Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2021 (Japan GAAP)
January 28, 2022

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

Tokyo Stock Exchange, First Section
8897
https://www.leben.co.jp
Kazuichi Shimada, Representative Director, CEO, President Executive Officer
Masashi Yamamoto, Director, CFO, General Manager of the Administration Headquarters
Tel: +81-3-6551-2130

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 10, 2022
-No
No

1. Consolidated Operating Results for the Nine Months Ended December 31, 2021
(April 1- December 31, 2021)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year changes)
Net Income
Net Sales

Operating Income

Ordinary Income

Attributable to
Owners of Parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Nine months ended December 31, 2021

100,042

－

6,403

－

5,182

－

3,603

－

Nine months ended December 31, 2020

88,271

(8.9)

5,337

(13.6)

4,823(14.9)

3,137(18.6)(Note) Comprehensive income: Nine months ended December 31, 2021: ¥3,593 million (－%) / Nine months ended December 31, 2020: ¥3,393
million ((24.3%))

Net Income per Share

Diluted Net Income
per Share

Yen

Yen

Nine months ended December 31, 2021

33.12

32.88

Nine months ended December 31, 2020

28.89

28.70

(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the first quarter of the current fiscal year, the figures for third quarter of the fiscal year ending March 31, 2022 areafter the application of the said accounting standard, etc., and the percentage change from the same quarter of the previous year is notstated.

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2021

227,158

56,598

24.7

As of March 31, 2021

204,315

54,632

26.5<Reference> Shareholders’ equity at end of period: December 31, 2021: ¥56,073 million / March 31, 2021: ¥54,194 million(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the first quarter of the current fiscal year, the figures for the third quarter of the fiscal year ending March 31, 2022
are after the application of the said accounting standard, etc., and the percentage change from the same quarter of the previous year is notstated.

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year-End
Yen

Year Ended March 31, 2021

-

4.00

-

Year Ending March 31, 2022

-

4.00

-

Year Ending March 31, 2022(Forecast)

Total

Yen

Yen

10.00

14.00

10.00

14.00

(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, 2022
(April 1, 2021-March 31, 2022)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Net Income
Attributable to
Owners of Parent

Ordinary Income

Net Income per
ShareMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

158,600

－

7,900

－

7,100

－

4,800

－

44.18

(Note) Has the Company changed its consolidated forecast during this quarter: No
As the Company will apply the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the
beginning of the fiscal year ending March 31, 2022, the consolidated financial forecast above is the amount after the application of thesaid accounting standard, etc., and the percentage change from the previous fiscal year is not stated.

*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Newly consolidated companies 1 company (Leben Clean Energy Co., Ltd.)
Newly excluded companies (--)
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated Financial
Statements (Changes in Significant Subsidiaries during the Period under Review)" on page 10 of the attached materials.

(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 A: No
C. Changes in accounting estimates: No
D. Restatement: No(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated Financial
Statements (Change in Accounting Policy)" on page 10 of the attached materials.

(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.

Nine months ended December 31, 2021:

121,000,000 shares

As of March 31, 2021:

121,000,000 sharesb.

Nine months ended December 31, 2021:

12,020,507 shares

As of March 31, 2021:

12,344,907 sharesc.

Nine months ended December 31, 2021:

108,801,838 shares Nine months ended December 31, 2020:

108,571,940 shares*This quarterly earnings report is exempt from the quarterly review based on the Financial Instruments andExchange Act.
*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 are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

