Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2010 (Japan GAAP)
January 28, 2011

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Yoshio Murayama, President and Representative Director
Toshiya Kitagawa, Corporate Officer and Office Manager, Marketing Planning OfficeTel: +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:

February 10, 2011
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2010
(April 1-December 31, 2010)(1) Consolidated Operating Results (Year-to-Date)(¥ millions, rounded down; percentage figures represent year-on-year change)
Net Sales

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Nine months ended December 31, 2010

26,534(36.5)

2,849

18.9

1,859

3.1

1,751

(4.4)

Nine months ended December 31, 2009

41,800

(0.2)

2,396

26.6

1,804

66.7

1,832

279.7

Net Income per
Share

Diluted Net Income
per Share

Yen

Yen

Nine months ended December 31, 2010

59.31

-

Nine months ended December 31, 2009110.69-(2) Consolidated Financial Position
Total Assets

Total Net Assets

Equity Ratio

Net Assets per Share

Million yen

Million yen%

Yen

As of December 31, 2010

57,50515,02526.1

463.70

As of March 31, 2010

54,540

8,651

15.9

522.51<Reference> Shareholders’ equity at end of period: December 31, 2010: ¥15,025 million / March 31, 2010: ¥8,651 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q

3Q

Year-End

Full-Year

Yen

Yen

Yen

Yen

Yen

Year Ending March 31, 2010

-

0.00

-

2.00

2.00

Year Ending March 31, 2011

-

3.00

6.00

9.00

Year Ending March 31, 2011 (Forecast)(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, 2011
(April 1, 2010-March 31, 2011)(¥ millions, rounded down; percentage figures represent year-on-year compared with priorconsolidated fiscal year and the prior consolidated fiscal year interim (year-to-date) period)
Net Sales
Million yen
Full year

47,940Operating Income% Million yen
(7.7)

6,710

Ordinary Income% Million yen
108.9

5,440

(Note) Has the Company changed its consolidated forecast during this quarter: Yes% Million yen
128.7

Net Income per
Share

Net Income

5,050

%

yen

125.0

167.02

4. Other (For details please refer to [Attachments] Page 3 “Other Information”)(1) Changes in the status of material subsidiaries during the period: No
Newly consolidated companies (--) Newly excluded companies (--)
(Note) Changes in specific subsidiaries during the quarterly accounting period under review inconjunction with a change in the scope of consolidation.
(2) Application of simplified accounting treatment and special accounting treatment: Yes(Note) Application of simplified accounting method, and special accounting method in the preparationof quarterly consolidated financial statements.
(3) Changes in accounting principles, procedures or methods of presentation
a. Changes accompanying revision of accounting standards: Yes
b. Changes other than those in a.: No(Note) Changes in accounting principles, procedures and methods of presentation pertaining topreparation of the quarterly consolidated financial statements recorded in the Changes inImportant Matters Used as the Basis for Preparation of the Consolidated Financial Statements.
(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.

As of December 31, 2010: 33,386,070 shares

As of March 31, 2010: 17,540,333 sharesb.

As of December 31, 2010:

As of March 31, 2010:

982,771 shares

982,771 sharesc. Nine months ended December 31, 2010: 29,527,003 shares Nine months ended December 31, 2009: 16,557,651 shares

Note: Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial
Instruments 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 are
based 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 Nine Months Ended December 31, 2010

