Takara Leben Co., Ltd.
Earnings Results Briefing
for the Six Months Ended
September 30, 2018

November 1,2018Security code8897© Takara Leben group.

Contents

Summary of Business Results for
The Six Months Ended September 30, 2018

P. １

Key Topics for The Six Months Ended September 30, 2018

P.12

Business Outlook for The Year Ended March 2019P.16

The Progress of The Mid-Term Management Plan
（Real Estate Sales Business）and Quantitative Goals

P.18

Appendix

P.22© Takara Leben group.

Summary of Business Results for
The Six Months Ended September 30, 2018

© Takara Leben group.

１

Highlights Increase in the number of delivered units in New Built-for-Sale Condominiums Business・419 units of sales（244 units increase compared with the previous year）
 Implementation of property sale to new listed Takara Leben Real Estate Investment
Corporation
 Accelerate development of Renewal Resale Business・Achieved full-year plan of gross profit
 Reduction in sale of power generation facilities
・Decrease in sale of power generation facilities (However, as planned initially) New Built-for-Sale Condominiums Business increase number of business contracts
・Number of contracts for the first half 921 units（296 units increase compared with the previous year）
・Steady progress including delivery for the next term
© Takara Leben group.

２Consolidated Income Statement (Highlights)(Unit: million yen)Six months ended
September 30, 2017
（46th）

Six months ended
September 30, 2018
（47th）

YOY
changeNet sales

32,22549,662

54.1％

Operating income

2,855

2,486

▲12.9％

Ordinary income

2,523

1,925

▲23.7％Net income

1,624

1,209

▲25.6％

 Increase in the number of delivered units in new built-for-sale condominiums business Decrease in sale of power generation facilities (However, as planned initially)
 Increase in selling, general and administrative expenses due to increases in personnel expenses related
expenses and sales expenses© Takara Leben group.

３

Consolidated Segment Information (Net Sales)(Unit: million yen)Six months ended
September 30, 2017
（46th）

Six months ended
September 30, 2018
（47th）

YOY
changeReal estate sales business

11,71434,025190.5％

Real estate rental
business

2,713

2,858

5.3％

Real estate managementbusiness

2,001

2,179

8.9％

Electric Power GenerationBusiness(The Company'sown power generation)

1,950

2,614

34.1％

Electric Power Generation
Business(Facilities sale)

12,6075,390▲57.2％

Other businesses

1,238

2,593

109.4％

32,22549,662

54.1％

Total

 Increase in the number of delivered units in new built-for-sale condominiums business Decrease in sale of power generation facilities (However, as planned initially)© Takara Leben group.

４Consolidated Segment Information （Gross profit）(Unit: million yen)
Real estate sales businessSix months ended
September 30, 2017
（46th）

Six months ended
September 30, 2018
（47th）YOYchange

2,048

6,276

206.4％

Real estate rental
business

678663▲2.2％

Real estate management
Business314313▲0.6％

Electric Power Generation
Business (The Company'sown power generation)

227

221

▲2.7％

4,670

1,044

▲77.6％

632

1,374

117.2％

8,573

9,893

15.4％

Electric Power Generation
Business (Facilities sale)
Other businesses
Total Increase in the number of delivered units in new built-for-sale condominiums business（175 units ⇒ 419 units）
 Decrease in sale of power generation facilities (However, as planned initially)
 Increase in repair work related (other business)© Takara Leben group.

