Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2013
May 13, 2013
Company name: Takara Leben CO., LTD.
Stock listed on: Tokyo Stock Exchange, First Section
Securities code: 8897 (URL http://www.leben.co.jp)
Representative: Yoshio Murayama, President, Representative Director and Chief Executive Officer
Contact: Toshiya Kitagawa, Director, Executive Officer and Chief of Business Planning OfficeTel. +81-3-5324-8720
Scheduled date of annual general meeting of shareholders: June 20, 2013
Scheduled date for commencement of dividend payment: June 21, 2013
Scheduled date for release of annual securities report: June 20, 2013
Supplementary materials on financial results: Yes
Briefing for financial results: Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million)

1. Consolidated Financial Results for the Year Ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(Percentage figures represent year-on-year change)(1) Consolidated operating results
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%

Year ended March 31, 2013

64,907

17.6

6,361

7.3

5,792

14.2

4,074

10.7

Year ended March 31, 2012

55,191

17.7

5,930

(12.2)

5,071

(8.2)

3,681

(27.6)(Note) Comprehensive income: Fiscal year ended March 31, 2013: ¥4,084 million (10.6%)
Fiscal year ended March 31, 2012: ¥3,692 million ((27.4)%)

Ratio of net
income toshareholders’equityDiluted net
incomeper share

Net income
per share
Yen

Yen

Year ended March 31, 2013

Ratio ofRatio of operating
ordinary income income to net
to total assets
sales
%

%

%

18.0

8.0

9.8

7.7

10.7

134.45134.32—
18.6
Year ended March 31, 2012116.49(Reference) Equity in net income of affiliates: Fiscal year ended March 31, 2013: ¥57 million
Fiscal year ended March 31, 2012: ¥19 million(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2013

75,01324,14732.2

807.58March 31, 2012

70,277

21,13830.1

683.33(Reference) Shareholders’ equity: March 31, 2013: ¥24,131 million
March 31, 2012: ¥21,138 million(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalent at end ofyear

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2013

875

(1,590)1,229

17,893

Year ended March 31, 2012

11,464(792)(2,685)

17,377

2. Dividends
Annual dividends per share
Q1(Record date)

Q2

Yen

Yen

Q3

Year-end

Yen

Yen

Total

Total
dividends(annual)Dividends
payout ratio(consolidate)

Yen Millions of yen

Ratio ofdividends to
net assets(consolidated)%%Year ended March 31, 2012

—

4.00

—

9.00

13.00

404

11.2

2.0

Year ended March 31, 2013

—

5.00

—

10.00

15.00

450

11.2

2.0

Year ending March 31, 2014
(forecast)

—

6.00

—

12.00

18.00

10.7

(Note) Year-end dividends per share for the year ended March 31, 2013 include ordinary dividend of ¥10.00.
Stock split at the ratio of 1:4 for one common stock effective as of July 1, 2013 was decided by resolution at the Board of Directors’ meeting
held on May 13, 2013. Dividend for the year ending March 31, 2014 after reflecting the stock split will be ¥4.5 (1st half dividend: ¥1.5,
Year-end dividend: ¥3.0).

3. Forecast of Consolidated Financial Results for the Year ending March 31, 2014 (From April 1, 2013 to March 31, 2014)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

71,650 10.4

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen

Net income%

Net income per share
Yen

9,300 46.2

8,515

47.0

5,030

23.5

168.34(Note) Stock split at the ratio of 1:4 for one common stock effective as of July 1, 2013 was decided by resolution at the Board of Directors’ meeting
held on May 13, 2013. Net income per share for the year ending March 31, 2014 after the stock split will be ¥42.08.

*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No
New: None
Excluded: None (Name) (2) Changes in accounting policies and accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: Yes(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: Yes(iv) Restatements: None
(Note) These items fall under Article 14-7 of “Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial
Statements” (cases in which changes in accounting policies are difficult to distinguish from changes in accounting estimates). For details, pleaserefer to “4. Consolidated Financial Statements (5) Notes to Consolidated Financial Statements (Change in Accounting Policies)” on page 21 of
the attached material.

(3) Number of shares issued and outstanding (common stock)(i) Number of shares issued and outstanding at end of year (including treasury stock)(a) As of December 31, 2013:
33,386,070 shares(b) As of December 31, 2012:
33,386,070 shares(ii) Number of treasury stock at end of year(a) As of December 31, 2013:
3,505,271 shares(b) As of December 31, 2012:
2,451,871 shares(iii) Average number of shares during the year(a) As of December 31, 2013:
30,302,354 shares(b) As of December 31, 2012:
31,607,112 shares

(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Year Ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(Percentage figures represent year-on-year change)(1) Non-consolidated operating results
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%

Year ended March 31, 2013

60,502

17.5

5,936

8.4

5,360

14.4

3,726

4.9

Year ended March 31, 2012

51,502

19.6

5,474

(16.2)

4,685(12.1)

3,552(29.0)Net income per share

Diluted net income
per share

yen

yen

Year ended March 31, 2013122.98122.86

Year ended March 31, 2012112.41—(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2013

72,02522,28330.9

745.18March 31, 2012

67,904

19,70129.0

636.87(Reference) Shareholders’ equity: March 31, 2013: ¥22,266 million
March 31, 2012: ¥19,701 million

2. Forecast of Non-Consolidated Financial Results for the Year ending March 31, 2014 (From April 1, 2013 to March 31, 2014)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

66,900 10.6

Operating income

Ordinary income

Net income

Net income per share

Millions of yen%

Millions of yen%

Millions of yen%

yen

8,900 49.9

8,150

52.0

4,750

27.5

158.96(Note) Stock split at the ratio of 1:4 for one common stock effective as of July 1, 2013 was decided by resolution at the Board of Directors’ meeting
held on May 13, 2013. Net income per share for the year ending March 31, 2014 after the stock split will be 39.74.

* Status of Audit ProceduresThis summary of consolidated financial results for the year ended December 31, 2013 is not subject to audit procedures under the
Financial Instruments and Exchange Act, and the audit procedures for the consolidated financial statements are not complete at
the time of the disclosure.

* Explanation about the proper use of the financial results forecasts, and other matters
The forward-looking statements presented above are based on the information available at the time of the release of this reportand are not intended to guarantee that the Company would achieve such figures. Actual results may differ from these forecasts
due to various factors in the future.

○Contents of Attachment
1. Analysis of Operating Results and Financial Position………………………………………………………………………
(1) Analysis of Operating Results……………………………………………………………………………………………

22(2) Analysis of Financial Position……………………………………………………………………………………………
(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Year……………………………………

4
6(4) Business Risks……………………………………………………………………………………………………………
2. The Takara Leben Group……………………………………………………………………………………………………

6
8

3. Management Policy…………………………………………………………………………………………………………
(1) Basic Management Policy ………………………………………………………………………………………………

99(2) Medium and Long-Term Business Strategies……………………………………………………………………………
(3) Issues to be Addressed ……………………………………………………………………………………………………

9
10

4. Consolidated Financial Statements……………………………………………………………………………………………
(1) Consolidated Balance Sheet………………………………………………………………………………………………

1111(2) Consolidated Statements of Income and Comprehensive Income………………………………………………………
Consolidated Statement of Income…………………………………………………………………………………

13
13

Consolidated Statement of Comprehensive Income…………………………………………………………………
(3) Consolidated Statement of Changes in Shareholders’ Equity……………………………………………………………

1415(4) Consolidated Statement of Cash Flows …………………………………………………………………………………
(5) Notes to the Consolidated Financial Statements…………………………………………………………………………

17
19(Note Regarding to the Going Concern Assumption) …………………………………………………………………
(Significant Basis for Preparation of the Consolidated Financial Statements)…………………………………………

19
19(Change of Accounting Policy)…………………………….……………………………………………………………
(Consolidated Balance Sheet)…………………………….……………………………………………………………

21
21(Consolidated Statement of Income)……………………………………………………………………………………
(Consolidated Statement of Comprehensive Income)…………………………………………………………………

22
24(Consolidated Statement of Changes in Shareholders’ Equity) …………………………………………………………
(Consolidated Statement of Cash Flows) ………………………………………………………………………………

25
27(Rental Properties, etc.)………………….………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………

28
28(Special Purpose Companies subject to Disclosure)……………………………………………………………………
(Per Share Information)…………………………………………………………………………………………………

31
32(Significant Subsequent Events)…………………………………………………………………………………………
5. Non-consolidated Financial Statements………………………………………………………………………………………

33
35(1) Balance Sheet ……………………………………………………………………………………………………………
(2) Statement of Income..……………………………………………………………………………………………………

3538(3) Statement of Changes in Shareholders’ Equity…………………………………………………………………………
(4) Notes to the Non-Consolidated Financial Statements ……………………………………………………………………

40
43(Note Regarding to the Going Concern Assumption) …………………………………………………………………
(Significant Accounting Policies)………………………………………………………………………………………

43
43(Change of Accounting Policy)…………………………….……………………………………………………………
(Additional Information)…………….…………………………………………………………………………………

44
44(Balance Sheet) ……………………..…………………………………………………………………………………
(Statement of Income) .…………………………………………………………………………………………………

44
46(Statement of Changes in Shareholders’ Equity) ………………………………………………………………………
(Per Share Information) …………………………………………………………………………………………………

48
49(Significant Subsequent Events)…………………………………………………………………………………………
6. Other …………………………………………………………………………………………………………………………

50
52(1) Changes of Officers………………………………………………………………………………………………………
(2) Production, Orders Received and Sales….………………………………………………………………………………

52
52

-1-

1．Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
Overview
During the consolidated fiscal year ended March 31, 2013, uncertainty about the Japanese economy’s future still lingered
due to external factors including continuously unstable financial conditions in European countries and internal factors
including employment insecurity, but it started to show a positive sign of recovery after the change of the administration in
December 2012 as the market expectation for the economic policy by the new administration led to correction of strong yen
and rising stock price.
Amid this environment, in the new built-for-sale condominium business industry, properties utilizing natural energy havebeen attracting attention since the Great East Japan Earthquake, and properties in suburban areas also started to gather
attention due to improved accessibility to downtown area as a result of direct connections among trains.
Under such circumstances, the Company completed the construction of Japan’s first ‘solar-powered condominiums withindividual storage batteries that allow individual units to sell surplus energy’ and actively plans and develops properties
utilizing natural energy in suburban areas as it continues to focus on the supply of properties primarily in the suburbs ofTokyo and Saitama, our home turf.
With its ‘Leben’ series of in-house planned new condominiums as its main brand, the Company will remain committed toits basic concept of ‘ideal, affordable housing that anyone can buy with confidence’ as well as its corporate vision of‘thinking of happiness; making happiness’ and its corporate mission of ‘creating together with eager minds, sincere efforts
and ample talent,’ and continue to work on product plans capturing the needs of the time and promote business activities
focusing on its customers as its ultimate supporters.
(i) Operating Results for the Year Ended March 31, 2013a) Performance review
At the parent level, Takara Leben Co., Ltd., the built-for-sale condominium business delivered 1,686 units including
Leben Revale Yokohama Tsurugamine Hills, Japan’s first ‘solar-powered condominiums with individual storage batteries
that allow individual units to sell surplus energy.’ Also, the Company ranked first in the ranking of the number of‘solar-powered condominiums (available in each individual home unit)’ units supplied in Japan in 2012 for the second
consecutive year.
The detached housing business delivered 99 units, and the Company will continue to aim at stable supply.
In the renovation and resale business, the number of units delivered fell below the plan as certain deliveries were
postponed to the next fiscal year. As for the purchase, the Company will continue to promote purchases at appropriate
prices, based on the proper judgment of the market trend, to supplement the built-for-sale condominium operations.
The real estate rental business recorded sales essentially in line with the plan.
As a result, the Company recorded net sales of ¥60,502 million (up 17.5% year-on-year), operating income of ¥5,936
million (up 8.4% year-on-year), ordinary income of ¥5,360 million (up 14.4% year-on-year), and net income of ¥3,726
million (up 4.9% year-on-year).
At Leben Community Co., Ltd., the number of units managed under consignment expanded steadily to 33,030.
Especially, of the increase achieved during the fiscal year, 61% was accounted for by units entrusted from othercompanies, as efforts to secure other companies’ properties paid off. Peripheral operations also fared well, including
renovation, merchandise sales, and repair work.
At Tafuko Co., Ltd., business expanded essentially as planned, supported by steady commission income.
In As Partners Co., Ltd., nine existing nursing care facilities are operating and capacity utilization remained high at
88%.
Takara Property Co., Ltd., engaging in rental management business, became a consolidated subsidiary in October 2012.
As a result of the above, the Group recorded net sales of ¥64,907 million (up 17.6% year-on-year), operating income of¥6,361 million (up 7.3% year-on-year), ordinary income of ¥5,792 million (up 14.2% year-on-year), and net income of¥4,074 million (up 10.7% year-on-year).