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 ........................................... 4
2. Other Information ..................................................................................................................................................... 4(1) Summary of Changes to Material Subsidiaries ................................................................................................... 4(2) Summary of Simplified Accounting Treatment and Special Accounting Treatment .......................................... 4(3) Summary of Changes in Accounting Principles, Procedures or Methods of Presentation.................................. 4
3. Consolidated Financial Statements ........................................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income ................................................................................................... 7(Third Quarter Year-to-Date Consolidated Accounting Period) .......................................................................... 7(Third Quarter Consolidated Accounting Period) ............................................................................................... 9(3) Quarterly Consolidated Statements of Cash Flows ........................................................................................... 10(4) Notes Pertaining to the Going Concern Assumption ........................................................................................ 12(5) Notes on Significant Changes to Shareholders’ Equity .................................................................................... 12-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
Over the first three quarters of the Takara Leben Group’s fiscal year ending in March 2011 (April 1, 2010 to
December 31, 2010), sales from the real estate sales business amounted to ¥22,890 million. This reflected salesof 529 units in the built-for-sale condominium business, as well as sales in our newly-built detached housing,renovation and resale business operations.
In the real estate rental business, sales totaled ¥1,072 million. This reflected rental revenue fromcondominiums for rent and from office and store space leasing.
In the real estate management business, sales from the management of 498 blocks of residential condominiums(24,624 units) were ¥1,587 million.
Sales from other businesses amounted to ¥984 million, mainly from orders for optional construction work in
conjunction with the sale of condominiums and commissions from real estate agency services.
As a result of the above operations, consolidated net sales for the third quarter year-to-date period of thecurrent consolidated fiscal year were ¥26,534 million.
b. Overview
For Takara Leben CO., LTD. proper, sales for the first nine months of the current consolidated fiscal year
progressed steadily and reached 52.7% of the Company’s full-year plan, reflecting the fact that deliveries in thebuilt-for-sale condominium business are concentrated in the fourth quarter. Based on the number of contracts
signed, the Company believes it is steadily accomplishing its profit plan.
For the Takara Leben Group as a whole, consolidated net income for the third quarter year-to-date period of thecurrent consolidated fiscal year was ¥1,751 million.
c. Contracted ratio status
With regard to sales performance in the third quarter year-to-date period of the current consolidated fiscal year,
the Company concluded contracts for 1,075 units including units delivered during the third quarter, achieving a
99.7% contract ratio compared with the full-year plan.
(Contracts signed versus number of units forecast for delivery)
Units scheduled for
Number ofContracted ratio
Contracted ratiodeliverycontracts signed(same period of the(%)(units)(units)previous year) (%)
Full year
1,078
1,075
99.7
93.1
Next fiscal year
1,398
420
30.0
－
(Note) The figures for units indicated above are for sales of condominium units only.
As shown in the above table, the Company made excellent progress in the built-for-sale condominium businessand achieved a strong year-over-year improvement in the contracted ratio, which rose to 99.7% of the units
scheduled for delivery. Moreover, the contracted ratio for units to be delivered in the next fiscal year or later isalready 30.0%, with the number of contracts for newly supplied properties exhibiting solid growth.
(2) Qualitative Information Pertaining to Consolidated Financial Positiona. Assets, Liabilities and Net Assets
With regard to the assets, liabilities and net assets of the Group at the end of the third quarter consolidated-2-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010accounting period under review, total assets were ¥57,505 million, an increase of ¥2,964 million compared withthe end of the previous consolidated fiscal year. Although the Company repaid long-term debt, the increase
mainly reflected an increase in inventory in conjunction with new purchases, and increases in capital andadditional paid-in capital from the exercise of new share subscription rights.
(Current Assets)
Current assets increased ¥5,195 million compared with the end of the previous consolidated fiscal year to¥38,079 million. This mainly reflected an increase in cash and deposits from the exercise of new sharesubscription rights, and an increase in inventory assets as a result of new purchases.
(Fixed Assets)
Despite an increase in purchases of new business assets, fixed assets decreased ¥2,230 million compared withthe end of the previous consolidated fiscal year to ¥19,425 million. Despite an increase from the purchase of new
business assets, this mainly reflected a decline resulting from the transfer of fixed assets to inventory assets
because of a change in purpose of ownership.
(Current Liabilities)
Current liabilities decreased ¥831 million compared with the end of the previous consolidated fiscal year to¥28,402 million. The largest changes were an increase in advances received on contracts concluded anddecreases from the payment of charges for general contractor work and from the repayment of long-term debt.
(Fixed Liabilities)
Fixed liabilities decreased ¥2,578 million compared with the end of the previous consolidated fiscal year to¥14,077 million, mainly because of the redemption of debt and the shift in debt maturities from long-term debt toshort-term borrowings.
(Net Assets)
Total net assets increased ¥6,373 million compared with the end of the previous consolidated fiscal year to¥15,025 million as the result of increases in capital and capital surplus from the exercise of new sharesubscription rights, and net income for the three quarters year-to-date.
b. Cash Flow Analysis
Cash and cash equivalents (referred to below as “cash”) at the end of the third quarter consolidated operating
period under review increased by ¥1,103 million compared with the end of the previous consolidated fiscal yearto ¥4,820 million.
(Cash Flow from Operating Activities)
Net cash provided from operating activities was ¥949 million. This was mainly due to an increase in income
before tax adjustments and an increase in advances received on contracts concluded.
(Cash Flow from Investing Activities)
Net cash used in investing activities was ¥960 million. This was mainly due to an increase in funds used for thepurchase of tangible fixed assets.
(Cash Flow from Financing Activities)
Net cash provided from financing activities was ¥1,113 million. Although the Company used fund to redeem-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

