[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

FY20/2 H1 Earnings
October 10, 2019
Ichigo Inc. (Tokyo Stock Exchange First Section, 2337)
Representative: Takuma Hasegawa, President
Inquiries:
Go Watanabe, Executive Managing Director
Telephone: +81-3-3502-4818
www.ichigo.gr.jp/en
Submission of the Financial Report (Shihanki Hokokusho): October 11, 2019 (expected)
Dividend Payment: N/A
Supplemental Materials to Financial and Business Results: Yes
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. FY20/2 H1 Consolidated Financial Results (March 1, 2019 to August 31, 2019)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY20/2 H146,185 +77.1%
FY19/2 H1

26,084-21.9%

Note: Comprehensive Income

FY20/2 H1
FY19/2 H1

9,581-27.6%

8,293-28.3%

5,608-36.8%

FY20/2 H1: JPY 9,445 million (+70.0% YOY)
FY19/2 H1: JPY 5,556 million (-36.9% YOY)

Net Income
Net Income
per Shareper Share(Basic, JPY) YOY (Diluted, JPY) YOY
17.64 +56.0%
17.64 +56.2%
11.31-36.2%(2) Consolidated Financial Condition
Total Assets(JPY million)
FY20/2 H1
342,337
FY19/2

Operating Profit(JPY million) YOY
15,118 +57.8%(YOY = year-on-year % change)
Recurring Profit
Net Income(JPY million) YOY (JPY million) YOY
13,189 +59.0%
8,612 +53.6%

319,343

11.29-36.2%Net Assets(JPY million)
104,208

Shareholder
Equity Ratio
30.1%

Net Assets per
Share (JPY)211.85

102,85930.9%

202.14

Note: Shareholders’ Equity FY20/2 H1: JPY 103,069 million FY19/2: JPY 98,748 million
To facilitate comparison to FY20/2, FY19/2 Total Assets have been restated to reflect a minor change
in Japanese accounting treatment of tax assets in FY20/2. The restatement is not material: pre-restated
FY19/2 Total Assets were JPY 319,599 million.

1(3) Consolidated Cash Flows
Cash Flows fromOperations(JPY million)

Cash Flows from
Investments(JPY million)

Cash Flows from
Financing(JPY million)

Cash and Cash
Equivalents
at Period-End(JPY million)

FY20/2 H1-7,169-8,32318,602

37,208

FY19/2 H1-10,334-3,60015,87640,487

Note: Economic Operating Cash Flow (Cash Flows from Operations excluding net investment in Real
Estate and Power Plants for Sale)
FY20/2 H1: JPY 12,279 million FY19/2 H1: JPY 6,564 million
2. Dividends
Dividend per Share (JPY)First Second Third Fourth Total
Quarter Quarter Quarter Quarter
FY19/2
FY20/2(Forecast)

–

–

–

7

Total
Dividend(JPY million)
7
3,419

–

–

–

7

7

Payout Ratio
22.5%

Dividend on
Equity
(DOE)
3.7%

23.0%

3. FY20/2 Full-Year Consolidated Earnings Forecast (March 1, 2019 to February 29, 2020)

FY20/2

Operating Profit(JPY million) YOY
26,500+0.8%

Recurring Profit(JPY million) YOY
22,800-1.2%(YOY = year-on-year % change)
Net Income
Net Income per(JPY million) YOY
Share (JPY)15,000
-2.4%
30.39
-2.4%

Note: Ichigo provides a full-year earnings forecast, but not a half-year forecast, because Ichigo
believes the longer full-year forecast is more consistent with global best practice and thefocus of Japan’s Corporate Governance Code on growing long-term sustainable corporate
value. In addition, Ichigo is focused on earnings growth (not revenue growth), with aparticular focus on growing long-term EPS, so does not issue a Revenue forecast.
4. Other(1) Changes in significant consolidated subsidiaries(material changes in scope of consolidation):Yes

New subsidiaries:
Subsidiary removed from consolidation:

