets
Tangible fixed assets
Buildings
Accumulated depreciation
Buildings, net※1(2,683)(2,876)

4,808※１,※２ 5,009

129

273

(60)

(79)

68

※１ 193

1,135

4,197

Structures
Accumulated depreciation
Structures, net※1

Machinery, equipment and vehicles
Accumulated depreciation
Total machinery, equipment and vehicles, net

※1

(61)

(332)

1,074

※１ 3,864

Tools, furniture and fixtures

128

135

Accumulated depreciation

(116)

(121)

Total tools, furniture and fixtures, net

11

※１ 14

13,741※１,※２ 16,506

128
(29)

166
(57)

※1

Land

※1

Lease assets
Accumulated depreciation

98

108

Construction in progress

Lease assets, net※1743※１ 725

Total tangible fixed assets

20,546

26,423224
61※１ 224

Lease assets
Other

85
－

62
0

Total intangible fixed assets

371

336

Investments and other assets
Investment securities

210

184

Affiliates’ stock
Investments in capital

748
2

2,292
2

Membership11

15

Intangible fixed assets
Land lease rights
Software

※1

－

35

－

49

(Millions of yen)Previous Fiscal Year
(March 31, 2014)

Current Fiscal Year
(March 31, 2015)

Security deposits and guarantee deposits

319

343

Long-term loans
Long-term loans to affiliates

73
325

55
331

Long-term other receivables
Other

185
6

157
137

Allowance for doubtful accounts

(266)

(234)

Total investments and other assets

1,615

3,285

22,53330,04492,565

93,13018,943
1,619

8,088
1,371

2,580
※1 5,003※1 4,443※1 10,112

59
913

71
1,118

Accrued expenses
Income taxes payable

110
3,264

101
1,808

Advance received
Deposits received

3,985
179

4,065
333

Unearned revenues
Allowance for bonuses

17
161

17
180

Allowance for compensation for complete work
Other

158
8

150
63

37,00531,926

Total fixed assets
Total assets
Liabilities
Current liabilities
Notes payable
Accounts payable, trade
Short-term borrowings
Current portion of long-term borrowings※1

Lease obligations
Other payables

Total current liabilities
Noncurrent liabilities
Long-term borrowings

29,579※1 30,800

Security deposits and guarantee deposits received
Lease obligations

634
139

739
115

Allowance for employees’ retirement benefits
Asset retirement obligations

142
20

165
20

Deferred tax liabilities
Other

117
4

796
4

30,63932,64367,64464,569※1

Total noncurrent liabilities
Total liabilities

－

36

－

(Millions of yen)Previous Fiscal Year
(March 31, 2014)

Current Fiscal Year
(March 31, 2015)

Net assets
Shareholders’ equity
Capital stock

4,819

4,819

4,817

4,817

92

92

Reserve for special depreciation
General reserve691
12,681

2,592
14,681Retained earnings carried forward

5,940

6,258

Capital surplus
Retained earnings
Legal reserve
Other retained earnings

19,40523,624

Treasury stock

Total retained earnings(4,179)(4,806)

Total shareholders’ equity

24,86328,454

4

28

4

28

Valuation and translation adjustments
Net unrealized gains on available-for-salesecurities
Total valuation and translation adjustments
New share subscription rights
Total net assets
Total liabilities and net assets

－

37

－

53

77

24,92028,56092,565

93,130(2) Statement of Income(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

Net sales
Net sales - real estate
Income from real estate rental

65,602
1,297

66,818
1,353

Other income

258

647

Total net sales

67,15868,81949,358682

51,097
713

75

334

50,11652,14517,041

16,673

Cost of sales
Cost of sales - real estate
Cost of sales - real estate rental
Cost of sales - otherTotal cost of sales
Gross profit
Selling, general and administrative expenses※1