-2-b) Performance by Business Segment＜Real Estate Sales Business＞
Sales from the real estate sales business amounted to ¥59,310 million, up 18.0% from the previous fiscal year,
including sales of ¥54,827 million for 1,686 new build-for-sale condominium units and sales of ¥4,482 million fromsales of detached houses and renovation and resale business.
＜Real Estate Rental Business＞
Revenues from the real estate rental business amounted to ¥1,485 million, up 4.6% from the previous fiscal year,
including rent revenues from the rental of apartments, condominium units, and offices.
＜Real Estate Management Business＞
Revenues from real estate management business representing management fees from 33,030 units undermanagement amounted to ¥2,582 million, up 13.1% from the previous fiscal year.
＜Other Business＞
Revenues from other businesses amounted to ¥1,529 million, up 26.7% from the previous fiscal year, including
revenues from repair work.
c) Performance Review by Item
＜Net Sales＞
Net sales of the real estate sales business amounted to ¥59,310 million, including sales of 1,686 new built-for-salecondominium units and sales from new detached housing and renovation and resale business.
Revenues from the real estate rental business amounted to ¥1,485 million, including rent revenues from the rental ofapartments, condominium units, and offices.
Revenues from the real estate management business representing management fees from 33,030 units undermanagement amounted to ¥2,582 million.
Revenues from other businesses include revenues from repair work and amounted to ¥1,529 million.
As a result, net sales for the consolidated fiscal year ended March 31, 2013 amounted to ¥64,907 million, up 17.6%
from the previous fiscal year.
＜Cost of Sales＞
Cost of sales increased by 21.2% to ¥50,528 million as the number of units delivered in the real estate sales businessincreased by 394 units from the previous fiscal year to 1,686 units.
＜Selling, General and Administrative Expenses＞
Despite the continued cost-cutting efforts, selling, general and administrative expenses increased from the previous
fiscal year by 6.0% to ¥8,017 million due to an increase in selling expenses resulting from increased contracted ratio
and number of units delivered.
＜Non-Operating Income and Expenses＞
Non-operating income increased by 36.4% from the previous fiscal year to ¥212 million due to commission income.
Non-operating expenses decreased by 23.0% from the previous fiscal year to ¥781 million due to a decrease ininterest expense as a result of repayment of borrowings for projects.
＜Extraordinary Income and Loss＞
Extraordinary income amounted to ¥120 million consisting of reversal of allowance for directors’ retirement benefits
due to termination of directors’ retirement benefits plan and gains on negative goodwill arising from an increase of
consolidated subsidiaries.
Extraordinary loss decreased by 88.5% from the previous year to ¥43 million consisting of loss on disposal of fixed
assets.
As a result, net sales for the consolidated fiscal year ended March 31, 2013 amounted to ¥64,907 million, up 17.6%
on a year-on-year basis; operating income amounted to ¥6,361 million, up 7.3% on a year-on-year basis; Ordinary-3-

income amounted to ¥5,792 million, up 14.2% on a year-on-year basis; and net income amounted to ¥4,074 million, up
10.7% on a year-on-year basis.
(ii) Outlook for the Year Ending March 31, 2014
Based on the new medium-term business plan announced in September 2012, the business plan for the fiscal year
ending March 31, 2014 was drafted as follows.
In the real estate sales business, the new built-for-sale condominium operation will aggressively promotesolar-powered condominiums and expect to deliver 1,710 units.
The detached housing business will supply through projects in medium- and large-sized land and expects to deliver
150 houses.
The renovation and resale business will continue to promote purchases at appropriate prices, based on the proper
judgment of the market trend, to supplement its new built-for-sale condominium operations.
The real estate rental business intends to improve its stable stock business through well-selected purchases.
The real estate management business has set a target for management contract to be 36,000 units and aims at further
expansion of peripheral operations such as large-scale repair work.
Based on the above, the Company’s performance projections for the year ending March 31, 2014 are as follows:
Net sales:¥71,650 million (up 10.4% on a year-on-year basis)

Operating income:¥9,300 million (up 46.2% on a year-on-year basis)

Ordinary income:¥8,515 million (up 47.0% on a year-on-year basis)

Net income:¥5,030 million (up 23.5% on a year-on-year basis)(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery in the fiscal year
ending March 31, 2014)
Scheduled for delivery

Of which, number of(units)contracts signed (units)

As of March 31, 2013

1,710

1,020

Contracted ratio (%)59.6(iii) Progress of the Mid-Term Management Plan, etc.
The Company developed the new mid-term management plan “Takara Leben Next Stage 2016” in September 2012 and set
five main measures: “Steady increase in number of units sold,” “Promote solar-powered condominiums,” “Entry to mega-solar
business,” “Stable supply of condominiums in central area in local cities,” and “Restructure the detached house business.” In
the next fiscal year ending March 31, 2014, the ratio of solar-powered condominium is expected to reach approximately 40%(in number of building).
(iv) Achievement of Targeted Operating Index
The Company manages business with a focus on equity and cash and deposit balance. The new mid-term management planannounced in September 2012 sets goals for the final year of the plan ending March 31, 2016 to be ¥33 billion for both cash
and deposit and equity. During the year ended March 31, 2013, equity increased by ¥3,009 million from March 31, 2012
despite the acquisition of treasury stock of ¥792 million. Equity ratio also rose 2.1 points from March 31, 2012 to 32.2%.
(2) Analysis of Financial Position
With regard to assets, liabilities, and net assets of the Group as of March 31, 2013, total assets amounted to ¥75,013
million, an increase of ¥4,736 million from March 31, 2012, mainly due to an increase in cash and deposits and an increase
in inventories from new purchases.
(i) Analysis of Assets, Liabilities and Net Assetsa) Current assets
Current assets amounted to ¥55,932 million, an increase of ¥5,012 million from March 31, 2012, mainly due to anincrease in inventories from new purchases.

-4-b) Non-current assets
Non-current assets amounted to ¥19,081 million, a decrease of ¥276 million from March 31, 2012, mainly due tosales of business assets.
c) Current liabilities
Current liabilities amounted to ¥29,025 million, a decrease of ¥8,347 million from March 31, 2012, mainly due torepayment of borrowings and a decrease in notes and accounts payable, trade as a result of payment of construction
fees.
d) Non-current liabilities
Non-current liabilities amounted to ¥21,840 million, an increase of ¥10,074 million from March 31, 2012, mainly
due to an increase of borrowings associated with new purchases.
e) Net assets
Net assets increased by ¥3,009 million from March 31, 2012 to ¥24,147 million as net income for the year exceeded
distribution of surplus and purchase of treasury stock.
(ii) Analysis of Cash Flows
Cash and cash equivalents (“funds”) as of March 31, 2013 amounted to ¥17,893 million, an increase of ¥515 million
from March 31, 2012.
a) Cash flows from operating activities
Net cash provided by operating activities was ¥875 million (Year ended March 31, 2012: ¥11,464 million), mainly
attributable to net income before income taxes and minority interests.
b) Cash flows from investing activities
Net cash used in investing activities was ¥(1,590) million (Year ended March 31, 2012: ¥(792) million), mainly
attributable to purchase of fixed assets.
c) Cash flows from financing activities
Net cash provided by financing activities was ¥1,229 million (Year ended March 31, 2012: ¥(2,685) million), mainly
attributable to new borrowings.

(iii) Cash Flow Indicators③Changes in indicators related to cash flows
FY2011/3

FY2012/3

FY2013/3

Equity ratio (%)

30.1

30.1

32.2

Equity ratio at market value (%)

25.9

34.3

58.3

Debt repayment period (years)

4.3

2.8

39.8

Interest coverage ratio (times)

6.8

11.8

1.1

Equity ratio: Shareholders’ equity / Total assets
Equity ratio at market value: Equity market capitalization / Total assets
Debt repayment period: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows / Interest expense* These indicators are all calculated using consolidated financial data.
* Interest-bearing debt includes all debt recorded on the Consolidated balance sheet on which interest is paid.

-5-(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years
Returning profits to the shareholder is one of the most important tasks for the Company.

And the Company has thefundamental policy of striving to sustain stable levels of dividends at levels deemed appropriate based on due considerationof corporate performance trends and of the amount of internally retained funds required to expand and strengthen business
operations. The new mid-term management plan sets a policy to allocate over 30% of the bottom line to dividends andtreasury stock purchase.
Specifically, the plans for dividends are set as follows:Year ended March 31,

Ordinary

2013 (forecast)dividends

Year ended March 31,
2014 (forecast)

1st half dividend

Year-end dividend

Total

¥5.0

¥10.0

¥15.0

1st half dividend

Year-end dividend

Total

¥6.0

¥12.0

¥18.0

Ordinary
dividends※ Stock split at the ratio of 1:4 for one common stock effective as of July 1, 2013 was decided by resolution at the Board of
Directors’ meeting held on May 13, 2013. Dividend for the year ending March 31, 2014 after reflecting the stock split willbe ¥4.5 (1st half dividend: ¥1.5, Year-end dividend: ¥3.0).
The Company does not decide dividends based solely on specific benchmarks but on a comprehensive assessment, withan aim to make the Company attractive for long-term investment by numerous shareholders.
(4) Business Risks
The following items present potential risk for the operating results, share price, financial position, etc. of the Group.
Forward-looking statements hereby are based on the assessment by the Group as of the end of the current consolidated
fiscal year.
a) Earthquakes and other natural disasters
Earthquakes and other natural disasters may directly damage the Company or the construction companies used forexecution, or may make it difficult for these construction companies to procure building materials. Any of these events
may delay construction work, as well as hamper sales and collection activity of the Company, and thus impact theperformance and financial position of the Group.
b) Legal regulations
The business of the Group is subject to the National Land Use Planning Act, Building Lots and Buildings Transaction
Business Act, Building Standards Act, City Planning Act, Money lending Control Act, Act on Advancement of Proper
Condominium Management, Long-Term Care Insurance Act and other applicable national laws as well as applicableordinances, etc., of the various local governments.

Should these laws, ordinances, etc., be revised or new ones created,

this will create new burdens for the Group and may potentially impact its performance and business development.
c) Degree of dependency on borrowing
Purchase of land is funded primarily by loans from financial institutions, and the ratio of interest-bearing debt to total
assets is 46.4% at the end of the current consolidated fiscal year.

Thus, in case the funding is restricted or interest rates

increase rapidly due to worsened financial conditions, the performance and financial position of the Group may be affected.

-6-d) Home buyer sentiment
The Company’s core business, new built-for-sale condominiums, tends to be swayed by changes in home buyer
sentiment.

Home buyer sentiment is affected by factors such as the overall economy, residential tax regulations,consumption taxes, land prices, and interest rates.

A pronounced deterioration in home buyer sentiment may impact theperformance and financial position of the Group.
e) Impact of home loans
The Group makes use of home loans from home financing support organizations and financial institutions for the sale ofcondominiums, etc.; therefore, credit crunch caused by unfavorable changes in financial conditions may potentially impact
the performance and financial situation of the Group.
f) Impact of supply trends
Sales of new build-for-sale condominiums, a core business of the Group, are greatly affected by supply trends, such as
land procurement cost and subcontracting cost fluctuations and interest rate changes.

For these reasons, conditions which

impact supply trends may potentially impact the performance and financial position of the Group.
g) Impact of competition
The Group sells real estate in and around the Tokyo Metropolitan Area, and an excessive price competition in this area
may prolong marketing activities or cause difficulties to sales at the price anticipated by the Company.

Such situations

may potentially impact the performance and financial situation of the Group.
h) Subcontractors
The Group entrusts the construction of its condominiums to building contractors. However, increases in building
material costs and labor costs may raise building contract costs, thus depressing profitability.