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 ........................................... 4
2. Quarterly Consolidated Financial Statements .......................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 8
Quarterly Consolidated Statements of Income
Third-Quarter Year-to-Date Period .................................................................................................................. 8
Quarterly Consolidated Statements of Comprehensive Income
Third-Quarter Year-to-Date Period .................................................................................................................. 9(3) Notes on Quarterly Consolidated Financial Statements.................................................................................... 10(Notes on Assumption of Going Concern) ....................................................................................................... 10(Notes on a Significant Change in Shareholders’ Equity) ................................................................................ 10(Changes in Significant Subsidiaries during the Period under Review) ......................................................... 10(Changes in Accounting Policy) ..................................................................................................................... 10-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
In the third-quarter of the fiscal year ending March 31, 2022 of the Takara Leben Group, the Japanese
economy continued to face an uncertain outlook, although the spread of vaccinations against new coronavirus
infections has led to a gradual resumption of economic activity, the outlook for the overall economy remains
uncertain due to the outbreak of new mutant strains and other factors. In the real estate industry, to which ourGroup belongs, demand for condominiums has been firm due to choices in work styles such as teleworking andgrowing interest in housing in new lifestyles.
a.

Performance by business segment
Effective from the first quarter of the current fiscal year, the Company has changed the name of its reportablesegment from "Electric Power Generation Business" to "Energy Business". This change is a change in the nameof the segment and has no impact on the segment information.
In the real estate sales business, sales of this business amounted to 55,673 million yen (65,422 million yen in
the same period of the previous fiscal year). This reflected sales in the new built-for-sale condominium business,sales of profitable real estate, new detached house sales and sales of used condominiums.
In the real estate rental business, sales totaled 4,466 million yen (4,278 million yen in the same period of theprevious fiscal year). This reflected sales from the rental of condominium units and offices.
In the real estate management business, sales from the management of 67,563 units of residential
condominiums were 4,363 million yen (4,087 million yen in the same period of the previous fiscal year).
In the energy business, sales totaled 30,329 million yen (10,025 million yen in the same period of the previous
fiscal year), mainly due to revenues from the sale of 59 facilities that were already operating and revenues fromthe sale of electricity generated by other electric power generation facilities.
Sales from other businesses amounted to 5,209 million yen (4,457 million yen in the same period of theprevious fiscal year), mainly revenues from construction work, large-scale repair work, and commission income,etc.
As a result, Net sales for the third-quarter year-to-date period of the current consolidated fiscal year amounted
to 100,042 million yen (88,271 million yen in the same period of the previous fiscal year). Operating income
amounted to 6,403 million yen (5,337 million yen in the same period of the previous fiscal year). Ordinary
income of 5,182 million yen (4,823 million yen in the same period of the previous fiscal year). And net income
attributable to owners of parent of amounted to 3,603 million yen (3,137 million yen in the same period of theprevious fiscal year).
Effective from the first quarter of the current fiscal year, the Company has adopted "Accounting Standard for
Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. Therefore, explanations regarding
operating results for the third quarter of the current fiscal year are provided without stating the amount of
increase or decrease compared to the third quarter of the previous fiscal year or the percentage change from thesame quarter of the previous fiscal year.
For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes on Quarterly
Consolidated Financial Statements (Change in Accounting Policy)".

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 1,701 units, compared with a full-year target of 1,800 units scheduled for delivery.
The contract ratio was at 94.5%, showing a steady growth in the business.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Number of contracts
Units scheduled
Number ofContracted
signed from April 1for delivery
contracts signed
ratio (%)
December 31, 2021
(units)(units)(units)Nine months ended
December 31, 2020

1,980

2,039

103.0

1,376

Nine months ended
December 31, 2021

1,800

1,701

94.5

1,593

(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 ¥227,158 million, an increase of ¥22,843 million comparedwith the end of the previous consolidated fiscal year, mainly due to an increase in inventories associated withnew purchases.

