Consolidated Financial Report for the Fiscal Year Ended March 31, 2018 (Japan GAAP)May 14, 2018
Company name:
Stock listed on:
Securities code:
Representative:
Contact:

Takara Leben Co., Ltd.
Tokyo Stock Exchange, First Section
8897 (URL http://www.leben.co.jp)
Kazuichi Shimada, President, Representative Director
Masashi Yamamoto, Director, Executive officer and General Planning Division
Tel. +81-3-6551-2130
Scheduled date of annual general meeting of shareholders:June 27, 2018
Scheduled date for commencement of dividend payment:
June 28, 2018
Scheduled date for release of annual securities report:
June 27, 2018
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 Operating Results for the Fiscal Year Ended March 31, 2018 (From April 1, 2017 to March 31, 2018)(1) Consolidated Operating Results(Percentage figures represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Year ended March 31, 2018Year ended March 31, 2017
(Note) Comprehensive income:% Millions of yen

110,851
103,599

7.0
35.8

%

12,597
10,349Profit attributable to ownersof parent

Ordinary profit
Millions of yen%

Millions of yen

11,792
9,496

24.2
41.6

7,367
6,107

21.7
36.8

%

20.6
41.8

Year ended March 31, 2018: ¥7,624 million (24.5%)
Year ended March 31, 2017: ¥6,124 million (43.5%)
Profitper share
yenYear ended March 31, 2018Year ended March 31, 2017

Ratio of earnings toshareholders’ equity

Diluted profit
per share
yen

68.12
56.14

(Reference) Equity in net income of affiliates:

Ratio of ordinary
income to total assets
%

67.80
55.85

%

18.6
17.4

Year ended March 31, 2018:Year ended March 31, 2017:

Ratio of operating
income to net sales
%

7.4
7.0

11.4
10.0

¥46 million¥36 million(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

As of March 31, 2018
As of March 31, 2017

Equity ratio

177,975
139,874%

42,90736,792(Reference) Shareholders’ equity: As of March 31, 2018:
As of March 31, 2017:

Net assets per share

Millions of yen

yen

24.0
26.2

394.90339.29¥42,747 million¥36,635 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen

Year ended March 31, 2018Year ended March 31, 2017

Cash flows fromfinancing activities

Millions of yen

9,869
22,644

Cash and cash equivalents
at end of year

Millions of yen(34,463)(27,540)

Millions of yen

24,012
6,129

29,042
29,623

2. Dividends
Annual dividends per share
Q1

Q2

Q3

yen

yen

Year-end
yen

Total
dividends(annual)

Total

yen

Dividend
payout ratio(consolidated)

yen Millions of yen

Year ended March 31, 2017
Year ended March 31, 2018

‒
‒

5.00
5.00

‒
‒

10.00
11.00

15.00
16.00

Year ending March 31, 2019
(forecast)

‒

5.00

‒

11.00

16.00

1,622
1,731

Ratio ofdividends to
net assets(consolidated)

%

%

26.7
23.5

4.6
4.3

27.5

3. Forecast for Consolidated Financial Results for the Year Ending March 31, 2019 (From April 1, 2018 to March 31,
2019)(Percentage figures represent year-on-year changes)

Net sales
Millions of yen

Full year

130,000%

17.3

Operating profit (loss)

Ordinary profit (loss)

Profit (loss)
attributable to ownersof parent

Millions of yen

Millions of yen

Millions of yen

10,700%(15.1)

9,600%(18.6)

6,300%(14.5)

Profitper share
Yen

58.20

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

None
None
Yes
None

(Note) For details, please see “3. Consolidated Financial Statements and Major Notes, (5) Notes to the Consolidated Financial
Statements, (Changes in accounting estimates)” on page 17.

(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, 2018:
124,000,000 shares(b) As of March 31, 2017:
124,000,000 shares(ii) Number of treasury stock at end of year(a) As of March 31, 2018:15,750,907 shares(b) As of March 31, 2017:16,022,507 shares(iii) Average number of shares during the year(a) Year ended March 31, 2018:
108,155,138 shares(b) Year ended March 31, 2017:
108,790,777 shares* This Consolidated Financial Report does not need to be audited by a certified public accountant or audit corporation.
* Explanation of the proper use of the financial results forecasts and other matters
The forward-looking statements presented above are based on the information available at the time of the release ofthis report and are not intended to guarantee that the Company will achieve such figures. Actual results may differ
from these forecasts due to various factors in the future.

 Contents of Attachment
1. Overview of Operating Results, Etc. ···································································································(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2018 ····················································(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2018 ···················································(3) Overview of Cash Flow for the Fiscal Year Ended March 31, 2018 ····························································(4) Future Outlook ························································································································
2. Basic Concept of Selection of Accounting Standards ·················································································
3. Consolidated Financial Statements and Major Notes ··················································································(1) Consolidated Balance Sheet ··········································································································(2) Consolidated Statements of Income and Comprehensive Income ·······························································
Consolidated Statement of Income ······························································································
Consolidated Statement of Comprehensive Income ·········································································(3) Consolidated Statement of Changes in Shareholders’ Equity ···································································(4) Consolidated Statement of Cash Flows ····························································································(5) Notes to the Consolidated Financial Statements ··················································································(Notes Regarding the Going Concern Assumption) ·············································································(Significant Basis for Preparation of the Consolidated Financial Statements) ·············································(Changes in accounting estimates) ································································································(Consolidated Balance Sheet) ·····································································································(Consolidated Statement of Income) ·····························································································(Consolidated Statement of Comprehensive Income) ··········································································(Consolidated Statement of Changes in Shareholders’ Equity) ·······························································(Consolidated Statement of Cash Flows) ··························································································(Rental Properties, etc.) ············································································································(Segment Information) ·············································································································(Per Share Information) ············································································································(Significant Subsequent Events) ··································································································
5. Other ·········································································································································(1) Changes of Officers ····················································································································(2) Production, Orders Received and Sales ·····························································································

