[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 Earnings
April 16, 2020
Ichigo Inc. (Tokyo Stock Exchange First Section, 2337)
Representative: Takuma Hasegawa, President
Inquiries:
Takanori Sakamatsu, Senior Statutory Executive Officer
Telephone: +81-3-3502-4818
www.ichigo.gr.jp/en
Annual Shareholders Meeting: May 24, 2020 (expected)
Submission of the Financial Report (Yuka Shoken Hokokusho): May 25, 2020 (expected)
Dividend Payment: May 25, 2020 (expected)
Supplemental Materials to Financial and Business Results: Yes
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. FY20/2 Consolidated Financial Results (March 1, 2019 to February 29, 2020)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY20/287,360+4.6%
FY19/2

83,540+44.4%

Note: Comprehensive Income

Operating Profit(JPY million) YOY
27,721+5.5%
26,279+19.9%

23,076+20.3%

15,373+9.7%

FY20/2: JPY 8,921 million (-42.6% YOY)
FY19/2: JPY 15,554 million (+6.9% YOY)

FY20/2Net Income
per Share(Basic, JPY)
16.89 -45.8%

Net Income
per Share(Diluted, JPY)
16.88 -45.7%

FY19/2

31.14

31.12

+10.7%(2) Consolidated Financial Condition
Total Assets(JPY million)
FY20/2
333,726
FY19/2(YOY = year-on-year % change)
Recurring Profit
Net Income(JPY million) YOY (JPY million) YOY
24,395+5.7%
8,201 -46.7%

319,343

Return on
OperatingAssetsProfit Margin(Recurring Profit)
8.2%
7.5%
31.7%

Return on
Equity+10.7%

16.3%

7.5%

31.5%

Net Assets(JPY million)
101,607

Shareholder
Equity Ratio
30.1%

Net Assets per
Share (JPY)208.49102,85930.9%

202.14

Note: Shareholders’ Equity FY20/2: JPY 100,434 million FY19/2: JPY 98,748 million1(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

11,892-10,263

9,537

40,826

FY19/2

21,762-15,602

4,346

45,029Note: Economic Operating Cash Flow (Cash Flows from Operations excluding net change in Real Estate
and Power Plants for Sale)
FY20/2: JPY 29,492 million FY19/2: JPY 25,522 million
2. Dividends
Dividend per Share (JPY)First Second Third Fourth
Quarter Quarter Quarter Quarter Total
FY19/2

–

–

–

7

Total
Dividend(JPY million)
7
3,419

FY20/2
FY21/2(Forecast)

–

–

–

7

7

–

–

–

–

–

22.5%

Dividend on
Equity
(DOE)
3.7%

41.5%

3.4%

Payout Ratio

3,372

–

Note: The FY21/2 dividend is currently undetermined. For details, please see “Dividend Policy and
FY20/2 & FY21/2 Dividend” on page 4.
3. FY21/2 Full-Year Consolidated Earnings Forecast (March 1, 2020 to February 28, 2021)(YOY = year-on-year % change)
Operating Profit
Recurring Profit
Net Income
Net Income per Share(JPY million) YOY (JPY million) YOY (JPY million) YOY(JPY)
FY21/26,200~
12,900-53.5%~-77.6%

3,400~
10,400-57.4%~-86.1%

2,000~
8,000-2.5%~-75.6%

4.15~
16.60

-1.7%~-75.4%

Note: Given Covid-19 uncertainty, Ichigo is reporting its FY21/2 earnings forecast as a range. For
details, please see “Earnings Outlook” on page 3.
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
FY20/2:505,368,918
FY19/2:505,066,430(ii) Number of treasury shares at period-end
FY20/2:
23,637,400
FY19/2:
16,556,200(iii) Average number of outstanding shares (excluding treasury shares) during the period
FY20/2:
FY19/2:

485,698,401
493,714,169

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 has changed the segment name to Sustainable Real Estate in orderto put full focus on Ichigo’s commitment to preserving and improving real estate as a sustainableinfrastructure 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.
Earnings Outlook
The Covid-19 global pandemic is dramatically reducing hotel demand and putting pressure on tenants’businesses across-the-board. The uncertainties surrounding the pandemic’s potential impact also create
difficulties in forecasting FY21/2 earnings. Ichigo is thus forecasting its FY21/2 earnings as a range,
taking a conservative view on the bottom of the range.
Ichigo is forecasting FY21/2 Operating Profit of JPY 6.2 billion to JPY 12.9 billion, Recurring Profit of
JPY 3.4 billion to JPY 10.4 billion, Net Income of JPY 2.0 billion to JPY 8.0 billion, and EPS of JPY
4.15 to JPY 16.60.
Ichigo is focused on earnings growth (not revenue growth), with a particular focus on growing long-term
EPS, so does not issue a Revenue forecast.
In addition, Ichigo provides a full-year earnings forecast, but not a half-year forecast, because we believe
the longer full-year forecast is more consistent with global best practice and the focus of Japan’s
Corporate Governance Code on growing long-term sustainable corporate value.

3

Dividend Policy and FY20/2 & FY21/2 Dividend
Ichigo has a progressive dividend policy to provide a secure and stable dividend to its shareholders.
Under this policy, the FY20/2 Dividend is JPY 7.
As noted in “Earnings Outlook” above, the uncertainties surrounding the Covid-19 pandemic’s potential
impact create difficulties in forecasting FY21/2 earnings. Ichigo is thus forecasting its FY21/2 earnings
as a range, and currently leaving the FY21/2 Dividend undetermined. The FY21/2 Dividend will beannounced upon its determination.

4

Consolidated Balance Sheet (FY20/2)
FY19/2(Feb 28, 2019)(JPY million)
FY20/2(Feb 29, 2020)

AssetsCurrent Assets
Cash and deposits
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

41,067
2,308
1,324
902
68,2903,721-6

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)217,590

117,608

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

60,131-5,08055,05026,713-3,28723,425
122,114
2,432
2,058
1,844
-727
1,116

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

94,976

206,198

1,346
316
331

1,090
687
705

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

1,993

2,482

2,455
10
177

4,321
510
568

5

OtherLess: allowance for doubtful accounts

FY19/2(Feb 28, 2019)
2,231
-91

(JPY million)
FY20/2(Feb 29, 2020)
2,128
-91

Total Investments and Other Assets
Total Fixed Assets
Total Assets

4,782
101,752
319,3437,436
216,118
333,726

6

(JPY million)
FY20/2(Feb 29, 2020)

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
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
Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares
Total Shareholders’ Equity
Accumulated Other Comprehensive
IncomeValuation gain (loss) on other securities
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

7

3,275
112
7,881

3,086
274
12,277

1,666

1,178

3,760
31
5,178

2,416
33
5,013

21,90524,280538
131,569
51,068
2,164
8,292
946

6,082
151,483
39,156
1,890
8,118
1,107

194,579
216,484

207,838
232,119

26,820
11,207
66,730-5,98826,885
11,272
71,505-8,98898,769100,674

386

158

-408

-397

-21

-239

827
3,283
102,859
319,343

988
184
101,607
333,726

Consolidated Income Statement (FY20/2)

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Insurance income
Valuation gains on foreign currency
Mark-to-market gains on long-term
interest rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
Mark-to-market losses on long-term
interest rate hedges
Debt financing-related fees
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Gains on sale of securities investments
Gains on sale of subsidiary shares
Other
Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Covid-19 writedown of real estate for sale
Covid-19 writedown of securities
investments
Covid-19 writedown of goodwill
Total Extraordinary Losses
Pre-Tax Net Income

8

FY19/2(Mar 1, 2018 toFeb 28, 2019)83,54051,41332,126
5,847
26,279(JPY million)
FY20/2(Mar 1, 2019 toFeb 29, 2020)
87,36052,851
34,5096,787
27,721

3
68
25
21

8
78
35
–

5

–

23

27

147

150

2,328

2,293

491

336

327
203

538
307

3,350
23,076

3,476
24,395

2
–
–

11
169
35

2

215

–
–

27
7,487

–

229

–

319

–
23,0798,065
16,545

Income Taxes – Current
Income Taxes – Deferred
Total Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

FY19/2(Mar 1, 2018 toFeb 28, 2019)
7,091
241
7,333
15,746(JPY million)
FY20/2(Mar 1, 2019 toFeb 29, 2020)
7,990
-584
7,406
9,139

373

938

15,3738,201

Consolidated Statement of Comprehensive Income (FY20/2)