Also, construction

companies entrusted with the construction work may become insolvent, which may delay construction work or force theconstruction company to default on its contract.

Any of these events, as well as failure by the construction company toprovide the due compensation in the future, may impact the performance and financial position of the Group.
i) Opposition to condominium construction from surrounding residents
When constructing condominiums, the Group carefully considers the environment surrounding the construction location;
reviews relevant national laws and local ordinances when creating a development plan; and holds information sessions for
local residents prior to the start of construction in order to facilitate understanding.

However, issues such as construction

noise, sunlight block or environmental disruption may sometimes lead to an opposition campaign against the construction
by surrounding residents and cause the change of plans, construction delays, and additional costs, etc., which may
potentially impact the performance and financial situation of the Group.
j) Possibility of lawsuits
When constructing condominiums, the Group takes careful considerations from a variety of perspectives; however,lawsuits may be brought against the Group as a result of building defects, soil contamination, etc., and as a result, thebuilding plans may have to be changed. Such cases may potentially impact the performance and financial position of theGroup.
k) Personal information
The Group handles a large amount of personal information in the course of selling and managing condominiums, etc.
Extreme care is taken in handling and administering such information through measures such as implementation ofsoftware designed to prevent personal information leak, creation and maintenance of relevant rules, creation of employees
manuals, and provision of employee training seminars; however, if a leak of personal information occurs, it may potentially
impact the performance and financial position of the Group.

-7-2. The Takara Leben GroupThe Takara Leben Group, consisting of the Company, four consolidated subsidiaries and one affiliate, operates real estatebusiness primarily in the Tokyo metropolitan area, including Tokyo, Saitama, Chiba, and Kanagawa prefectures.
The Company mainly engages in the planning, development, and marketing of ‘Leben-series’ new built-for-sale condominiums.
Leben Community Co., Ltd., a consolidated subsidiary, primarily engages in comprehensive management services forcondominium buildings.
TAFUKO Co., Ltd., a consolidated subsidiary, primarily engages in loan collection agency business and othercommission-based businesses.
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, primarily engages in claims servicing business pursuant to the Act on
Special Measures concerning the Claims Servicing Business.
Takara Property Co., Ltd., a consolidated subsidiary, primarily engages in rental management business.
As Partners Co., Ltd., an affiliate accounted for by using the equity method, primarily operates residential facilities with nursing
capabilities for elderly people.
(1) Real estate sales business
The Company primarily engages in planning, development and marketing of ‘Leben-series’ new built-for-sale condominiums
in the suburbs of the Tokyo metropolitan area.
(2) Real estate rental business
The Company engages in rental business for apartments, condominiums, and offices in the Tokyo metropolitan area. Also
Takara Property Co., Ltd., a consolidated subsidiary, engages in rental management business.
(3) Real estate management business
Leben Community Co., Ltd., a consolidated subsidiary, provides comprehensive management service for built-for-salecondominiums.
(4) Other businesses
・Loan collection agency businessTAFUKO Co., Ltd., a consolidated subsidiary, provides loan collection service.
・Claims servicing business
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, engages in claims servicing business pursuant to the Act on Special
Measures concerning the Claims Servicing Business.
・Nursing care business
As Partners Co., Ltd., an affiliate accounted for by using the equity method, operates residential facilities with nursing
capabilities for elderly people. Also, Leben Community Co., Ltd., a consolidated subsidiary, provides rehabilitation-focused
day-care nursing service.
・Other businesses
The Group also engages in other businesses such as commissioned real estate marketing agency business.
The Group’s businesses are organized as follows.

Comprehensive
management ofReal estate sales

The parent company

business

Condominium
purchase customer

condominiums, etc.
Loan collection

Leben Community Co., Ltd.

service business

Consolidated subsidiary

Rental property

Real estate rental
Rental resident

managementbusiness

Provision of nursing
Asset rental

Consolidated subsidiary

Consolidated subsidiary
As Partners Co., Ltd.

servicesTAFUKO Co., Ltd.
Consolidated subsidiary
Takara Property Co., Ltd.
User of residential facilities withnursing capabilities
Consolidated subsidiary

Investment

Marunouchi Servicer Co., Ltd.

-8-

3. Management Policy(1) Basic Management Policy
The followings are the Company’s corporate vision and corporate mission.

Takara Leben’s Corporate Vision: The Way We Should Be

Thinking of Happiness. Making HappinessAs a builder, we take your happiness more seriously than anyone else;
when we build for you, we build to make your living dreams come true.
When we develop, we consider the well-being of the community moredeeply than anyone else, the world gets new towns where all people live
in comfort.
To build a happy future, we plan and work more fruitfully than anyone
else; we propose earth-friendly, sustainable development for theenvironment.
Thinking of Happiness.

Making Happiness.

That’s Takara Leben’s corporate vision.

Takara Leben’s Corporate Mission: The Beliefs We Value

Creating Together
with Eager Minds
Putting our heads together with customers, eagerly,
to think up and create new market values

with Sincere Efforts
Prizing the sincere efforts of our partners,
for the comfort and security of living together

with Ample TalentPrizing the talents of every corporate member,
for the rich and seamless development of a shared tomorrow.

(2) Medium and Long-Term Business Strategy＜Overview of Strategies＞
The Company developed the new mid-term management plan “Takara Leben Next Stage 2016” in September 2012 for theperiod ending March 31, 2016, with a theme of ‘For Solid Steps towards Regrowth’ and five main measures listed below.
also has a subtitle of ‘As a Pioneer of Solar-Powered Condominium.’・Steady increase in number of units sold・Promote solar-powered condominiums
・Entry to mega-solar business・Stable supply of condominiums in central area in local cities
・Restructure the detached house business＜Specific Strategies＞
Ａ．Basic Policy
The Company aims to achieve its basic concept of ‘ideal, affordable housing that anyone can buy with confidence’ by
maintaining and improving basic strategies of the previous mid-term management plan: ‘procurement strategy,’‘merchandising strategy,’ ‘sales strategy,’ and ‘financing strategy.’-9-It

Ｂ．Individual Strategies(i) New built-for-sale condominium businessa) Promote solar-powered condominiums
Drawing on the achievement of the top supplier of ‘solar-powered condominiums (available in each individual
home unit)’ units for the second consecutive year, the Company will continue to promote planning anddevelopment of solar-powered condominiums. The goal for the final year of the new mid-term management plan
ending March 31, 2016 is to increase the ratio of solar-powered condominiums in new properties to over 50% (innumber of buildings).
b) Development in central areas in local cities
The Company will continue to work on revitalization of central areas in local cities including Toyama andNagano where we have already been delivering results. As supply and demand trends are quite important in local
cities, we will purchase lands based on careful monitoring of the trends and aim at stable annual supply of over
200 units.
c) Reinforce Yokohama area
With our new Yokohama branch established in October 2012, we will reinforce Yokohama area to make it our
second core area while continuing to focus on our primary core area of Saitama and Tokyo.
d) Obtain lands for medium- to long-term projects
We will secure lands for medium- to long-term project with terms of over three years in order to mitigate futurerisk and aim at long-term stability.
(ii) Detached housing businessa) Own construction detached house
We created a team specializing in land purchase to enhance land purchase system for detached house. Also,
instead of engaging in small-sized land development which is highly competitive, we purchase land for mediumto large-sized projects and promote product planning which is different from competitors such as combined planof condominiums and detached houses, in order to achieve the goal of annual delivery of 250 units.
b) Custom-built house
We will differentiate our products by offering unique products with condo-taste and functional themes of‘solar-power’ and ‘earthquake resistant.’(iii) Other businessesa) Mega-solar businessWith our goal to ease concerns over the electric power supply, we will develop mega-solar business as part ofsocial contribution. We will aim to achieve operation goals of over 10 mega watts in total based on theassessment of proper fixed buy-out price.
b) Real estate management businessWe will aim to secure 3,000 units annually as a pillar of stock business by enhancing entrustment from othercompanies.
c) Real estate rental business
The Company aims to further enhance stable stock business through well-selected purchases.
d) Renovation businessWe will purchase at appropriate price based on the proper judgment of market trends and consider further
development of the business.
Ｃ．Group Strategies
In order to build a strong corporate group which will not be affected by external factors, the Company will improveinformation exchange within the Group and establish a corporate structure that can create synergy effects. Especially,
since the Company’s core business, the new built-for-sale condominium business, is a flow-type business, it is essential
for the Company to expand stock-type business such as rental, management service and nursing service business.
(3) Issues to be Addressed
The Company overcame the rough times after the Lehman Shock and recovered enough to develop ‘Takara Leben Next
Stage 2016.’ Under such conditions, the Company considers its immediate priority to be cultivation of human resources.
Especially, in order to establish sustainable organization, it is absolutely imperative to cultivate middle-level personnel.
Through providing trainings according to employee level and reinforcing corporate culture, we aim to build stronger
organization while maintaining the speedy decision making.
- 10 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2012)(March 31, 2013)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable, trade17,394377

17,911
323

Real estate held for sale
Real estate held for sale in progress※2, ※3 7,430※2, ※3 2,067※2 22,863

Deferred tax assets
Other

290
2,608

Allowance for doubtful accounts
Total current assets※2, ※333,308
250
2,102

(46)

(32)

50,91955,932

Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net

6,856

7,726

(2,319)(2,714)※2, ※3 4,537※2, ※3 5,011

Tools, furniture and fixtures

169

170

Accumulated depreciation

(139)

(142)

Tools, furniture and fixtures, net

※2 29

※2 27

※2, ※3 13,487※2, ※3 12,471

53
(13)

137
(42)

Land
Lease assets
Accumulated depreciation
Lease assets, net

39

95

18,095

17,606181※2 272129※2 421453

551

Investments and other assets
Investment securities

150

166

Long-term loans
Deferred tax assets

89
169

81
269

※1 616※1 519

(217)

(112)

808

924

19,357

19,081

70,27775,013

Total tangible fixed assets
Intangible fixed assets
Lease assets
Other
Total intangible fixed assets

Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets- 11 -

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2012)(March 31, 2013)

Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term borrowings※2 10,165

7,920※2 5,494※2 2,629

Current portion of long-term borrowings
Lease obligations※2 15,887※2 11,375

Income taxes payable
Advance received
Allowance for bonuses
Allowance for compensation for complete work

62

70

515
3,794

1,608
3,955

197
59

207
70

Other

1,196

1,188

Total current liabilities

37,372

29,025※2 10,774※2 20,849

Noncurrent liabilities
Long-term borrowings
Lease obligations

172

171

Allowance for employees’ retirement benefits
Allowance for directors’ retirement benefits

171
76

178
24

Asset retirement obligations
Other

21
548

22
594

Total noncurrent liabilities

11,765

21,84049,13850,866

Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus
Retained earnings

4,949
13,266

4,947
16,991

Treasury stock(1,890)(2,630)Total Shareholders’ equity

21,14524,127Net unrealized losses (gains) on available-for-salesecurities(7)

3

Total accumulated other comprehensive income(7)3

Total liabilities
Net assets

Accumulated other comprehensive income

New share subscription rights
Total net assets
Total liabilities and net assets- 12 -－

16

21,13824,14770,27775,013

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)
Net sales(From April 1, 2012
to March 31, 2013)55,19164,907

Cost of sales※1 41,700※1 50,528

Gross profit

13,49014,378※2 7,560※2 8,017

5,930

6,361

Selling, general and administrative expenses
Operating income
Non-operating income
Interest income

54Dividend income
Commissions received

3
87

4
106

Income from equity method investment
Miscellaneous income

19
39

57
40

Total non-operating income

155

212

Non-operating expenses
Interest expense

979

766

Miscellaneous losses

35

15

1,014

781

5,071

5,792

－

53

－

66

－

120

※3 6

※3 23

10
49

－
－

※4 186※4 18※5 117－

Total non-operating expense
Ordinary income
Extraordinary gains
Reversal of allowance for directors’ retirement
benefits
Gain on negative goodwill
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed assets
Loss on valuation of investment securities
Loss on sale of subsidiaries’ stock
Impairment loss
Loss from legal proceedings
Other

5

0

375

43

4,695

5,869

571
442

1,865
(70)