Operating income

7,663

※1

7,889

9,378

8,783

Interest income
Dividend income

14
44

13
70

Commissions received
Miscellaneous income

114
35

111
58

Total non-operating income

Non-operating income

209

253

Non-operating expenses
Interest expense

829

869

Miscellaneous losses

85

30

Total non-operating expense

915

899

8,672

8,137

Gain on sale of investment securities
Legal settlement received

－
330

16
－

Total extraordinary gains

330

16

Ordinary income
Extraordinary gains

Extraordinary losses
Loss on sale of fixed assets

－

※2

39

Loss on disposal of fixed assets
Impairment loss

※3

0
17

Loss on valuation of investment securities
Loss from legal proceedings

－
※4 9

9
※4 20

Total extraordinary losses

66

61

Income before income taxes

8,936

8,092

Income taxes - current

3,221

1,776

Income taxes - deferred

※3

30
0

198

914

Total income taxes

3,419

2,690

Net income

5,516

5,401

－

38

－

Cost of Sales Statement
1．Cost of sales - real estate

Category
Land purchase cost

Notes

Previous Fiscal Year

Current Fiscal Year

(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

15,44331.3

14,86029.1

32,98266.8

35,413

69.3

932

1.9

823

1.6

49,358100.0

51,097100.0

2Outsourced construction cost
Other
Cost of sales - real estate(Note) 1. Cost of sales is calculated using the job order costing system.
2. Land purchase cost of the current fiscal year includes loss on valuation of inventories of ¥ (151) million.
2. Cost of sales - real estate rental
Previous Fiscal Year
(From April 1, 2013

Current Fiscal Year
(From April 1, 2014

to March 31, 2014)

to March 31, 2015)

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

Taxes and public charges

119

17.4

135

18.9

Depreciation and amortization

237

34.8

247

34.7

Maintenance andadministrative expenses

325

47.8

330

46.4

Cost of sales - real estate rental

682

100.0

713

100.0

Category

Notes

－

39

－

(3) Non-consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2013 to March 31, 2014)(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Retained earnings
Other retained earnings

Capitalreserve

Other
capitalsurplusTotal
capitalsurplusLegalreserve

Reserve for
specialdepreciation

Generalreserve

Retainedearnings
carriedforwardTotal
retainedearnings

4,817

130

4,947

92

－

9,681

5,352

15,126

752

(752)

－

(61)

61

－

(3,000)－

Dividends from surplus

(472)

(472)

Net income

5,516

5,516

(765)

(765)

Balance at beginning of year

4,819

Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation
Funding for general reserve

3,000

Acquisition of treasury stock
Disposition of treasury stock

25

25

Cancellation of treasury stock

(920)

(920)

Transfer from retained earnings
to capital surplus

765

765

Net changes of items other thanshareholders’ equity
Total changes during the year
Balance at end of year

－

－

(130)

(130)

－

691

3,000

587

4,279

4,819

4,817

－

4,817

92

691

12,681

5,940

19,405

Shareholders’ equity

Balance at beginning of year

Treasury stock

Total
shareholders’equity(2,630)22,262

Valuation and translation
adjustments
Unrealized gains
Total valuation(losses) on
and translation
available-foradjustments
sale securities
3

3

New share
subscription Total net assets
rights16

22,283

Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation

－

－

－

－

Funding for general reserve－－

Dividends from surplus

(472)

(472)

Net income

5,516

5,516

Acquisition of treasury stock(2,496)(2,496)(2,496)

Disposition of treasury stock

26

52

52

Cancellation of treasury stock

920

－

－

－

－

Transfer from retained earnings
to capital surplus
Net changes of items other thanshareholders’ equity
Total changes during the year
Balance at end of year

(1,548)(4,179)2,600
24,863

－

40

－

0

0

36

37

0
4

0
4

36
53

2,637
24,920Current Consolidated Fiscal Year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Retained earnings
Other retained earnings
Generalreserve

Retainedearnings
carriedforwardTotal
retainedearnings

12,681

5,940

19,405

2,199(2,199)

－

(298)

298

－

(2,000)－

Dividends from surplus

(624)

(624)

Net income

5,401

5,401

(557)

(557)

Balance at beginning of year

4,819

Capitalreserve

Other
capitalsurplusTotal
capitalsurplus

4,817

－

4,817

Legal reserve Reserve for
specialdepreciation
92

691

Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation
Funding for general reserve

2,000

Acquisition of treasury stock
Disposition of treasury stock2

2

Cancellation of treasury stock

(560)

(560)

557

557

Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity
Total changes during the year
Balance at end of year

－

－

－

－

－

1,900

2,000

318

4,218

4,819

4,817

－

4,817

92

2,592

14,681

6,258

23,624

Shareholders’ equity
Treasury stock
Balance at beginning of year

(4,179)Valuation and translation adjustments

Totalshareholders’equityUnrealized gains(losses) on
available-for-salesecurities

24,863

4

New share
Total valuation
Total net assets
subscription
rightsand translation
adjustments
4