５Consolidated Balance Sheet (Highlights)（Unit : Million yen ）Current assets

As of the endof March 2018
(46th)

As of the end of
September 2018
（47th）

102,931110,286

YOY
change7.1％

29,223

20,385▲30.2％

Inventory assets

68,43881,658

19.3％

Real estate held forsale

20,27925,885

27.6％

Power generation
facilities for sale

4,090

－－

Real estate for sale
under construction

44,06855,773

26.6％

74,61876,663

2.7％

Total assets

177,588

187,057

As of the end ofSeptember2018（47th）

56,87665,43215.0％

Notes and accounts
payable-trade

15,7865,438▲65.5％

Loans payable (shortterm borrowings andcurrent portion of longterm borrowings))

31,22751,042

63.5％

Fixed liabilities

77,80478,476

0.9％

Long-term
borrowings

75,01575,324

0.4％

Total liabilities

134,681

143,908

6.9％

Net assets

42,907

43,148

0.6％

4,819

4,819

―

177,588

187,057

5.3％（Unit : Million yen ）Cash anddeposits/cash
equivalents

Fixed assets

As of the end ofMarch 2018
(46th)

Current liabilities

Capital stock
5.3％

Total liabilities andnet assets

YOYchange Increase in real estate for sale under construction due to progress of purchase Increase in borrowings due to expansion of investment business© Takara Leben group.

６Consolidated Balance Sheet (Real estate held for sale)（Unit : Million yen ）Year ended March 31,2018(46th)

Six months ended
September 30, 2018
（47th）

YOY
changeNew Built-for-Sale
Condominiums

12,9179,950▲23.0％

Detached Houses

1,441

2,590

79.8％

Renewal Resale
Business

2,015

2,355

16.9％

Liquidation
Business

3,350

10,390210.1％

5545988.1％

20,27925,885

27.6％

Other Businesses
Total Decreased due to delivery of finished stock（New Built-for-Sale Condominiums）
 Transfer processing is carried out from fixed assets for which the sale is confirmed（Liquidation Business)※Transfer from fixed assets to real estate for sale is done for those whose sale is confirmed© Takara Leben group.

７

Consolidated Balance Sheet（Details）
Breakdown of property, plant and equipment （Unit : Million yen ）レジデンス
Residential

17,074

Officeオフィス･店舗and StorePower
Generation
発電施設
Facility

ホテル
Hotel

20,922

14,727

Otherその他

11,067 2,549Total

2018年3月末
of March 2018

66,340M

As of the end
2018年9月末
of September
2018

65,973M

As of the end

17,73014,864

15,94415,0092,424

Breakdown of borrowings （Unit : Million yen ）New Built-for-Sale
新築分譲マンション

Condominiums
Revenue
Real Estate
収益不動産(固定資産)(Fixed assets)

38,787

Revenue Real Estate

New Detached Houses
新築分譲戸建･中古
and Renewal Resale

収益不動産(流動資産)(Current assets)

Power Generation Facility
発電施設

Other
その他

10,727 450

37,808※Separately, 10,390 million
yen is transferred from fixed
assets to sales real estate

17,297

1,372

Total

As of the end2018年3月末
of March 2018

106,443M

As of the end
2018年9月末
of September 2018

126,567M

46,010© Takara Leben group.

12,3097,376

37,332

16,902

6,636

８

Progress Status for Full-Year Business Plan-1

Year ended March
31, 2019（47th）（Forecast）

Six months
ended
September 30,2018（47th）

Progress ratio

Net sales

60,00017,03628.4％

Gross profit

13,000

3,737

28.7％

Net sales

12,000

2,617

21.8％

Gross profit

1,600

342.2％Net sales

1,700

1,629

95.9％

Gross profit

220250114.0％Net sales

30,00012,507

41.7％

Gross profit

5,5002,208

40.2％

Net sales

2,000234

11.7％

Gross profit

340

4413.1％（Unit : Million yen ）New Built-forSale
Condominiums
Detached
HousesRenewal Resale
Business

LiquidationBusiness

OtherBusinesses© Takara Leben group.

