Takara Leben : Q1 (FY2023) Financial Report198KB

First Quarter Consolidated Financial Report

for the Three Months Ended June 30, 2022 (Japan GAAP)

July 29, 2022

Takara Leben CO., LTD.

Shares listed on:	Prime market of the Tokyo Stock Exchange
Security code:	8897
URL:	https://www.leben.co.jp
Representative:	Kazuichi Shimada, Representative Director, CEO, President Executive Officer
	Masashi Yamamoto, Director, CFO, General Manager of the Administration Headquarters
Contacts:	Tel: [phone]

Scheduled date for release of Quarterly Report:	August 10, 2022
Scheduled date for commencement of dividend payments:	--
Has the Company prepared supplementary briefing materials for the Quarter:	No
Has the Company held briefings concerning its quarterly financial results:	No

1. Consolidated Operating Results for the Three Months Ended June 30, 2022 (April 1-June 30, 2022)

(Amounts are rounded down to the nearest million)

(1) Consolidated Operating Results (Year-to-Date)

(Percentage figures represent year-on-year change)

							Net income
	Net Sales		Operating Income	Ordinary Income	attributable to
							owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Three months ended June 30, 2022	28,325	54.5	597	－	398	－	206	－
Three months ended June 30, 2021	18,337	－	(900)	－	(1,271)	－	(1,080)	－

(Note) Comprehensive income: Three months ended June 30, 2022 ¥134million (－%) / Three months ended June 30, 2021 (¥888) million (－%)

	Net Income per	Diluted Net Income
	Share	per Share
	Yen	Yen
Three months ended June 30, 2022	1.89	1.88
Three months ended June 30, 2021	(9.94)	－

(Note) 1. As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the previous fiscal year, the figures for the first quarter of the fiscal year ended March 31, 2022 are after the application of the said accounting standard, etc., and the percentage change from the same quarter of the previous year is not stated.

2. At the end of the fiscal year ended March 31, 2022, the Company finalized the provisional accounting treatment for the business combination, and each figure for the first quarter of the fiscal year ended March 31, 2022 reflects the details of the finalization of the provisional accounting treatment.

(2) Consolidated Financial Position

	Total Assets	Net Assets	Equity Ratio
	Millions of yen	Millions of yen	%
As of June 30, 2022	243,519	58,069	23.7
As of March 31, 2022	223,473	59,601	26.5
(Reference) Shareholders' equity at end of period: June 30, 2022: ¥57,708 million / March 31, 2022: ¥59,109 million

2. Cash Dividends

		Annual Cash Dividends per Share
	1Q	2Q	3Q	Year-End	Total
	Yen	Yen	Yen	Yen	Yen
Year Ended March 31, 2022	－	4.00	－	14.00	18.00
Year Ending March 31, 2023	－
Year Ending March 31, 2023 (Forecast)		4.00	－	16.00	20.00

(Note) Has the Company changed its dividend forecast for the current quarter: No

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022-March 31, 2023)

(Percentage figures represent year-on-year change)

							Net income	Net Income per
	Net Sales		Operating Income	Ordinary Income	attributable to
		Share
							owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	yen
Full year	173,500	6.6	11,900	0.2	10,300	0.4	7,000	12.6	64.19

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

*Notes

1. Changes in significant subsidiaries during the current fiscal year
   (Changes in specified subsidiaries resulting in changes in scope of consolidation): No Newly consolidated companies (--) Newly excluded companies (--)
2. Application of Special Accounting Treatment Made in Preparation

of the Quarterly Consolidated Financial Statements: No

1. Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
2. 1. Changes in accounting policies accompanying revision of accounting standards: No
   2. Changes in accounting policies other than those in (A): No
   3. Changes in accounting estimates: No
   4. Restatement: No
3. Number of shares issued (common stock)
4. 1. Number of shares outstanding at the end of the period (including treasury stock)
   2. Number of shares of treasury stock at the end of the period
   3. Average number of shares during the period (quarter year-to-date)

a.	Three months ended June 30, 2022:	121,000,000	shares	As of March 31, 2022:	121,000,000 shares
b.	Three months ended June 30, 2022:	11,948,807	shares	As of March 31, 2022:	11,948,807 shares
c.	Three months ended June 30, 2022:	109,051,193	shares	Three months ended June 30, 2021 :	108,655,093 shares

*This quarterly earnings report is exempt from the quarterly review based on the Financial Instruments and Exchange Act.