None
YK PIT PARTNERS Tokumei Kumiai(2) Changes in accounting standards/principles, changes in accounting estimates, and revisions toprevious financial statements(i) Changes in accounting standards/principles:None(ii) Changes in accounting principles other than the above:None(iii) Changes in accounting estimates:None(iv) Revisions of previous financial statements:None2

(3) Number of outstanding common shares(i) Number of outstanding shares including treasury shares at period-end
FY20/2 H1:
505,112,630
FY19/2:505,066,430(ii) Number of treasury shares at period-end
FY20/2 H1:18,580,100
FY19/2:
16,556,200(iii) Average number of outstanding shares during the period
FY20/2 H1:
FY19/2 H1:

488,234,390
495,940,255

Segment Information
Asset Management (AM) generates fee income via the management of Ichigo Office (8975), Ichigo
Hotel (3463), Ichigo Green (9282), and providing real estate services related to real estate acquisition,
operations, and disposition.
Sustainable Real Estate (SRE) preserves and improves real estate. Ichigo receives rental income during
the period in which it carries out its value-add, along with earning gains on sales that reflect the realestate’s higher value after the value-add is complete.
Note: The Sustainable Real Estate segment was formerly called Value-Add. In keeping with its recently
announced Ichigo 2030 vision, Ichigo is changing the segment name to Sustainable Real Estate from
FY20/2 in order to put full focus on Ichigo’s commitment to preserving and improving real estate as asustainable infrastructure company.
Clean Energy (CE) is utility-scale solar and wind power production that supplies clean energy andbrings productive use to idle land.
Note on Appropriate Use of Forecasts
Forward-looking statements contained in these materials are based on judgments regarding informationthat was available to Ichigo as of the announcement date. However, these statements involve risk anduncertainties, and actual earnings may differ significantly from the indicated forecasts.

3

Consolidated Balance Sheet (FY20/2 H1)
FY19/2(Feb 28, 2019)(JPY million)
FY20/2 H1(Aug 31, 2019)

AssetsCurrent Assets
Cash and cash equivalents
Trade notes and accounts receivable
Operational loan investments
Operational securities investments
Real estate for sale
Other
Less: allowance for doubtful accounts

50,225
1,344
1,324
1,218
161,3222,156-2
217,590

40,448
1,582
1,324
4,654
181,2643,522-3
232,793

24,577-4,23820,33821,229-2,17019,05849,924
956
3,656
1,441
-399
1,042

26,663-4,53622,126
22,130-2,70919,421
52,255
1,027
4,669
1,615
-555
1,060

Total Property, Plant, and Equipment
Intangible Assets
Goodwill
Leasehold rights
Other

94,976

100,560

1,346
316
331

1,493
403
575

Total Intangible Assets
Investments and Other Assets
Securities investments
Long-term loans receivable
Deferred tax assets

1,993

2,471

2,455
10
177

4,247
10
188

Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures
Depreciation
Buildings and structures (net)
Solar power plant equipment
Depreciation
Solar power plant equipment (net)Land
Buildings under construction
Solar power plants under construction
Other
Depreciation
Other (net)4OtherLess: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

5

FY19/2(Feb 28, 2019)
2,231
-91
4,782
101,752
319,343(JPY million)
FY20/2 H1(Aug 31, 2019)
2,157
-91
6,511
109,543
342,337

(JPY million)
FY20/2 H1(Aug 31, 2019)

FY19/2(Feb 28, 2019)
Liabilities
Current Liabilities
Short-term loans
Bonds (due within one year)
Long-term loans (due within one
year)
Long-term non-recourse loans (duewithin one year)
Income taxes payable
Accrued bonuses
Other current liabilities

3,275
112

5,115
274

7,881

10,179

1,666

1,696

3,760
31
5,178

2,174
279
3,741

21,90523,461

538
131,569
51,0682,164

3,219
151,869
48,069
2,168

8,292

8,253

946

1,087

Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares

194,579
216,484

214,667
238,128

26,820
11,207
66,730-5,98826,822
11,20871,916-6,755

Total Shareholders’ Equity
Accumulated Other Comprehensive
IncomeValuation gain (loss) on othersecurities
Deferred gain (loss) on long-term
interest rate hedges
Total Accumulated Other
Comprehensive Income
Stock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