53

24,920Changes during the year
Funding for reserve for
special depreciation
Reversal of reserve for
special depreciation

－

－

－

－

Funding for general reserve－－

Dividends from surplus

(624)

(624)

Net income

5,401

5,401

Acquisition of treasury stock(1,217)(1,217)(1,217)

Disposition of treasury stock

29

32

32

Cancellation of treasury stock

560

－

－

－

－

Transfer from retained
earnings to capital surplus
Net changes of items otherthan shareholders’ equity
Total changes during the year
Balance at end of year

24

24

24

48

(627)

3,591

24

24

24

3,640

(4,806)28,45428

28

77

28,560－41－

(4) Notes to the non-consolidated financial statements(Notes Regarding the Going Concern Assumption)
Not applicable.
(Significant Accounting Policies)
1. Valuation basis and method for securities(1) Debt securities held to maturity
Debt securities held to maturity are stated at amortized cost using the straight-line method.
(2) Subsidiaries’ and affiliates’ stock
Subsidiaries’ and affiliates’ stock is stated at cost based on the moving-average method.
(3) Available-for-sale securities
With fair value
Securities with fair value are marked to market based on the market value at the fiscal year-end (Unrealized gains andlosses are directly recorded in Net assets and cost of securities sold is calculated using the moving-average method).
Without fair value
Securities without fair value are stated at cost based on the moving-average method.
2. Valuation basis and method for inventories
Inventory is stated at cost based on the specific identification method (Book value is written down due to decline inprofitability).
3. Depreciation method for fixed assets(1) Tangible fixed assets (excluding lease assets)
Tangible fixed assets (excluding lease assets) are depreciated using the declining balance method, except for buildings(excluding leasehold improvement) acquired after April 1, 2008, which are depreciated using the straight-line method.
Individual useful lives are as follows:
Individual useful lives (years)
Buildings

3-50

Machinery and equipment
(2)
(3)

17

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.
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.

4. Accounting for allowances(1) 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.
(2) Allowance for bonuses
In order to provide for bonuses to be paid to employees, estimated bonus amount attributable to the current fiscal year isrecorded.
(3) 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.
(4) Allowance for employees’ retirement benefits
Allowance for employees’ retirement benefits is provided based on the retirement benefit obligations as at the current
fiscal year-end.

－

42

－

5. Other significant basis for preparation of the 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.
(Balance Sheet)※1

Assets pledged as collateral and corresponding liabilities are as follows.
(1) Assets pledged as collateralPrevious Fiscal Year
(March 31, 2014)－
Cash and deposits(Millions of yen)
Current Fiscal Year
(March 31, 2015)
21

－
－

46
598

Real estate held for sale in progress
Other (current assets)

29,640－23,876297

Buildings
Structures

4,195
35

4,481
149

631
0

3,068
0

10,131710

12,741549

Accounts receivable, trade
Real estate held for sale

Machinery and equipment
Tools, furniture and fixtures
Land
Construction in progress

224

224

45,57046,056

Land lease rights
Total(2) Corresponding liabilities

Short-term borrowings
Current portion of long-term borrowings

Previous Fiscal Year
(March 31, 2014)
2,197

Long-term borrowings
Total
※2

(Millions of yen)
Current Fiscal Year
(March 31, 2015)
2,733

4,776
28,713

5,175
29,44035,68737,349Change in purpose of asset holding
Previous fiscal year (as of March 31, 2014)
Not applicable.
Current fiscal year (as of March 31, 2015)
In line with the decision to reclassify part of the real estate held for development and rent to real estate held for resale,
Buildings of ¥252 million and Land of ¥445 million were reclassified to Real estate held for sale during the year ended
March 31, 2015.