(Current Assets)
Current assets increased ¥28,878 million compared with the end of the previous consolidated fiscal year to¥154,565 million, mainly due to an increase in inventories associated with new purchases the transfer of businessassets to real estate for sale.
(Fixed Assets)
Fixed assets decreased ¥6,000 million compared with the end of the previous consolidated fiscal year to¥72,530 million, although business assets increased due to the change in the scope of consolidation, the decrease
was mainly due to the reclassification to real estate for sale and power generation facilities for sale.
(Current Liabilities)
Current liabilities increased ¥19,154 million compared with the end of the previous consolidated fiscal year to¥74,804 million, mainly due to increase in short-term loans payable and the reclassification from long-term loans
payable to short-term loans payable.
(Fixed Liabilities)
Fixed liabilities increased ¥1,721 million compared with the end of the previous consolidated fiscal year, to¥95,754 million, mainly due to an increase in borrowings resulting from a change in the scope of consolidation
and an increase in borrowings resulting from new purchases.
(Net Assets)
Total net assets increased ¥1,966 million compared with the end of the previous consolidated fiscal year, to¥56,598 million, mainly due to the recorded amount of net income attributable to owners of parent exceededamounts such as dividends of surplus.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2021.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of December 31, 2021

ASSETS
Current assets:
Cash and deposits

39,169Notes and accounts receivable-trade

2,193

－

－

2,447

28,682

33,245－2,014

43,766

65,235596

39

11,41814,788Notes, accounts receivable-trade and contract assets
Real estate for sale
Power generation facilities for sale
Real estate for sale in progress
Costs incurred on uncompleted contracts
Other
Allowance for doubtful accounts
Total current assets

36,935

(141)

(140)

125,686

154,565

Fixed assets:
Property, plant and equipment
Buildings and structures, net

12,102

8,055

Land

33,73935,510

Other, net

18,22814,008

Total Property, plant and equipment

64,07057,574

Goodwill

960

2,250

Other

638

684

1,599

2,935

12,874

12,034

Allowance for doubtful accounts

(13)

(13)

Total investments and other assets

12,861

12,02078,531

72,5309762204,315

227,158

Notes and accounts payable-trade

13,318

9,447

Short-term loans payable

9,208

20,690Intangible assets

Total intangible assets
Investments and other assets
Other

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Current portion of bonds

116

148

Current portion of long-term loans payable

17,52425,602

Income taxes payable

2,264

707

Reserve

1,034

770

Other

12,184

17,437

Total current liabilities

55,64974,80485,721

86,834

Fixed liabilities
Long-term loans payable-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

(Millions of yen)
As of March 31, 2021
Bonds payable

As of December 31, 2021

5,998

6,000

Reserve

119

141

Net defined benefit liability

863

932

1,339

1,846

Other
Total fixed liabilities
Total liabilities-6-

94,03395,754

149,683

170,559

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

(Millions of yen)
As of March 31, 2021

As of December 31, 2021

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,800

Retained earnings

48,64950,500Treasury stock(4,604)(4,483)

Total shareholders’ equity

53,682

55,636

Valuation difference on available-for-sale securities

521

433

Foreign currency translation adjustment

(1)

(1)

Remeasurements of defined benefit plans

(8)

(5)

Total accumulated other comprehensive income

512

436

199
237

222
303

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interest
Total net assets
Total liabilities and net assets-7-

54,63256,598204,315

227,158

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

(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, 2020

Nine Months Ended
December 31, 2021

Net sales

88,271

100,042

Cost of sales

69,63278,669Gross profit

18,63921,372

Selling, general and administrative expenses

13,301

14,968Operating income

5,337

6,403

Interest income

051

Dividend income

233

237

Commissions received

57

54

Profit from equity method investment

37－

Miscellaneous income

215

175

Total Non-Operating income

543

519

Interest expense

879

1,413

Losses from equity method investment－

18

Miscellaneous losses

178

307

1,058

1,740

4,823

5,182

－
－
－

45

Net income before income taxes

4,823

5,266

Income taxes, inhabitant taxes and business taxes

1,590

1,288

Non-Operating income:Non-Operating expenses:

Total Non-Operating expenses
Ordinary income
Extraordinary income
Gain on sales of shares of subsidiaries and affiliates
Gain on negative goodwill
Total Extraordinary income

Income tax adjustments

37
83

113

309

Total income and other taxes

1,704

1,597

Net income

3,118

3,668

Net income attributable to non-controlling interests (loss)

(18)

65

Net income attributable to owners of parent

3,137

3,603

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Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

Quarterly Consolidated Statements of Comprehensive Income
Third-Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2020
Net income