Total income taxes

1,014

1,795

Income before minority interests

3,681

4,074

Net income

3,681

4,074

Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes – deferred- 13 -

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
(From April 1, 2012
to March 31, 2012)
Income before minority interests
Other comprehensive income

to March 31, 2013)
3,681

4,074

11

10

※1 11

※1 10

Comprehensive income

3,692

4,084

(Comprising)Comprehensive income attributable to parent

3,692

4,084

Net unrealized gains on available-for-sale securities
Total other comprehensive income- 14 -

(3) Consolidated Statement of Changes in Shareholders’ Equity(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
(From April 1, 2012
to March 31, 2012)

to March 31, 2013)

Shareholders’ equity
Capital stock
Balance at beginning of year
Changes during the year

4,819

4,819

－

－

4,819

4,819

4,949

4,949

Disposition of treasury stock－(1)

Total changes during the year－

(1)

Total changes during the year
Balance at end of year
Capital surplus
Balance at beginning of year
Changes during the year

Balance at end of year

4,949

4,947

Retained earnings
Balance at beginning of year

9,905

13,266

Changes during the year
Dividends from surplus

(320)

(429)

3,681
－

4,074
79

Net income
Change in scope of consolidation

3,361

3,724

Balance at end of year

Total changes during the year

13,266

16,991

Treasury stock
Balance at beginning of year

(1,295)(1,890)Changes during the year
Acquisition of treasury stock

(595)

(792)

Disposition of treasury stock

－

52

(595)

(740)

Balance at end of year

Total changes during the year

(1,890)(2,630)Total shareholders’ equity
Balance at beginning of year

18,38021,145

Changes during the year
Dividends from surplus

(320)

(429)

Net income
Change in scope of consolidation

3,681
－

4,074
79

Acquisition of treasury stock
Disposition of treasury stock

(595)
－

(792)
50

Total changes during the year

2,765

2,981

21,14524,127

Balance at end of year

- 15 -

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Accumulated other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Balance at beginning of year

(18)

(7)

11

10

11

10

(7)

3

(18)

(7)

11

10

11

10

(7)

3

－

－

－

16

－

16

－

16

18,361

21,138Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year
Total accumulated other comprehensive income
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year
New share subscription rights
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year
Total net assets
Balance at beginning of year
Changes during the year
Dividends from surplus

(320)

(429)

Net income
Change in scope of consolidation

3,681
－

4,074
79

Acquisition of treasury stock
Disposition of treasury stock

(595)
－

(792)
50

11

27

Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year

- 16 -

2,776

3,009

21,13824,147

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
(From April 1, 2012
to March 31, 2012)

to March 31, 2013)

Cash flows from operating activities
Net income before income taxes and minority
interests
Depreciation and amortization
Impairment loss

4,695

5,869

319
186

356
18

Gains on negative goodwill
Increase (decrease) in allowances

－
137

(66)
(50)

Interest and dividend income
Equity-based compensation cost

(9)
－

(8)
67

Loss on valuation of investment securities
Loss on sale of subsidiaries’ stock

10
49

－
－

Loss from legal proceedingsInterest expense

117
979

－
766

Loss on disposal of fixed assets
Decrease in accounts receivable, trade

6
38

23
54

Decrease in operating loans
Increase in inventories

58(1,577)79(3,294)

Increase (decrease) in accounts payable, trade
Increase in advance received

6,380
1,469

(2,244)
161

Other

(286)

671

Subtotal

12,5752,404Interest and dividend received

9

8

(967)
(152)

(764)
(772)

11,464875

Cash flows from investing activities
Payments into time deposits

(14)

(1)

Withdrawals from time deposits
Increase in short-term loans

10
(28)

－
4

Outflow from extending long-term loans
Proceeds from collection of long-term loans

(1)
1

－
－

Acquisition of tangible fixed assets
Acquisition of intangible fixed assets

(612)
(31)

(1,548)(42)

Acquisition of investment securities
Proceeds from sale of investment securities

(12)
－

(20)
16

Inflow from acquisition of subsidiaries’ stock
resulting in change of the scope of consolidation
Outflow from sale of subsidiaries’ stock resulting inchange of the scope of consolidation
Other

－

※3 2

※3 (100)

－

(0)

(0)

(792)

(1,590)Interest paid
Income taxes paid
Net cash provided by operating activities

Net cash used in investing activities- 17 -

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

1,378
12,803(2,865)
18,520

Repayment of long-term borrowings
Proceeds from sale and lease back transaction(16,129)219(13,127)
－

(41)
(595)

(75)
(792)

Repayment of lease obligations
Acquisition of treasury stock
Dividends paid
Net cash (used in) provided by financing activities
Increase in cash and cash equivalent
Cash and cash equivalent at beginning of year
Cash and cash equivalent at end of year

- 18 -

(320)

(429)

(2,685)

1,229

7,986

515

9,391

※1 17,377※1 17,377※1 17,893

(5) Notes to the Consolidated Financial Statements(Notes Regarding to Going Concern Assumption)
Not applicable.
(Significant Basis for Preparation of the Consolidated Financial Statements)
1. Scope of consolidation(1) Number of Consolidated subsidiaries: 4Names of consolidated subsidiaries
Leben Community Co., Ltd.
TAFUKO Co., Ltd.
Marunouchi Servicer Co., Ltd.
Takara Property Co., Ltd.
Takara Housing Co., Ltd. is included in the scope of consolidation as the Company acquired all of the issued sharesof the company during the current consolidated fiscal year.
Also, the company’s name of Takara Housing Co., Ltd. was changed to Takara Property Co., Ltd. as of November 1,
2012.
(2)

Names of major nonconsolidated subsidiaries
Not applicable.

2．Application of the equity method(1)
Number of affiliates accounted for using the equity method: 1
Name of the affiliate
AS PARTNERS Co., Ltd.
(2)

Non-consolidated subsidiaries not accounted for using the equity method
Not applicable.

3．Fiscal year of consolidated subsidiaries
During the current consolidated fiscal year, Takara Property Co., Ltd. changed its year-end to March 31 to conform tothe consolidated fiscal-year end. The accounting period for the current consolidated fiscal year is five months.
4．Accounting policies(1) Valuation basis and method for major assets(i) Securities
a．Debt securities held to maturity
Debt securities held to maturity are stated at amortized cost using the straight-line method.
b．Available-for-sale securities
With fair value
Securities with fair value are marked to market based on the market value at the consolidated fiscal year-end.
(Unrealized gains and losses are directly recorded in Net assets and cost of securities sold is calculated using themoving-average method)
Without fair value
Securities without fair value are stated at cost based on the moving-average method.
(ii) Inventories
Inventory is stated at cost based on the specific identification method.
(Book value is written down due to decline in profitability)- 19 -

(2) Depreciation method for major depreciable assets(i) Tangible fixed assets (excluding lease assets)a. Buildings
Headquarters and business offices, etc. are depreciated using the declining balance method.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
However, buildings (excluding leasehold improvement) acquired after April 1, 2008 are depreciated using thestraight-line method.
Buildings for rent are depreciated using the straight-line method over the individual estimated economic useful life
in order to reasonably match the corresponding income.
Individual useful lives for buildings for rent are as follows:
Individual useful lives (years)
Reinforced concrete buildings

40

Steel structure buildings

30

Wooden construction

15

Leasehold improvements

15

b. Tangible fixed assets other than above
The declining balance method is applied.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
(ii) Intangible fixed assets (excluding lease assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of five years.
(iii) Lease assets
Lease assets under the finance lease arrangements where the ownership is transferred to lessees
Lease assets with ownership transfer are depreciated using the same depreciation method as fixed assets owned.
Lease assets under the finance lease arrangements where the ownership is not transferred to lessees
Lease assets without ownership transfer are depreciated using the straight-line method over the lease term with noresidual value.
Lease assets without ownership transfer starting prior to March 31, 2008 are accounted for in the similar manner tooperating lease transactions.
(iv) Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight-line method.
(3) Accounting for major allowances(i) Allowance for doubtful accounts
For the estimated uncollectible amount, allowance for performing receivables is recorded based on the actual loss
ratio, and allowance for certain receivables with doubtful collectibility is recorded based on the individual assessmentof collectibility.
(ii) Allowance for bonuses
In order to provide for bonuses to be paid to employees, estimated bonus amount attributable to the current
consolidated fiscal year is recorded.
(iii) Allowance for compensation for complete work
Allowance for compensation for complete work is recorded in order to provide for losses arising from defects after
the delivery of self-executed constructions or compensation service costs based on the historical costs related to repair
work of self-executed constructions.
(iv) Allowance for employees’ retirement benefits
Allowance for employees’ retirement benefits is provided based on the retirement benefit obligations as at thecurrent consolidated fiscal year-end.
(v) Allowance for directors’ retirement benefits
Allowance for directors’ retirement benefits is provided in the amount payable at the current consolidated fiscal
year-end in accordance with the regulations on directors’ retirement benefits (internal regulations).

- 20 -

(Additional Information)
The Company decided to terminate the directors’ retirement benefits plan by resolution at the Board of Directors
meeting held on June 22, 2012. Following the termination of the plan, all directors unanimously agreed to reverse theentire outstanding balance of allowance for directors’ retirement benefits, and gain on reversal of allowance fordirectors’ retirement benefits of ¥53 million was recorded as extraordinary gain.
Certain consolidated subsidiaries still maintain directors’ retirement benefits plan and continue to provide for theamount payable at the consolidated fiscal year-end in accordance with the internal regulations on directors’ retirement
benefits.
(4) Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over ten years.
However, goodwill of minor amounts is charged to income in the period of acquisition.
(5) Scope of cash and cash equivalent on the Consolidated statement of cash flows
Cash and cash equivalent consist of cash at hand, demand deposit, and short-term investments with an original maturityof three months or less that are readily convertible to cash and subject to insignificant risk of changes in value.
(6) Other significant matters for preparation of the consolidated financial statements
Accounting for consumption taxes
National and local consumption taxes are accounted for using the tax exclusive method. Non-deductible consumption
taxes relating to assets are charged to income in the year of acquisition.
However, Consumption taxes of tax-exempt consolidated subsidiaries are accounted for using the tax inclusive method.
(Change of Accounting Policy)(Change of depreciation method)
Following the revision of the Corporate Tax Law of Japan, the Company and its domestic subsidiaries changed thedepreciation method for tangible fixed assets acquired after April 1, 2012, effective April 1, 2012, to the method under therevised Corporate Tax Law of Japan. The impact of this change on the earnings for the current consolidated fiscal year isinsignificant.
(Consolidated Balance Sheet)※1 Assets relating to affiliates are as follows:
Previous Consolidated Fiscal Year
(March 31, 2012)
Investments and other assets, Other (Affiliates’ stock)(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2013)45※2 Assets pledged as collateral and corresponding liabilities are as follows.
(1)Assets pledged as collateralPrevious Consolidated Fiscal Year
(March 31, 2012)

101(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2013)

Real estate held for sale
Real estate held for sale in progress

6,091
21,841474
28,922

Buildings and structures
Tools, furniture and fixtures

4,090
0

4,515
0

Land
Intangible fixed assets (land lease rights)

11,247
224

9,705
224

Affiliates’ stock
Total

30

－

43,52543,842Affiliates’ stock (March 31, 2012: ¥30 million) is eliminated in the consolidated financial statements.
(2) Corresponding liabilities
Previous Consolidated Fiscal Year
(March 31, 2012)(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2013)

Short-term borrowings
Current portion of long-term borrowings

5,489
15,772

2,619
11,255Long-term borrowings
Notes and accounts payable, trade

10,217
1,533

20,252－33,011

34,127

Total- 21 -

※3 Change in purpose of asset holding
Previous consolidated fiscal year (as of March 31, 2012)
In line with the decision to reclassify part of real estate held for development and rent to real estate held for resale,
Buildings and structures of ¥19 million and Land of ¥22 million were reclassified to Real estate held for sale during theyear ended March 31, 2012.
Also, in line with the decision to reclassify part of real estate held for resale to real estate held for self-use, Real estate
held for sale of ¥31 million was reclassified to Buildings and structures of ¥18 million and Land of ¥12 million during theyear ended March 31, 2012.
Current consolidated fiscal year (as of March 31, 2013)
In line with the decision to reclassify part of real estate held for development and rent to real estate held for resale,
Buildings and structures of ¥9 million and Land of ¥2,091 million were reclassified to Real estate held for sale and Realestate held for sale in progress during the year ended March 31, 2013.
Also, in line with the decision to reclassify part of real estate held for resale to real estate held for development and rent,
Real estate held for sale in progress of ¥95 million was reclassified to Land during the year ended March 31, 2013.
4

Contingent liabilities (Guarantee liability)
Guarantee liability for borrowings from financial institutions by companies other than consolidated subsidiaries(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2012)

Joint and several guarantees in favor of
financial institutions until the customers’

5,846

residential mortgage loans are registered
Aruka Co., Ltd.
計
5

Current Consolidated Fiscal Year
(March 31, 2013)
1,207

48

46

5,895

1,253

The Group maintains overdraft and credit lines agreement with one financial institutions (March 31, 2012: 3) in order toensure efficient funding of operating capital.
fiscal year-end is as follows:

The unused balance of borrowings under these agreements at consolidated(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(March 31, 2012)(March 31, 2013)

Total maximum amount of overdraft and credit
lines
Outstanding borrowing balance
Difference

2,978

600

978

475

2,000

125

(Consolidated Statement of Income)※1 Inventories are stated at the amount after the write-down reflecting the decline in profitability.
inventories included in Cost of sales is as follows.