3

Contingent liabilities
The Company provides guarantees for borrowings from financial institutions by affiliates and others listed below.
(Millions of yen)Previous Fiscal Year
(March 31, 2014)

Joint and several guarantees in favor of
financial institutions until the customers’
residential mortgage loans are registeredTAFUKO Co., Ltd.
Aruka Co., Ltd.
Total

－

43

－

Current Fiscal Year
(March 31, 2015)

7,301

12,073

243
26

165
－

7,570

12,239

4

The Company maintains overdraft and credit lines agreement with 14 financial institutions (March 31, 2014: 11) in order toensure efficient funding of operating capital. The unused balance of borrowings under these agreements at fiscal year-end is
as follows.
(Millions of yen)Previous Fiscal Year
(March 31, 2014)

Current Fiscal Year
(March 31, 2015)

5,950
3,622

8,213
4,683

2,327

3,529

Total maximum amount of overdraft and credit lines
Outstanding borrowing balance
Difference(Statement of Income)※1 Selling expenses account for approximately 56% and 53% for the years ended March 31, 2014 and 2015, respectively, andGeneral and administrative expenses account for approximately 44% and 47% for the years ended March 31, 2014 and2015, respectively.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2013
to March 31, 2014)

Current Fiscal Year
(From April 1, 2014
to March 31, 2015)

Advertising expenses
Sales commissions

2,807
43

2,736
56

Sales promotion expenses
Salaries
Provision for allowance for bonuses

1,448
1,083

1,390
1,145

Retirement benefit costs

242
26

267
35

Depreciation and amortization

104

96

※2 The breakdown of Loss on sale of fixed assets is as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2013
to March 31, 2014)
Buildings
Total

Current Fiscal Year
(From April 1, 2014
to March 31, 2015)

39

－

39

－

※3 The breakdown of Loss on disposal of fixed assets is as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2013
to March 31, 2014)

Current Fiscal Year
(From April 1, 2014
to March 31, 2015)

Buildings－

30

Structures
Tools, furniture and fixtures

－
0

0
0

Software

0

－

0

30

Total
※4 Loss from legal proceedings
Previous fiscal year (From April 1, 2013 to March 31, 2014)
Loss from legal proceedings represents attorney’s fee of ¥9 million
Current fiscal year (From April 1, 2014 to March 31, 2015)

Loss from legal proceedings represents ¥20 million of legal settlement related to legal proceedings filed against theCompany.

－44－

(Significant Subsequent Events)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 13, 2015 to issue new share subscription rights as stock options forequity-based compensation to directors and executive officers of the Company, pursuant to Articles 236, 238 and 240 of theCompanies Act.
Please refer to news release dated April 13, 2015, “Announcement concerning issuance of stock options for equity-based
compensation (Class A new share subscription rights)” for more detail.
(Acquisition of treasury stock)
The Board of Directors resolved at the meeting held on May 11, 2015 to acquire treasury stock and on specific procedures ofacquisition, pursuant to provisions of Articles 156 of the Companies Act which shall be applied by replacing phrases in accordancewith provision of Article 165, Paragraph 3 of the Companies Act.
1. Purpose of acquisition of treasury stock
As a measure to improve capital efficiency towards an increase in shareholders’ value
2. Details of the resolution by the Board of Directors meeting regarding acquisition of treasury stock(1)

Class of shares to be acquired
Common stock of the Company(2)

Total number of shares that may be acquired
2,000,000 shares (maximum)(3)(Ratio to the total number of shares issued and outstanding (excluding treasury stock): 1.79%)
Acquisition period(4)

From May 12, 2015 to March 31, 2016
Total amount of acquisition cost of shares(5)¥1,500 million (maximum)
Acquisition method
Market purchase at Tokyo Stock Exchange

－

45

－

7．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, 2013
to March 31, 2014)

Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2014
to March 31, 2015)

Year-on-Year(%)

Number of units

Amounts(Millions of yen)

Number of units

Amounts(Millions of yen)

Real estate sales business

1,836

64,293

1,910

68,564

106.6

Total

1,836

64,293

1,910

68,564

106.6

Current Consolidated
Fiscal Year-End(March 31, 2015)
Amounts
Number of units(Millions of yen)

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

Segment name

Previous Consolidated
Fiscal Year-End(March 31, 2014)
Amounts
Number of units(Millions of yen)

Real estate sales business

1,014

35,167984

36,824

104.7

Total

1,014

35,167984

36,824

104.7(Note) The above amounts do not include consumption taxes.
(iii) Net sales
Current Consolidated Fiscal Year
(From April 1, 2014
to March 31, 2015)

Segment nameYear-on-Year(%)

Real estate sales business(Millions of yen)

66,907

101.7

Real estate rental business(Millions of yen)

2,898

170.8

Real estate management business(Millions of yen)

2,978

108.7

Total reportable segments(Millions of yen)

72,784

103.7(Millions of yen)

4,172

235.9

(Millions of yen)

76,956

106.9

Other
Total

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

－

46－