Nine Months Ended
December 31, 2021

3,118

3,668

Net unrealized gains on available-for-sale securities

270

(78)

Foreign currency translation adjustment(0)0Remeasurements of defined benefit plans, net of tax

3

2

274

(75)

3,393

3,593

3,411

3,527

(18)

65

Other comprehensive income:

Total other comprehensive income
Comprehensive income(Comprising)Comprehensive income attributable to parent
Comprehensive income attributable to non-controllinginterests-9-

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

(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)
The Company had no pertinent matters to report.
(Changes in Significant Subsidiaries during the Period under Review)(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
During the first quarter of the fiscal year ending March 31, 2022, the Company newly acquired all of the issued
shares of ACA Clean Energy Co., Ltd., and therefore included the company in the scope of consolidation.
ACA Clean Energy Co., Ltd. changed its corporate name to Leben Clean Energy Co., Ltd. as of June 22, 2021.
(Changes in Accounting Policy)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (“ASBJ Statement No. 29, March
31, 2020, Accounting Standards Board of Japan”), from the beginning of the current first quarter. It recognizes
revenues for goods or services based on the amount estimated to be received in exchange for such goods or services atthe point when control of the promised goods or services is conveyed to the customer.
Therefore, in goods and services to customers, which were previously recorded as selling, general andadministrative expenses, the method of reducing the amount from the transaction price has been changed. Effectivefrom the first quarter of the current fiscal year, the Company has changed its method of accounting for performanceobligations that are to be fulfilled over a certain period of time by estimating the percentage of completion for thefulfillment of the obligations and recognizing revenue over a certain period of time based on the percentage ofcompletion, except for construction projects of very short duration.
For the application of the revenue recognition accounting standard, etc. the Company has followed the transitional
treatment prescribed in the proviso of Article 84 of the revenue recognition accounting standard, and the cumulative
effect of retroactively applying the new accounting policy prior to the beginning of the current first quarter has been
added to or deducted from retained earnings at the beginning of the current first quarter, and the relevant opening
balance. The new accounting policy has been applied from the beginning of the current fiscal year. However, theCompany has not applied the new accounting policy retrospectively to contracts for which the method prescribed in
Article 86 of the Revenue Recognition Accounting Standard was applied and almost all of the revenue amounts wererecognized in accordance with the previous treatment prior to the beginning of the current first quarter. In addition, theCompany has applied the method prescribed in Article 86, Subparagraph (1) of the Accounting Standard for Revenue
Recognition to account for contract changes made prior to the beginning of the first quarter of the current fiscal year
based on the contract terms after reflecting all contract changes, and has added or subtracted the cumulative effect ofsuch changes to retained earnings at the beginning of the first quarter of the current fiscal year. The cumulative effectof this change was added to or deducted from retained earnings at the beginning of the first quarter of the current
fiscal year.
As a result, the impact on the quarterly consolidated financial statements for the third quarter of the current fiscal
year is minimal.
Due to the application of Accounting Standard for Revenue Recognition, "Notes and accounts receivable-trade,"which were presented in "Current assets" in the consolidated balance sheet for the previous fiscal year, are now
included in "Notes, accounts receivable-trade and contract assets" from the first quarter of the current fiscal year. In
accordance with the transitional treatment stipulated in Article 89-2 of the Accounting Standard for Revenue
Recognition, no reclassification has been made for the previous fiscal year using the new presentation method.
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Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2021

(Application of the Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,
2019, Accounting Standards Board of Japan,”), from the beginning of the current first quarter, 2021. The company has
prospectively decided to apply new accounting policies based on the Accounting Standard for Fair Value
Measurement, in accordance with the transitional measurement in Article 19 of Accounting Standard for Fair Value
Measurement and Article 44-2 of “Accounting Standard for Financial Instruments,” (“ASBJ Statement No.10, July 4,2019).The impact of application of the Accounting Standard for Fair Value Measurement, on consolidated financial
statements for the current third quarter is immaterial.

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