98,769103,192

386

314

-408

-437

-21

-122

827
3,283
102,859
319,343951
187
104,208342,337

Total Current Liabilities
Long-Term Liabilities
Bonds
Long-term loans
Long-term non-recourse loans
Deferred tax liabilities
Long-term security deposits
received
Other long-term liabilities

6Consolidated Income Statement (FY20/2 H1)Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Foreign exchange gain
Mark-to-market gain on long-term
interest rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
Foreign exchange loss
Mark-to-market loss on long-term
interest rate hedges
Debt financing-related fees
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Gain on sale of securities investments
Gain on sale of subsidiary shares
Other
Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Total Extraordinary Losses
Pre-Tax Net Income
Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

7

FY19/2 H1(Mar 1, 2018 toAug 31, 2018)26,084
13,62912,4542,872
9,581(JPY million）
FY20/2 H1(Mar 1, 2019 toAug 31, 2019)46,18527,56018,624
3,505
15,118

2
28
22

2
39
–

83

–

59

17

196

60

1,139
–

1,149
55

56

237

242
45

431
115

1,484
8,293

1,989
13,189

2
–
–

11
169
35

2

215

–

27

–
8,296
2,640
5,655

27
13,378
3,831
9,546

46

933

5,608

8,612

Consolidated Income Statement (FY20/2 Q2 Stand-Alone)
FY19/2 Q2(Jun 1, 2018 toAug 31, 2018)
9,975
4,975
4,999
1,410
3,589

(JPY million）
FY20/2 Q2(Jun 1, 2019 toAug 31, 2019)19,895
11,566
8,329
1,747
6,581

2
6
7

1
4
–

76

–

45

2

Total Non-Operating Income
Non-Operating Expenses
Interest expense
Foreign exchange loss
Mark-to-market loss on long-term
interest rate hedges
Debt financing-related fees
Other

138

7

570
–

591
15

56

138

16
8

194
66

Total Non-Operating Expenses
Recurring Profit
Extraordinary Losses
Loss on disposal of fixed assets

651
3,076

1,007
5,582

–

–

Total Extraordinary Losses
Pre-Tax Net Income
Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

–
3,076
989
2,086

–
5,581
1,737
3,844

24

–

2,061

3,843

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Foreign exchange gain
Mark-to-market gain on long-term
interest rate hedges
Other

8

Consolidated Statement of Comprehensive Income (FY20/2 H1)Pre-Minority Interest Net Income
Other Comprehensive Income
Valuation gain (loss) on othersecurities
Deferred gain (loss) on long-term
interest rate hedges
Total Other Comprehensive Income
Comprehensive income
Comprehensive income attributable tocommon shareholders
Comprehensive income attributable tominority interests

9

FY19/2 H1(Mar 1, 2018 toAug 31, 2018)
5,655(JPY million)
FY20/2 H1(Mar 1, 2019 toAug 31, 2019)
9,546

-106

-72

7

-28

-99
5,556

-101
9,445

5,509

8,511

46

933

Consolidated Statement of Comprehensive Income (FY20/2 Q2 Stand-Alone)(JPY million)
FY19/2 Q2
FY20/2 Q2(Jun 1, 2018 to(Jun 1, 2019 toAug 31, 2018)
Aug 31, 2019)
2,086
3,844
Pre-Minority Interest Net Income
Other Comprehensive Income
Valuation gain (loss) on other-5-34
securities
Deferred gain (loss) on long-term
25-16
interest rate hedges
Total Other Comprehensive Income
20-51
Comprehensive income
2,107
3,793
Comprehensive income attributable to
2,082
3,792
common shareholders
Comprehensive income attributable to24–
minority interests

10Consolidated Cash Flow Statement (FY20/2 H1)(JPY million)
FY20/2 H1(Mar 1, 2019 toAug 31, 2019)

