Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2015 (Japan GAAP)
January 25, 2016

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:

February 8, 2016
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2015
(April 1-December 31, 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
Millions of yen

Nine months ended December 31, 2015

34,452Nine months ended December 31, 2014

39,858Operating Income%Millions of yen(13.6)

1,057

4.2

3,559

Ordinary Income%Millions of yen(70.3)

405

0.9

2,912

Net Income%Millions of yen%

(86.1)

190(89.8)

(1.4)

1,864

(5.5)

(Note) Comprehensive income: Nine months ended December 31, 2015: ¥198million ((89.5)%) / Nine months ended December 31, 2014:¥1,883million((4.4)%)
Net Income perShare

Diluted Net Incomeper ShareYen

Yen

Nine months ended December 31, 2015

1.72

1.72

Nine months ended December 31, 2014

16.44

16.39

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2015

114,079

29,60925.8

As of March 31, 2015

101,738

31,18930.6<Reference> Shareholders’ equity at end of period: December 31, 2015: ¥29,468 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

-

9.00

13.00

(Note) Has the Company changed its dividend forecast for the current quarter: Yes

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

Millions of yen%

75,200(2.3)

Millions of yen%

7,350 (20.6)

Ordinary Income
Millions of yen%

6,340 (25.8)

Net Income perShareNet Income%yen

4,000 (30.0)

36.20

Millions of yen(Note) Has the Company changed its consolidated forecast during this quarter: Yes

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 December 31, 2015:

128,000,000 shares

As of March 31, 2015:

128,000,000 sharesb.

As of December 31, 2015:

17,938,307 shares

As of March 31, 2015:

16,531,307 sharesc.

Nine months ended December 31, 2015:

110,634,028 shares Nine months ended December 31, 2014:

113,384,703 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial
Instruments 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 Nine Months Ended December 31, 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 ............................................................. 2(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 3
2. Summary Information (Notes) ................................................................................................................................. 3(1) Changes to Material Subsidiaries during the Third-Quarter Year-to-Date Period .............................................. 3(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 3(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 3
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
Third-Quarter Year-to-Date Period .................................................................................................................. 7
Quarterly Consolidated Statements of Comprehensive Income
Third-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 Nine Months Ended December 31, 2015

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
In the Third-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2015, sales
from the real estate sales business amounted to ¥25,469 million, down 25.2% on a year-on-year basis. This
reflected sales in the new built-for-sale condominium business, as well as sales in the newly-built detachedhousing business .
In the real estate rental business, sales totaled ¥3,201million, up 71.5% on a year-on-year basis. This reflectedsales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 39,773 units of residential
condominiums were ¥2,501 million, up 14.3% on a year-on-year basis.
Sales from other businesses amounted to ¥3,280 million, up 87.1% on a year-on-year basis, mainly revenues
from large-scale repair work and revenues from electric power selling in mega-solar business.
As a result, Net sales for the Third-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥34,452 million, down 13.6% on a year-on-year basis; Operating income amounted to ¥1,057 million, down
70.3% on a year-on-year basis; Ordinary income amounted to ¥405million, down 86.1% on a year-on-year basis;
and Net income amounted to ¥190 million, down 89.8% on a year-on-year basis;b. Contracted ratio status
With regard to sales performance in the third-quarter year-to-date period of the current consolidated fiscal year,contracts were concluded for 1,395 units, compared with a full-year target of 1,452 units scheduled for delivery.
The contract ratio was at 96.1%, showing a steady growth in the business.
(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Units scheduled for delivery Progress ratio of contracts signed(%)(units)Nine months ended
1,702
92.4
December 30, 2014
Nine months ended
1,452
96.1
December 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 third-quarter consolidated
accounting period under review, total assets were ¥114,079 million, an increase of ¥12,340 million comparedwith the 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 ¥3,579 million compared with the end of the previous consolidated fiscal year to¥70,898 million. This mainly reflected an increase in inventory assets as a result of new purchases.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2015

