Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2018 (Japan GAAP)
October 29, 2018

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, President and Representative Director, CEO
Masashi Yamamoto, Director, 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 9, 2018
December 4, 2018
Yes
Yes(for institutional investors and analysts)

1. Consolidated Operating Results for the Six Months Ended September 30, 2018
(April 1-September 30, 2018)(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

Ordinary Income%Millions of yen%

Net Income

Millions of yen%

Millions of yen%Six months ended September 30, 201849,66254.1

2,486(12.9)

1,925(23.7)

1,209(25.6)

Six months ended September 30, 201732,225(13.2)

2,855(4.7)

2,523

2.7

1,624

4.9

(Note) Comprehensive income: Six months ended September 30, 2018: ¥1,277million (21.6%) / Six months ended September 30, 2017:¥1,630million (3.3%)
Net Income per Share

Diluted Net Incomeper Share

Yen

Yen

Six months ended September 30, 2018

11.17

11.11

Six months ended September 30, 2017

15.03

14.96

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2018

187,057

43,14822.8

As of March 31, 2018

177,588

42,907

24.1<Reference> Shareholders’ equity at end of period: September 30, 2018: ¥42,668 million / March 31, 2018: ¥42,747 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2018

-

5.00

Year Ending March 31, 2019

-

5.00

Year-End
Yen

Year Ending March 31, 2019(Forecast)

Total

Yen

Yen-

11.00

16.00

-11.0016.00(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, 2019
(April 1, 2018-March 31, 2019)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income perShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%yen

130,000

17.3

10,700(15.1)

9,600(18.6)

6,300(14.5)

58.20(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, 2018:

124,000,000 shares

As of March 31, 2018:

124,000,000 sharesb.

Six months ended September 30, 2018:

15,660,507 shares

As of March 31, 2018:15,750,907 sharesc.

Six months ended September 30, 2018:108,262,453 shares

Six months ended September 30, 2017:

108,090,273 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, 2018

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, 2018

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 2019, sales
from the real estate sales business amounted to ¥34,025 million, up 190.5% 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 ¥2,858 million, up 5.3% 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 52,638 units of residential
condominiums were ¥2,179 million, up 8.9% on a year-on-year basis.
In the electric power generation business, sales totaled ¥8,004 million, down 45.0% on a year-on-year basis,
mainly due to revenues from the sale of five facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥2,593 million, up 109.4% on a year-on-year basis, mainly
attributable to revenues from orders for large-scale repair work and revenue from selling electric power in themega-solar business.
As a result, Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥49,662 million, up 54.1% on a year-on-year basis; Operating income amounted to ¥2,486 million,
down 12.9% on a year-on-year basis; Ordinary income amounted to ¥1,925 million, down 23.7% on ayear-on-year basis; and Net income amounted to ¥1,209 million, down 25.6% 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 1,173 units, compared with a full-year target of 1,700 units scheduled fordelivery. The contract ratio was at 69.0% 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 1signed
for delivery
ratio (%)
September 30, 2018
(units)(units)(units)Six months ended
September 30, 2017

1,600

1,064

66.5

625

Six months ended
September 30, 2018

1,700

1,173

69.0

921

(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 ¥187,057 million, an increase of ¥9,469 million compared withthe 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)-2-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2018

Current assets increased ¥7,354 million compared with the end of the previous consolidated fiscal year to¥110,286 million. This mainly reflected an increase in inventory in conjunction with new purchase.
(Non-current Assets)
Non-current assets increased ¥2,044 million compared with the end of the previous consolidated fiscal year to¥76,663 million, mainly reflected an increase of investment securities.
(Current Liabilities)
Current liabilities increased ¥8,555 million compared with the end of the previous consolidated fiscal year to¥65,432 million, mainly due to increase in short-term borrowings and the reclassification from long-termborrowings to short-term borrowings.
(Non-current Liabilities)
Non-current liabilities increased ¥671 million compared with the end of the previous consolidated fiscal year,to ¥78,476 million, mainly due to the increase borrowings with new purchase.
(Net Assets)
Total net assets increased ¥241 million compared with the end of the previous consolidated fiscal year, to¥43,148 million, mainly due to the increase non-controlling interests.

(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2018.

-3-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2018

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018ASSETS
Current assets:
Cash and deposits

29,223

20,385

Notes and accounts receivable, trade

1,539

1,356

Real estate held for sale

20,27925,885

Power generation facilities for sale

4,090

－Real estate held for sale in progress

44,06855,773

Costs incurred on uncompleted contracts

129774

Other

3,709

6,218

Allowance for doubtful accounts

(110)

(107)

102,931110,286

18,281

14,620Total current assets
Fixed assets:Tangible fixed assets
Buildings and structures (net)Land

35,89935,118Other (net)

12,15916,234

Total tangible fixed assets

66,34065,973

1,265
543

1,490
537

1,808

2,027

6,474

8,673

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

(6)

(11)

Total investments and other assets

6,468

8,661

74,61876,66338108

177,588

187,057

Notes and accounts payable, trade

15,786

5,438

Short-term borrowings

18,38930,258Current portion of long-term borrowings

12,83820,784

Income taxes payable

3,547

549

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Reserve

888

870

Other

5,425

7,530

Total current liabilities

56,87665,43275,01575,324

Bonds payable

200

200

Reserve

7383

Nonurrent liabilities
Long-term borrowings-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2018

(Millions of yen)
As of March 31, 2018
Liabilities related to retirement benefits

As of September 30, 2018Other436
2,078

483
2,385

Total noncurrent liabilities

77,80478,476

134,681

143,908

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2018

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,823

4,823

Retained earnings

38,717

38,735

Treasury stock(5,875)(5,841)

Total shareholders’ equity

42,48542,538

Securities

262130Total accumulated other comprehensive income262

130

159-

226
253

42,907

43,148

177,588

187,057

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

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 Six Months Ended September 30, 2018

(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, 2017

Six Months Ended
September 30, 2018

Net sales

32,22549,662

Cost of sales

23,652

39,768Gross profit

8,573

9,893

Selling, general and administrative expenses

5,717

7,407

Operating income

2,855

2,486

Interest income

10

Dividend income

2973

Commissions received

152694－

Miscellaneous income

78

41

Total Non-Operating income

218

142

527

542

Non-Operating income:

Share of profit of entities accounted for using equity
methodNon-Operating expenses:
Interest expense
Losses from equity method investment－60

Miscellaneous losses

2399

Total Non-Operating expenses

550

702

2,5231,925－－

191

Loss on disposal of fixed assets

11－

Office transfer expenses

93－

Total extraordinary losses

104－

Net income before income taxes

2,418

2,117

Income taxes, inhabitant taxes and business taxes

1,167

537

Income tax adjustments

(372)

170

Total income and other taxes

794

707

1,624

1,409

－

200

1,624

1,209

Ordinary income
Extraordinary income
Profit on sale of investment securities
Total Extraordinary income

191

Extraordinary losses

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, 2018

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)

Six Months Ended
September 30, 2017
Net income

Six Months Ended
September 30, 2018

1,624

1,409

Net unrealized gains on available-for-sale securities

5(131)

Total other comprehensive income5(131)

1,630

1,277

1,630

1,077－200

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent
Comprehensive income attributable to non-controlling shareholders-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2018

(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.

-9-