Earnings Results Briefing
For the Year Ended
March 31, 2013
May 21,2013

Contents

Year Ended March 2013 Summary

・・・・・・

7P

Topics・・・・・・

15P

Year Ending March 2014
Dividends/Capital Policy

・・・・・・

37P

Company Profile

Company name ：Takara Leben CO.,LTD.
Head office's location ：Shinjuku-Sumitomo bldg. 26F2-6-1,
Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan
Capitalization：4,819 million yen (As of March 31,2013)
Established：September 21, 1972
Number of Employees：219 (As of March 31,2013)
Security Code：8897, the First Section of TSE
Contact：irinfo@leben.co.jp

1Four Decades of Business
Established Takara Komuten Co.,Ltd.
(the present Takara Leben)
Launched sales of detached houses
Launched real estate leasing business

Established Takara Management Co.,Ltd. (the present Leben Community)
Launched real estate management business

Launched sales of condominiums "Leben Heim"

Changed company name to "Takara Leben Co.,Ltd."Made Marunouchi Servicer Co.,Ltd. its
subsidiary
Released new corporate logo

Launched detached housing business(buidt by Takara Leben)
Capital increase based on Japan’s firstrights offering
Joined an open house and began sales ofcustom-built houses
40th anniversary of the founding

Launched financial brokering business
Established Tafuko Co.,Ltd.
Listed on the second section of theTokyo Stock Exchange

Introduced New Condominium Brand

Introduced Corporate character

Establish Yokohama branch
Listed on the first section of
the Tokyo Stock Exchange
Established Relivel Leben Co.,Ltd.(the present Live Net Home Co.,Ltd.)
Launched trustee division for real estate sales
Established AS Partners Co.,Ltd.
Launched nursing care businesses for seniors

Made Takara Housing Co.,Ltd.(the present Takara Property
Co.,Ltd.) its subsidiary
Rental business management operations2

Response to Increase in Consumption Taxes

3

Response to Increase in Consumption Taxes
Flexibility in timing of purchase(1) Less flexible about the timing of thepurchase as the buying motive is life cycle

Price elasticity
Price elasticity is high due to the attributesof the target customers(2) Flexibility is limited due to the attributesof the target customers

Impacttotheindustryi s i n s i g n i fi c a n t

Maintainsupply
withareaprice
Assuming consumption taxes of 10%
from the land purchase stage
4

Impact of Abenomics and BOJ’s monetary easing
Abenomics
Monetary policies
Fiscal policies
Growth strategies

Monetary easing ofdifferent dimension by
BOJ

Correction of excessively strong yen
and a rising stock market

Expectations for an end to deflationand economic recovery
5Impact on real estate industry and our views
Real estate sales prices
Trending upward in suburban areas
We are raising prices based on an assessment of prices in the area

Land purchasing prices
Expected to start rising in the future
We are currently increasing purchases

Construction costs
Could rise in the future
We foresee no imminent price increases, given the deterioration in steel prices

Financial trends
Increased bank lending and continued low interest rates are forecast
6Year Ended March 31, 2013
Summary7

Consolidated Income Statements（Unit Amount=Million yen ）Year ended
March 31, 2012

Year ended
March 31, 2013

YOY
changeNet sales

55,19164,907

17.6%

Operating profit

5,930

6,361

7.3%

Ordinary profit

5,071

5,792

14.2%

Net income

3,681

4,074

10.7%

8

Segment Information 【 Breakdown of Real Estate Sales Business 】 (Reference)（Unit Amount=Million yen ）Year ended
March 31, 2012

