Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2019 (Japan GAAP)
October 28, 2019

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, Executive officer and General 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:

November 8, 2019
December 3, 2019
Yes
Yes(for institutional investors and analysts)

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

Operating Income

Millions of yen%

Millions of yen

Six months ended September 30, 201957,99816.8

Six months ended September 30, 201849,662

54.1

Ordinary Income%Millions of yen

3,879

56.0

2,486(12.9)

Net Income%Millions of yen%

3,414

77.3

2,26086.9

1,925(23.7)

1,209(25.6)(Note) Comprehensive income: Six months ended September 30, 2019: ¥2,808million (119.8%) / Six months ended September 30, 2018:
1,277million ((21.6%))

Net Income per Share

Diluted Net Incomeper ShareYenYenSix months ended September 30, 2019

20.85

20.71

Six months ended September 30, 2018

11.17

11.11

(2) Consolidated Financial Position
Total AssetsNet Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2019

212,72149,39423.0

As of March 31, 2019

184,893

47,734

25.6<Reference> Shareholders’ equity at end of period: September 30, 2019: ¥48,888 million / March 31, 2018: ¥47,341 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2019

-

5.00

Year Ending March 31, 2020

-

6.00

Year-End
Yen

Year Ending March 31, 2020(Forecast)

Total

YenYen-

11.00

16.00

-

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)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income per
ShareNet Income

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.

Six months ended September 30, 2019:

121,000,000 shares

As of March 31, 2019:

121,000,000 sharesb.

Six months ended September 30, 2019:12,587,307 shares

As of March 31, 2019:12,587,307 sharesc.

Six months ended September 30, 2019:

108,412,693 shares

Six months ended September 30, 2018:108,262,453 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 Six Months Ended September 30, 2019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. 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
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, 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 second-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 ¥46,102 million, up 35.5% 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 ¥2,886 million, up 1.0% 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 56,317 units of residential
condominiums were ¥2,468 million, up 13.3% on a year-on-year basis.
In the electric power generation business, sales totaled ¥3,311 million, down 58.6% 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 ¥3,230 million, up 24.5% 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 second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥57,998 million, up 16.8% on a year-on-year basis; Operating income amounted to ¥3,879 million,
up 56.0% on a year-on-year basis; Ordinary income amounted to ¥3,414 million, up 77.3% on a year-on-yearbasis; and net income amounted to ¥2,260 million, up 86.9% on a year-on-year basis.
b.Contracted 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 1,539 units, compared with a full-year target of 1,950 units scheduled fordelivery. The contract ratio was at 78.9% showing a steady growth in the business.
(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Number of contracts
Units scheduled Number of contracts
Contracted
signed from April 1for delivery
signedratio (%)
September 30, 2019
(units)(units)(units)Six months ended
September 30, 2018

1,700

1,173

69.0

921

Six months ended
September 30, 2019

1,950

1,539

78.9

1,102(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 ¥212,721 million, an increase of ¥27,828 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 ¥34,043 million compared with the end of the previous consolidated fiscal year to¥132,556 million, mainly due to an increase in inventories associated with new purchases.
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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2019

(Fixed Assets)
Fixed assets decreased ¥6,201 million compared with the end of the previous consolidated fiscal year to¥80,085 million, mainly reflected they were transferred to real estate for sale and power generation facilities forsale although the business assets were purchased smoothly.
(Current Liabilities)
Current liabilities increased ¥19,095 million compared with the end of the previous consolidated fiscal year to¥77,634 million, mainly due to increase in short-term loans payable and the reclassification from long-term loans
payable to short-term loan payable.
(Fixed Liabilities)
Fixed liabilities increased ¥7,073 million compared with the end of the previous consolidated fiscal year, to¥85,692 million, mainly due to the increase loan payable with new purchase.
(Net Assets)
Total net assets increased ¥1,660 million compared with the end of the previous consolidated fiscal year, to¥49,394 million, mainly due to the recorded amount of net income attributable to owners of parent exceededamounts such as dividends 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 Six Months Ended September 30, 2019

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

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

21,16530,239Notes and accounts payable - trade

2,071

1,972

Real estate for sale

18,821

25,232―

11,942

49,86055,430Power generation facilities for sale
Real estate for sale in progress
Costs incurred on uncompleted contracts

519

470

Other

6,192

7,271

Allowance for doubtful accounts

(118)

(2)

Total current assets

98,512

132,556

Buildings and structures ,net

18,061

14,375Land

35,60236,374

Other ,net

21,561

17,867

Total Property, plant and equipment

75,224

68,617

1,375
465

1,266
456

1,840

1,722

9,230

9,750

Fixed assets:
Property, plant and equipment

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

(9)

(6)

Total investments and other assets

9,220

9,744

86,28680,085

94

80

184,893

212,721

Notes and accounts payable - trade

7,790

11,620

Short-term loans payable

17,831

19,944Current portion of long-term loans payable

19,74331,045

Income taxes payable

2,760

1,417

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Reserve

901

927

Other

9,510

12,679Total current liabilities

58,53977,63473,882

81,218

Bonds payable

200

200

Reserve

9991

Fixed liabilities
Long-term loan payable-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2019

(Millions of yen)
As of March 31, 2019
Net defined benefit liability

As of September 30, 2019Other543
3,894

588
3,593

Total fixed liabilities

78,61985,692

137,158

163,327

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

(Millions of yen)
As of March 31, 2019

As of September 30, 2019

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,817

Retained earnings

42,29943,365

Treasury stock(4,695)(4,695)

Total shareholders’ equity

47,241

48,307

Valuation difference on available-for-sale securities

121600Remeasurements of defined benefit plans

(21)

(19)

Total accumulated other comprehensive income

100

580

196
197

241
265

47,73449,394

184,893

212,721

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interest
Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2019(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, 2018

Six Months Ended
September 30, 2019

Net sales

49,662

57,998

Cost of sales

39,76845,507Gross profit

9,893

12,490

Selling, general and administrative expenses

7,407

8,611

Operating income

2,486

3,879

Interest income

00

Dividend income

73

164

Commission fee

26

40

Miscellaneous income

41

22

Total Non-Operating income

142

227

Interest expenses

542

580

Losses from equity method investment

60

65

Miscellaneous losses

99

45

Total Non-Operating expenses

702

691

1,925

3,414

191

72

Penalty income―214

Total Extraordinary income

191286Net income before income taxes

2,117

3,701

Income taxes - current

537

1,373

Income taxes - deferred170(0)Total income taxes

707

1,372

1,409

2,328200

68

1,209

2,260

Non-Operating income:Non-Operating expenses:

Ordinary income
Extraordinary income
Gain on sales of investment securities

Net income
Net income attributable to non-controlling shareholders
Net income attributable to owners of parent-7-

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

Quarterly Consolidated Statements of Comprehensive IncomeSecond-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2018
Net income

Six Months Ended
September 30, 2019

1,409

2,328(131)―478
1Other comprehensive income:
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

(131)

480

1,277

2,808

1,077

2,740

200

68

Net income attributable toComprehensive income attributable to parent
Comprehensive income attributable to non-controllinginterest-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2019(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.

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