First Quarter Consolidated Financial Reportfor the Three Months Ended June 30, 2019 (Japan GAAP)
July 29, 2019

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

Contacts:

First Section of the Tokyo Stock Exchange
8897
https://www.leben.co.jp
Kazuichi Shimada, Representative Director, CEO, President Executive Officer
Masashi Yamamoto, Director, CFO, Executive officer and Executive General Manager ofGeneral Planning Division
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:

August 9, 2019
-NoNo

1. Consolidated Operating Results for the Three Months Ended June 30, 2019
(April 1-June 30, 2019)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net income
Net Sales

Operating Income

Ordinary Income

attributable toowners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Three months ended June 30, 201912,192(44.5)(1,753)－(2,036)－(1,556)%－

Three months ended June 30, 2018

21,9512.8793(79.1)

536(84.7)

376(84.4)(Note) Comprehensive income: Three months ended June 30, 2019: (¥1,381) million (－%) / Three months ended June 30, 2018: ¥388
million ((83.4%))
Net Income perShare

Diluted Net Incomeper Share

Yen

Yen

Three months ended June 30, 2019(14.35)－Three months ended June 30, 2018

3.48

3.47

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of June 30, 2019

194,603

45,15923.0

As of March 31, 2019

184,893

47,734

25.6<Reference> Shareholders’ equity at end of period: June 30, 2019: ¥44,768 million / March 31, 2019: ¥47,341 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ending March 31, 2019-Year Ending March 31, 2020

-

3Q
Yen

Year Ending March 31, 2020 (Forecast)Year-End
Yen

Total

Yen

Yen

5.00

-

11.00

16.00

6.00

-

13.00

19.00

(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, 2020
(April 1, 2019-March 31, 2020)
Net Sales

Full year

Operating Income(Percentage figures represent year-on-year change)
Net income
Net Income per
Ordinary Income
attributable toShareowners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%yen

160,000

21.2

13,00029.4

11,800

30.7

8,000

24.5

73.79

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

*Notes(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: No
B. Changes in accounting policies other than those in (A): 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.

Three months ended June 30, 2019:

121,000,000 shares

As of March 31, 2019:b.
c.

121,000,000 shares

Three months ended June 30, 2019:12,587,307 shares

As of March 31, 2019:12,587,307 shares

Three months ended June 30, 2019:

108,412,693 shares Three months ended June 30, 2018 :

108,249,093 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 for the Three Months Ended June 30, 2019

Attachments Table of Contents1. 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 ........................................... 32 Quarterly Consolidated Financial Statements ............................................................................................................ 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 7
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period ................................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
First-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 Three Months Ended June 30, 2019

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 first-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2020, sales
from the real estate sales business amounted to ¥6,161 million, down 48.9% 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 ¥1,469 million, up 3.7% 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 54,799 units of residential
condominiums were ¥1,226 million, up 14.4% on a year-on-year basis.
In the electric power generation business, sales totaled ¥1,616 million, down 74.2% on a year-on-year basis,
mainly due to revenues from the sale of electricity generated by electric power generation facilities.
Sales from other businesses amounted to ¥1,718 million, up 49.6% on a year-on-year basis, mainly revenues
from construction work, large-scale repair work, and commission income, etc.
As a result, Net sales for the first-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥12,192 million, down 44.5% on a year-on-year basis. Operating loss amounted to ¥1,753 million; comparedto operating income for the same period of the previous year was ¥793 million. Ordinary loss of ¥2,036 million;
compared to ordinary income for the same period of the previous year was 536 million. And net loss attributableto owners of parent of amounted to ¥1,556 million; compared to quarter net income attributable to owners ofparent for the same period of the previous year was 376 million.
b. Contracted ratio status
With regard to sales performance in the first-quarter year-to-date period of the current consolidated fiscal year,contracts were concluded for 1,176 units, compared with a full-year target of 1,950 units scheduled for delivery.
The contract ratio was at 60.3% showing a steady growth in the business.
(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery)
Units scheduled for Number of contracts
Contracted ratio
Contracted ratiodeliverysignedas of April 1,2019(%)(units)(units)(%)
Three months ended
June 30, 2018
Three months ended
June 30, 2019

1,700

868

51.1

31.1

1,950

1,176

60.3

40.6

(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 first-quarter consolidated
accounting period under review, total assets were ¥194,603 million, an increase of ¥9,710 million compared withthe end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventories
associated with new purchases.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2019