FY19/2 H1(Mar 1, 2018 toAug 31, 2018)
Cash Flows from Operations:Pre-tax net income
Depreciation
Share-based compensation expenses
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for
doubtful accounts
Interest and dividend income
Interest expense
Loss (gain) on sale of subsidiarysharesLoss (gain) on sale of securities
investments
Decrease (increase) in trading notes
and receivables
Decrease (increase) in operational
securities investments
Decrease (increase) in real estate forsale
Decrease (increase) in advances paid
Decrease (increase) in prepaid
expenses
Decrease (increase) in accounts
receivable
Decrease (increase) in consumption
taxes receivable
Increase (decrease) in accounts
payableIncrease (decrease) in accrued
expenses
Increase (decrease) in deposits
received
Increase (decrease) in security deposits
received
Other
Sub-TotalInterest and dividend income received
Interest expense paid
Income taxes paid
Income taxes refunded
Net Cash from (Used for)
Operations

11

8,296
795
107
94
248

13,378
1,241
124
87
248

-26

1

-30
1,139

-42
1,149

–

-169

-2

-11

-453

-178

-425

3,636

-16,132-19,308

-70

-104

-98

-235

-56

97

949

-844

-593

-764

27

55

388

633

-696

-36

22

251

-6,51730-1,041-2,8071-792
42-1,029-5,389–-10,334-7,169(JPY million)
FY20/2 H1(Mar 1, 2019 toAug 31, 2019)

FY19/2 H1(Mar 1, 2018 toAug 31, 2018)
Cash Flows from Investments:
Payments into time deposits
Proceeds from withdrawal of time
deposits
Payments for securities investments
Proceeds from sale of securities
investments
Acquisition of property, plant, andequipment
Acquisition of intangible assets
Payments of SPC capital contributions
Redemptions of SPC capital
contributions
Payments of security deposits
Redemptions of security deposits
Acquisition of consolidated subsidiary
Payments of loans receivable
Other
Net Cash from (Used for)Investments

12

-57

-108

10

2,062

-25

-1,83232

111-3,040-7,951

-359
–

-315
-2

32

–

-15
–
–
–
-176

-20
–
-187
-92
12

-3,600-8,323

(JPY million)
FY20/2 H1(Mar 1, 2019 toAug 31, 2019)

FY19/2 H1(Mar 1, 2018 toAug 31, 2018)
Cash Flows from Financing:
Net increase (decrease) in short-term
loans
Proceeds from bond issuance
Repayment of maturing bond principal
to bondholders
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from long-term non-recourse
loans
Repayment of long-term non-recourse
loans
Proceeds from employee exercise ofstock options
Share buyback
Payments to minority interests
Dividends paid
Dividends paid to minority interests
Net Cash from (Used for) Financing
Effect of Exchange Rate Change on
Cash and Cash Equivalents
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at
Beginning of Period
Cash and Cash Equivalents Resulting
from Exclusion from Consolidation
Cash and Cash Equivalents at End of
Period

13

5,942

1,840

–

2,858

-56

-56

24,855-4,66540,248-17,862

3,500

5,300

-10,850-8,269120

2––-2,970–-767-1,276-3,415–

15,876

18,602

–

–

1,941

3,110

39,36545,029-820-10,930

40,487

37,208

Consolidated Cash Flow Statement (FY20/2 Q2 Stand-Alone)(JPY million)
FY20/2 Q2(Jun 1, 2019 toAug 31, 2019)

FY19/2 Q2(June 1, 2018 toAug 31, 2018)
Cash Flows from Operations:Pre-tax net income
Depreciation
Share-based compensation expenses
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for
doubtful accounts
Interest and dividend income
Interest expense
Decrease (increase) in trading notes
and receivables
Decrease (increase) in operational
securities investments
Decrease (increase) in real estate forsale
Decrease (increase) in advances paid
Decrease (increase) in prepaid
expenses
Decrease (increase) in accounts
receivable
Decrease (increase) in consumption
taxes receivable
Increase (decrease) in accounts
payableIncrease (decrease) in accrued
expenses
Increase (decrease) in deposits
received
Increase (decrease) in security deposits
received
Other
Sub-TotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refunded
Net Cash from (Used for)
Operations