Loss on valuation of(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)(1,499)- 22 -(220)

※2 Selling expenses account for approximately 55% and General and administrative expenses account for approximately 45%
for the year ended March 31, 2012, and 55% and 45%, respectively, for the year ended March 31, 2013.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2011

Current Consolidated Fiscal Year
(From April 1, 2012

to March 31, 2012)

to March 31, 2013)

Advertising expenses

2,645

2,634

Sales promotion expenses
Salaries
Provision for allowance for bonuses

1,448
1,198

1,588
1,208

241
42

248
31

3

2

22

16

Retirement benefit costs
Provision for allowance for directors’ retirement
benefits
Provision for allowance for doubtful accounts※3

The breakdown of Loss on disposal of fixed assets is as follows.

(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Buildings and structures
Tools, furniture and fixtures

5
0

22
0

Software

0

1

6

23

Total

Idle assets

Impairment loss
Previous consolidated fiscal year (From April 1, 2011 to March 31, 2012)
During the year ended March 31, 2012, the Group recorded impairment loss of ¥186 million on the following assets orasset groups due to the decline in market value of rental properties.
AmountUse
Type
Location(Millions of yen)

Rentalproperties

※4

Land

Nishi-ku, Saitama, Saitama

1

Land

Midori-ku, Saitama, Saitama

4

Land

Miyoshi-cho, Iruma-gun, Saitama

6

Land

Furukawa, Ibaraki

1

Land

Ashigara-shimogun, Kanagawa

7

Land

Oyama, Tochigi

7

Land

Matsudo, Chiba

0

Land

Chiyoda-ku, Tokyo

156

Total

186

The amount consists of Land of ¥186 million.
Rental properties and idle assets are grouped based on an individual property.
The recoverable amount is measured using net sale value and use value. Net sale value is assessed based on theappraisal value by a real estate appraiser and use value is calculated by discounting future cash flows at a rate of 6%.

- 23 -

Idle assets

Current consolidated fiscal year (From April 1, 2012 to March 31, 2013)
During the year ended March 31, 2013, the Group recorded impairment loss of ¥18 million on the following assets orasset groups due to the decline in market value of rental properties.
AmountUse
Type
Location(Millions of yen)

Recreation
facilityLand

Furukawa, Ibaraki

2

Land

Midori-ku, Saitama, Saitama

4

Land

Miyoshi-cho, Iruma-gun, Saitama

1

Land

Ashigara-shimogun, Kanagawa

0

Land

Itabashi-ku, Tokyo

5

Land

Oyama, Tochigi

3Land and buildings

Atami, Shizuoka

1
18

The amount consists of Land of ¥17 million and Buildings of ¥0 million.
Idle assets and recreation facility are grouped based on an individual property.
The recoverable amount is measured using net sale value which is assessed based on the appraisal value by a real estateappraiser.
※5

Loss from legal proceedings
Previous consolidated fiscal year (From April 1, 2011 to March 31, 2012)
Loss from legal proceedings consists of legal settlement of ¥110 million and attorney’s fee of ¥7 million.
Current consolidated fiscal year (From April 1, 2012 to March 31, 2013)
Not applicable.

(Consolidated Statement of Comprehensive Income)※1

Reclassification adjustments of other comprehensive income and their tax effects.

(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2011

Current Consolidated Fiscal Year
(From April 1, 2012

to March 31, 2012)

to March 31, 2013)

3
7

12
(1)

Before tax effects

11

10

Tax effects
Unrealized gains (losses) on available-for-salesecurities
Total other comprehensive income

－

－

11

10

11

10

Unrealized gains (losses) on available-for-sale securities：
Recognized during the current year
Reclassification adjustments- 24 -

(Consolidated Statement of Changes in Shareholders’ Equity)
Previous consolidated fiscal year (From April 1, 2011 to March 31, 2012)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2011
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2012
(Shares)

Shares issued and outstanding
Common stock

33,386,070－－

33,386,070

Total

33,386,070－－

33,386,070

Common stock (Note)982,771

1,469,100－

2,451,871

Total

982,771

1,469,100－

2,451,871

Treasury stock(Note) The increase in number of common stock in treasury stock of 1,469,100 shares is due to acquisition of treasury stock
based on the resolution by the Board of Directors meeting.
2．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June21, 2011
Board of Directors
meeting on October24, 2011

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

194

Common stock

126

Record date

Effective date6

March 31, 2011

June 22, 20114

September 30, 2011

December 6, 2011

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year(Resolution)

Class ofsharesGeneral meeting ofshareholders on June22, 2012

Commonstock

Total dividends
paid(Millions of yen)
278

SourceDividend pershare (Yen)

Retainedearnings

9- 25 -

Record date

Effective date

March 31, 2012

June 25, 2012

Current consolidated fiscal year (From April 1, 2012 to March 31, 2013)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2012
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2013
(Shares)

Shares issued and outstanding
Common stock

33,386,070－－

33,386,070

Total

33,386,070－－

33,386,070

Common stock (Notes 1,2)

2,451,871

1,124,400

71,0003,505,271

Total

2,451,871

1,124,400

71,0003,505,271

Treasury stock(Notes)1. The increase in number of common stock in treasury stock of 1,124,400 shares is due to acquisition of treasury
stock based on the resolution by the Board of Directors meeting.
2. The decrease in number of common stock in treasury stock of 71,000 shares is due to exercise of stock option.

2．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June22, 2012
Board of Directors
meeting on October
29, 2012

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

278

Common stock

151

Record date

Effective date9

March 31, 2012

June 25, 20125September 30, 2012

December 11, 2012

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year
The following dividend is expected to be approved.
Total dividends
Class of(Resolution)
to be paid
Sourceshares(Millions of yen)
Board of Directors Common
Retainedmeeting on June 20,298
earnings
stock
2013

- 26 -

Dividend pershare (Yen)10

Record date

Effective date

March 31, 2013

June 21, 2013

(Consolidated Statement of Cash Flows)※1

A reconciliation of Cash and cash equivalent and the account balance on the Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Cash and deposits
Time deposits with maturity in excess of three months

17,394(16)

17,911(18)

Cash and cash equivalent

17,377

17,893

2

Significant non-cash transactions(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

The amounts transferred from fixed assets to Real estate held
for sale and Real estate held for sale in progress due to change
in the purpose of real estate holding

42

2,101

The amounts transferred from Real estate held for sale andReal estate held for sale in progress to fixed assets due tochange in the purpose of real estate holding

31

95※2 Major components of assets and liabilities of the company excluded from the scope of consolidation as a result of sale ofsharesPrevious consolidated fiscal year (From April 1, 2011 to March 31, 2012)
Details of assets and liabilities of Takara Live Net Co., Ltd. (currently Live Net Home Co., Ltd.) at the time of the sale
resulting in deconsolidation, selling price of the stock and cash flows from the sale are as follows:(Millions of yen)
366

Current assets
Fixed assets

19

Current liabilities(270)

Noncurrent liabilities(36)

Loss on sale of stock(49)

Selling price of deconsolidated subsidiary’s stock

30

Cash and cash equivalent of deconsolidated subsidiary(130)

Difference：Cash outflow due to sale

(100)

Major components of assets and liabilities of the company included in the scope of consolidation as a result of acquisitionof shares
Current consolidated fiscal year (From April 1, 2012 to March 31, 2013)
Details of assets and liabilities of Takara Property Co., Ltd. at the time of consolidation as a result of acquisition ofshares, purchase price of the stock and cash flows (net) from acquisition of Takara Property Co., Ltd. are as follows:(Millions of yen)
Current assets

14

Fixed assets

338

Current liabilities(130)

Noncurrent liabilities(145)

Negative goodwill(66)

Purchase price of newly consolidated subsidiary’s stock

10

Cash and cash equivalent of newly consolidated subsidiary’s stock(12)

Difference：Cash inflow due to acquisition of newly consolidated subsidiary’s shares- 27 -

2

(Rental Properties, etc)
The Company and its certain consolidated subsidiaries own office buildings (including land) and condominiums for rent inTokyo and other areas. During the consolidated fiscal year ended March 31, 2012, net rent income from these rental properties
amounted to ¥594 million (rent income is recorded in Net sales and major rent expenses are recorded in cost of sales), andimpairment loss amounted to ¥186 million (recorded in Extraordinary losses). During the consolidated fiscal year ended March
31, 2013, net rent income from these rental properties amounted to ¥605 million (rent income is recorded in Net sales and major
rent expenses are recorded in cost of sales), and impairment loss amounted to ¥17 million (recorded in Extraordinary losses).
The carrying amount of these rental properties on the Consolidated Balance Sheet, changes during the year and market value
are as follows:(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Consolidated Balance Sheet
Beginning balance

17,873

Changes during the year
Ending balanceMarket value at end of year

17,809

(63)

(428)

17,80917,381

19,66019,215(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents acquisition cost, net of accumulated depreciation
and amortization and accumulated impairment loss.
2. Of the changes during the year, the major increase during the year ended March 31, 2012 was acquisition of realestate (¥399 million), and major decreases include reclassification to Real estate held for sale (¥33 million),
Depreciation (¥209 million), and Impairment loss (¥186 million). The major increases during the year ended March
31, 2013 include acquisition of real estate (¥1,175 million) and an increase in scope of consolidation (¥332 million),and major decreases include reclassification to Real estate held for sale and Real estate held for sale in progress(¥2,096 million), Depreciation (¥221 million), and Impairment loss (¥17 million).
3. Market value at end of year is based on the appraisal value by a third party real estate appraiser.
(Segment Information)a．Segment Information
1. Overview of reportable segments
The reportable segments of the Group are components of the Company for which separate financial information isavailable that is evaluated regularly by the Board of Directors in deciding how to allocate resources and in assessing
performance.
The Group’s core business is construction and sales of build-for-sale condominiums. The Group’s reportable segments
consist of the three business segments: “Real estate sales business,” “Real estate rental business” and “Real estate
management business.”“Real estate sales business” primarily engages in construction and sales of new build-for-sale condominiums and detachedhouses and condominium renovation.
“Real estate rental business” provides office and residential condominiums rental service, and “Real estate managementbusiness” provides condominium management service.
2. Calculation methods of net sales, income or loss, assets, liabilities and other items by reportable segment
Accounting policies for the reportable business segments are consistent with those described in “Significant Basis for
Preparation of the Consolidated Financial Statements,” except for valuation of inventories.
Inventories are stated at the value after the write-down reflecting the decline in profitability.
Reportable segment income represents operating income.
Inter-segment sales and transfers are valued at market prices.