Supplementary
explanation
Steady progress
Approximately
69% of the fullyear planned
Delivery isconcentrated in
the second half
Plannedachievement

Contracted(4,207M)

９

Progress Status for Full-Year Business Plan-2
Year ended March
31, 2019（47th）（Forecast）

Six months ended
September 30, 2018
（47th）

Progressratio

Net sales

5,500

2,858

52.0％

Gross profit

1,400

663

47.4％

Net sales

4,300

2,179

50.7％

Gross profit

59031353.1％

Net sales

3,800

2,614

68.8％

（Unit : Million yen ）Real Estate
Rental Business
Real EstateManagementBusinessElectric Power
Generation
Business(The Company'sown powergeneration)
Electric Power
Generation
Business(Facilities sale)
Otherbusinesses

Total© Takara Leben group.

Gross profit

200221110.9％Net sales

7,000

5,390

77.0％

Gross profit

1,430

1,044

73.1％

Net sales

3,700

2,593

70.1％

Gross profit

2,120

1,37464.8％

Net sales

130,000

49,66238.2％

Gross profit

26,4009,893

37.5％

Supplementary
explanation

Steady progress

10Contracts Signed Versus Number of Units Forecast for
New Built-for-Sale Condominiums Delivery
Delivery schedule for the term
PeriodUnits scheduledfor delivery(Units)

At the beginning ofthe year

Number of contracts
signed from April 1September 30, 2018

Number of contracts
signedContract
progress ratio

Year ended March 31,
2017

1,600

714

555

1,269

79.3％

Year ended March 31,
2018

1,600

526

538

1,064

66.5％

Year ended March 31,
20191,700528

645

1,173

69.0％

 Improve contract progress ratio compared to the fiscal year ended March 2018
 Increase in number of contracts for current term

Delivery schedule for the next term
PeriodUnits scheduled
for delivery(Units)

At the beginning ofthe year

Number of contracts
signed from April 1September 30, 2018

Number of contracts
signedContract
progress ratio

Year ended March 31,
2018

1,600

88115

203

12.7％

Year ended March 31,
2019

1,700

2887

115

6.8％

Year ended March 31,
2020

1,95023276

299

15.3％

 Progress in the next term is much bigger than usual The number of contracts for the current term also increased, and steady progress© Takara Leben group.

11Key Topics for The Six Months Ended September 30, 2018

© Takara Leben group.

12Listing of REIT
July 27,2018
Takara Leben Real Estate Investment Corporation
was listed on the Tokyo Stock Exchange

Takara PAG Real Estate Advisory Limited
manages the assets of “TLR”
Sponsors(Investment ratio)

60％

Tokyo economic area
東京経済圏

名古屋経済圏
Nagoya economic area

Area ratio

Fukuoka economic area
福岡経済圏

その他
Other areas

Core area
30％

5％Osaka economic area
大阪経済圏

5％

77％

PAG
7％

Strengths of multi sponsors
 Steady external growth utilizing development capabilities of realestate developer and sourcing capability of fund managementcompany Build a comprehensive portfolio that maximizes the strengths ofsponsor companies
 Stable operation and internal growth supported by operation
know-how and operation ability of sponsor companies

3％
Officeオフィス

9％

Residential
住宅

Percentageof totalacquisition
price

Hotel
ホテル

81％

27
64,370 million yen

Number of properties
Acquisition price© Takara Leben group.

商業施設・その他
Retail and Other

13

New Area Expansion
Advance to 28 prefectures

Base

Strengthening of land purchasenationwide by developing new bases
Expanding area

PropertySupplied area
New supply area
First supply
in Hokkaido

First supply in Nagasaki prefecture

LEBEN Kanjodorihigashi
THE RESIDENCELEBEN Sasebo STATION PLACE

On saleOn saleTotal units:30

Total units:39

First supply
in Iwate prefecture
LEBEN Morioka Chuodori
THE BIRTH

To sell
Total units:96

First supply
in Kagoshima prefecture

LEBEN Nishisengoku MID SQUAREFirst supply
in Oita prefecture

LEBEN Higashikasuga Midoasis

To sell

To sell

Total units:39

Total units:43© Takara Leben group.