14

3,076
401
55
43
24

5,581
630
61
43
-2

–

–

-9
570

-5
591

-123

148

137

3,024

-15,329-15,928

-147

-227

26

-116

-49

45

535

-812

641

60

-90

-49

-121

37

-199

261

-230
-10,789
9
-473
-854
1

442
-6,2115-565-1,030–-12,106-7,802

(JPY million)
FY20/2 Q2(Jun 1, 2019 toAug 31, 2019)

FY19/2 Q2(June 1, 2018 toAug 31, 2018)
Cash Flows from Investments:
Payments into time deposits
Proceeds from withdrawal of time
deposits
Payments for securities investments
Acquisition of property, plant, andequipment
Acquisition of intangible assets
Payments of SPC capital contributions
Redemptions of SPC capital
contributions
Payments of security deposits
Redemptions of security deposits
Acquisition of consolidated subsidiary
Payments of loans receivable
Other
Net Cash from (Used for)Investments

15

-3

-105

–

53

–

-1,739-2,307-2,950

-216
–

-245
–

32

–

–
–
–
–
-153

–
–
-187
-52
13

-2,646-5,212

(JPY million)
FY20/2 Q2(Jun 1, 2019 toAug 31, 2019)

FY19/2 Q2(Jun 1, 2018 toAug 31, 2018)
Cash Flows from Financing:
Net increase (decrease) in short-term
loans
Proceeds from bond issuance
Repayment of maturing bond principal
to bondholders
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from long-term non-recourse
loans
Repayment of long-term non-recourse
loans
Proceeds from employee exercise ofstock options
Share buyback
Dividends paid
Dividends paid to minority interests
Net Cash from (Used for) Financing
Effect of Exchange Rate Change on
Cash and Cash Equivalents
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at
Beginning of Period
Cash and Cash Equivalents Resulting
from Exclusion from Consolidation
Cash and Cash Equivalents at End of
Period16

2,055-1,351

–

2,858

-56

-56

11,642-1,41725,443-5,698–5,300-3,767-6,542

60

2

–
-75
–
8,442

-767
-72
–
19,117––-6,311

6,101

46,85735,522-59-4,41540,487

37,208

Revenue, P&L, and Assets by Segment (Current FY20/2 H1)(Mar 1, 2019 to Aug 31, 2019)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

1,164

42,9182,102

46,185–46,185Inter-Segment
Activities or
Reclassifications

517

–

–

517

-517

–

1,681
908

42,91913,372

2,102
833

46,703
15,114-517
446,185
15,118

766

5,049

833

6,649

–

–

141

8,323

–

8,465

–

–

1,861

285,101

30,574 317,536

24,800342,337

–

687

540

1,227

13

1,241

–

5,745

2,222

7,967

114

8,081

Total
Segment P&L1
Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AM
Fees, etc.)
Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L is on an Operating Profit basis. For FY20/2 H1, company-wide businessexpansion and new business entry costs have increased year-on-year and thus their
allocation to the Segments has reduced Stock and Flow Earnings in each Segment.
2
The Adjustment to Segment P&L (JPY 4 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 24,800 million) reflects corporate assets, such as cash and cash equivalents, thatwere not allocated to the segments. The Adjustment to Depreciation (JPY 13 million)
reflects depreciation of corporate assets that were not allocated to the segments. The
Adjustment to Increase in Property, Plant, and Equipment and Intangible Assets (JPY 114
million) reflects corporate assets that were not allocated to the segments.
17

Note: To facilitate comparison to FY20/2, FY19/2 Segment Assets have been restated toreflect a minor change in Japanese accounting treatment of tax assets in FY20/2. The
restatement is not material.