- 28 -

3．Net sales, income or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2011 to March 31, 2012)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness
Net sales

Total

Total

Other
(Note)

50,281

1,419

2,282

53,984

1,206

55,191

64

10

10

85

113

199

50,345

1,430

2,292

54,0691,320

55,390

Segment income

4,729

604

212

5,546

221

5,768

Segment assets

32,985

18,073241

51,300820

52,121

Segment liabilities

37,354

10,310192

47,857657

48,514

Depreciation and amortization

90

218

3

312

10

322

Interest expense

648

285

－

933

3

937

Increase in tangible and intangible
fixed assets

311

404

3

719

29

749

Net sales to external customers
Inter-segment sales and transfers
Total

Other items(Note) “Other” represents business segments which are not included in any reportable segments and includes real estate agent
services and repair work.
Current consolidated fiscal year (From April 1, 2012 to March 31, 2013)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness
Net sales

Other
Total

(Note 1)

Total

59,310
－

1,485
24

2,582
8

63,378
33

1,529
92

64,907
126

59,310

1,510

2,591

63,412

1,621

65,033

Segment income

5,234

592

173

5,999

350

6,349

Segment assets

37,387

17,559266

55,213

1,164

56,377

Segment liabilities

40,3499,200

220

49,771

849

50,620Depreciation and amortization

112

221

3

337

11

348

Interest expense

529

220

－

749

15

764

Increase in tangible and intangible
fixed assets (Note 2)

195

1,589

2

1,788

195

1,983

Net sales to external customers
Inter-segment sales and transfers
Total

Other items(Notes) 1. “Other” represents business segments which are not included in any reportable segments and includes real estateagent services and repair work business.
2. Increase in tangible and intangible fixed assets of Real estate rental business segment includes ¥332 million
associated with consolidation of Takara Property Co. Ltd. as a subsidiary.

- 29 -

4．Reconciliation of the total reportable segments and the amount on the consolidated financial statements (difference
adjustments)(Millions of yen)
Net sales

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Net sale of “Other” category
Elimination of inter-segment transactions
Net sales on the consolidated financial statements

54,0691,320

63,412
1,621

(199)

(126)

55,19164,907(Millions of yen)

IncomePrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Income of “Other” category
Elimination of inter-segment transactions
Operating income on the consolidated financial
statements

5,546

5,999

221
162

350
11

5,930

6,361
(Millions of yen)

AssetsPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Assets of “Other” category

51,300820

55,213
1,164

Elimination of due from parent administrative divisionCorporate assets (Note)(55)
18,211(332)
18,968

Total assets on the consolidated financial statements

70,27775,013(Note) Corporate assets represent assets not attributable to any reportable segments and primarily consist of cash anddeposits, assets attributable to administrative division, and deferred tax assets.

- 30 -

(Millions of yen)
Liabilities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Liabilities of “Other” category

47,857657

49,771
849

Elimination of due to parent administrative divisionCorporate liabilities (Note)

(128)
752

(521)
767

Total liabilities on the consolidated financial statements

49,13850,866(Note) Corporate liabilities represent liabilities not attributable to any reportable segments and primarily consist of
borrowings.

Other items

Total reportablesegments
Previous
Current
FY
FY

Other

Adjustments

Previous
FY

Current
FY

Previous
FY

Current
FY(Millions of yen)
Consolidated financial
statements
Previous
Current
FY
FY

Depreciation andamortization

312

337

10

11

(3)

8

319

356

Interest expense

933

749

3

15

41

1

979

766

Increase in tangible and
719
1,788
29
195
55
7
805
1,991
intangible fixed assets(Note) Adjustments for increase in tangible and intangible fixed assets represent capital expenditure for the headquarterbuilding and elimination of inter-segment transactions.
b．Impairment loss on fixed assets by reportable segment
Previous consolidated fiscal year (From April 1, 2011 to March 31, 2012)(Millions of yen)

Impairment loss

Real estate sales
business

Real estate rental
business

Real estate
managementbusiness

－

186

－

Corporate /Elimination

Other
－

－

Total
186

Current consolidated fiscal year (From April 1, 2012 to March 31, 2013)(Millions of yen)

Impairment loss

Real estate sales
business

Real estate rental
business

Real estate
managementbusiness

1

17－(Special Purpose Companies subject to Disclosure)
Not applicable.

- 31 -

Corporate /Elimination

Other
－

－

Total
18

(Per Share Information)
Previous Consolidated
Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Consolidated
Fiscal Year
(From April 1, 2012
to March 31, 2013)

Net assets per share¥683.33¥807.58

Earnings per share¥116.49¥134.45－¥134.32

Diluted earnings per share(Notes) 1. Diluted earnings per share for the year ended March 31, 2012 is not disclosed as the Company then had no dilutive
shares.
2. Basis for calculation of earnings per share and diluted earnings per share is as follows.
Previous Consolidated
Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Consolidated
Fiscal Year
(From April 1, 2012
to March 31, 2013)

Earnings per share
Net income (Millions of yen)

3,681

4,074

－

－

Net income attributable to common stock (Millions of yen)

3,681

4,074

Average number of shares during the year (thousand shares)

31,60730,302－－

Increase in number of common stock (thousand shares)－

29(Of those, stock option through acquisition of treasury stock(thousand shares))

－

(29)

Overview of dilutive shares not included in calculation of diluted
earnings per share due to its anti-dilutive effect－－Amount not attributable to common stockholders(Millions of yen)

Diluted earnings per share
Net income adjustments(Millions of yen)

- 32 -

(Significant Subsequent Events)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 8, 2013 to issue new share subscription rights as stock options forequity-based compensation to directors and executive officers of the Company, pursuant to Articles 236, 238 and 240 of theCompanies Act.
Please refer to news release dated April 8, 2013, “Announcement concerning issuance of stock options for equity-based
compensation (Class A new share subscription rights)” and “Announcement concerning issuance of stock options for equity-based
compensation (Class B new share subscription rights),” for more detail.
(Acquisition of treasury stock)
The Board of Directors resolved at the meeting held on May 13, 2013 to acquire treasury stock and determined the details ofpurchase method, pursuant to Article 156 of the Companies Act as applied with relevant changes in interpretation in accordancewith the provision of Article 165, Paragraph 3 of the Companies Act.
1．Reason for acquisition of treasury stock
To improve capital efficiency and increase shareholders’ value.
2．Contents of the resolution at the Board of Directors meeting regarding treasury stock acquisition(i) Type of shares to be acquired
Common stock of the Company(ii) Total number of shares that may be acquired
2,000,000 shares (maximum)(6.7% of the total number of shares issued and outstanding (excluding treasury stock))(iii) Acquisition period
From May 13, 2013 to March 31, 2014(iv) Total purchase price¥4,000 million (maximum)(v) Purchase method
Through purchase on the open market on the Tokyo Stock Exchange and off-auction own share repurchase transaction(ToSTNeT-3) on the Tokyo Stock Exchange(Cancellation of treasury stock)
The Board of Directors resolved at the meeting held on May 13, 2013 to cancel treasury stock owned pursuant to Article 178of the Companies Act.
(i) Reason for cancellation
To increase shareholders’ value by decreasing the number of shares issued.
(ii) Type of share to be cancelled
Common stock of the Company(iii) Total number of share to be cancelled
386,070 shares(1.2% of the total number of shares issued and outstanding before cancellation)(iv) Expected date of cancellation
May 15, 2013
(Stock split and partial amendment of the articles of incorporation)
The Board of Directors resolved at the meeting held on May 13, 2013 to execute stock split and amend a part of the articles ofincorporation.
1．Purpose of stock split
To increase liquidity of the Company’s stock and further expand investor base by lowering the value per investment unit.
2．Overview of stock split(1) Method of stock split
Shares will be split at a ratio of 1:4 for one common stock owned by shareholders recorded on the Shareholder Registryat the closing of the record date of Sunday, June 30, 2013 (practically, it will be Friday, June 28, 2013 since both 30th andthe previous day are not a business day of the shareholder registry administrator).

- 33 -

(2) Increase in the number of shares as a result of stock split(i) Number of shares issued and outstanding before stock split
33,000,000 shares(ii) Increase in the number of shares as a result of stock split
99,000,000 shares(iii) Number of shares issued and outstanding after stock split
132,000,000 shares(iv) Number of authorized shares after stock split
248,000,000 shares※ The number of shares in (i) or (iv) above is based on the number of shares issued and outstanding as of May 13 andreflects the cancellation of treasury stock announced by “Announcement of Cancelation of Treasury Stock” dated May 13.
(3) Schedule of split(i) Date of announcement of the record dateThursday, June 13, 2013(ii) Record date
Sunday, June 30, 2013
Practically, it will be Friday, June 28, 2013 since both 30th and the previous day are not a business day of theshareholder registry administrator.
(iii) Effective date
Monday, July 1, 2013
(4) Other
Per share information assuming that the stock split had taken place at the beginning of the previous consolidated fiscal
year would be as follows.
Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Net asset per share
Earnings per share¥170.83 Net asset per share¥29.12 Earnings per share

Diluted earnings per share¥201.90¥33.61¥－ Diluted earnings per share¥33.58(Note) Diluted earnings per share for the year ended March 31, 2012 is not disclosed as the Company then had no dilutive
shares.
3．Partial amendment of the articles of incorporation(1) Reason for amendment
Following the stock split, the number of authorized shares stipulated in Article 6 of the Company’s articles ofincorporation will be amended effective Monday, July 1, 2013, pursuant to Article 184, Paragraph 2 of the Companies Act.
(2) Contents of amendment(Amended part is underlined)

Article 6

Before amendment

After amendment(Number of authorized shares)(Number of authorized shares)

The number of authorized shares of theCompany is 62,000,000 shares.

Article 6(3) Schedule
Effective date of partial amendment of the articles of incorporation
Monday, July 1, 2013- 34 -The number of authorized shares of theCompany is 248,000,000 shares.

5．Non-Consolidated Financial Statements(1) Balance Sheet(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2012)(March 31, 2013)

AssetsCurrent assets
Cash and deposits
Accounts receivable, trade

16,499126

16,63553

125※1, ※2 7,380

9※1, ※2 2,035※1 22,827※1, ※2 33,282

593

65

Prepaid expenses
Short-term loans

978
4

962
4

Deferred tax assets
Other

262
247

224
267

Allowance for doubtful accounts

(11)

(8)

49,03453,530

Other receivables
Real estate held for sale
Real estate held for sale in progress
Advance payments

Total current assets
Fixed assets
Tangible fixed assets
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net

6,532

7,145

(2,247)(2,444)※1, ※2 4,284※1, ※2 4,700

85

87

(45)

(51)

※1 39

※1 35

Tools, furniture and fixtures

135

133

Accumulated depreciation

(113)

(114)

Total tools, furniture and fixtures, net

※1 21

※1 18

※1, ※2 13,332※1, ※2 12,141

47
(9)

128
(36)

Land
Lease assets
Accumulated depreciation
Lease assets, net
Total tangible fixed assets

38

91

17,716

16,987※1 224※1 224

Intangible fixed assets
Land lease rights
Software41

70

Lease assets

177

128

Total intangible fixed assets

442

423

133

Investments and other assets
Investment securities
Affiliates’ stock

※1 52

150
82

Investments in capital
Membership

1
9

2
9

- 35 -

(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2012)(March 31, 2013)

Security deposits and guarantee deposits
Long-term loans

269
89

245
81

Long-term loans to affiliates
Long-term other receivables

86
206

361
195

Deferred tax assets
Other

140
15

231
1

Allowance for doubtful accounts

(295)

(276)

Total investments and other assets
Total fixed assets
Total assets

709

1,083

18,86918,494

67,90472,0255,968※1 4,106

6,200
1,607

Liabilities
Current liabilities
Notes payable
Accounts payable, trade
Short-term borrowings
Current portion of long-term borrowings※1 5,489※1 2,619※1 15,793※1 11,261

Lease obligations
Other payables

57
684

68
648

Accrued expenses
Income taxes payable

82
425

93
1,517

3,739
276

3,918
96

Unearned revenues
Allowance for bonuses

10
145

17
148

Allowance for compensation for complete work
Other

59
－

70
99

Total current liabilities

36,84028,368

Noncurrent liabilities
Long-term borrowings

Advance received
Deposits received※1 10,446※1 20,476

Security deposits and guarantee deposits received
Lease obligations

543
170

586
169

Allowance for employees’ retirement benefits
Allowance for directors’ retirement benefits

121
54

116
－

Asset retirement obligations
Other

19
5

19
4

Total noncurrent liabilities

11,362

21,37348,20349,742

Total liabilities- 36 -

(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2012)(March 31, 2013)