Year ended
March 31, 2013

YOY
changeReal estate sales
business

50,281

59,310

18.0%

Real estate rental
business

1,419

1,485

4.6%

Real estate
managementbusiness

2,282

2,582

13.1%

Other businesses

1,206

1,529

26.7%
9

Consolidated Balance Sheets
Year ended
March 31, 2012

Year ended
March 31, 2013

（Unit Amount

YOY change=Million yen ）50,91955,932

9.8%

Cash and cash equivalents

17,394

17,911

3.0%

Inventories

30,29435,376

16.8%

Real estate held for sale

7,430

2,067

△72.2％

Real estate for sale underconstruction

22,86333,308

45.7%

Fixed assets

19,357

19,081△1.4%

Total assets

70,27775,013

6.7%

Current liabilities

37,372

29,025△22.3%

Notes and accounts payable, trade

10,1657,920△22.1%

Debts（short-term borrowings, longterm debt within one year）

21,381

14,004△34.5%

11,765

21,84085.6%

10,774

20,84993.5%

Total liabilities

49,13850,866

3.5%

Net assets

21,13824,147

14.2%

Capital

4,819

4,819

－

Other shareholder equity

16,31819,328

18.4%

Total liabilities and net assets

70,27775,013

6.7%

Current assets

Fixed liabilities
Long-term borrowings

10Stock Price Index

Year ended
March 31, 2011

Year ended
March 31, 2012

Year ended
March 31, 2013

Earning per share (yen)168.14116.49134.45

book-value per share (yen)566.66683.33807.58Average number of shares
outstanding during the term

30,236,227

31,607,112

30,302,354

11

Financial Topics (1)( Million yen)

40,000Long-term borrowings

35,000Debts

30,00025,00020,000Debts[short-term borrowings,
long-term debt within
one year]5,000
014,004Long-term
borrowings
Long-term
borrowings

20,84910,774
Year ended
March 31,2012( Increased 93.5% )Debts [short-term borrowings,
long-term debt within one year]

21,381

15,00010,000[short-term borrowings,
long-term debt within
one year]Year ended March 31, 2012
10,774 million yen
Year ended March 31, 2013
20,849 million yen

Year ended
March 31,2013

Year ended March 31, 2012
21,381 million yen
Year ended March 31, 2013
14,004 million yen( Decreased 34.5% ) Long-term borrowings increase short-term borrowings/long-term debt
within one year decrease

Moving towards smoothbusiness cycle
12Financial Topics (2)( Million yen)

Real estate for sale under construction

40,000Real estate
held for sale

35,00030,00025,0002,067( increase 45.7% )Real estate held for sale

Real estate
held for sale

7,430

20,00015,000Real estate
for sale
underconstruction

10,00022,863

Real estate
for sale
underconstruction

Year ended March 31, 2012
7,430 million yen
Year ended March 31, 2013
2,067 million yen( decrease 72.2% )33,308■ Good progress with purchases
Against number of units completed of the new built-forsale condominium in 41th term : 1,469 units, increase in
the amount of real estate in process

5,000
0

Year ended March 31, 2012
22,863 million yen
Year ended March 31, 201333,308 million yen*Already purchased 100% of business sites for 42nd term/43rd term
(42nd term plan 1,710 units, 43rd term plan 1,740 units)

Year ended
March 31,2012

Year ended
March 31,2013■ Good progress with sales
Decrease in real estate for sale13

Progress of delivery, contracts ( new built-for-sale condominium )( Units )

2,000
1,710

1,686

(Forcast)

1,500

Units for delivery

 Year ended March 31, 2013 (41th)

1,290

Delivered : 1,686 Units

1,000

1,020 Units
Contracted※ Number of units completed of the new builtfor-sale condominium in 41th term
: 1,469 units (19 buildings)
All of the units were contracted and delivered Year ending March 31, 2014 (42th)
Scheduled for delivery :1,710 units

500※ 59.6% of units(1,020 units) for delivery Yearending March 2014 contracted(at the year end of March 31, 2013)

0Year ended
Year ended
Year ended
March 31,2012 March 31,2013 March 31,201414

Topics

15

Topics (1)New Mid-Term Management Plan
16

New Mid-Term Management Plan

17

Takara Leben Next Stage 201618

Main Measures
1

Steady increase in number of units sold2

Promote solar-powered condominiums

3

Entry to mega - solar business4

Stable supply of condominiums in central area in local cities

5

Restructure the detached house business
Aim for solidand stable growth with out major organization changes
19Overview of Strategies

20TargetConsistent positioning
Offer “ideal houses anyone can purchase without heavy financial”→strict adherence to area demands and area price

Supply to meet life - cycle needs
Area
Property

Three criteria for land purchase for condos

Suburbs of Tokyo metropolitan area
Family condos with 3LDK (70m )Focused on living environment

Location(near school, supermarkets, parks, etc)

2

Price

Approx. ￥30 million

TargetVolume zone

Gross margin of approx. 25%

Earnings

Thorough area marketing

Supply & demand(The basic policy is not to oversupply in each areaand exclude needs for wider area from the main target)(First-time buyer bracket with annual income of ￥4 to 6.99 million)【 Income distribution 】
Worker’s households(Two-or-more-person households)【 Income distribution 】

Worker’s households living in the rental housing(Two-or-more-person households)

9%

14% 15%18%

24%

Less than￥4 million￥4 to 6.99 million

26%￥7 to 9.99 million

45%

49%

￥10 million or more

Source: Statistics published by MIC, Statistics Bureau (Family Income and Expenditure Survey 2012 Yearly Average)21

Topics (2)Promote solar-powered condominiums
22Promote solar-powered condominiums
Unit-based Solar-powered Condominium Supply Ranking

Nationwide

Ranked 1st

Unit-based Solar-powered Condominium Supply Ranking(available in each individual home unit)
Source: Real Estate Economic Institute Co., Ltd.