Pre-Minority Interest Net Income
Other Comprehensive Income
Valuation gains (losses) on other securities
Deferred gains (losses) 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(Mar 1, 2018 toFeb 28, 2019)15,746(JPY million)
FY20/2(Mar 1, 2019 toFeb 29, 2020)
9,139

-156

-228

-35

10

-192
15,554-217
8,921

15,180

7,983

373

938

Consolidated Statement of Changes in Shareholders’ Equity(FY20/2 – Current Period)(JPY million)
Shareholders’ Equity

Balance as of March 1, 2019
Changes in the Current Period
Share Issuance1
Dividend Payment
Net Income
Change in Consolidated
Subsidiaries
Change due to Transactions
with Non-Controlling
Shareholders
Share Buyback
Sale of Treasury Shares1
Changes in Items other thanShareholders’ Equity
Total Changes
Balance as of February 29, 2020

Balance as ofMarch 1, 2019
Changes in the Current
PeriodShare Issuance1
Dividend Payment
Net Income
Change in Consolidated
Subsidiaries
Change due to Transactions
with Non-Controlling
Shareholders
Share Buyback
Sale of Treasury Shares1
Changes in Items other thanShareholders’ Equity
Total Changes
Balance as of February 29,
2020
1

CapitalCapitalReserve

Retained
Earnings

Treasury
Shares26,820

11,207

66,730-5,988

64

64

–

Total
Shareholders’Equity98,769-3,4198,201

129-3,419
8,201

-7

-7
–

64
26,88564
11,272

4,774
71,505-2,999-2,999–-2,999-8,988

1,904
100,674

Other Comprehensive Income
Deferred Total Other
Valuation Gain
Stock Minority Total Net(Loss) CompreGain (Loss) on LongOptions Interests Assets
on OtherInterest hensive
Securities Term
Rate Hedges Income
-408

386

-21

827

3,283 102,859
129-3,4198,201-7–-2,999
–

-228

10

-217

160

-3,098-3,156

-228

10

-217

160

-3,098-1,251

158

-397

-239

988

Shares sold to Ichigo employees upon exercise of employee stock options.

10

184 101,607

(FY19/2 – Previous Period)(JPY million)
Shareholders’ Equity

Balance as of March 1, 2018
Changes in the Current Period
Share Issuance1
Dividend Payment
Net Income
Change in Consolidated
Subsidiaries
Change due to Transactions
with Non-Controlling
Shareholders
Share Buyback
Sale of Treasury Shares1
Changes in Items other thanShareholders’ Equity
Total Changes
Balance as of February 28, 2019

Balance as ofMarch 1, 2018
Changes in the Current
PeriodShare Issuance1
Dividend Payment
Net Income
Change in Consolidated
Subsidiaries
Change due to Transactions
with Non-Controlling
Shareholders
Share Buyback
Sale of Treasury Shares1
Changes in Items other thanShareholders’ Equity
Total Changes
Balance as of February 28,
20191

CapitalCapitalReserve

Retained
Earnings

Treasury
Shares26,723

11,11354,324-2,995

97

97

Total
Shareholders’Equity89,165-2,974
15,373

194-2,974
15,373

7

7

1

1

-5
97
26,82093
11,207

12,406
66,730-2,9996-2,9991-2,993-5,988

9,604
98,769Other Comprehensive Income
Deferred
Valuation Gain (Loss) Total Other Stock Minority Total Net
Gain (Loss) on LongCompre- Options Interests Assets
on OtherTermhensive
Securities Interest Rate Income
Hedges
543

-372

171

666

2,722

92,725
194-2,974
15,3737
1-2,999
1

-156

-35

-192

160

561

529

-156

-35

-192

160

561

10,133

386

-408

-21

827

Shares sold to Ichigo employees upon exercise of employee stock options.

11

3,283 102,859

Consolidated Cash Flow Statement (FY20/2)
FY19/2(Mar 1, 2018 toFeb 28, 2019)(JPY million)
FY20/2(Mar 1, 2019 toFeb 29, 2020)

23,079
1,696
213
254
-3

16,545
2,630
194
174
2

-26

4

-71
2,328
–
-2
–

-86
2,293
-169
-11
319

–

229

-247

-903

3,509

11,682-3,163
–
-333
-350
-399
1,064
-332
25
269
219
-264
954

-17,447
7,487
16
-290
29
-844
201
-36
-285
413
-169
1,321

Sub-TotalInterest and dividend income received
Interest expense paid
Income taxes paid
Income taxes refunded

