Building a richer future together[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.

FY16/2 Earnings Summary
April 19, 2016
Ichigo Inc. (Tokyo Stock Exchange First Section, 2337)
Representative: Takuma Hasegawa, President & Representative Statutory Executive Officer
Inquiries:
Go Watanabe, Executive Managing DirectorTelephone: +81-3-3502-4818
www.ichigo.gr.jp/english
Annual General Shareholders Meeting: May 29, 2016 (expected)
Submission of the Financial Report (Yuka Shoken Hokokusho): May 30, 2016 (expected)
Dividend Payment: May 30, 2016
Supplemental Materials to Financial and Business Results: Yes
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. FY16/2 Consolidated Financial Results (March 1, 2015 to February 29, 2016)(1) Consolidated Financial Results (Full Year)
Revenues(million yen)

(YOY = year-on-year % change)

Operating Profit
YOY (million yen)

Recurring Profit

YOY(million yen)

YOYNet Income(million yen)YOY

FY16/2

49,699+16.4%

15,417+88.3%

13,889+91.4%

12,925+91.2%

FY15/242,705+21.7%

8,189+109.3%7,255+101.7%6,761+49.4%

Note: Comprehensive income

FY16/2: 12,153 million yen (+56.2% YOY)
FY15/2: 7,780 million yen (+72.2% YOY)

Net Income per
Share (basic, yen)

Net Income per
Share(diluted, yen)

FY16/2

25.86

25.75

FY15/2

13.58

13.47

Note: Equity in net income of affiliates

FY16/2: －Return on
Assets (%)

OperatingProfit
Margin (%)

21.0

6.5

31.0

13.05.0

19.2

Return on
Equity (%)

FY15/2 : －(2) Consolidated Financial Condition

FY16/2

Total Assets(million yen)
251,757

Net Assets(million yen)
72,166Equity Ratio
(%)
26.8

Net Assets per Share(yen)134.54

FY15/2

172,744

58,37732.2

111.54

Note: Shareholders’ equity

FY16/2: 67,489 million yen

FY15/2 : 55,673 million yen(3) Consolidated Cash Flow
Cash Flow fromOperations(million yen)

Cash Flow from
Investing(million yen)

Cash Flow from
Financing(million yen)

Cash and CashEquivalents(million yen)FY16/2- 44,654-7,052

63,31828,368

FY15/2- 34,292-12,485

41,65818,972

Note: Cash Flow from Operations, excluding impact of growth in Real Estate for Sale
FY16/2: 17,025 million yen
FY15/2: 7,307 million yen

2. Dividends
FirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter

FiscalYear

FY15/2－0－

1.30

1.30

Total
Dividend(millionyen)
648

FY16/2
FY17/2(Forecast)

－0－

3.00

3.00

1,504－0－

5.00

5.00

Dividend per Share (yen)Payout Ratio(consolidated)(%)

Dividend onEquity Ratio(consolidated)

(%)
9.6

1.2

11.6

2.4

18.9

3. FY17/2 Full-Year Consolidated Forecast (March 1, 2016 to February 28, 2017)(YOY = year-on-year % change)
Revenues
FY17/2

Operating Profit
YOY(million yen)

YOY

(million yen)YOY

125,600+152.7%18,500+20.0%

16,400+18.1%Net Income Attributableto Parent CompanyShareholders(million yen)

FY17/2

Recurring Profit(million yen)

13,300Net Income per Share(yen)

YOY

+2.9%

26.43

Note: The Company provides a full-year earnings forecast, but not a half-year forecast. The Company believes
that 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.

4. Other(1) Changes in significant consolidated subsidiaries (material changes in scope of consolidation): Yes
New subsidiaries (4): GK Kichijoji Holdings Tokumei Kumiai, GK Motoazabu Holdings
Tokumei Kumiai, GK Ikenohata Holdings Tokumei Kumiai, and GK
Shinsaibashi Jisho Tokumei Kumiai
Exclusion from consolidation (1): GK Sapporo Holdings 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: None
(3) Number of outstanding common shares(i) Number of outstanding shares including treasury shares
FY16/2: 502,523,100
FY15/2: 500,804,600(ii) Number of treasury shares
FY16/2:884,200
FY15/2: 1,670,000(iii) Average number of outstanding shares
FY16/2: 499,799,233
FY15/2: 498,011,0472

5. Parent Financial Results (from March 1, 2015 to February 29, 2016)(1) Parent Financial Results (Full Year)
Revenues(% change is year-on-year)

Operating Profit

Recurring Profit

Net Profit(million yen)(%)(million yen)(%)(million yen)(%)(million yen)(%)

FY 16/2

14,245+54.9

9,705+41.5

9,276+39.5

10,028+49.3

FY 15/2

9,198+72.0

6,857+111.7

6,650+149.7

6,719+66.8

Net Profit perShare(diluted, yen)

Net Profit per
Share (basic, yen)
FY 16/2

20.07

19.98

FY 15/2

13.49

13.38

(2) Parent Financial Condition

FY 16/2

113,963

62,223

54.3

Net Assets per
Share(yen)123.40FY 15/2

82,204

53,11564.4

106.02

Total Assets(million yen)