First supply
in Aichi prefecture

LEBEN Nagoya
Matsushigecho GRAND AUBE

On saleTotal units:165

14Growth of Infrastructure FundTIF undertook its second public offering on June 2018

TIF acquired four new solar power plants: LS Mie Yokkaichi, LS Sakuragawa Nakaizumi, LS Shirahama
and LS Takahagi (Total Panel Output: 13.72MW and Total Acquisition Price: 4.93 Billion Yen)

LS Mie Yokkaichi
Panel Output：1.98MW
FIT：¥40/kWh

LS Sakuragawa Nakaizumi
Panel Output：2.70MW
FIT：¥36/kWh

LS Shirahama
Panel Output：7.84MW
FIT：¥36/kWh

LS Takahagi
Panel Output：1.19MW
FIT：¥32/kWh

Total Acquisition Value and Panel Output
Owned Solar Power Plants
新規取得による増加分
Acquired Solar Power Plants
保有資産

Total
price 8.49 Billion Yen
価格合計
Assetsheld 17.8MW
パネル出力合計

8.99 Billion Yen
19.0MW
5.0

22.88 Billion Yen
50.0MW
138.9

84.9

84.9

89.9

上場時
IPO

第3期取得資産3rd FP
Acquisition
取得後*1*1

第1回
1st PO
公募増資後

23.06 Billion Yen
50.8MW

25.23 Billion Yen
55.8MW

30.16 Billion Yen
69.5MW

1.7

21.6

49.3

228.8

230.5

252.2

増設部分
Panel
Expansion
追加取得後

第5期取得資産5th FP
Acquisition
取得後

第2回
2nd PO
公募増資後*1 Acquisition
value based on combined total amount of PwC evaluation value of all properties owned at the end of the 5th fiscal period and acquisition price for properties*1：上記「価格合計」は、平成30年5月31日時点の保有資産については平成30年5月31日現在の評価価格を記載し、第6期の取得資産につきましては取得価格を記載しております。
acquired during the 6th fiscal period.

© Takara Leben group.

15

Business Outlook for The Year Ended March 2019

© Takara Leben group.

16

Business Outlook for The Year Ended March 2019
• Progress on the first half
• No change in full-year forecast
Year ended March 31,
2018（46th）（Actual）

Year ended March 31,
2019（47th）（Forecast）

110,851

130,000

17.3％

Operating income

12,597

10,700▲15.1％

Ordinary income

11,7929,600▲18.6％

7,367

6,300

▲14.5％（Unit : Million yen ）Net sales

Income attributableto owners of parent© Takara Leben group.

YOYchange17

The Progress of The Mid-Term Management Plan
（Real Estate Sales Business）and Quantitative Goals© Takara Leben group.

18

The Progress of The Mid-Term Management Plan-1
Real Estate Sales Business (New Built-for-Sale Condominiums)
Mid-Term
Management Plan

Year ended
March 31, 2019Year ended March 31,
2020

Year ended March 31,
2021

Year ended March 31,
2022 -Units Sold

1,700

1,950

2,200

TBDPercentage in Tokyo Metro /Osaka Metro Areas

55.5％

50％50％TBD

Six months ended September 30, 2018Year ended
March 31, 2019Year ended March 31,
2020

Year ended March 31,2021

Year ended March 31,2022 ※Including schedule
pending

Completion number of units

Units Sold
１Q

144

26

224

－

２Q

275

697

469

－

３Q

250

187

182

－

４Q

1,031

1,064

564

－

Total

1,700

1,974

1,439

1,883

Percentage in Tokyo Metro /Osaka Metro Areas

55.5％

45.2%

－－ Steady purchase progress Thorough completion of the completion schedule© Takara Leben group.