28,42071-2,118-4,64535

23,30486-2,068-9,430–Net Cash from (Used for) Operations

21,762

11,892

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
Losses (gains) on sales of subsidiary shares
Losses (gains) on sale of securities investments
Covid-19 writedown of goodwill
Covid-19 writedown of operational securities
investments
Decrease (increase) in trading notes and receivables
Decrease (increase) in operational securities
investments
Decrease (increase) in real estate for sale
Covid-19 writedown of real estate for sale
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 payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Increase (decrease) in security deposits received
Other

12

FY19/2(Mar 1, 2018 toFeb 28, 2019)(JPY million)
FY20/2(Mar 1, 2019 toFeb 29, 2020)

-118
1,060
–
-539
32
-15,440
-425
-6
32
-16
–
–
–
-181

-113
2,063
2,970
-2,361
111-11,244
-562
-2
–
-34
–
-187
-910
8

Net Cash from (Used for) Investments
Cash Flows from Financing:
Net increase (decrease) in short-term loans
Proceeds from bond issuance
Repayment of maturing bond principal
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 of stock options
Share buyback
Proceeds from minority interests
Payments to minority interests
Sale of subsidiary shares resulting in no change ofconsolidation scope
Dividends paid
Dividends paid to minority interests-15,602-10,263

2,232
129
-112
43,062-20,352
3,500-18,473143-2,999
90
–

426
5,828
-193
49,957-26,475
5,300-17,701
95-2,999–-1,276100–-2,972–-3,416-8

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

4,346

9,537

–

–

10,50739,365

11,16745,029-4,843-15,369

45,02940,826

Cash Flows from Investments:
Payments into time deposits
Redemptions of time deposits
Proceeds from cancellation of time deposits
Payments for securities investments
Proceeds from sale of securities investments
Acquisition of property, plant, and equipment
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

13

Notes to Consolidated Balance Sheet
1. Reclassification of Real Estate for Sale
Ichigo has reclassified to Fixed Assets the following Real Estate for Sale assets that are notexpected to be sold in the short-term. Real Estate for Sale assets for which sales activities areunderway or sale plans are in place remain as Real Estate for Sale assets.
(JPY million)
FY20/2(Feb 29, 2020)
33,136
70,112
1,304
94
284
104,931

Buildings and structures
Land
Buildings under construction
Other
Leasehold rights
Total
2. Reclassification of Fixed Assets

Ichigo has reclassified to Real Estate for Sale the following Fixed Assets that are expected tobe sold in the short-term, including some assets acquired as Fixed Assets during FY20/2.
(JPY million)
FY20/2(Feb 29, 2020)
905
-222
682
11
-7
3
1,222
32
1,941

Buildings and structures
Depreciation
Buildings and structures (net)
Other
Depreciation
Other (net)Land
Leasehold rights
Total

14

Notes to Consolidated Income Statement
1. Covid-19 Writedown of Real Estate for Sale
FY20/2 (March 1, 2019 to February 29, 2020)
The Covid-19 global pandemic is dramatically lowering hotel demand and putting pressure on
real estate tenants across-the-board. Given these market conditions, Ichigo has done a holistic
review of the current market values of all of its Real Estate for Sale, and is writing down
assets (primarily hotel and retail) that are being significantly impacted by current businessconditions. Ichigo thus expects to record a JPY 7.49 billion writedown of Real Estate for Sale.
2. Writedown of Goodwill
FY20/2 (March 1, 2019 to February 29, 2020)
Ichigo did a writedown of the below asset in FY 20/2.
(1) Asset and Writedown Amount
Asset

Type

Location

Impairment Loss

Other

Goodwill

Chuo-ku, Fukuoka

JPY 210 million(2) Writedown Rationale
Ichigo impairs the values of assets to their respective recoverable amount based on the current
business environment. An equivalent amount has been recorded as a loss under Extraordinary
Losses.
Note that Ichigo calculates the recoverable amount based on value-in-use. For assets that are
not expected to generate future cash flows, the recoverable amount is set to zero.