(Fixed Assets)
Fixed assets increased ¥8,739 million compared with the end of the previous consolidated fiscal year to¥43,140 million, mainly as the result of purchases of business assets.
(Current Liabilities)
Current liabilities increased ¥4,830 million compared with the end of the previous consolidated fiscal year to¥39,630 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.
(Fixed Liabilities)
Fixed liabilities increased ¥9,090 million compared with the end of the previous consolidated fiscal year to¥44,839 million, mainly due to an increase of borrowings associated with new purchases.
(Net Assets)
Total net assets decreased ¥1,580 million compared with the end of the previous consolidated fiscal year to¥29,609 million the decrease was attributed to the net assets for the second quarter was less than distribution of
surplus 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 January 25, 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.
(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 periodunder 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 third-quarter year-to-date period and the previous consolidated fiscal year.
-3-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2015

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 Nine Months Ended December 31, 2015

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

As of December 31, 2015

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable, trade26,281

17,783933

799

Real estate held for sale

4,901

2,962

Real estate held for sale in progress

30,44443,056

244

542

4,552

5,798

Costs incurred on uncompleted contracts
OtherAllowance for doubtful accounts
Total current assets

(37)

(43)

67,31970,898Fixed assets:
Tangible fixed assets
Buildings and structures (net)

6,870

7,805

Land

18,75821,307

Other (net)

4,783

9,451

Total tangible fixed assets

30,41238,564

1,627

1,531

2,368

3,064

Intangible fixed assets
Investments and other assets
Other
Allowance for doubtful accounts

(6)

(21)

Total investments and other assets

2,361

3,043

34,40043,1401840

101,738

114,079

Notes and accounts payable, trade

10,023

4,411

Short-term borrowings

4,742

7,243

200

200

Current portion of long-term borrowings

10,378

17,940

Income taxes payable

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Bonds redeemed within one year

1,928

94

Reserve

415

317

Other

7,111

9,422

Total current liabilities

34,80039,63033,23541,943

Reserve

2931

Liabilities related to retirement benefits

255

298

Noncurrent liabilities
Long-term borrowings

Other

2,227

2,565

Total noncurrent liabilities

35,74844,83970,54984,469Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2015

(Millions of yen)
As of March 31, 2015

As of December 31, 2015

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,872

Retained earnings

26,251

25,478Treasury stock(4,806)(5,740)Total shareholders’ equity

31,081

29,43030

38

Total accumulated other comprehensive income

3038

Subscription rights to shares

77

140

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities

Total net assets
Total liabilities and net assets-6-

31,18929,609101,738

114,079

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2015(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Third-Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2014

Nine Months Ended
December 31, 2015

Net sales

39,85834,452

Cost of sales

29,901

26,236Gross profit

9,956

8,216

Selling, general and administrative expenses

6,396

7,158

Operating income

3,559

1,057

Interest income

32

Dividend income

44

Commissions received

56

36

Income from equity method investment－34

Miscellaneous income

4756

Total Non-Operating income

111

133

Interest expense

647

725

Miscellaneous losses

3159

Non-Operating income:Non-Operating expenses:

Losses from equity method investment

78－

Total Non-Operating expenses

758

785

2,912405

Gain on negative goodwill

82－

Gain on sale of investment securities

16－

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 before income taxes

3,001

303

Ordinary income
Extraordinary gains

Extraordinary losses

Income taxes, inhabitant taxes and business taxes

358

184

Income tax adjustments777(71)Total income and other taxes

1,136112

Income before minority interests

1,864

190

Net income

1,864

190

-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2015

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2014
Income before minority interests

Nine Months Ended
December 31, 2015

1,864

190

Net unrealized gains on available-for-sale securities

187

Total other comprehensive income

18

7

1,883

198

1,883198

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 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 Third 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 third quarter of the fiscal year underreview were ¥5,740 million, respectively.

-9-