*Explanation concerning appropriate use of the projected operating results and other items to note

The forward-looking statements, including business results forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual business results may differ substantially due to a number of factors.

	Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2022
Attachments Table of Contents
1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter ..........................................	2
(1)	Qualitative Information Pertaining to Consolidated Operating Performance .....................................................	2
(2)	Qualitative Information Pertaining to Consolidated Financial Position .............................................................	3
(3)	Qualitative Information Pertaining to Forecasted Consolidated Operating Results ...........................................	4
2. Quarterly Consolidated Financial Statements...........................................................................................................	5
(1)	Quarterly Consolidated Balance Sheets..............................................................................................................	5
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
	Income ................................................................................................................................................................	8
	Quarterly Consolidated Statements of Income
	First-QuarterYear-to-Date Period ...................................................................................................................	8
	Quarterly Consolidated Statements of Comprehensive Income
	First-QuarterYear-to-Date Period ...................................................................................................................	9
(3)	Notes on Quarterly Consolidated Financial Statements....................................................................................	10
	(Notes on Assumption of Going Concern) .......................................................................................................	10
	(Notes on a Significant Change in Shareholders' Equity) ................................................................................	10

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2022

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter

Since the provisional accounting treatment for the business combination conducted in the first quarter of the previous fiscal year was finalized at the end of the previous fiscal year, comparisons and analysis with the same quarter of the previous fiscal year are based on the amount after reflecting a significant revision of the initial allocation of acquisition costs due to the finalization of the provisional accounting treatment. The Company has adopted the provisional accounting treatment for corporate combinations.

(1) Qualitative Information Pertaining to Consolidated Operating Performance

During the first quarter of the current fiscal year, the Japanese economy was in a lull in the outbreak of the COVID-19 infection, but the situation continues to require close monitoring due to its re-expansion. In addition, the rapidly advancing financial market volatility and heightened geopolitical tensions due to Russia's invasion of Ukraine have affected the prices of various materials, and the outlook for the global economy as a whole remains uncertain.

In accordance with the "Notice of Business Segment Change" announced on March 14, 2022, the Group has changed the classification of its segments from five business segments to four business segments effective from the first quarter of the current fiscal year. The figures for the first quarter of the previous fiscal year in the explanation of each segment below have been reclassified to reflect the new segments.

						(Millions of yen)
	Q1 FY 2021	Q1 FY 2022	Year-on-Year
Segment name	Net Sales	Operating	Net Sales	Operating	Net Sales	Operating
	income	income	income
Real Estate Business	14,930	(1,000)	24,835	809	9,905	1,809
Energy Business	2,646	22	2,643	(163)	(3)	(186)
Asset Management	200	52	250	73	50	21
Business
Other Businesses	560	24	595	(122)	35	(147)
Total	18,337	(900)	28,325	597	9,988	1,497

a. Performance by business segment

In the real estate business, from new built-for-sale condominium, new detached house, renewal resale, liquidation, real estate rental, real estate management, and real estate other amounted to ¥24,835 million (up 66.3% year-on-year).

In the energy business, net sales were ¥2,643 million (down 0.1% year-on-year) due to income from the sale of electricity generated by power generation facilities.

In the asset management business, net sales amounted to ¥250 million (up 25.3% year-on-year) due to asset management fees and other factors.

In the other businesses, net sales were ¥595 million (up 6.3% year-on-year) due to construction contracts and other factors.

As a result, Net sales for the first-quarteryear-to-date period of the current consolidated fiscal year amounted to ¥28,325 million (up 54.5% year-on-year). Operating income amounted to ¥597 million (¥900 million operating loss in the same period of the previous fiscal year). Ordinary income of ¥398 million (¥1,271 million ordinary loss in the same period of the previous fiscal year). And net income attributable to owners of parent of amounted to ¥206 million (¥1,080 million net loss attributable to owners of parent of amounted in the same

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