–1–

2
2
3
4
4
6
7
7
9
9
10
11
13
15
15
15
17
17
19
21
23
25
26
26
30
31
32
32
32

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2018
During the fiscal year under review, the Japanese economy continued to recover moderately amid improved corporate
earnings and a stronger employment and income situation, backed by a range of fiscal measures implemented by thegovernment. Meanwhile, the global economy still required attention, given factors such as uncertainty due to geopoliticalrisks in neighboring countries, the trends of US economic policies and growing tension in international situations, among
others.
In the real estate sales market in which the Company operates, sales are increasingly divided between weak and strong
results in response to a rise in selling prices caused by soaring construction costs in the Tokyo metropolitan area. Upward
trends are seen in demand for convenient locations and daily life and compact condominiums, reflecting changes inlifestyles caused by an increase in single-person households and dual-income households and changes in consumer values.
Meanwhile, demand in regional urban centers remains strong, thanks in part to the demand of active seniors, which
continues to be high, and the trend of compact city development.
The number of nationwide condominium units sold increased in 2017 for the first time in four years, however it remains
at the 70,000 level for the third consecutive year. Under these conditions, the Company ranked among the top 10 for thefifth consecutive year and plays the role of a stable supplier in the real estate sales market as an independent general realestate developer.
In this environment, the Company announced a new medium-term management plan on May 14, 2018 and will ensurestable earnings in addition to responding promptly and appropriately to changes in its external and internal environments.
With its “Leben” series of self-designed new built-for-sale condominiums as its main brand, the Company will continue topromote business activities with an emphasis on its customers by working on product plans that accurately capture thetime background, always adhering to its basic concept of “ideal, affordable housing that anyone can buy with confidence”
as well as its corporate mission of “thinking of happiness; making happiness.”
In the fiscal year under review, the Company recorded consolidated net sales of ¥110,851 million (up 7.0% year on year),consolidated operating income of ¥12,597 million (up 21.7% year on year), consolidated ordinary income of ¥11,792
million (up 24.2% year on year) and profit attributable to owners of parent of ¥7,367 million (up 20.6% year on year).
(i) Performance by Business Segment<Real Estate Sales Business>
Revenues from the real estate sales business amounted to ¥79,341 million, down 0.4% year on year, as a result of
revenues of ¥60,368 million from the sales of new built-for-sale condominiums and revenues of ¥18,973 million from thesales of new detached houses and used condominiums, etc.
<Real Estate Rental Business>
Revenues from the real estate rental business amounted to ¥5,472 million, up 8.2% year on year, including rent revenues
from the rental of apartments, condominium units and offices.
<Real Estate Management Business>
Revenues from the real estate management business representing management fees from 49,650 units under management
amounted to ¥4,000 million, up 9.1% year on year.
<Electric power generation business>
Revenues from the electric power generation business amounted to ¥18,239 million, up 64.2% year on year, including
revenue from sales of power generation facilities that were already operating and revenues from the sale of electricity
generated by other electric power generation facilities.
<Other Business>
Revenues from other business totaled ¥3,797 million, down 8.1% year on year, including revenues from contracts forconstruction works and orders for large-scale repair works, etc.
(ii) Performance Review by Item
<Net Sales>
In the real estate sales business, net sales amounted to ¥79,341 million, reflecting sales of 1,619 units of new built-for-salecondominiums as well as new detached houses and used condominiums.
–2–

In the real estate rental business, net sales stood at ¥5,472 million due to rental revenues of apartments, condominiums
and offices, etc.
In the real estate management business, net sales came to ¥4,000 million due to management fees, etc. from 49,650 units
managed.
In the power generation business, net sales were ¥18,239 million, including revenues from sales of power generation
facilities that were already operating and revenues from the sale of electricity generated by other electric power generation
facilities.
In other business, net sales were ¥3,797 million, reflecting contracts for construction works and orders for large-scale
repair works, etc.
As a result, consolidated net sales in the fiscal year under review increased to ¥110,851 million, up 7.0% year on year.
<Cost of Sales>
Cost of sales increased 4.1% year on year, to ¥85,072 million, mainly due to sales of power generation facilities that werealready operating.
<Selling, General and Administrative Expenses>
Selling, general and administrative expenses increased 14.4% year on year, to ¥13,182 million, chiefly owing to anincrease in personnel associated with business expansion despite the continued implementation of comprehensive
measures to reduce expenses, as in the previous fiscal year.
<Non-Operating Income and Expenses>
Non-operating income grew 55.6% year on year, to ¥393 million, due largely to profit distribution of equity method
affiliates.
Non-operating expenses rose 8.4% from the previous fiscal year, to ¥1,198 million, which is attributable to an increase ininterest expenses associated with new borrowings for project funds.
<Extraordinary Gains and Losses>
Extraordinary losses increased 1.1% year on year, to ¥974 million, mainly as a result of posting impairment losses.
As a result, consolidated net sales amounted to ¥110,851 million, up 7.0% year on year, consolidated operating income
came to ¥12,597 million, up 21.7% year on year, consolidated ordinary income was ¥11,792 million, up 24.2% year on
year, and profit attributable to owners of parent was ¥7,367 million, up 20.6% year on year, in the fiscal year under review.
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2018
With regard to the status of consolidated assets, liabilities and net assets of the Group for the fiscal year under review,
total assets increased ¥38,100 million from the end of the previous fiscal year, to ¥177,975 million, due mainly to thegrowth of inventory assets associated with new purchases and purchases of business assets.
<Current assets>
Current assets rose ¥16,913 million from the end of the previous fiscal year, to ¥103,498 million, primarily reflecting an
increase in inventories associated with new purchases and the transfer of business assets to inventories.
<Non-current assets>
Non-current assets grew ¥21,199 million from the end of the previous fiscal year, to ¥74,437 million, mainly due to thepurchase of business assets.

–3–

<Current liabilities>
Current liabilities increased ¥6,393 million from the end of the previous fiscal year, to ¥56,876 million, which is chiefly
attributable to the drawing of drafts and a rise in short-term loans payable.
<Non-current liabilities>
Non-current liabilities grew ¥25,592 million from the end of the previous fiscal year, to ¥78,191 million, mainly as aresult of an increase in long-term loans payable.
<Net assets>
Net assets increased ¥6,114 million from the end of the previous fiscal year, to ¥42,907 million, chiefly because therecorded amount of profit attributable to owners of parent exceeded amounts such as dividends of surplus.
(3) Overview of Cash Flow for the Fiscal Year Ended March 31, 2018
Cash and cash equivalents (“funds”) as of March 31, 2018 amounted to ¥29,042 million, a decrease of ¥581 million fromMarch 31, 2017.
<Cash flows from operating activities>
Net cash provided by operating activities was ¥9,869 million (cash provided of ¥22,644 million in the previous fiscal
year). The major component was an increase in notes and accounts payable – trade.
<Cash flows from investing activities>
Net cash used in investing activities was ¥34,463 million (cash used of ¥27,540 million in the previous fiscal year),mainly due to the purchase of property, plant and equipment.
<Cash flows from financing activities>
Net cash provided by financing activities was ¥24,012 million (cash provided of ¥6,129 million in the previous fiscal
year), which was primarily attributable to an increase in loans payable.
(Reference) Changes in Cash Flow Indicators
FY2016/3

FY2017/3

FY2018/3

Equity ratio (%)

25.8

26.2

24.0

Equity ratio at market value (%)

56.5

38.3

28.0

Debt repayment period (years)

29.0

3.5

10.8

Interest coverage ratio (times)

