First Quarter Consolidated Financial Reportfor the Three Months Ended June 30, 2016 (Japan GAAP)
July 25, 2016

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Kazuichi Shimada, President and Representative Director, CEOToshiya Kitagawa, Director, Executive Officer and Marketing Planning Office Manager
Tel: +81-3-5324-8720

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 5, 2016
-NoNo

1. Consolidated Operating Results for the Three Months Ended June 30, 2016
(April 1-June 30, 2016)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income%

Ordinary Income

Net Income

Millions of yen%

Millions of yen

Three months ended June 30, 201621,196

130.4

3,033

－

2,731－

1,788－

Three months ended June 30, 2015

9,199

78.1(316)－(532)－(410)－

Millions of yen%%

Millions of yen(Note) Comprehensive income: Three months ended June 30, 2016:¥ 1,931 million (－%) / Three months ended June 30, 2015: ¥(390)
million (－%)
Net Income perShare

Diluted Net Incomeper ShareYenYenThree months ended June 30, 2016

16.30

16.21

Three months ended June 30, 2015

(3.69)－(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of June 30, 2016

127,893

34,08826.5

As of March 31, 2016

129,744

33,677

25.8<Reference> Shareholders’ equity at end of period: June 30, 2016: ¥33,886 million / March 31, 2016: ¥33,536 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ending March 31, 2016-

Year Ending March 31, 2017

-

3Q
Yen

Year Ending March 31, 2017 (Forecast)Year-End
Yen

Total

Yen

Yen

4.00

-

9.00

13.00

5.00

-

10.00

15.00

(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, 201 7(April 1, 2016-March 31, 2017)(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

105,000

37.7

15,00098.3

13,900

107.2

9,000

108.9

81.77

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

4. Other Matters(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: Yes
B. Changes in accounting policies other than those in (1): 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, 2016:

126,000,000 shares

As of March 31, 2016:

126,000,000 sharesb.

Three months ended June 30, 2016:

16,733,007 shares

As of March 31, 2016:

15,938,307 sharesc.

Three months ended June 30, 2016:

109,696,333 shares

Three months ended June 30, 2015:

111,307,274 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the FinancialInstruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed a quarterly review procedure for financial statements based on the Financial Instruments andExchange Act.

(Note) 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 arebased on information currently available to the Company and on certain assumptions deemed to bereasonable. 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, 2016

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 ............................................................. 3(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 3
2. Summary Information (Notes) ................................................................................................................................. 3(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period ................................................ 3(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 3(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 3(4) Additional information ........................................................................................................................................ 4
3. Quarterly Consolidated Financial Statements ........................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(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, 2016

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
From the first-quarter year-to-date period for the fiscal year ending in March 2017, the Takara Leben Grouphas changed its reportable segments, and the following year-on-year comparison is made using the values after
reclassifying the reportable segments into the segment classification after the change.
In the first-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2017, sales
from the real estate sales business amounted to ¥9,872 million, up 54.4% 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 ¥1,229 million, up 16.5% 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 41,890 units of residential
condominiums were ¥909 million, up 10.0% on a year-on-year basis.
In the electric power generation business, sales totaled ¥8,565 million, up 3,997.4% on a year-on-year basis,
mainly due to revenues from the sale of ten facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥619 million, down 13.1% on a year-on-year basis, mainly revenues
from construction work, large-scale repair work.
As a result, Net sales for the first-quarter year-to-date period of the current consolidated fiscal year amountedto ¥21,196 million, up 130.4% on a year-on-year basis; Operating income amounted to ¥3,033 million, Operatingloss for the same period of the previous year was ¥316 million; Ordinary income amounted to ¥2,731 million,
Ordinary loss for the same period of the previous year was ¥532 million; and Net income amounted to ¥1,788
million, Net loss for the same period of the previous year was ¥410 million.
b. Overview
The built-for-sale condominium business delivered 223 units. In the fiscal year ending March 2017, although
there has been a steady rate of contract signings, because delivery is concentrated in the second half, the majorityof sales and income from those contracts is expected to be recorded in the second half..
c. 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 1,046 units, compared with a full-year target of 1,600 units scheduled for delivery.
The contract ratio was at 65.4% showing a steady growth in the business.
(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery)
Number of contracts
Units scheduled for Number of contracts
Contracted ratio
signed from April
deliverysigned(%)
1-June 30, 2016
(units)(units)(units)Three months ended
June 30, 2015
Three months ended
June 30, 2016