18

Revenue, P&L, and Assets by Segment (Previous FY19/2 H1)(Mar 1, 2018 to Aug 31, 2018)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

1,203

22,753

2,127

26,084–26,084

Inter-Segment
Activities or
Reclassifications

469

–

–

469

-469

–

1,672
1,012

22,753
7,620

2,127
968

26,553
9,602

-469
-20

26,084
9,581

860

4,394

968

6,224

–

–

152

3,225

–

3,378

–

–

1,930

255,698

26,325 283,954

33,147317,102

–

260

524

784

10

795

–

2,059

980

3,039

44

3,084

Total
Segment P&L1
Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AM
Fees, etc.)
Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets12

Segment P&L is on an Operating Profit basis.
The Adjustment to Segment P&L (-JPY 20 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment Assets(JPY 33,147 million) reflects corporate assets, such as cash and cash equivalents, that were notallocated to the segments. The Adjustment to Depreciation (JPY 10 million) reflects depreciationof corporate assets that were not allocated to the segments. The Adjustment to Increase in
Property, Plant, and Equipment and Intangible Assets (JPY 44 million) reflects corporate assetsthat were not allocated to the segments.

19

Revenue, P&L, and Assets by Segment (Current FY20/2 Q2 Stand-Alone)(Jun 1, 2019 to Aug 31, 2019)(JPY million)
Segment
AmountRecordedin
Asset
Sustainable Clean
Adjustment2
Financial
Management Real Estate Energy Total
Statements
(AM)
(SRE)
(CE)
Revenue
Revenue from
External
Customers

537

18,275

1,082

19,895–19,895Inter-Segment
Activities or
Reclassifications

228

–

–

228

-228

–

Total
Segment P&L1

766
388

18,275
5,727

1,082
456

20,124
6,572

-228
9

19,895
6,581

351

2,520

456

3,328

–

–

36

3,207

–

3,243

–

–

1,861

285,101

30,574 317,536

24,800342,337

–

351

271

623

7

630

–

1,483

1,761

3,245

63

3,308

Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AM
Fees, etc.)
Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L is on an Operating Profit basis. For FY20/2 Q2, company-wide businessexpansion and new business entry costs have increased year-on-year and thus their
allocation to the Segments has reduced Stock and Flow Earnings in each Segment.
2
The Adjustment to Segment P&L (JPY 9 million) reflects transaction eliminations and corporate
expenses that were not allocated to the segments. The Adjustment to Segment Assets (JPY24,800 million) reflects corporate assets, such as cash and cash equivalents, that were notallocated to the segments. The Adjustment to Depreciation (JPY 7 million) reflects depreciationof corporate assets that were not allocated to the segments. The Adjustment to Increase in
Property, Plant, and Equipment and Intangible Assets (JPY 63 million) reflects corporate assetsthat were not allocated to the segments.
20Note: To facilitate comparison to FY20/2, FY19/2 Segment Assets have been restated toreflect a minor change in Japanese accounting treatment of tax assets in FY20/2. The
restatement is not material.

21

Revenue, P&L, and Assets by Segment (Previous Q2 Stand-Alone)(Jun 1, 2018 to Aug 31, 2018)(JPY million)
Segment
AmountRecordedin
Asset
Sustainable Clean
Adjustment2
Financial
Management Real Estate Energy Total
Statements
(AM)
(SRE)
(CE)
Revenue
Revenue from
External
Customers

653

8,207

1,115

9,975

–

9,975

Inter-Segment
Activities or
Reclassifications

225

–

–

226

-226

–

Total
Segment P&L1

879
558

8,207
2,515

1,115
547

10,202
3,621

-226
-32

9,975
3,589

460

2,001

547

3,010

–

–

97

514

–

611

–

–

1,930

255,698

26,325 283,954

33,147317,102

–

133

262

395

5

401

–

1,714

311

2,025

33

2,058

Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AM
Fees, etc.)
Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L is on an Operating Profit basis.

2

The Adjustment to Segment P&L (-JPY 32 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 33,147 million) reflects corporate assets, such as cash and cash equivalents, thatwere not allocated to the segments. The Adjustment to Depreciation (JPY 5 million) reflects
depreciation of corporate assets that were not allocated to the segments. The Adjustment toIncrease in Property, Plant, and Equipment and Intangible Assets (JPY 33 million) reflects
corporate assets that were not allocated to the segments.

22