Net assets
Shareholders’ equity
Capital stock
Capital surplus

4,819

4,819

Capital reserve
Other capital surplus

4,817
132

4,817
130

Total capital surplus

4,949

4,947

92

92

6,681

9,681

5,055

5,352

11,82915,126

Retained earnings
Legal reserve
Other retained earnings
General reserve
Retained earnings carried forward
Total retained earnings
Treasury stock(1,890)(2,630)Total shareholders’ equity

19,70822,262

(7)

3

(7)

3

Valuation and translation adjustments
Net unrealized (losses) gains on available-for-salesecurities
Total valuation and translation adjustments
New share subscription rights
Total net assets
Total liabilities and net assets- 37 -－

16

19,701

22,28367,90472,025

(2) Statement of Income(Millions of yen)Previous Fiscal Year
(From April 1, 2011

Current Fiscal Year
(From April 1, 2012

to March 31, 2012)

to March 31, 2013)

Net sales
Net sales - real estate

50,16659,194

Income from real estate rental
Other income

1,121
213

1,137
171

Total net sales

51,50260,502※1 38,406※1 46,589

Cost of sales
Cost of sales - real estate
Cost of sales - real estate rental
Total cost of sales
Gross profit

554

587

38,96147,176

12,54013,326※2 7,065※2 7,390

5,474

5,936

Interest income
Dividend income

7
94

11
44

Commissions received
Secondment fee received

81
0

106
6

Miscellaneous income

3530

Total non-operating income

219

199

977
30

764
10

Selling, general and administrative expenses
Operating income
Non-operating income

Non-operating expenses
Interest expense
Miscellaneous losses
Total non-operating expense
Ordinary income
Extraordinary gains
Reversal of allowance for directors’ retirement benefits
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed assets

1,007

775

4,685

5,360

－

53

－

53

※3 6

※3 23

Loss on valuation of investment securities
Impairment loss

10
※4 186－※4 18

Loss from legal proceedings
Other※5 117－－

5

Total extraordinary losses

325

42

Income before income taxes

4,360

5,371

Income taxes - current

416

1,697

Income taxes - deferred

390

(52)

807

1,645

3,552

3,726

Total income taxes
Net income- 38 -

Cost of Sales Statement
1．Cost of sales - real estatePrevious Fiscal Year
(From April 1, 2011

Current Fiscal Year
(From April 1, 2012

to March 31, 2012)

to March 31, 2013)

Category

Notes

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

Land purchase cost

2, 3

11,18529.1

15,11732.4

26,43468.8

30,777

66.1

787

2.1

694

1.5

38,406100.0

46,589100.0

Outsourced construction cost
Other
Cost of sales - real estate(Note) 1. Cost of sales is calculated using the job order costing system.
2. Land purchase cost of the previous fiscal year includes loss on valuation of inventories of ¥ (1,499) million.
3. Land purchase cost of the current fiscal year includes loss on valuation of inventories of ¥ (220) million.
2. Cost of sales - real estate rental
Previous Fiscal Year
(From April 1, 2011

Current Fiscal Year
(From April 1, 2012

to March 31, 2012)

to March 31, 2013)

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

Taxes and public charges

101

18.3

106

18.1

Depreciation and amortization

214

38.6

214

36.5

Maintenance andadministrative expenses

239

43.1

266

45.4

Cost of sales - real estate rental

554

100.0

587

100.0

Category

Notes- 39 -

(3) Statement of Changes in Shareholders’ Equity(Millions of yen)Previous Fiscal Year
(From April 1, 2011

Current Fiscal Year
(From April 1, 2012

to March 31, 2012)

to March 31, 2013)

Shareholders’ equity
Capital stock
Balance at beginning of year
Changes during the year
Total changes during the year
Balance at end of year

4,819

4,819

－

－

4,819

4,819

4,817

4,817

Capital surplus
Capital reserve
Balance at beginning of year
Changes during the year
Total changes during the year－－

Balance at end of year

4,817

4,817

Other capital surplus
Balance at beginning of year

132

132

－

(1)

－

(1)

132

130

4,949

4,949

Disposition of treasury stock－(1)

Total changes during the year

－

(1)

4,949

4,947

92

92

－

－

92

92

2,681

6,681

4,000

3,000

4,000

3,000

6,681

9,681

Disposition of treasury stock
Changes during the year
Total changes during the year
Balance at end of year
Total capital surplus
Balance at beginning of year
Changes during the year

Balance at end of year
Retained earnings
Legal reserve
Balance at beginning of year
Changes during the year
Total changes during the year
Balance at end of year
Other retained earnings
General reserve
Balance at beginning of year
Changes during the year
Funding for general reserve
Total changes during the year
Balance at end of year

- 40 -

(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Retained earnings carried forward
Balance at beginning of year
Changes during the year

5,823

5,055

Funding for general reserve
Dividends from surplus(4,000)(320)(3,000)(429)

Net income

3,552

3,726

Total changes during the year
Balance at end of year
Total retained earnings
Balance at beginning of year
Changes during the year
Dividends from surplus
Net income
Total changes during the year

(767)

296

5,055

5,352

8,597

11,829

(320)

(429)

3,552

3,726

3,232

3,296

11,82915,126(1,295)(1,890)Acquisition of treasury stock
Disposition of treasury stock

(595)
－

(792)
52

Total changes during the year

(595)

(740)

(1,890)(2,630)

Balance at beginning of year
Changes during the year

17,071

19,708Dividends from surplus
Net income

(320)
3,552

(429)
3,726

Acquisition of treasury stock
Disposition of treasury stock

(595)
－

(792)
50

Total changes during the year

2,636

2,554

19,70822,262

Balance at end of year
Treasury stock
Balance at beginning of year
Changes during the year

Balance at end of year
Total shareholders’ equity

Balance at end of year

- 41 -

(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(From April 1, 2011
to March 31, 2012)(From April 1, 2012
to March 31, 2013)

Valuation and translation adjustments
Unrealized gains (losses) on available-for-salesecurities
Balance at beginning of year

(18)

(7)

11

10

11

10

(7)

3

(18)

(7)

11

10

11

10

(7)

3

－

－

－

16

－

16

－

16

17,053

19,701

Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year
Total valuation and translation adjustments
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year
New share subscription rights
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year
Total net assets
Balance at beginning of year
Changes during the year
Dividends from surplus

(320)

(429)

Net income
Acquisition of treasury stock

3,552
(595)

3,726
(792)

Disposition of treasury stock－50

Net changes of items other than shareholders’equity

11

27

2,647

2,582

19,701

22,283

Total changes during the year
Balance at end of year

- 42 -

(4) Notes to the Non-Consolidated Financial Statements(Notes Regarding to the Going Concern Assumption)
Not applicable.
(Significant Accounting Policies)
1. Valuation basis and method for securities(1)
Debt securities held to maturity
Debt securities held to maturity are stated at amortized cost using the straight-line method.
(2) Subsidiaries’ and affiliates’ stock
Subsidiaries’ and affiliates’ stock is stated at cost based on the moving-average method.
(3) Available-for-sale securities
With fair value
Securities with fair value are marked to market based on the market value at the fiscal year-end (Unrealized gains andlosses are directly recorded in Net assets and cost of securities sold is calculated using the moving-average method).
Without fair value
Securities without fair value are stated at cost based on the moving-average method.
2. Valuation basis and method for inventories
Inventory is stated at cost based on the specific identification method (Book value is written down due to decline inprofitability).
3. Depreciation method for fixed assets(1) Tangible fixed assets (excluding lease assets)(i) Buildings
Headquarters and business offices, etc. are depreciated using the declining balance method.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
However, buildings (excluding leasehold improvement) acquired after April 1, 2008 are depreciated using thestraight-line method.
Buildings for rent are depreciated using the straight-line method over the individual estimated economic useful life inorder to reasonably match the corresponding income.
Individual useful lives for buildings for rent are as follows:
Individual useful lives (years)
Reinforced concrete buildings

40

Steel structure buildings

30

Wooden construction

15

Leasehold improvements

15(ii) Other tangible fixed assets
The declining balance method is applied.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
(2)Intangible fixed assets (excluding lease assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of five years.
(3)
Lease assets
Lease assets under the finance lease arrangements where the ownership is transferred to lessees
Lease assets with ownership transfer are depreciated using the same depreciation method as fixed assets owned.
Lease assets under the finance lease arrangements where the ownership is not transferred to lessees
Lease assets without ownership transfer are depreciated using the straight-line method over the lease term with noresidual value.
Lease assets without ownership transfer starting prior to March 31, 2008 are accounted for in the similar manner tooperating lease transactions.

- 43 -

4. Accounting for allowances(1)
Allowance for doubtful accounts
For the estimated uncollectible amount, allowance for performing receivables is recorded based on the actual loss ratio,
and allowance for certain receivables with doubtful collectibility is recorded based on the individual assessment ofcollectibility.
(2)
Allowance for bonuses
In order to provide for bonuses to be paid to employees, estimated bonus amount attributable to the current fiscal year isrecorded.
(3)
Allowance for compensation for complete work
Allowance for compensation for complete work is recorded in order to provide for losses arising from defects after thedelivery of self-executed constructions or compensation service costs based on the historical costs related to repair work of(4)

self-executed constructions.
Allowance for employees’ retirement benefits
Allowance for employees’ retirement benefits is provided based on the retirement benefit obligations as at the current
fiscal year-end.

5. Other significant basis for preparation of the financial statements
Accounting for consumption taxes
National and local consumption taxes are accounted for using the tax exclusive method. Non-deductible consumption
taxes relating to assets are charged to income in the year of acquisition.
(Change of Accounting Policy)(Change of depreciation method)
Following the revision of the Corporate Tax Law of Japan, the Company changed the depreciation method for tangible
fixed assets acquired after April 1, 2012, effective April 1, 2012, to the method under the revised Corporate Tax Law ofJapan. The impact of this change on the earnings for the current consolidated fiscal year is insignificant.
(Additional Information)(Termination of directors’ retirement benefits plan)
The Company decided to terminate the directors’ retirement benefits plan by resolution at the Board of Directors meeting
held on June 22, 2012. Following the termination of the plan, all directors unanimously agreed to reverse the entire
outstanding balance of allowance for directors’ retirement benefits, and gain on reversal of allowance for directors’
retirement benefits of ¥53 million was recorded as extraordinary gain for the year ended March 31, 2013.
(Balance Sheet)※1 Assets pledged as collateral and corresponding liabilities are as follows.
(1) Assets pledged as collateral

Real estate held for sale

Previous Fiscal Year
(March 31, 2012)
6,091

Real estate held for sale in progress
Buildings
Structures
Tools, furniture and fixtures
Land
Land lease rights
Affiliates’ stock
Total- 44 -(Millions of yen)
Current Fiscal Year
(March 31, 2013)
474

21,841
4,059

28,922
4,420

30
0

19
0

11,247
224

9,567
224

30

－

43,525

43,630(2) Corresponding liabilities(Millions of yen)
Current Fiscal Year
(March 31, 2013)

Previous Fiscal Year
(March 31, 2012)
Short-term borrowings
Current portion of long-term borrowings

5,489
15,772

2,619
11,240Long-term borrowings
Accounts payable, trade

10,217
1,533

20,170－33,011

34,029Total※2Change in purpose of asset holding
Previous fiscal year (as of March 31, 2012)
In line with the decision to reclassify part of the real estate held for resale to real estate held for self-use, Real estate held
for sale of ¥31 million was reclassified to Buildings of ¥18 million and Land of ¥12 million during the year ended March
31, 2012.
Current fiscal year (as of March 31, 2013)
In line with the decision to reclassify part of the real estate held for development and rent to real estate held for resale,
Buildings of ¥3 million and Land of ¥2,082 million were reclassified to Real estate held for sale and Real estate held forsale in progress during the year ended March 31, 2013.
Also, in line with the decision to reclassify part of the real estate held for resale to real estate held for development andrent, Real estate held for sale in progress of ¥95 million was reclassified to Land during the year ended March 31, 2013.

