Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2015 (Japan GAAP)
October 26, 2015

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

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

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

November6, 2015
December8, 2015
YesYes

1. Consolidated Operating Results for the Six Months Ended September 30, 2015
(April 1-September 30, 2015)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%Six months ended September 30, 2015

26,536

41.3

1,812

152.1

1,461

499.6

875 427.4

Six months ended September 30, 2014

18,7844.8719

32.6

243

52.9

165 (35.5)

Millions of yen%

(Note) Comprehensive income: Six months ended September 30, 2015: ¥883million (400.7%) / Six months ended September 30, 2014:¥176million ((30.1)%)
Net Income perShare

Diluted Net Income
per Share

YenYenSix months ended September 30, 2015

7.89

7.86

Six months ended September 30, 2014

1.46

1.45

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2015110,579

30,73427.7

As of March 31, 2015

101,738

31,18930.6<Reference> Shareholders’ equity at end of period: September 30, 2015: ¥30,593 million / March 31, 2015: ¥31,111 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2015

-

2.00

Year Ending March 31, 2016

-

4.00

Year-End
Yen

Year Ending March 31, 2016 (Forecast)

Total

Yen

Yen

-

4.00

6.00

-

6.00

10.00

(Note) Has the Company changed its dividend forecast for the current quarter: No

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2016
(April 1, 2015-March 31, 2016)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income perShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

93,80021.9

13,35044.2

12,400

45.2

8,150

42.5

73.11

(Note) Has the Company changed its consolidated forecast during this quarter: No

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

As of September 30, 2015:

128,000,000 shares

As of March 31, 2015: 128,000,000 sharesb.

As of September 30, 2015:

17,938,307 shares

As of March 31, 2015:c.

Six months ended September 30, 2015:

16,531,307 shares

110,921,759 shares Six months ended September 30, 2014: 113,700,627 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financi alInstruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed a quarterly review procedure for financial statements based on the Financial Instruments andExchange Act.

(Note) Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials arebased on information currently available to the Company and on certain assumptions deemed to bereasonable. Actual business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