19The Progress of The Mid-Term Management Plan-2
Renewal Resale Business
Mid-Term
Management Plan

Year ended
March 31, 2019

April - September
2018

Number of units held at
the beginning of the year

59

59

Purchased Units

150

158

Units Sold49

40

Number of units held atyear-end

160

177

Liquidation Business Renewal of one building (41 units)
Property purchase Establish business expansion system(Million yen)

Mid-Term
Management Plan

Year ended
March 31, 2019

April - September
2018

Investment Amount

30,00013,100

Sale Amount

30,00012,507© Takara Leben group.

 Steady purchase progress Steady investment progress Established up to 16,714 million yen
including sales contracted portion

20

The Mid-Term Management Plan
(Quantitative Goals)• Maintain proper balance sheet to respond to expansion of investment area

Equity ratio
LTVLess than

D/E ratio

Less thanＲＯＥ© Takara Leben group.

30％（Fiscal year ended March 2021）

60％（Every fiscal year ended March）

3times15％（Every fiscal year ended March）（Every fiscal year）

21

Appendix© Takara Leben group.

22Amount of Asset Management• Operating Infrastructure fund, Private fund and REIT
5.2B

As of the endof 2018年10月末
October 2018

30.1B

インフラInfrastructure fund

64.3B

100B

Approximately
100 billion yen

50B

私募
Private fund
REIT
REIT150B

 Accelerate securing and developing pipelines

Target of medium-term operating amount© Takara Leben group.

300billion yen
23Electric Power Generation Business
Target for year
ending March 2021

Generation scale (MW)
売却済み
Sold

未売却
Not sold

70

13842250MW

Under
開発中
development

不足分
Not enough

100

Secured 150MW
FIT by generation scale Enhancement of secondary acquisition
 Consideration of wind power and biogas

8%
40yen

2%

36yen

1%

32yen
27yen

89%

© Takara Leben group.

24Liquidation Business
Existing and Built-up property(million yen)Book value as of the endof September 2018

2,424

12,8995,361

43,860M
23,174

Under development property (million yen)Book value as of the endof September 2018

レジデンス
Residential

Book value after completion
13,149

5,186

Office and Store
オフィス・店舗

10,785

Other
その他

Officeand Store

オフィス・店舗

37,703M

17,494M

ホテル
Hotel

1,522

Residential
レジデンス

Hotel
ホテル

その他
Other

22,304

2,249※Including securitized assets recorded in real estate held for sale

Assets after completion (million yen)
Residential
レジデンス

Book value as of the end
2018年9月末簿価of September
2018

18,086

24,696

As of the end of 2019年3月末
March 201918,086

24,696

As of the end of 2020年3月末
March 2020
As of the end of 2021年3月末
March 2021

22,23526,048

Hotel
ホテル

Office and Store
オフィス・店舗

2,424

16,146
20,31525,42325,423

Other
その他

61,354M
65,523M

2,424

24,95527,66675,040M

2,424
2,424

81,563M

Secured assets of 81,563 million yen including completed parts in the future© Takara Leben group.

25These materials were prepared based on data current as of September 30, 2018.
本資料は２０１８年９月末日現在のデータに基づいて作成されております。
Thesematerials, as well as answers, plans, projections and so on provided during thesubsequent
Q&A session are based on Takara Leben’s best judgment at the time the
本資料および引き続き行われる質疑応答の際の回答、計画、予測等は、資
materials were prepared, and do not constitute a guarantee or promise that anything
料作成時点の当社の判断であり、その実現・達成を保証、約束するものでは
contained herein will be realized or achieved, nor do they provide any guarantees orなく、また、その情報の正確性、完全性を保証し又は約束するものではありま
promises
as to the accuracy or completeness of the information contained herein. Thecontentsof these materials are subject to change without notice.
せん。本資料に記載された内容は、予告なしに変更されることがあります。

Contact for Inquiries

お問い合わせ先TEL

03-6551-2130+81-3-6551-2130

IR Office, General Planning
Division
総合企画本部 IR室

FAX

03-6551-2139+81-3-6551-2139

E-mailirinfo@leben.co.jp

Takara Leben Co., Ltd.