3

Contingent liabilities
The Company provides guarantees for borrowings from financial institutions by affiliates and others listed below.
(Millions of yen)Previous Fiscal Year
(March 31, 2012)

Joint and several guarantees in favor of
financial institutions until the customers’
residential mortgage loans are registeredTAFUKO Co., Ltd.
Takara Property Co., Ltd.
Aruka Co., Ltd.
Total
4

Current Fiscal Year
(March 31, 2013)

5,846

1,207

421
－

327
83

48

46

6,317

1,663

The Company maintains overdraft and credit lines agreement with one financial institutions (March 31, 2012: 3) in order toensure efficient funding of operating capital. The unused balance of borrowings under these agreements at fiscal year-end
is as follows.
(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2012)(March 31, 2013)

Total maximum amount of overdraft and credit lines
Outstanding borrowing balance
Difference- 45 -

2,978

600

978

475

2,000

125

(Statement of Income)※1

Real estate held for sale and Real estate held for sale in progress at year-end are stated at the amount after the write-down
reflecting the decline in profitability. Loss on valuation of inventories included in Cost of sales is as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2011

Current Fiscal Year
(From April 1, 2012

to March 31, 2012)

to March 31, 2013)(1,499)※2(220)

Selling expenses account for approximately 61% and 59% for the year ended March 31, 2012 and 2013, respectively, andGeneral and administrative expenses account for approximately 39% and 41%, for the year ended March 31, 2012 and 2013,
respectively.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Advertising expenses
Sales commissions

2,617
211

2,608
180

Sales promotion expenses
Salaries
Provision for allowance for bonuses

1,484
950

1,585
994

Retirement benefit costs

212
27

216
12

Depreciation and amortization

90

112

4

－

3

－

Provision for allowance for directors’ retirement
benefits
Provision for allowance for doubtful accounts※3

The breakdown of Loss on disposal of fixed assets is as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Buildings
Structures

－
5

22
－

Tools, furniture and fixtures
Software

0
0

0
1

6

23

Total

- 46 -

※4

Impairment loss
Previous fiscal year (From April 1, 2011 to March 31, 2012)
During the year ended March 31, 2012, the Company recorded impairment loss of ¥186 million on the following assets orasset groups due to the decline in market value of rental properties.

Rentalproperties

Idle assets

Use

Location

Type

Amount(Millions of yen)Land

Nishi-ku, Saitama, Saitama

1

Land

Midori-ku, Saitama, Saitama

4

Land

Miyoshi-cho, Iruma-gun, Saitama

6

Land

Furukawa, Ibaraki

1

Land

Ashigara-shimogun, Kanagawa

7

Land

Oyama, Tochigi

7

Land

Matsudo, Chiba

0

Land

Chiyoda-ku, Tokyo

156

Total

186

The amount consists of Land of ¥186 million.
Rental properties and idle assets are grouped based on an individual property.
The recoverable amount is measured using net sale value and use value. Net sale value is assessed based on theappraisal value by a real estate appraiser and use value is calculated by discounting future cash flows at a rate of 6%.
Current fiscal year (From April 1, 2012 to March 31, 2013)
During the year ended March 31, 2013, the Company recorded impairment loss of ¥18 million on the following assets orasset groups due to the decline in market value of rental properties.

Idle assets

Use

Recreation
facility

Location

Type

Amount(Millions of yen)

Land

Furukawa, Ibaraki

2

Land

Midori-ku, Saitama, Saitama

4

Land

Miyoshi-cho, Iruma-gun, Saitama

1

Land

Ashigara-shimogun, Kanagawa

0

Land

Itabashi-ku, Tokyo

5

Land

Oyama, Tochigi

3Land and buildings

Atami, Shizuoka

1

Total

18

The amount consists of Land of ¥17 million and Buildings of ¥0 million.
Idle assets and recreation facility are grouped based on an individual property.
The recoverable amount is measured using net sale value which is assessed based on the appraisal value by a real estateappraiser.

- 47 -

※5

Loss from legal proceedings
Previous fiscal year (From April 1, 2011 to March 31, 2012)
Loss from legal proceedings consists of legal settlement of ¥110 million and attorney’s fee of ¥7 million.
Current fiscal year (From April 1, 2012 to March 31, 2013)
Not applicable.

(Statement of Changes in Shareholders’ Equity)
Previous fiscal year (From April 1, 2011 to March 31, 2012)
Class and number of treasury stock
Number of shares at
April 1, 2011
Increase (Shares)(Shares)Common stock (Note)
Total

Decrease (Shares)

Number of shares at
March 31, 2012
(Shares)982,771

1,469,100－

2,451,871

982,771

1,469,100－

2,451,871(Note) The increase in number of common stock in treasury stock of 1,469,100 shares is due to acquisition of treasury stock
based on the resolution by the Board of Directors meeting.
Current fiscal year (From April 1, 2012 to March 31, 2013)
Class and number of treasury stock
Number of shares at
April 1, 2012
Increase (Shares)(Shares)

Decrease (Shares)

Number of shares at
March 31, 2013
(Shares)Common stock (Notes 1,2)

2,451,871

1,124,400

71,0003,505,271

Total

2,451,871

1,124,400

71,0003,505,271(Note) 1. The increase in number of common stock in treasury stock of 1,124,400 shares is due to acquisition of treasury
stock based on the resolution by the Board of Directors meeting.
2. The decrease in number of common stock in treasury stock of 71,000 shares is due to exercise of stock option.

- 48 -

(Per Share Information)
Previous Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Net assets per share¥636.87¥ 745.18

Earnings per share¥112.41¥122.98¥－¥122.86

Diluted earnings per share(Notes) 1. Diluted earnings per share for the year ended March 31, 2012 is not disclosed as the Company then had no dilutive
shares.
2. Basis for calculation of earnings per share and diluted earnings per share is as follows.
Previous Fiscal Year
(From April 1, 2011
to March 31, 2012)

Current Fiscal Year
(From April 1, 2012
to March 31, 2013)

Earnings per share
Net income (Millions of yen)

3,552

3,726

－

－

Net income attributable to common stock (Millions of yen)

3,552

3,726

Average number of shares during the year (thousand shares)

31,60730,302

－

－

－

29

－

(29)

－

－

Amount not attributable to common stockholders(Millions of yen)

Diluted earnings per share
Net income adjustments(Millions of yen)

Increase in number of common stock (thousand shares)(Of those, stock option through acquisition of treasury stock(thousand shares))
Overview of dilutive shares not included in calculation of diluted
earnings per share due to its anti-dilutive effect- 49 -

(Significant Subsequent Events)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 8, 2013 to issue new share subscription rights as stock options forequity-based compensation to directors and executive officers of the Company, pursuant to Articles 236, 238 and 240 of theCompanies Act.
Please refer to news release dated April 8, 2013, “Announcement concerning issuance of stock options for equity-based
compensation (Class A new share subscription rights)” and “Announcement concerning issuance of stock options for equity-based
compensation (Class B new share subscription rights),” for more detail.
(Acquisition of treasury stock)
The Board of Directors resolved at the meeting held on May 13, 2013 to acquire treasury stock and determined the details ofpurchase method, pursuant to Article 156 of the Companies Act as applied with relevant changes in interpretation in accordancewith the provision of Article 165, Paragraph 3 of the Companies Act.
1．Reason for acquisition of treasury stock
To improve capital efficiency and increase shareholders’ value.
2．Contents of the resolution at the Board of Directors’ meeting regarding treasury stock acquisition(i) Type of shares to be acquired
Common stock of the Company(ii) Total number of shares that may be acquired
2,000,000 shares (maximum)(6.7% of the total number of shares issued and outstanding (excluding treasury stock))(iii) Acquisition period
From May 13, 2013 to March 31, 2014(iv) Total purchase price¥4,000 million (maximum)(v) Purchase method
Through purchase on the open market on the Tokyo Stock Exchange and off-auction own share repurchase transaction(ToSTNeT-3) on the Tokyo Stock Exchange(Cancellation of treasury stock)
The Board of Directors resolved at the meeting held on May 13, 2013 to cancel treasury stock owned pursuant to Article 178of the Companies Act.
(i) Reason for cancellation
Treasury stock will be cancelled to increase shareholders’ value by decreasing the number of shares issued.
(ii) Type of share to be cancelled
Common stock of the Company(iii) Total number of share to be cancelled
386,070 shares(1.2% of the total number of shares issued and outstanding before cancellation)(iv) Expected date of cancellation
May 15, 2013
(Stock split and partial amendment of the articles of incorporation)
The Board of Directors resolved at the meeting held on May 13, 2013 to execute stock split and amend a part of the articles ofincorporation.
1．Purpose of stock split
To increase liquidity of the Company’s stock and further expand investor base by lowering the value per investment unit.
2．Overview of stock split(1) Method of stock split
Shares will be split at a ratio of 1:4 for one common stock owned by shareholders recorded on the Shareholder Registryat the closing of the record date of Sunday, June 30, 2013 (practically, it will be Friday, June 28, 2013 since both 30th andthe previous day are not a business day of the shareholder registry administrator).。

- 50 -

(2) Increase in the number of shares as a result of stock split(i) Number of shares issued and outstanding before stock split
33,000,000 shares(ii) Increase in the number of shares as a result of stock split
99,000,000 shares(iii) Number of shares issued and outstanding after stock split
132,000,000 shares(iv) Number of authorized shares after stock split
248,000,000 shares※ The number of shares in (i) or (iv) above is based on the number of shares issued and outstanding as of May 13 andreflects the cancellation of treasury stock announced by “Announcement of Cancelation of Treasury Stock” dated May 13.
(3) Schedule of split(i) Date of announcement of the record dateThursday, June 13, 2013(ii) Record date
Sunday, June 30, 2013
Practically, it will be Friday, June 28, 2013 since both 30th and the previous day are not a business day of theshareholder registry administrator.
(iii) Effective date
Monday, July 1, 2013
(4) Other
Per share information assuming that the stock split had taken place at the beginning of the previous fiscal year would be
as follows.
Previous Fiscal Year
Current Fiscal Year
(From April 1, 2011
(From April 1, 2012
to March 31, 2012)
to March 31, 2013)
Net asset per share¥159.22 Net asset per share¥186.29
Earnings per share
Diluted earnings per share¥28.10 Earnings per share¥－ Diluted earnings per share¥30.75¥30.72(Note) Diluted earnings per share for the year ended March 31, 2012 is not disclosed as the Company then had no dilutive
shares.
3．Partial amendment of the articles of incorporation(1) Reason for amendment
Following the stock split, the number of authorized shares stipulated in Article 6 of the Company’s articles ofincorporation will be amended effective Monday, July 1, 2013, pursuant to Article 184, Paragraph 2 of the Companies Act.
(2) Contents of amendment(Amended part is underlined)
Before amendment

Article 6

After amendment(Number of authorized shares)
The number of authorized shares of the

Article 6

Company is 62,000,000 shares.

(Number of authorized shares)
The number of authorized shares of theCompany is 248,000,000 shares.

(3) Schedule
Effective date of partial amendment of the articles of incorporation
Monday, July 1, 2013

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6．Other(1) Changes of Officers
To be disclosed when the information to be disclosed is determined.
(2) Production, Orders Received and Sales(i) Number of units contracted during the year
Previous Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)

Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2012
to March 31, 2013)

Year-on-Year(%)

Number of units

Amounts(Millions of yen)

Number of units

Amounts(Millions of yen)

Real estate sales business

1,852

59,721

1,813

61,118

102.3

Total

1,852

59,721

1,813

61,118102.3

Current Consolidated
Fiscal Year-End(March 31, 2013)
Amounts
Number of units(Millions of yen)

Year-on-Year(%)(Note) The above amounts do not include consumption taxes.
(ii) Balance of contract

Segment name

Previous Consolidated
Fiscal Year-End(March 31, 2012)
Amounts
Number of units(Millions of yen)

Real estate sales business

1,092

34,824

1,094

36,632

105.2

Total

1,092

34,824

1,094

36,632105.2(Note) The above amounts do not include consumption taxes.
(iii) Net sales
Current Consolidated Fiscal Year
(From April 1, 2012
to March 31, 2013)

Segment nameYear-on-Year(%)

Real estate sales business(Millions of yen)

59,310118.0

Real estate rental business(Millions of yen)

1,485

104.6

Real estate management business(Millions of yen)

2,582

113.1

Total reportable segments(Millions of yen)

63,378

117.4(Millions of yen)

1,529

126.7

(Millions of yen)

64,907

117.6

Other
Total

(Notes) 1. Inter-segment transactions are eliminated.
2. The above amounts do not include consumption taxes.

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