Increase the ratio of solar-powered condominiums in newproperties to be constructed to over 50% in FY2016/3.
23

“Taiyo no Oka” Project
1st inJapan*

Unit-based Solar-powered Condominiums with Individual Storage of Electric Power＊Source: Real Estate Economic Institute Co.,Ltd.

 A multifaceted plan to build a new town of 200 houses, comprising 2 newly built for sale condominium buildings withapproximately 160 units* and approximately 40 new detached houses(* 1st： LEBEN REVARE Yokohama Tsurugamine Hills 99units 2nd： LEBEN Yokohama Tsurugamine Terrace 59units )24

Solar powered condominiums scheduled for delivery in the 42nd term
Name

Location

Units

LEBEN CHIBA NEW TOWN CHU-O

Chiba

55 Units

LEBEN REVARE MACHIDA LOUGER TOWER

Tokyo

111 Units

LEBEN YASHIO

Saitama

77 Units

LEBEN TSUKUBA KENKYU GAKUEN

Ibaraki73 Units

LEBEN SHINKAWASAKI DUALISM

Kanagawa

122 Units

LEBEN NAGAREYAMA OTAKANOMORI LUMINIA

Chiba

65 Units

LEBEN MUSASHIURAWA

Saitama

52 Units

LEBEN YOSHIKAWAMINAMI

Saitama

102 Units

LEBEN HIGASHIWASHINOMIYA TERRCE

Saitama

200 Units

Solar power generation is adopted in 9 out of the 23 condominiums (around 40%)scheduled for delivery in the 42nd term

25

Topics (3)Entry to mega - solar business
26

Entry to mega - solar business
Establishment of new Eco-energy Business Division

Entry to mega - solar business[ Project No. 1 ]Location : Shioya-gun, Tochigi Prefecture
Site area : 36,727.35㎡
Power class : About 3 MW
Estimated generation volume: About 3,000,000kWh/year( enough to power up to 850 general households )Estimated start-up: August 2013

[ Collaborative Projects ]Onanuma, Koga-shi, Ibaraki Prefecture
Mihomura, Inashiki-gun,Ibaraki Prefecture
Tonemachi, Kitasouma-gun,Ibaraki Prefecture

Performance objective ( FY2016 ) ：More than10 ＭＷ
27

Topics (4)Stable supply of condominiums incentral area in local cities28

Supply of condominiums in central area in local cities
LEBEN TOYAMA THE PLATINUMLEBEN TOYAMA THE PLATINUM
LUCIDA TOWER
Completed in 2012

LEBEN HEIM TOYAMASHIROGANECHO
Completed in 2009

April, 2013 On Sale : 65 Units

29

Progress of purchases
Purchasing business sites in central urban areas in every region

Matsumoto-shi,
Nagano Prefecture( 80 Units )Takasaki-shi,
Gunma Prefecture( 2buildings 174 Units )Aim for stable supply of over 200 units annually30

Topics (5)Restructure the detached house business
31

Detached House Business Own construction detached house
Enhance land purchasing system for detached house

Purchases
Purchases of mid-sized plots of land
Already purchased 27 plots（Oizumi-Gakuen)

Plan combining condominium anddetached houses

Create a team dedicated toland purchase activity
Established Purchasing Team in
Detached House Headquarters

Plan combining 164 condominium units and
127 detached houses currently being
formulated （Kami-Fukuoka)【 FY 2014 】 Delivery of 150 units is planned32

Detached House Business Custom-built houseOﬀer diﬀerentiated products

Stylish, unique homes with all the features of
the LIBO series and with room for self-expression.

Ideal homes incorporating Light, Water andAir, essential elements for human life, into
their design and providing peace of mind at areasonable price.