1,452

1,076

74.1

300

1,600

1,046

65.4

357

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2016

(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 ¥127,893 million, an decrease of ¥1,850 million compared withthe end of the previous consolidated fiscal year. The decrease mainly reflected a decrease in cash and deposits asa result of Settlement of notes payable.
(Current Assets)
Current assets decreased ¥1,561 million compared with the end of the previous consolidated fiscal year to¥74,191 million. This mainly reflected a decrease in cash and deposits as a result of Settlement of notes payable.
(Fixed Assets)
Fixed assets decreased ¥305 million compared with the end of the previous consolidated fiscal year to ¥53,639
million, mainly reflecting the sale of electric power generation facilities.
(Current Liabilities)
Current liabilities decreased ¥1,909 million compared with the end of the previous consolidated fiscal year to¥40,950 million, mainly due to decreased notes payable.
(Fixed Liabilities)
Fixed liabilities decreased ¥351 million compared with the end of the previous consolidated fiscal year, to¥52,855 million, mainly due to the repayment of borrowings and the reclassification from long-term borrowings
to short-term borrowings.
(Net Assets)
Total net assets increased ¥410 million compared with the end of the previous consolidated fiscal year, to¥34,088 million, mainly reflecting the fact that net income for the first quarter exceeded the distribution ofsurplus and the acquisition of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 9, 2016.
2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period
The Company had no pertinent matters to report.
(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated Financial
Statements
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
Changes in Accounting Policies(Application of practical solution regarding change in depreciation method due to 2016 Tax Reform)
In association with the revision of the Corporation Tax Act, the Company has applied the “Practical Solution
on a change in depreciation method due to Tax Reform 2016” (ASBJ Practical Issues Task Force (PITF) No. 32-3-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2016

dated June 17, 2016) from the first quarter of the consolidated fiscal year under review, and changed thedepreciation method for facilities attached to buildings and structures that were acquired on or after April 1,2016 from the declining-balance method to the straight-line method.
The impact of this change on profits and losses for the first quarter of the consolidated fiscal year underreview is minor.
(4) Additional information(Application of implementation guidance on recoverability of deferred tax assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJGuidance No. 26 dated March 28, 2016) from the first quarter of the consolidated fiscal year under review.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2016

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016

As of June 30, 2016

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable, trade28,51522,745963

1,020

Real estate held for sale

4,073

9,852

Real estate held for sale in progress

36,13435,656

Costs incurred on uncompleted contracts

116

188

Other

5,987

4,776

Allowance for doubtful accounts

(38)

(48)

75,75374,191

Buildings and structures (net)11,20912,702

Land

24,75024,635

Other (net)13,277

10,986

Total tangible fixed assets

49,237

48,325

1,512

1,470

Other

3,218

3,861

Allowance for doubtful accounts

(22)

(17)

Total investments and other assets

3,195

3,843

53,94553,639Total current assets
Fixed assets:
Tangible fixed assets

Intangible fixed assets
Investments and other assets

Total fixed assets
Deferred assets
Total assets

4562

129,744

127,893

LIABILITIESCurrent liabilities:
Notes and accounts payable, trade

12,307

7,592

Short-term borrowings

7,412

13,469Current portion of long-term borrowings

12,41010,457

Income taxes payable

1,113

1,972

Reserve

628

522

Other

9,256

6,936

Total current liabilities

42,85940,95050,14749,768

Bonds payable

200200Reserve

3234

Noncurrent liabilities
Long-term borrowings

Liabilities related to retirement benefits

307318

Other

2,519

2,534

Total noncurrent liabilities

53,20752,85596,06693,805

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2016

(Millions of yen)
As of March 31, 2016

As of June 30, 2016

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,865

Retained earnings

29,01129,809Treasury stock(5,100)(5,740)Total shareholders’ equity

33,54833,755(11)

131

(11)

131

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

-6-

140

201

33,67734,088

129,744

127,893

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2016

(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 Ended
June 30, 2015

Three Months Ended
June 30, 2016

Net sales

9,199

21,196

Cost of sales

7,238

15,197Gross profit

1,961

5,999

Selling, general and administrative expenses

2,277

2,965

Operating income (loss)

(316)

3,033

Interest income

00

Dividend income

Non-Operating income:
23Commissions received

916

Miscellaneous income

18

6Total Non-Operating income

3127

Interest expense

216

265

Losses from equity method investment

1857

Miscellaneous losses

126

Total Non-Operating expenses

247330(532)
(532)

2,731

44

1,887

Income tax adjustments

(166)

(944)

Total income and other taxes

(121)

942

Net income (loss)

(410)

1,788

Profit attributable to owners of parent (loss)

(410)

1,788

Non-Operating expenses:

Ordinary income (loss)
Net income (loss) before income taxes
Income taxes, inhabitant taxes and business taxes

-7-

2,731

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2016

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months EndedJune 30, 2015
Net income (loss)

Three Months Ended
June 30, 2016

(410)

1,788

Net unrealized gains on available-for-sale securities

20143

Total other comprehensive income

20143

(390)

1,931

(390)

1,931

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2016(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)
In the first quarters of the consolidated fiscal year under review, the Company purchased shares of treasury
stock at ¥687 million, by resolution of the meeting of the Board of Directors held on May 9, 2016.
Additionally, with the disposal of treasury stock for ¥48 million due to the exercise of stock options, theCompany held treasury stock for ¥5,740 million as of June 30, 2016.

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