2.4

24.0

9.8

Equity ratio: Shareholders’ equity/Total assets
Equity ratio at market value: Equity market capitalization/Total assets
Debt repayment period: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest expense* These indicators are all calculated using consolidated financial data.
* Interest-bearing debt includes all debts recorded on the consolidated balance sheet on which interest is paid.
(4) Future Outlook
Based on the new medium-term management plan announced on May 14, 2018, the Company has estimated the following
business targets for the next fiscal year.
In the sales operation of new built-for-sale condominiums in the real estate sales business, the Company expects thedelivery of 1,700 units (the Company’s equity after proportional distribution for the joint venture is 1,500 units) bypromoting active supply in the downtown areas in local cities.
In the newly built detached housing segment of the real estate sales business, the Company expects the delivery of 190
units.
In the renovation and resale segment of the real estate sales business, the Company plans to accumulate the number ofunits held for the time being with the aim of building stable business cycles.
In the real estate securitization segment of the real estate sales business, the Company will replace assets held while
actively acquiring and developing income property.
–4–

In the real estate rental business, the Company will seek to establish a more stable stock business through carefully
selected purchases.
In the real estate management business, the Company has set the target number of units managed under consignment at
53,375 units and aims to further expand peripheral operations such as large-scale repair works.
As a result of the above, the Company forecasts the financial results for the next fiscal year as follows:
Net sales:
Operating profit:¥130,000 million¥10,700 million(up 17.3% year on year)(down 15.1% year on year)¥9,600 million¥6,300 million(down 18.6% year on year)(down 14.5% year on year)

Ordinary profit:
Profit attributable to owners of parent:(New built-for-sale condominium business: Number of units to be delivered and contracts signed)
Number of contracts
Number of units to be
Of which, number ofsigned of the number of Total number of contracts
delivered in FY2019/3
contracts signed (unit) units to be delivered in orsigned (units)(units)after FY2020/3 (units)
As of March 31,
2018

1,700

528

23

551

Progress of the Medium-Term Management Plan, etc.
The Company reformed its medium-term management plan in May 2018, whose core policies include “establishment offoundation for stable and sustainable growth,” “diversification of business portfolio” and “compliance with the ESG criteria.”
The Company’s business portfolio has been changing in recent years as a result of expanding its investment areas. The
Company aims to establish a foundation for further growth by diversifying its business portfolio while stably growing thecore businesses, the sale of new built-for-sale condominiums.

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

–6–

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2017)(March 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Power generation facilities for sale
Real estate for sale in process
Power generation facilities in process
Costs incurred on uncompleted contracts
Deferred tax assets
Other
Allowance for doubtful accounts*2*2*2. *3*2. *3*2. *3

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net

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

*2
*2
*2, *3*2, *3*2, *386,585

103,498

17,742(3,506)

20,866(2,584)*2. *3

14,2355,125(525)*2. *3

18,2815,550(881)*2. *34,600*2. *3

4,669

Tools, furniture and fixtures
Accumulated depreciation

148
(93)
*2. *3Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation*2. *3*2

Lease assets, net
Construction in progress*2

Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other

*2

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts*1

Total investments and other assets

29,223
1,539
20,2794,090
44,068
29
129
567
3,680
(110)

291
(115)

55
23,821231(144)*2. *3

87
4,346

*2

*2. *3*2

176
35,899
273
(92)
180
7,132

47,146

66,340

889
42
459

1,265
27
516

*2

1,391

1,808

1,228
31
72
3,375
(9)

2,501
1
84
3,707
(6)

*1

4,699

6,287

Total non-current assets
Deferred assets

53,23751

74,43738

Total assets

139,874

177,975–7–

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2017)(March 31, 2018)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Advances received
Provision for bonuses
Provision for warranties for completed construction
Deferred tax liabilities
Other

*2
*2
*2

Total current liabilities
Noncurrent liabilities
Long-term loans payable
Bonds payable
Lease obligations
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Deferred tax liabilities
Other

12,173
16,49060
13,098
51
2,976
2,234
323
405
269
2,399

*2

*2

50,482*2*2*2

Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets–8–

48,439
1,640
85
56
331
22
39
1,984

15,786
18,389–12,838
55
3,547
2,177
363
525
–
3,193
56,876*2

75,015
200
164
73
436
22
404
1,873

52,59978,191103,081

135,067

4,819
4,817
32,970(5,976)

4,819
4,823
38,717(5,875)36,63042,485

4

262

4
157

262
159

36,792

42,907

139,874

177,975

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)

Net sales
Cost of sales

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2016
(From April 1, 2017
to March 31, 2017)
to March 31, 2018)
103,599
110,851*1*181,72985,072Gross profit
Selling, general and administrative expenses*2

Operating profit
Non-operating income
Interest income
Dividend income
Commission fee
Share of profit of entities accounted for using equity
methodMiscellaneous income

21,86911,520*2

25,77913,182

10,34912,597

15
27
106

1
95
109

36

46

65

139

Total non-operating income
Non-operating expenses
Interest expense
Miscellaneous loss

252

393

1,036
69

1,067
131

Total non-operating expense

1,105

1,198

9,496

11,792

13

–

13

–

Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Impairment loss
Loss from compensation for complete work
Office transfer expenses
Loss on liquidation of subsidiaries and associates
Loss on transfer of receivables

*3

*6
*7

Total extraordinary losses

–
–
651
170
95
45
–

*4
*5
*3

*6

*8

42
4
593
174
93
–
66

963

974

Profit before income taxes
Income taxes - current
Income taxes - deferred

8,547
3,519
(1,080)10,817
4,501(1,051)

Total income taxes

2,439

3,449

ProfitProfit attributable to owners of parent

6,107
6,107

7,367
7,367

–9–

(Consolidated Statement of Comprehensive Income)(Millions of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2016
(From April 1, 2017
to March 31, 2017)
to March 31, 2018)
6,107
7,367
16
*1

Total other comprehensive income
Comprehensive income
Profit attributable toComprehensive income attributable to owners ofparent– 10 –

16

257
*1

257

6,124

7,624

6,124

7,624

(3) Consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2016 to March 31, 2017)(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

4,819

4,817

29,011(5,100)33,548Changes of items during period
Dividends of surplus(1,532)(1,532)

Profit attributable to owners ofparent

6,107

6,107

Purchase of treasury shares(1,754)(1,754)

Disposal of treasury shares

129

132

261

Retirement of treasury shares

(746)

746

–

Transfer to capital surplus fromretained earnings

616

(616)

–

–

3,958

(875)

3,082

4,819

4,817

32,970(5,976)

36,630–Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Balance at beginning of current
periodTotal accumulated othercomprehensive income

Share acquisition rights

(11)

140

(11)

Total net assets

33,677

Changes of items during period
Dividends of surplus(1,532)

Profit attributable to owners ofparent6,107

Purchase of treasury shares(1,754)

Disposal of treasury shares

261

Retirement of treasury shares–

Transfer to capital surplus fromretained earnings–

Net changes of items other thanshareholders’ equity

16

16

16

33

Total changes of items during
period

16

16

16

3,115

Balance at end of current period

4

4

157

36,792– 11 –

Current Consolidated Fiscal Year (From April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

4,819

4,817

32,970(5,976)

36,630Changes of items during period
Dividends of surplus(1,620)(1,620)