Unique product planning
33

Topics (6)Attainment of numerical targets
34

State of progress■ Performance Goals
Cash and deposits（￥100 million）

Equity （￥100 million）
EPS （￥）※ Excluding treasury shares,
based on ordinary income■ March 31, 2013
Cash and deposits（￥100 million）

Equity（￥100 million）

EPS （￥）※ Excluding treasury shares,
based on ordinary income

179 241 194

35

Dividends/Capital policy■ Performance Goals
Dividends＋Treasury share purchaseor more※based on net income■ March 31, 2013
Dividends＋Treasury share purchase

=

30.5%

※based on net income36Year Ending March 2014
Dividends/Capital Policy
37

Year Ending March 2014 Outlook (Consolidated)

Units sold[New built-for-sale condominium+ detached house]

Net sales[￥million]

Operating profit[￥million]

Ordinary profit[￥million]

Net income[￥million]

Year ended
March 31, 2013

Year ending
March 31, 2014
Forecast

YOY change

1,786

1,860

－

64,90771,800

10.6%

6,361

9,300

46.2%

5,792

8,515

47.0%

4,074

5,030

23.5%
38

Cash Dividends, Preferential treatment

1st half dividends

Year ended
March 31, 2013
Forecast

Year ending
March 31, 2014

Year-end dividends

Total

５

yen

１０ yen１５ yen６yen

１２ yen

１８ yenForecast

gift certificatesfor packages ofrice

100 shares or more to lessthan 1,000 shares

1,000 shares or more

2ｋｇ（880Yen）

5ｋｇ（2,200Yen）

39

Acquisition and cancellation of treasury stock■ Acquisition of treasury stockYear ended March 31, 2012

Year ended March 31, 2013

From July 26, 2011
to March 31,2012

From May 15, 2012
to March 31,2013

Acquisition period
Number of shares acquired

1,469,100 shares

1,124,400 shares

Total acquisition value

595,523,700 yen

792,849,400 yen

Treasury shares held on completionof acquisition (March 31)

2,451,871 shares

3,505,271 shares■ Cancellation of treasury stock◆ Type of shares to be cancelled

Common stock of the Company◆ Total number of shares to be cancelled

386,070 shares(1.2％ as percentage of total number of shares issued
before cancellation)◆ Date of cancellation
Total number of shares issued after cancellation
Number of treasury shares after cancellation

May 15, 2013
33,000,000 shares
3,119,201 shares (9.5％ as percentage of total numberof shares issued after cancellation)40

On acquisition of treasury stock◆ Type of shares acquired

Common stock of the Company◆ Total number of shares for acquisition
2,000,000 shares (Upper limit)
Ratio to total number ofoutstanding shares (Excluding treasury stock) 6.7％

◆ Total acquisition value

4,000,000,000 yen (Upper limit)◆ Acquisition period

From May 13, 2013 to March 31,2014◆ Acquisition method

Open market repurchaseand repurchase through off-auction
own share repurchase trading (ToSTNeT-3)
on the Tokyo Stock Exchange

41

Stock split◆ Purpose of stock split
We will split our stock and reduce the investment unit amount of our shares for the purpose of
improving our shareholder liquidity and further expanding our investor base.

◆ Method of stock split
Shares of common stock held by shareholders listed or recorded in the final registry of shareholders
as of the record date of June 30, 2013 will be split at a ratio of four shares to one share.

◆ Increase in shares resulting from split①②③④

Total number of shares issued prior to the stock split
33,000,000 shares
Increase in share resulting from stock split
99,000,000 shares
Total number of shares issued following the stock split
132,000,000 shares
Total number of shares authorized to be issued following the stock split 248,000,000 shares◆ Schedule of split① Public notice of the record date② Record dateJune 13, 2013 (Thursday)June 30,2013 (Sunday)*The actual record date is June 28,2013 (Friday)③ Effective dateJuly 1, 2013 (Monday)42

■ Enquiries Relating to These Materials
Marketing Planning Office
Management Planning Section

E-mail：irinfo@leben.co.jp

These materials were prepared to provide information regarding business performance for the year ended March 31, 2013 and do notconstitute a solicitation for investment in securities issued by Takara Leben Co., Ltd. These materials were prepared based on data
available as of March 31, 2013. These materials, as well as answers, projections, estimates, and other information provided in thesubsequent question and answer session are based on Takara Leben's best judgment as of the preparation of this material, and do notconstitute a guarantee or promise that anything contained within will be realized or achieved, nor do they provide any guarantees orpromises with regard to the accuracy or completeness of the information. The content of these materials is subject to change without prior notice.