Attachments Table of Contents
1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter .......................................... 2(1) Qualitative Information Pertaining to Consolidated Operating Performance ..................................................... 2(2) Qualitative Information Pertaining to Consolidated Financial Position ............................................................. 3(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 3
2. Summary Information (Notes) ................................................................................................................................. 3(1) Changes to Material Subsidiaries during the Second-Quarter Year-to-Date Period ........................................... 3(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 4(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 4
3. Quarterly Consolidated Financial Statements .......................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 7
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period ............................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period ............................................................................................................... 8(3) Notes on Quarterly Consolidated Financial Statements...................................................................................... 9(Notes on Assumption of Going Concern) ......................................................................................................... 9(Notes on A Significant Change in Shareholders’ Equity) ................................................................................. 9-1-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
In the first half of the fiscal year under review, the Japanese economy was considered to be on a moderate
recovery trend, given steady corporate earnings and the improving employment and income environment backed
by the continued series of the government’s economic policies. This trend is apparent despite downward risks
external factors posed to the domestic economy, such as the upheaval in the market stemming from concerns overthe uncertain economic outlook in China.
In the new built-for-sale condominium market in this environment, where the Takara Leben Group operates,
sales prices rose not only in central Tokyo, but also in the suburbs of Tokyo where the Group manages businesses.
This price increase is largely a reflection of the decline in the number of units supplied. However, the market
environment remained sound as a sustained demand for condominiums continued to be strong.
Under such circumstances, the Company will continue to promote the supply of solar-powered condominiums,
and the Company will remain committed 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 business activities focusing on its customers as its
ultimate supporters.
①Performance by business segment
In the second-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2016, sales
from the real estate sales business amounted to ¥20,541 million, up 33.1% on a year-on-year basis. This reflectedsales in the new built-for-sale condominium business, as well as sales in the newly-built detached housingbusiness.
In the real estate rental business, sales totaled ¥2,107 million, up 135.1% on a year-on-year basis. This
reflected sales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 39,160 units of residential
condominiums were ¥1,660 million, up 14.6% on a year-on-year basis.
Sales from other businesses amounted to ¥2,226 million, up 120.9% on a year-on-year basis, mainly
attributable to revenues from orders for large-scale repair work and revenue from selling electric power in themega-solar business.
As a result, Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥26,536 million, up 41.3% on a year-on-year basis; Operating income amounted to ¥1,812 million,
up 152.1% on a year-on-year basis; Ordinary income amounted to ¥1,461million, up 499.6% on a year-on-yearbasis; and Net income amounted to ¥875 million, up 427.4% on a year-on-year basis.
②Contracted ratio status
With regard to sales performance in the second-quarter year-to-date period of the current consolidated fiscal
year, contracts were concluded for 1,250 units, compared with a full-year target of 1,452 units scheduled fordelivery. The contract ratio was at 86.1%, showing a steady growth in the business.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Units scheduled for delivery Progress ratio of contracts signed(units)(%)
Six months ended
1,702
83.0
September 30, 2014
Six months ended
1,452
86.0
September 30, 2015(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the second-quarter consolidated
accounting period under review, total assets were ¥110,579 million, an increase of ¥8,840 million compared withthe end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventory inconjunction with new purchases and purchases of business assets.
(Current Assets)
Current assets increased ¥1,457 million compared with the end of the previous consolidated fiscal year to¥68,776 million. This mainly reflected an increase in inventory assets as a result of new purchases.
(Non-current Assets)
Non-current assets increased ¥7,369 million compared with the end of the previous consolidated fiscal year to¥41,770 million, mainly as the result of purchases of business assets.
(Current Liabilities)
Current liabilities increased ¥530 million compared with the end of the previous consolidated fiscal year to¥35,330 million, mainly as a result of an increase of short-term borrowings and the shift in debt maturities fromlong-term debt to short-term borrowings.
(Non-current Liabilities)
Non-current liabilities increased ¥8,765 million compared with the end of the previous consolidated fiscal yearto ¥44,514 million, mainly due to an increase of borrowings associated with new purchases.
(Net Assets)
Total net assets decreased ¥455 million compared with the end of the previous consolidated fiscal year to¥30,734 million. The decrease was attributed to the net assets for the second quarter was less than distribution ofsurplus and purchase of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 11, 2015.
2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period
The Company had no pertinent matters to report.

-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated Financial
Statements
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement(Application of the Accounting Standard for Business Combination)
The Accounting Standard for Business Combination (ASBJ Statement No. 21, September 13, 2013,
hereinafter referred to as the “Accounting Standard for Business Combination”), the Accounting Standard forConsolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013, hereinafter referred to as the“Accounting Standard for Consolidated Financial Statements”), and the Accounting Standard for BusinessDivestitures (ASBJ Statement No. 7, September 13, 2013, hereinafter referred to as the “Accounting Standardfor Business Divestitures”), and others have been applied from this first-quarter consolidated accounting period
under review. Differences caused by changes in the company’s subsidiary holdings that continue to be under its
control are recorded as capital surplus, and expenses related to acquisition are now recorded as expenses for theconsolidated fiscal year in which it occurred. In addition, regarding business combination conducted after thebeginning of this first-quarter consolidated accounting period under review, revisions to the purchase priceallocation following determination of provisional accounting methods are now reflected in the quarterly
financial statements of the consolidated fiscal quarter in which the business combination occurred. Also, the net
income and other statements have been changed accordingly, and minority interest has been changed tonon-controlling interest. To reflect these changes, the company has revised the financial statements for theprevious second-quarter year-to-date period and the previous consolidated fiscal year.
The Accounting Standard for Business Combination and other standards are applied in accordance with thetransitional provisions stipulated in Paragraph 58-2 (4) of the Accounting Standard for Business Combination,
Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements, and Paragraph 57-4 (4)of the Accounting Standard for Business Divestitures, and is applied from the beginning of the first-quarter
consolidated accounting period under review and onwards.
This has no effect on profit/loss.