Profit attributable to owners ofparent

7,367

7,367

Purchase of treasury shares–

Disposal of treasury shares

6

101

108

Retirement of treasury shares–

Transfer to capital surplus fromretained earnings–

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

–

6

5,747

101

5,855

4,819

4,823

38,717(5,875)42,485

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Balance at beginning of current
periodTotal accumulated othercomprehensive income

Share acquisition rights

4

157

4

Total net assets

36,792

Changes of items during period
Dividends of surplus(1,620)

Profit attributable to owners ofparent

7,367

Purchase of treasury shares–

Disposal of treasury shares

108

Retirement of treasury shares–

Transfer to capital surplus fromretained earnings–

Net changes of items other thanshareholders’ equity

257

257

2

259

Total changes of items during
period

257

257

2

6,114

Balance at end of current period

262

262

159

42,907– 12 –

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2016
(From April 1, 2017
to March 31, 2017)
to March 31, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividend income
Gain on reversal of share acquisition rights
Share-based compensation expenses
Interest expense
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in operating loans receivable
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Other

8,547
2,397
651
117
197
24
(43)
(13)
291
1,036
–

10,817
1,943
593
176
160
105
(97)
–
110
1,067
42

(367)

(180)

85
12,529274(3,379)

136

3,613

(875)
568

(57)
(483)

SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid

25,28343(942)(1,739)14,70397(1,010)(3,922)

Cash flows from operating activities

22,644

9,869

(202)
171
8
(23,860)
–
(62)
–
(832)
–
–

(167)
142
4
(30,144)
9
(132)
(541)
(929)
70
(491)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Decrease (increase) in short-term loans receivable
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries and associates
Purchase of investment securities
Proceeds from sales of shares of subsidiaries
Purchase of shares of subsidiaries
Outflow from acquisition of subsidiaries’ stock
resulting in change in the scope of consolidation
Other

*3

Net cash used in investing activities– 13 –(2,755)*3(2,321)(6)

37(27,540)(34,463)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2016
(From April 1, 2017
to March 31, 2017)
to March 31, 2018)
Cash flows from financing activities
Net increase in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Repayment of lease obligations
Purchase of treasury shares
Cash dividends paid

9,077
42,456(43,477)
1,477
–
(118)
(1,754)(1,531)

1,839
62,190(36,829)–(1,500)(67)–(1,619)Cash flows from financing activities

6,129

24,012

1,233
28,390(581)
29,623

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period*1Cash and cash equivalent at end of year

– 14 –

29,623*1

29,042

(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: 11
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.
Leben Zestock Co., Ltd.
Nikko Takara Corporation Co., Ltd.
Nikko Property Co., Ltd.
Takara Leben West Japan Co., Ltd.
JPS No.16 Co., Ltd.
Leben Solar Chiba Sanmu LLC.
Tafuko Co., Ltd. was renamed Leben Zestock Co., Ltd. on January 19, 2018.
Jyutakujyouhoukan Co., Ltd. was renamed Takara Leben West Japan Co., Ltd. on April 1, 2017.
In the fiscal year under review, Takara Investments Co., Ltd., which had been a consolidated subsidiary, was liquidated
and excluded from the scope of consolidation.
JPS No.16 Co., Ltd. has been included in the scope of consolidation in the fiscal year under review after the acquisitionof its shares by the Company on February 28, 2018. JPS No.16 Co., Ltd. was renamed Leben Solar Hiroshima Mihara,
Co., Ltd. on April 24, 2018.
Prospect Sanmu Higashi LLC. has been included in the scope of consolidation beginning in the fiscal year under review
after the acquisition of the equity interests of members and the equity interests of silent partners in Prospect Sanmu
Higashi LLC. by the Company on March 26, 2018. Prospect Sanmu Higashi LLC. was renamed Leben Solar Chiba
Sanmu LLC. on the same day.
In the fiscal year under review, ACMP2 LLC. and ACMP3 LLC., which had been consolidated subsidiaries, were
excluded from the scope of consolidation on June 20, 2017 as a result of merger and acquisition in which the Company
was the surviving company and ACMP2 LLC. and ACMP3 LLC. were the dissolving companies.
(2) Names of major nonconsolidated subsidiaries
Takara PAG Real Estate Advisory Ltd.
(Reason for exclusion from the scope of consolidation)
While the Company acquired the shares of PAG Real Estate Advisory Ltd. on January 31, 2018, the values of its net
assets, net sales, net income, retained earnings, etc. are small and do not have a significant effect on the consolidated
financial statements. The company was renamed Takara PAG Real Estate Advisory Ltd. on February 15, 2018.
2. Application of the equity method(1) Number of affiliates accounted for by the equity method: 2Name of affiliate
Sunwood Corporation
Minato LLC.
Minato LLC. was included in the scope of application of equity method beginning in the fiscal year under review as aresult of the acquisition of its equity interests of members by the Company on December 26, 2017.
(2) Non-consolidated subsidiaries not accounted for by the equity method
Takara PAG Real Estate Advisory Ltd. was excluded from the scope of application of the equity method because theimpact of such exclusion on the consolidated financial statements would be negligible in view of net income (amountcorresponding to its equity), retained earnings (amount corresponding to tis equity), etc., and its overall significance islow.
– 15 –

3. Fiscal year of consolidated subsidiaries(1) The fiscal year-end of consolidated subsidiaries is as follows:
March 31: 10 companies
November 30: one company(2) While the fiscal year-end of JPS No.16 Co., Ltd. is November 30, its results are based on financial statements that use
provisional settlement corresponding to the actual settlement as of the closing date of the consolidated fiscal year.
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.)(2) Depreciation method for major depreciable assets(i) Tangible fixed assets (excluding lease assets)
Tangible fixed assets are depreciated using the declining-balance method. However, the straight-line method is used forbuildings (excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached tobuildings and structures acquired on or after April 1, 2016.
Individual useful lives are as follows:
Buildings and structures

3 – 50 years

Machinery, equipment and vehicles
4 – 17 years(ii) Intangible fixed assets (excluding lease assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of five years.
(iii) Lease assets
Lease assets under the finance lease arrangements where the ownership is transferred to lessees
Lease assets with ownership transfer are depreciated using the same depreciation method as fixed assets owned.
Lease assets under the finance lease arrangements where the ownership is not transferred to lessees
Lease assets without ownership transfer are depreciated using the straight-line method over the lease term with noresidual value.
(iv) Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight-line method.
(3) Accounting for major allowances(i) Allowance for doubtful accounts
For the estimated uncollectible amount, allowance for performing receivables is recorded based on the actual loss ratio,
and allowance for certain receivables with doubtful collectibility is recorded based on the individual assessment ofcollectibility.
(ii) Allowance for bonuses
In order to provide for bonuses to be paid to employees, the estimated bonus amount attributable to the current
consolidated fiscal year is recorded.
(iii) Allowance for compensation for complete work
Allowance for compensation for complete work is recorded in order to provide for losses arising from defects after the– 16 –