(Current Assets)
Current assets increased ¥11,265 million compared with the end of the previous consolidated fiscal year to¥109,778 million. This mainly reflected an increase in inventory in conjunction with new purchase.
(Fixed Assets)
Fixed assets decreased ¥1,547 million compared with the end of the previous consolidated fiscal year to¥84,738 million, mainly reflected the purchase business assets.
(Current Liabilities)
Current liabilities increased ¥13,833 million compared with the end of the previous consolidated fiscal year to¥72,372 million, mainly due to increase in short-term borrowings and the reclassification of short term and longterm borrowings payable.
(Fixed Liabilities)
Fixed liabilities decreased ¥1,548 million compared with the end of the previous consolidated fiscal year, to¥77,071 million, mainly due to chiefly owing to the reclassification of short term and long term borrowings
payable.
(Net Assets)
Total net assets amounted to ¥45,159 million, down ¥2,575 million from the end of the previous consolidated
fiscal year, mainly due to the recording of a net loss attributable to owners of the parent company and thedistribution of surplus.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 16, 2019.

-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2019

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of June 30, 2019ASSETS
Current assets:
Cash and deposits

21,165

14,949Notes and accounts receivable, trade

2,071

1,994

Real estate held for sale

18,821

26,533

Real estate held for sale in progress

49,86059,461

Costs incurred on uncompleted contracts

519

306

Other

6,192

6,654

Allowance for doubtful accounts

(118)

(120)

Total current assets

98,512

109,778

Buildings and structures (net)18,061

12,918Land

35,60234,816

Other (net)21,561

23,156

Total tangible fixed assets

75,22470,891

1,375
465

1,320
452

1,840

1,773

9,230

12,079(9)(6)

Fixed assets:
Tangible fixed assets

Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets

9,220

12,07386,286

84,73894

87

184,893

194,603

Notes and accounts payable, trade

7,790

5,123

Short-term borrowings

17,831

22,894Current portion of long-term borrowings

19,74333,097

Income taxes payable

2,760

112

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Allowance

901

742

Other

9,510

10,402

Total current liabilities

58,53972,372

Fixed liabilities
Long-term borrowings

73,882

72,486

Bonds payable

200200Allowance

99104-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2019

(Millions of yen)
As of March 31, 2019
Liabilities related to retirement benefits

As of June 30, 2019

Other543
3,894

571
3,709Total fixed liabilities

78,61977,071

137,158

149,444

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2019

(Millions of yen)
As of March 31, 2019

As of June 30, 2019

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,817

Retained earnings

42,29939,549Treasury stock(4,695)(4,695)

Total shareholders’ equity

47,24144,491Remeasurements of defined benefit plans

121(21)297(20)

Total accumulated other comprehensive income

100277

196
197

196
195

47,73445,159184,893

194,603

Accumulated other comprehensive income
Net unrealized gains on available-for-sale securities

Subscription rights to shares
Non-controlling interest
Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2019(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months EndedJune 30, 2018

Three Months Ended
June 30, 2019

Net sales

21,951

12,192

Cost of sales

17,611

10,066Gross profit

4,339

2,125

Selling, general and administrative expenses

3,546

3,879793(1,753)

Interest income

00

Dividend income

1085

Commissions received

105

Miscellaneous income

2510

Total Non-Operating income

46101

Interest expense

263

277

Losses from equity method investment

2772

Miscellaneous losses

1134

Total Non-Operating expenses

302

384536(2,036)

Profit on sale of investment securities

191-

Total Extraordinary income

Operating income (loss)
Non-Operating income:Non-Operating expenses:

Ordinary income (loss)
Extraordinary income

191-

Net income before income taxes (loss)

728(2,036)

Income taxes, inhabitant taxes and business taxes

170

123

Income tax adjustments

181

(601)

Total income and other taxes

352

(478)

Net income (loss)

376(1,558)Net income attributable to non-controlling shareholders (loss)

(0)

(1)

Net income attributable to owners of parent (loss)

376(1,556)-7-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2019

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2018
Net income (loss)

Three Months Ended
June 30, 2019376

(1,558)12-1750

Other comprehensive income:Net unrealized gains on available-for-sale securities
Remeasurements of defined benefit plans
Total other comprehensive income

12176

338

(1,381)

Comprehensive income attributable to owners of parent389(1,524)Comprehensive income attributable to non-controlling shareholders

(0)

143

Comprehensive income(Comprising)(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.

-8-