borrowings, this mainly reflected an increase in funds provided from the exercise of new share subscription
rights.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
For information concerning the forecasted consolidated operating results for the fiscal year ending on March
31, 2011, please refer to the Notification Concerning the Revision of Forecasted Operating Results released on
January 28, 2011.
2. Other Information(1) Summary of Changes to Material Subsidiaries
The Company had no pertinent matters to report.
(2) Summary of Simplified Accounting Treatment and Special Accounting Treatment
a. Calculation method for fixed asset depreciation
For assets for which it has adopted the declining balance method, the Company calculates the amount ofdepreciation and amortization pertaining to the consolidated fiscal year and allocates an amount on a pro-ratabasis for each reporting period.
b. Valuation method for inventory assets
The Company calculates write-downs of inventory book value by estimating the net sale value only of assets
for which there has been a clear decrease in profitability and writing down the method book value to the estimate
amount.
(3) Summary of Changes in Accounting Principles, Procedures or Methods of Presentation
Effective from the first quarter of the current consolidated fiscal year, the Takara Leben Group will apply the“Accounting Standard for Asset Retirement Obligations” (Accounting Standards Board of Japan Statement No.
18 dated March 31, 2008 and the “Guidance on Accounting Standard for Asset Retirement Obligations”(Accounting Standards Board of Japan Guidance No. 21 dated March 31, 2008).
As a result of this change, for the third quarter consolidated year-to-date period under review operating income
and ordinary income decreased by ¥2 million, and net income before tax adjustments decreased by ¥12 million,
respectively. Furthermore, the change in asset retirement obligations as a result of the application of this standard
was ¥18 million.

-4-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2010

As of March 31, 2010ASSETS
Current Assets:
Cash and cash equivalents

4,842

3,766

473

291

Real estate held for sale

2,708

5,896

Real estate for sale under construction

27,05819,987

Other

3,036

2,981

Allowance for doubtful accounts

(40)

(39)

38,07932,884

Buildings and structures (net)

4,721

5,520

Land

13,446

14,961

62

78

18,23020,560

557

496

Other

868

837

Allowance for doubtful accounts

(231)

(238)

Total Investments and Other Assets

637

599

19,42521,65657,50554,540Notes and accounts payable, trade

1,606

2,881

Short-term borrowings

6,430

5,334

Long-term debt due within one year

16,896

18,958

Income taxes payable

19

102

Reserve

97

145

Other

3,351

1,811

Total Current Liabilities

28,402

29,233

13,194

15,723

Reserve

205

163

Other

677

768

14,077

16,65642,47945,889Notes and accounts receivable, trade

Total Current Assets
Fixed Assets:
Tangible fixed assets

Other (net)Total Tangible Fixed Assets
Intangible fixed assets
Investments and other assets

Total Fixed Assets
Total Assets
LIABILITIESCurrent Liabilities:

Fixed Liabilities:
Long-term borrowings

Total Fixed Liabilities
Total Liabilities-5-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

(Millions of yen)
As of December 31, 2010

As of March 31, 2010

NET ASSETS
Shareholders’ Capital:
Capital

4,819

2,442

Additional paid-in capital

4,949

2,572

Retained earnings

6,573

4,952

Treasury stock(1,295)(1,295)

Total Shareholders’ Capital

15,047

8,672

Net unrealized holding gains on other securities

(21)

(21)

Total Valuation and Translation Adjustments

(21)

(21)

15,025

8,651

57,50554,540

Valuation and Translation Adjustments:

Total Net Assets
Total Liabilities and Net Assets-6-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010(2) Quarterly Consolidated Statements of Income(Third Quarter Year-to-Date Consolidated Accounting Period)(Millions of yen)
Nine Months Ended
December 31, 2009

Nine Months Ended
December 31, 2010

Net Sales

41,80026,534

Cost of sales

33,902

18,780Gross Profit

7,898

7,753

Selling, general and administrative expenses

5,501

4,904

Operating Income

2,396

2,849

Interest income

511

Dividend income

23Commissions received

75

43

Investment returns from silent investment partnerships

110-

Miscellaneous income

52

17

Total Non-Operating Income

246

74

Non-Operating Income:Non-Operating Expenses:
Interest expense

822

917

New share issuance costs-

126

Miscellaneous losses

15

20

Total Non-Operating Expenses

838

1,065

1,804

1,859

Gain on sale of investment securities

1-

Reversal of allowance for doubtful accounts

20

17

Reversal of reserve for directors’ bonuses

29

5

Gain on prior fiscal year earnings adjustment-

49

Gain on liquidation of silent investment partnership

232

1

Gain on forgiveness of affiliated company debt

11

-

Other

-

0

294

75

Ordinary Income
Extraordinary Gains:

Total Extraordinary Gains
Total Extraordinary Losses:
Loss on disposal of fixed assets
Loss from application of Accounting Standard for Asset
Retirement Obligations
Loss on valuation of investments

25

3

-

10

2

0

Impairment loss

72

78

Office relocation costs

80Affiliated company late charges

7-

Loss on valuation of investment securities-

8

Loss on sale of investment securities-

2

Prior fiscal year taxes

-

32

Other

-

0

Total Extraordinary Losses

116

135

Income before tax adjustments

1,982

1,799

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

(Millions of yen)
Nine Months Ended
December 31, 2009

Nine Months Ended
December 31, 2010

Income taxes, inhabitant taxes and business taxes

153

83

Income tax refund

(9)