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
year-end in accordance with the regulations on directors’ retirement benefits (internal regulations).
(4) Accounting for retirement benefits(i) Method of period attribution of estimated retirement benefits
For the calculation of retirement benefit obligations, the attribution of estimated retirement benefits to the period until
the end of the fiscal year under review is performed using a benefit formula.
(ii) Use of simplified method for small companies, etc.
Some of the Company’s consolidated subsidiaries calculate liabilities related to retirement benefits and retirement
benefit expenses using the simplified method in which the amount of retirement benefits payable for voluntarytermination at the end of the year is treated as retirement benefit obligations.
(5) Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over a period of up to ten years.
However, goodwill of minor amounts is charged to income in the period of acquisition.
(6) Scope of cash and cash equivalent on the consolidated statement of cash flows
Cash and cash equivalent consist of cash at hand, demand deposits, and short-term investments with an original maturityof three months or less that are readily convertible to cash and subject to an insignificant risk of changes in value.
(7) Other significant matters for the preparation of the consolidated financial statements
Accounting for consumption taxes
National and local consumption taxes are accounted for using the tax exclusive method. Non-deductible consumption
taxes relating to assets are charged to income in the year of acquisition.
(Changes in accounting estimates)(Provision for retirement benefits)
In the fiscal year under review, the Company has changed the method of calculating retirement benefit obligations from a
simplified method to the standard method. This change was implemented because settings for performing the mathematicallyrational estimation of retirement benefit obligations have been established as a result of an increase in the number of
employees and a rise in the average number of years of continuous service.
As a consequence of this change, net defined benefit liability increased ¥76 million in the fiscal year under review and thesame amount was posted as selling, general and administrative expenses, which resulted in a decline in profit before income
taxes of the same amount.
(Consolidated Balance Sheet)*1. Items related to non-consolidated subsidiaries and affiliates are as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2017)
Investments and other assets, Other(Subsidiaries’ stock)
Investments and other assets, Other (Affiliates’
stock)

Current Consolidated Fiscal Year
(March 31, 2018)

–

423

755

1,322

*2. Assets pledged as collateral and corresponding liabilities are as follows.
(1) Assets pledged as collateral(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2017)
Cash and deposits
Notes and accounts receivable - trade10
252– 17 –

Current Consolidated Fiscal Year
(March 31, 2018)
3377

Real estate held for sale
Power generation facilities for sale
Real estate held for sale in progress
Buildings and structures
Machinery and equipment
Tools, furniture and fixtures
Land
Leased assets (tangible)
Construction in progress
Other (intangible fixed assets)
Total

7,442
1,624
29,082
12,7103,424
018,0652273
224

13,792730
40,373
14,875
1,953
90
25,5862965
227

73,112

98,978(2) Corresponding liabilities(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2017)
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds
Long-term borrowings
Bonds
Other (non-current liabilities)
Total

Current Consolidated Fiscal Year
(March 31, 2018)11,831
10,52860
42,1691,440
449

15,181
11,962–
66,735––66,47993,879*3. Change in purpose of asset holding
Previous consolidated fiscal year (as of March 31, 2017)
Because of the change in the purpose of asset holding from resale to lease for some of the real estate held, real estate held
for sale in progress of ¥616 million has been transferred to buildings and structures of ¥141 million and land of ¥475
million in this consolidated fiscal year.
In addition, following the change in the purpose of asset holding from development and lease to resale for some of the realestate held, buildings and structures of ¥2,699 million, tools, furniture and fixtures of ¥0 million and land of ¥6,997
million have been transferred to real estate held for sale and real estate held for sale in progress in this consolidated fiscal
year.
In addition, due to the change in the purpose of asset holding to resale for some of the mega solar power generation plants,buildings and structures of ¥578 million, machinery, equipment and vehicles of ¥10,706 million and land of ¥1,626
million have been transferred to power generation facilities for sale in this consolidated fiscal year. Because some of theseassets were sold in this consolidated fiscal year, ¥5,025 million of ¥12,911 million of the assets that have been transferred
to power generation facilities for sale are recorded in cost of sales.
Current consolidated fiscal year (as of March 31, 2018)
Because of the change in the purpose of asset holding from resale to lease for some of the real estate held, real estate held
for sale of ¥70 million and real estate held for sale in progress of ¥148 million has been transferred to buildings andstructures of ¥44 million and land of ¥173 million in the fiscal year under review.
In addition, following the change in the purpose of asset holding from development and lease to resale for some of the realestate held, buildings and structures of ¥4,682 million, tools, furniture and fixtures of ¥4 million and land of ¥6,330
million have been transferred to real estate held for sale and real estate held for sale in progress in this consolidated fiscal
year.
In addition, due to the change in the purpose of asset holding to resale for some of the mega solar power generation plants,buildings and structures of ¥481 million, machinery, equipment and vehicles of ¥4,526 million and land of ¥69 million
have been transferred to power generation facilities for sale in this consolidated fiscal year. Because some of these assets
were sold in this consolidated fiscal year, ¥1,414 million of ¥5,077 million of the assets that have been transferred to
power generation facilities for sale are recorded in cost of sales.

– 18 –

4. Contingent liabilities (Guarantee liability)
Guarantee liability for borrowings from financial institutions by customers of the Company(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2017)
Joint and several guarantees in favor of
financial institutions until the customers’
residential mortgage loans are registered
Total

Current Consolidated Fiscal Year
(March 31, 2018)

9,405

12,881

9,405

12,881

5. The Group maintains overdraft and credit line agreements with 44 financial institutions (March 31, 2017: 27) in order to ensure
the efficient funding of operating capital. The unused balance of borrowings under these agreements at the consolidated fiscal
year-end is as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2017)
Total maximum amount of overdraft and credit
lines
Outstanding borrowing balance
Difference

Current Consolidated Fiscal Year
(March 31, 2018)

20,28041,32012,99722,227

7,282

19,093(Consolidated Statement of Income)*1. Inventories are stated at the amount after the write-down reflecting the decline in profitability. Loss on valuation of
inventories included in Cost of sales is as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2016 to March 31, 2017)

Current Consolidated Fiscal Year
(From April 1, 2017 to March 31, 2018)
212

118

*2. Selling expenses account for approximately 38% and General and administrative expenses account for approximately 62% for
the year ended March 31, 2017, and 41% and 59%, respectively, for the year ended March 31, 2018.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)

Advertising expenses
Sales promotion expenses
Salaries
Provision for allowance for bonuses
Retirement benefit costs
Provision for allowance for directors’
retirement benefits
Provision for allowance for doubtful accounts

Previous Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)
2,693
1,532
1,997
425
78

Current Consolidated Fiscal Year
(From April 1, 2017
to March 31, 2018)
2,982
2,098
2,210
450
191

24

17

114

0

*3. Impairment loss
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Mainly due to the declining profitability of rental properties, the Group recorded impairment losses (¥651 million) for thefollowing assets or asset groups in the consolidated fiscal year under review.
AmountUse
Type
Location(Millions of yen)
Warehouses Land and buildings
Idle
assetsSaitama, Saitama