15

Revenue, P&L, and Assets by Segment (Current FY20/2)(Mar 1, 2019 to Feb 29, 2020)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

3,048

80,516

3,796

87,360–87,360Inter-Segment
Activities or
Reclassifications

901

1

–

902

-902

–

3,949
2,526

80,517
23,971

3,796
1,272

88,263
27,771-902-49

87,36027,721

1,731

9,484

1,272

12,487––795

14,487–

15,283

–

–

2,519

273,455

31,627 307,602

26,124

333,726

–
–

1,479
319

1,120
–

2,599
319

31
–

2,630
319

–

7,716

4,272

11,98845

12,034

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
Impairment Loss
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L is on an Operating Profit basis. For FY20/2, 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 49 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 26,124 million) reflects corporate assets, such as cash and deposits, that were
not allocated to the segments. The Adjustment to Depreciation (JPY 31 million) reflects
depreciation of corporate assets that were not allocated to the segments. The Adjustment to16Increase in Property, Plant, and Equipment and Intangible Assets (JPY 45 million) reflects
corporate assets that were not allocated to the segments.

17

Revenue, P&L, and Assets by Segment (Previous FY19/2)(Mar 1, 2018 to Feb 28, 2019)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

2,440

77,4503,648

83,540–83,540Inter-Segment
Activities or
Reclassifications

1,017

1

–

1,019

-1,019–

Total
Segment P&L1

3,458
2,195

77,452
22,669

3,648
1,364

84,55926,229-1,01950

83,54026,2791,791

10,315

1,364

13,471––403

12,354–

12,758

–

–

1,849

258,947

28,620 289,417

29,925319,343

–

619

1,052

1,672

24

1,696

–

11,917

3,958

15,876-112

15,764

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 50 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment Assets(JPY 29,925 million) reflects corporate assets, such as cash and deposits, that were not allocatedto the segments. The Adjustment to Depreciation (JPY 24 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 112 million) reflects corporate assets thatwere not allocated to the segments.

18

Goodwill and Amortization by Segment (Current FY20/2)(Mar 1, 2019 to Feb 29, 2020)
Goodwill(JPY million)
Segment
Asset
Sustainable
Management Real Estate Clean Energy
Amortization
during the period
Outstandingbalance as ofperiod-end

AmountRecorded in
Adjustment Consolidated
Financial
Statements

Total

70

88

15

174

–

174

771

115

203

1,090

–

1,090

Goodwill and Amortization by Segment (Previous FY19/2)(Mar 1, 2018 to Feb 28, 2019)
Goodwill(JPY million)
Segment
Asset
Sustainable
Management Real Estate Clean Energy
Amortization
during the period
Outstandingbalance as ofperiod-end

AmountRecorded in
Adjustment Consolidated
Financial
Statements

Total

70

168

15

254

–

254

841

285

218

1,346

–

1,346

19

Per Share Information(JPY)

FY19/2(March 1, 2018 to February 28, 2019)
Net Assets per ShareNet Income per Share
Diluted Net Income per Share

FY20/2(March 1, 2019 to February 29, 2020)202.14
31.14
31.12

Net Assets per ShareNet Income per Share
Diluted Net Income per Share

208.4916.89
16.88

Calculation of net income per share and diluted net income per share is as follows:
FY19/2(March 1, 2018 to
February 28, 2019)
Net Income per ShareNet Income Attributable to
Shareholders (JPY million)
Amount Not Attributable to
Common Shareholders
Net Income Attributable to
Shareholders in Regards toCommon Shares (JPY million)
Average Number of Shares
Outstanding
Increase in Shares Outstanding
during Period (thousand)(of which are related to exerciseof employee stock options)(thousand)

Details of Potentially Dilutive Shares
Outstanding

FY20/2(March 1, 2019 toFebruary 29, 2020)

15,373

8,201

–

–

15,3738,201

493,714,169

485,698,401

333

107

(333)

(107)

Jan 13, 2016 Employee
Stock Options Outstanding:
1,330,700 shares

Jan 13, 2016 Employee
Stock Options Outstanding:
1,240,200 shares

Jan 13, 2017 Employee
Stock Options Outstanding:
1,854,400 shares

Jan 13, 2017 Employee
Stock Options Outstanding:
1,743,700 shares

Jan 12, 2018 Employee
Stock Options Outstanding:
1,765,600 shares

Jan 12, 2018 Employee
Stock Options Outstanding:
1,692,800 shares

Jan 11, 2019 Employee
Stock Options Outstanding:
1,800,000 shares

Jan 11, 2019 Employee
Stock Options Outstanding:
1,781,600 shares20