(12)

Income tax adjustments

5

(23)

Total income and other taxes
Income before minority interests
Net income

-8-

149

47

-

1,751

1,832

1,751

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

(Third Quarter Consolidated Accounting Period)(Millions of yen)Three Months Ended
December 31, 2009

Three Months Ended
September 30, 2010

Net Sales

14,300

9,918

Cost of sales

11,984

7,488

Gross Profit

2,315

2,430

Selling, general and administrative expenses

1,828

1,793

486

636

1

1

Operating Income
Non-Operating Income:Interest income
Dividend income

01Commissions received

28

14

Miscellaneous income

119

Total Non-Operating Income

42

27

253

305

New share issuance costs-0

Miscellaneous losses

4

29

257

335

272

328

Reversal of allowance for doubtful accounts

5

3

Reversal of reserve for directors’ bonuses

03

Gain on liquidation of silent investment partnership0-

Total Extraordinary Gains

5

6

Non-Operating Expenses:
Interest expense

Total Non-Operating Expenses
Ordinary Income
Extraordinary Gains:

Total Extraordinary Losses:
Loss on disposal of fixed assets

02

Impairment loss

43

78

Total Extraordinary Losses

43

80

Income before tax adjustments

234

254

Income taxes, inhabitant taxes and business taxes

43

8

Income tax adjustments

14

(3)

Total income taxes

58

4

Income before minority interests

-

249

176

249

Net income-9-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine Months Ended
December 31, 2009

Nine Months Ended
December 31, 2010

Net Cash Provided by (Used in) Operating Activities
Income before tax adjustments

1,982

1,799

Depreciation and amortization

277

286

Impairments loss

72

78

(Decrease) in reserve for directors’ bonuses

(29)

-

(Decrease) in other reserves

(66)

(10)

-

10

Loss from application of Accounting Standard for Asset
Retirement Obligations
Interest and dividend income

(7)

(14)

(110)

-

Loss (gain) on sale and valuation of investment securities

(1)

11

Interest expense

822

917

Loss on disposal of fixed assets

25

3

(232)

(1)

Loss (gain) from silent investment partnerships

Gain on liquidation of silent investment partnership
Decrease (increase) in accounts receivable

43

(181)

Decrease (increase) in inventories

11,534(811)

Increase (decrease) in accounts payable(1,570)(1,275)

Other

619

1,138

Subtotal

13,357

1,949

7

14

Cash payments of interest expense

(773)

(849)

Income taxes paid

(203)

(163)

Net Cash Provided by (Used in) Operating Activities

12,389949

Purchase of time deposits

(14)

(18)

Proceeds from refund of time deposits

100

16

Proceeds from redemption of marketable securities

34-

Purchase of tangible fixed assets(1,151)(859)

Purchase of intangible fixed assets

(101)

(90)

Purchase of investment securities

-

(18)

Proceeds from sale of investment securities

13

4

Proceeds from refund of silent partnership investment

924-

Cash receipts of interest and dividend income

Net Cash Provided by (Used in) Investing Activities

Other
Net Cash Provided by (Used in) Investing Activities- 10 -

(3)

7

(197)

(960)

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

(Millions of yen)
Nine Months Ended
December 31, 2009

Nine Months Ended
December 31, 2010

Net Cash Provided by (Used in) Financing Activities
Increase (decrease) in short-term borrowings(7,928)(1,100)

Proceeds from long-term borrowings

7,776

6,339

Repayment of long-term borrowings(12,293)(8,733)

Repayment of lease obligations

-

(16)

Proceeds from issuance of stock

-

4,753

Cash dividends paid

(0)

(128)

(12,445)

1,113

Increase (decrease) in Cash and Cash Equivalents

(253)

1,103

Cash and Cash Equivalents at Beginning of Period

3,733

3,717

Cash and Cash Equivalents at End of Period

3,479

4,820

Net Cash Provided by (Used in) Financing Activities- 11 -

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2010

(4) Notes Pertaining to the Going Concern Assumption
The Company had no pertinent matters to report.
(5) Notes on Significant Changes to Shareholders’ Equity
On May 31, 2010, the exercise period for the No. 1 New Share Subscription Rights that were issued on April 1,2010 by means of allotment of the Subscription Rights without contribution ended, and the Takara Leben Group
received payment. As a result, at the end of the first quarter consolidated accounting period capital increased by¥2,376 million and additional paid-in capital increased by ¥2,376 million, and at the end of the third quarter
consolidated accounting period under review capital totaled ¥4,819 million and additional paid-in capital totaled¥4,949 million.
(Omission of disclosure)
Disclosure of segment information, other matters to note, non-consolidated operating and financial informationand supplemental information has been omitted because the Company believes there is no significant need fordisclosure of these items in the third quarter consolidated financial report.

- 12 -