7

Land

Koriyama, Fukushima

27

Land

Saitama, Saitama

2

Land and buildings

Itabashi-ku, Tokyo

71– 19 –

Buildings

Tsurugashima, Saitama

44

Land and buildings

Kasukabe, Saitama

143

Buildings

Tsukuba, Ibaraki

3

Buildings

Rentalproperties Land and buildings

Nagano, Nagano

65

Koto-ku, Tokyo

142

Buildings

Toshima-ku, Tokyo

Land

Shinagawa-ku, Tokyo

36

Land and buildings

Kawagoe, Saitama

104

Total

3

651

The breakdown by item is land of ¥247 million and buildings of ¥404 million.
The Group classifies warehouses, idle assets and rental properties by individual property.
The recoverable amount is measured using net sale value, which is assessed based on the appraisal value by a real estateappraiser.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Mainly due to the declining profitability of rental properties, the Group recorded impairment losses (¥593 million) for thefollowing assets or asset groups in the consolidated fiscal year under review.
AmountUse
Type
Location(Millions of yen)
Land

Suginami-ku, Tokyo

56

Land

Adachi-ku, Tokyo

51

Land

Adachi-ku, Tokyo

34

Land

Adachi-ku, Tokyo

8

Land
RentalLand
properties
Land

Itabashi-ku, Tokyo

38

Komae, Tokyo

7

Komae, Tokyo

6

Land

Shiki, Saitama

238

Land

Saitama, Saitama

92

Land

Saitama, Saitama

6

Land

Kawagoe, Saitama

51

Total

593

The Group classifies rental properties by individual property.
The recoverable amount is measured using net sale value, which is assessed based on the appraisal value by a real estateappraiser.

– 20 –

*4. Loss on retirement of non-current assets(Millions of yen)

Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
SoftwarePrevious Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)
–
–
–
–

Total

–

Current Consolidated Fiscal Year
(From April 1, 2017
to March 31, 2018)
39
0
0
2
42

*5. Loss on sales of non-current assets(Millions of yen)

Buildings and structures
Tools, furniture and fixtures

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

Total

–

Current Consolidated Fiscal Year
(From April 1, 2017
to March 31, 2018)
3
1
4*6. Office transfer expenses
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Office transfer expenses represent the amortization of guarantee deposits of the Company and office transfer expenses ofsome of the consolidated subsidiaries.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Office transfer expenses include the office transfer expenses of the Company and some of its consolidated subsidiaries.
*7. Loss on liquidation of subsidiaries and associates
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Loss on liquidation of subsidiaries and associates was due to the liquidation of Marunouchi Servicer Co., Ltd. and Takara
Investments Co., Ltd.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Not applicable.
*8. Loss on transfer of receivables
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Not applicable.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Loss on transfer of receivables was incurred primarily due to the transfer of receivables associated with the start of new
business by Leben Zestock Co., Ltd.
(Consolidated Statement of Comprehensive Income)*1. Reclassification adjustments of other comprehensive income and their tax effects(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)
Unrealized gains (losses) on available-for-salesecurities:
Recognized during the current year
Reclassification adjustments
Before tax effects
Tax effects– 21 –

Current Consolidated Fiscal Year
(From April 1, 2017
to March 31, 2018)

16
–

371
–

16
–

371
(114)

Unrealized gains (losses) on available-for-salesecurities
Total other comprehensive income– 22 –

16

257

16

257

(Consolidated Statement of Changes in Shareholders’ Equity)
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
1. Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2016
Increase (Shares)
Decrease (Shares)(Shares)
Shares issued and outstanding
Common stock (Note 1)
126,000,000–
2,000,000
Total
126,000,000–
2,000,000
Treasury stock
Common stock (Notes 2, 3)
15,938,307
2,471,000
2,386,800
Total
15,938,307
2,471,000
2,386,800

Number of shares at
March 31, 2017
(Shares)
124,000,000
124,000,000
16,022,507
16,022,507(Notes) 1. The decrease in the number of common stock outstanding of 2,000,000 shares is due to the cancellation oftreasury stock based on the resolution made at the Board of Directors meeting.
2. The increase in the number of common stock in treasury stock of 2,471,000 shares is due to the acquisition oftreasury stock based on the resolution made at the Board of Directors meeting.
3. The decrease in the number of common stock in treasury stock of 2,386,800 shares is due to the exercise of stock
options of 386,800 shares and the cancellation of treasury stock of 2,000,000 shares based on the resolution
made at the Board of Directors meeting.
2. New share subscription rights and treasury new share subscription rights
Class of
Number of shares to be issued upon the exercise ofsharesnew share subscription rights
to be issued
Number of
Number ofClassifi- Description of new shareupon theshares atshares at
cationsubscription rights
exercise of
Increase
Decrease
April
1,
March
31,
new share(Shares)(Shares)
2016
2017
subscription(Shares)(Shares)rightsSubmitting
company New share subscription(Parent
rights as stock options
company)
Total

Balance at
March 31,2017
(Millions of
yen)

–

–

–

–

–

157

–

–

–

–

–

157

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

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

990

Common stock

542

Record date

Effective date9

March 31, 2016

June 28, 20165

September 30, 2016

December 6, 2016

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year
Total dividends
Class ofto be paid
Dividend per(Resolution)
SourceRecord date
Effective dateshares(Millions ofshare (Yen)yen)
Board of Directors
CommonRetainedmeeting on June 27,
1,079
10March 31, 2017
June 28, 2017stock
earnings
2017– 23 –

Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
1. Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2017
Increase (Shares)
Decrease (Shares)(Shares)
Shares issued and outstanding
Common stock
124,000,000
–
–
Total
124,000,000––
Treasury stock
Common stock (Note)
16,022,507–
271,600
Total
16,022,507–
271,600(Note)

Number of shares at
March 31, 2018
(Shares)
124,000,000
124,000,000
15,750,907
15,750,907

The decrease in the number of common stock in treasury stock of 271,600 shares is due to the exercise of stock
options.