-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2015

As of September 30, 2015

ASSETS
Current assets:
Cash and deposits

26,281

Notes and accounts receivable, trade21,222933

702

Real estate held for sale

4,901

3,710

Real estate held for sale in progress

30,444

38,411

Costs incurred on uncompleted contracts

244

155

Other

4,552

4,616

Allowance for doubtful accounts

(37)

(42)

67,31968,776

Buildings and structures (net)

6,870

7,897

Land

18,75821,331Other (net)

4,783

7,964

Total tangible fixed assets

30,412

37,193

1,627

1,579

2,368

3,018

Allowance for doubtful accounts

(6)

(21)

Total investments and other assets

2,361

2,997

34,40041,770Total current assets
Fixed assets:Tangible fixed assets

Intangible fixed assets
Investments and other assets
Other

Total fixed assets
Deferred assets

1833

101,738

110,579

Notes and accounts payable, trade

10,023

6,249

Short-term borrowings

4,742

7,792

200

200

Current portion of long-term borrowings

10,37813,058

Income taxes payable

1,928

489

Reserve

415

448

Other

7,111

7,093

Total current liabilities

34,80035,33033,23541,722

Total assets
LIABILITIESCurrent liabilities:

Current portion of long-term bonds

Noncurrent liabilities
Long-term borrowings
Reserve
Liabilities related to retirement benefits

29

29

255

290

Other

2,227

2,472

Total noncurrent liabilities

35,74844,51470,54979,845

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

(Millions of yen)
As of March 31, 2015

As of September 30, 2015

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,872

Retained earnings

26,251

26,602

Treasury stock(4,806)(5,740)Total shareholders’ equity

31,081

30,55530

38

Accumulated other comprehensive income
Net unrealized losses on available-for-saleSecurities
Total accumulated other comprehensive income
Subscription rights to sharesTotal net assets
Total liabilities and net assets

-6-30

3877

140

31,18930,734

101,738

110,579

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2014

Six Months Ended
September 30, 2015

Net sales

18,784

26,536

Cost of sales

14,073

19,980Gross profit

4,711

6,555

Selling, general and administrative expenses

3,992

4,743

719

1,812

21

Operating income (loss)
Non-Operating income:Interest income
Dividend income

22Commissions received

23

27

Income from equity method investment－72

Miscellaneous income

28

34

Total Non-Operating income

57

138

Interest expense

410

463

Less from equity method investment

99－

Miscellaneous losses

22

25

Total Non-Operating expenses

532

489

243

1,461

Gain on sale of investment securities

16－

Gain on negative goodwill

82－

Total extraordinary gains

98－

Loss on disposal of fixed assets

0－Loss on valuation of investment securities

9－

Loss on construction warranties－102

Total extraordinary losses

9102

Net income (loss) before income taxes

332

1,359

Income taxes, inhabitant taxes and business taxes

107

483

Income tax adjustments

59

1

Total income and other taxes

166

484

Income (loss) before minority interests

165

875

Net income (loss)

165

875

Non-Operating expenses:

Ordinary income (loss)
Extraordinary gains

Extraordinary losses-7-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

Quarterly Consolidated Statements of Comprehensive Income
Second -Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2014
Income (loss) before minority interests

Six Months Ended
September 30, 2015
165875Net unrealized gains on available-for-sale securities

108Total other comprehensive income

108176

883

176

883

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2015

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
The Company had no pertinent matters to report.
(Notes on A Significant Change in Shareholders’ Equity)
In the Second quarter of the consolidated fiscal year under review, the Company purchased treasury stock at¥970 million, by resolution of the meeting of the Board of Directors held on May 11, 2015.
In addition to the above, with the disposal of treasury stock through the exercise of stock options representing¥36 million, the number and amount of treasury stock at the end of the second quarter of the fiscal year underreview were ¥5,740 million, respectively.

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