2. New share subscription rights and treasury new share subscription rights
Class of
Number of shares to be issued upon the exercise ofsharesnew share subscription rights
to be issued
Number of
Number ofClassifi- Description of new shareupon theshares atshares at
cationsubscription rights
exercise of
Increase
Decrease
April
1,
March
31,
new share(Shares)(Shares)
2017
2018
subscription(Shares)(Shares)rightsSubmitting
company New share subscription(Parent
rights as stock options
company)
Total

Balance at
March 31,2018
(Millions of
yen)

–

–

–

–

–

159

–

–

–

–

–

159

3. Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June27, 2017
Board of Directors
meeting on October23, 2017

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

1,079

Common stock

540

Record date

Effective date10

March 31, 2017

June 28, 20175

September 30, 2017

December 5, 2017

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year
Total dividends
Class ofto be paid
Dividend per(Resolution)
SourceRecord date
Effective dateshares(Millions ofshare (Yen)yen)
Board of Directors
CommonRetainedmeeting on June 27,
1,190
11March 31, 2018
June 28, 2018stock
earnings
2018– 24 –

(Consolidated Statement of Cash Flows)*1. A reconciliation of Cash and cash equivalent and the account balance on the Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2016
(From April 1, 2017
to March 31, 2017)
to March 31, 2018)
Cash and deposits
Time deposits with maturity in excess of three months

29,780(156)

29,223(181)

Cash and cash equivalent

29,62329,042

2. Significant non-cash transactions(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2016
(From April 1, 2017
to March 31, 2017)
to March 31, 2018)
The amounts transferred from Real estate held for sale andReal estate held for sale in progress to fixed assets due tochange in the purpose of real estate holding
The amounts transferred from fixed assets to Real estate held
for sale and Real estate held for sale in progress due to change
in the purpose of real estate holding
The amounts transferred from fixed assets to power generation
facilities for sale due to change in the purpose of real estateholding

616

218

9,697

11,01812,911

5,077*3. Major components of assets and liabilities of the company newly included in the scope of consolidation as a result of theacquisition of shares
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Details of assets and liabilities at the time of the consolidation of the companies that have recently become consolidated
subsidiaries as a result of the acquisition of the equity interests of members and the equity interests of silent partners,
and their relationship with expenditure (net amount) for investment are as follows:
ACMP2 LLC. and ACMP3 LLC.
(Millions of yen)
Current assets
66
Fixed assets
2,714
Current liabilities(3)
Noncurrent liabilities(0)
Acquisition price of equity interests of members and equity interests of silent partners
Cash and cash equivalent of newly consolidated subsidiary’s stock

2,777
(21)

Difference: Cash inflow due to acquisition of newly consolidated subsidiary’s shares(2,755)Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Details of assets and liabilities at the time of the consolidation of the companies that have recently become consolidated
subsidiaries as a result of the acquisition of shares, the equity interests of members and the equity interests of silent
partners, and their relationship with expenditure (net amount) for investment are as follows:(1) Stone Wing Investment Co., Ltd. and SWJ Co., Ltd.
(Millions of yen)
Current assets
87
Fixed assets
2,845
Goodwill
551
Current liabilities(65)
Noncurrent liabilities(1,611)
Acquisition price of subsidiaries’ stock
Cash and cash equivalent of newly consolidated subsidiary’s stock

1,807
(86)

Difference: Cash inflow due to acquisition of newly consolidated subsidiary’s shares(1,721)– 25 –

(2) Leben Solar Chiba Sanmu LLC(Millions of yen)
194
577
(20)

Current assets
Fixed assets
Current liabilities
Acquisition price of equity interests of members and equity interests of silent partners
Cash and cash equivalent of newly consolidated subsidiary’s stock

751
(152)

Difference: Cash inflow due to acquisition of newly consolidated subsidiary’s shares(598)(3) JPS No.16 Co., Ltd.
(Millions of yen)
0
4
0
(1)

Current assets
Fixed assets
Goodwill
Current liabilities
Acquisition price of subsidiaries’ stock
Cash and cash equivalent of newly consolidated subsidiary’s stock2(0)

Difference: Cash inflow due to acquisition of newly consolidated subsidiary’s shares(2)(Rental Properties, etc.)
The Company and its certain consolidated subsidiaries own office buildings for lease (including land) and condominiums forlease in Tokyo and other areas. During the consolidated fiscal year ended March 31, 2017, net rent income from these rental
properties amounted to ¥1,041 million (rent income is recorded in net sales and major rent expenses are recorded in cost of sales),and impairment losses came to ¥643 million (recorded in extraordinary losses). During the fiscal year ended March 31, 2018, net
rent income from these rental properties amounted to ¥1,335 million (rent income is recorded in net sales and major rent expenses
are recorded in cost of sales), and impairment losses came to ¥593 million (recorded in extraordinary losses).
The carrying amount of these rental properties on the Consolidated Balance Sheet, changes during the year and market value areas follows.
Previous Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)(Millions of yen)
Current Consolidated Fiscal Year
(From April 1, 2017
to March 31, 2018)

Consolidated Balance Sheet
Beginning balance

33,44736,766

Changes during the year

3,319

15,883Ending balance

36,76652,65038,19751,912Market value at end of year

(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents the acquisition cost net of accumulated
depreciation and amortization and accumulated impairment loss.
2. Of the changes during the year, the major increases during the year ended March 31, 2017 include the acquisitionof real estate (¥14,446 million), and major decreases include transfer to real estate held for sale and real estate held
for sale in progress (¥9,697million), depreciation (¥731 million) and impairment losses (¥643 million). The major
increases during the year ended March 31, 2018 include the acquisition of real estate (¥21,239 million), and major
decreases include transfer to real estate held for sale and real estate held for sale in progress (¥11,018 million),
depreciation (¥740 million) and impairment losses (¥593 million).
3. Market value at the end of the year is based on the appraisal value by a third party real estate appraiser.
4. Assets under construction are not included in the above table as it is not practicable to obtain their market value.
(Segment Information)a. Segment Information
1. Overview of reportable segments
The reportable segments of the Group are components of the Company for which separate financial information is available
that is evaluated regularly by the Board of Directors in deciding how to allocate resources and in assessing performance.
The Group’s core business is construction and sales of built-for-sale condominiums. The Group’s reportable segments
consist of three business segments: the real estate sales business, the real estate rental business and the real estate– 26 –

management business.
The real estate sales business primarily engages in construction and sales of new built-for-sale condominiums and detachedhouses and condominium renovation.
The real estate rental business provides the office and residential condominiums rental service, and the real estate
management business provides the condominium management service.
The electric power generation business engages in electric power generation using renewable energy.
2. Calculation methods of net sales, income or loss, assets, liabilities and other items by reportable segment
Accounting policies for the reportable business segments are consistent with those described in “Significant Basis for
Preparation of the Consolidated Financial Statements,” except for the valuation of inventories.
Inventories are stated at the value after the write-down, reflecting the decline in profitability.
Reportable segment income represents operating income.
Inter-segment sales and transfers are valued at market prices.

– 27 –

3. Net sales, income or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Millions of yen)
Reportable segments
Real estatesales
business
Net sales
Net sales to externalcustomers
Inter-segment sales andtransfers
Total
Segment income
Segment assets
Segment liabilities
Other items
Depreciation andamortization
Interest expense
Increase in tangible andintangible fixed assets(Note)

Electric
Real estate Real estate
power
rentalmanagement
generation
businessbusinessbusiness

Total

Other
(Note)

Total

79,638

5,056

3,665

11,10899,4694,130

103,599

284

57

211

–

552

1,059

1,611

79,923
5,665
48,52053,276

5,113
987
38,07926,795

3,876
158
170
620

11,1082,971
20,542
15,527100,022
9,783
107,313
96,219

5,189
708
1,565
897

105,211
10,491
108,878
97,117

96

732

6

1,506

2,341

20

2,362

439

353

–

202

995

4

1,000

75

13,8371

6,727

20,642

51

20,693“Other” represents business segments that are not included in any reportable segments and includes the construction
contract business and the repair work business.

Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable segments
Real estatesales
business
Net sales
Net sales to externalcustomers
Inter-segment sales andtransfers
Total
Segment income
Segment assets
Segment liabilities
Other items
Depreciation andamortization
Interest expense
Increase in tangible andintangible fixed assets(Note)

Electric
Real estate Real estate
power
rentalmanagement
generation
businessbusinessbusiness

Total

Other
(Note)

Total

79,341

5,472

4,000

18,239107,054

3,797

110,851

213

49

298

–

561

564

1,126

79,555
6,107
68,722
72,025

5,522
834
52,61539,297

4,299
116
485
682

18,2395,128
20,775
14,173

107,616
12,187
142,599
126,178

4,361
484
4,097
3,523

111,978
12,672
146,697
129,702

101

741

5

1,021

1,870

15

1,886

535

348

–

170

1,054

8

1,062

496

23,481

4

3,499

27,4822,820

30,303“Other” represents business segments that are not included in any reportable segments and includes the construction
contract business and the repair work business.

– 28 –

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

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

100,0225,189(1,611)

107,616
4,361(1,126)

103,599

110,851(Millions of yen)
Current Consolidated
Fiscal Year

Previous Consolidated
Fiscal Year

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

9,783
708
(24)
(117)

12,187
484
41
(117)

Operating income on the consolidated financial
statements

10,34912,597(Millions of yen)
Current Consolidated
Fiscal Year

Previous Consolidated
Fiscal Year

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

107,313
1,565

142,599
4,097(3,916)(6,692)

34,91137,970Total assets in the consolidated financial statements

139,874

177,975(Note)

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

Total reportable segments
Liabilities of “Other” category
Elimination of amounts due to the parent administrative
division
Corporate liabilities (Note)
Total liabilities in the consolidated financial statements(Note)(Millions of yen)
Current Consolidated
Fiscal Year

Previous Consolidated
Fiscal Year
96,219897

126,178
3,523(2,630)(5,377)

8,594

10,743103,081

135,067

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

Other items
Depreciation andamortization
Amortization of goodwill
Interest expense
Increase in tangible andintangible fixed assets(Note)

Total reportablesegments

Other(Millions of yen)
Consolidated financial
statements

Adjustments

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

2,341

1,870

20

15

35

57

2,397

1,943

–

59

–

–

117

117

117

176

995

1,054

4

8

37

4

1,037

1,067

20,642

27,482

51

2,820

120

(0)

20,81430,302Adjustments for increase in tangible and intangible fixed assets represent goodwill incurred but not allocated toreportable segments, capital expenditure for the headquarters building and the elimination of inter-segment
transactions.

– 29 –

b. Impairment loss on fixed assets by reportable segment
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
Electric
Real estate
Real estate
Real estate
power
sales
rentalmanagement
Other
generation
businessbusinessbusinessbusiness
Impairment
loss

–

643

–

Corporate /Elimination––

Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Electric
Real estate
Real estate
Real estate
power
sales
rentalmanagement
Other
generation
businessbusinessbusinessbusiness
Impairment
loss

–

593

–

7

Corporate /Elimination

–

Total

–

–

651

Total

593

(Per Share Information)
Previous Consolidated
Fiscal Year
(From April 1, 2016
to March 31, 2017)

Current Consolidated
Fiscal Year
(From April 1, 2017
to March 31, 2018)

Net assets per share¥339.29¥394.90

Earnings per share¥56.14¥68.12

Diluted earnings per share¥55.85¥67.80(Notes) The basis for the calculation of earnings per share and diluted earnings per share is as follows.
Previous Consolidated
Fiscal Year
(From April 1, 2016
to March 31, 2017)

Current Consolidated
Fiscal Year
(From April 1, 2017
to March 31, 2018)

Earnings per share
Net income attributable to owners of parent

6,107

7,367

Amount not attributable to common stockholders(millions of yen)––

Net income attributable to owners of parent withrespect to common stock(millions of yen)

6,107

7,367

108,790108,155

–

–

562

522

(562)

(522)

–

–

(millions of yen)

Average number of shares during the year
(thousand shares)
Diluted earnings per share
Adjustments to net income attributable to owners ofparent(millions of yen)
Increase in number of common stock(thousand shares)(Of those, new share subscription rights(thousand shares)
Overview of dilutive shares not included in the calculation ofdiluted earnings per share due to its anti-dilutive effect– 30 –

(Significant Subsequent Events)(Transfer of Assets)
The Company entered into a sale and purchase agreement with Takara Leben Infrastructure Fund Inc. on May 10, 2018 regarding
the transfer of mega solar power generation plants owned by the Company.
1. Reason for transfer
Takara Asset Management Co., Ltd., a wholly owned subsidiary of the Company, will transfer the power generation plants to
Takara Leben Infrastructure Fund, Inc., which is entrusted with asset management, based on a sponsor support agreement. The
Company will continue to support Takara Leben Infrastructure Fund, Inc. on a full scale as the sponsor and contribute to thedevelopment of the infrastructure fund market.
2. Description of transferred assets and use before transfer
4 mega solar power generation plants
3. Name of transferee
Takara Leben Infrastructure Fund Inc.
4. Date of transfer
Scheduled transfer date: June 1, 2018
5. Transfer price¥4,930 million (Total of 4 plants)– 31 –

5. Other(1) Changes of Officers
To be disclosed when the information to be disclosed is determined.
(2) Production, Orders Received and Sales(i) Number of units contracted during the year
Previous Consolidated Fiscal Year
(From April 1, 2016
to March 31, 2017)
Segment nameAmounts
Number of units(Millions of yen)
Real estate sales business
1,576
72,068
Total
1,576
72,068(Note)

Current Consolidated Fiscal Year
(From April 1, 2017
to March 31, 2018)
Number of units
1,818
1,818

Amounts(Millions of yen)
78,62078,620Year-on-Year
(%)
109.1
109.1

The above amounts do not include consumption tax.
(ii) Balance of contract
Previous Consolidated
Fiscal Year-End(March 31, 2017)

Segment name

Number of units
Real estate sales business
Total(Note)

575
575

Current Consolidated
Fiscal Year-End(March 31, 2018)

Amounts(Millions of yen)
19,737
19,737

Number of units
559
559

Amounts(Millions of yen)
20,673
20,673Year-on-Year
(%)
104.7
104.7

The above amounts do not include consumption tax.
(iii) Net sales
Current Consolidated Fiscal Year
(From April 1, 2017
to March 31, 2018)

Segment nameYear-on-Year(%)

Real estate sales business(millions of yen)

79,341

99.6

Real estate rental business(millions of yen)

5,472

108.2

Real estate management business(millions of yen)

4,000

109.1

Electric power generation
business(millions of yen)

18,239164.2(millions of yen)

107,054

107.6

Total reportable segments
Other
Total

(millions of yen)

3,797

91.9

(millions of yen)

110,851

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

– 32 –