Reference: Shareholders’ equity

Net Assets(million yen)

Equity Ratio(%)

FY16/2: 61,904 million yen

FY15/2: 52,916 million yen*Explanation on Appropriate Use of Earnings Projection
Forward-looking statements contained in these materials are based on judgments regarding
information that was available to the Company and the Group as of the announcement date. However,these statements involve risk and uncertainties. Therefore, please note that actual earnings may differ
significantly from the indicated earnings projection as a result of various factors.
6. Segment Information(1) Segment Overview
Asset Management generates fee income via the management of the Ichigo Office REIT (8975),
Ichigo Hotel REIT (3463), and private funds and via providing real estate services related to real estate
acquisition, operation (property management/building maintenance), and disposition.
Value-Add preserves and improves real estate. The Company receives rental income during the period
it is carrying out its value-add, along with profits on sale that reflect the real estate’s higher value after
the value-add is complete.
Clean Energy generates long-term income primarily via utility-scale solar power production that
supplies clean energy and brings productive use to idle land.
Other is primarily legacy securities investments that are not related to the above three segments.

3

Revenues, P&L, Assets, and Other Items by Segment (FY16/2 – Current Period)(March 1, 2015 to February 29, 2016)(Million Yen)

Segment

Revenues
Revenues from External
Customers
Inter-Segment Revenues
or Reclassifications

Clean
EnergyAdjustment1

AmountRecorded in
Consolidated
Financial
Statements2

49,699－49,6990

1,337(1,337)－

Asset
Management

Value-Add

5,067

42,944

1,628

58

1,332

4

－

Other

Total

Total

6,400

42,9481,628

59

51,036(1,337)

49,699Segment Profits or Losses

2,879

12,629323(32)

15,799(382)

15,417

Segment Assets

2,617

207,053

18,131

6,049

233,851

17,905

251,757

Other
Depreciation
Impairment LossIncrease in Property, Plant,and Equipment andIntangible Assets

8242－－

34792－

506－

757－－－－

454

5,914－

5,973

44

6,017

1The Adjustment to Segment Profits or Losses (-382 million yen) reflects transaction eliminations and company expenses
that were not allocated to the segments. The Adjustment to Segment Assets (17,905 million yen) reflects company
assets, such as cash and reserves that were not allocated to the segments. The Adjustment to Depreciation (34 millionyen) reflects depreciation of company assets that were not allocated to the segments. The Adjustment to Increase in
Property, Plant, and Equipment and Intangible Assets (44 million yen) reflects company assets that were not allocated tothe segments.
2Segment Profits or Losses are calculated for each segment from consolidated operating profit.

4

Revenues, P&L, Assets, and Other Items by Segment (FY15/2 – Previous Period)(March 1, 2014 to February 28, 2015)(Million Yen)

Segment

Adjustment1

AmountRecorded in
Consolidated
FinancialStatements2

42,705－42,7050948(948)

－

605

25

43,654(948)42,705(93)(66)

8,490(301)

8,189

12,846

6,222

159,822

12,922

172,744

349

184－

544

21

565

－－－－－－

10,455

6,399－

16,85913

16,872

Asset
Management

Value-Add

3,967

38,107

605

24

945

3－

Total

4,913

38,110

Segment Profits or Losses

779

7,871

Segment Assets

2,691

138,061

Other
Depreciation

10－
4

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications

Impairment Loss
Increase in Property, Plant,and Equipment andIntangible Assets

Clean
EnergyOther

1TotalThe Adjustment to Segment Profits or Losses (-301 million yen) reflects transaction eliminations and company expenses
that were not allocated to the segments. The Adjustment to Segment Assets (12,922 million yen) reflects company assets,such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (21 million yen)reflects depreciation of company assets that were not allocated to the segments. The Adjustment to Increase in Property,Plant, and Equipment and Intangible Assets (13 million yen) reflects company assets that were not allocated to thesegments.
2Segment Profits or Losses are calculated for each segment from consolidated operating profit.

5Goodwill and Amortization by Segment (FY16/2 – Current Period)
Goodwill(Million Yen)

Segment

Amortization during thefiscal year
Outstanding balance asof the end of the period

Adjustment

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements

Asset
Management

Value-Add

111

1512－

139－

139

1,631

110

201－

1,942－

1,942

Other

Total

Negative Goodwill(Million Yen)

Segment

Amortization during the
fiscal year
Outstanding balance asof the end of the period

Adjustment

Clean
EnergyAmountRecorded inConsolidated
Financial
Statements

Asset
Management

Value-Add－90－－90－90－－－－－－－

Other

Total

Goodwill and Amortization by Segment FY15/2 – Previous Period

Goodwill(Million Yen)

Segment

Amortization during thefiscal year
Outstanding balance asof the end of the period

Adjustment

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements

Asset
Management

Value-Add

111

1512－

139－

139

1,742

126

213－

2,082－

2,082

Other

Total

Negative Goodwill(Million Yen)

Segment

Amortization during thefiscal year
Outstanding balance asof the end of the period

Adjustment

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements

AssetManagement

Value-Add－90－－90－90－90－－90－

90

Other6Total

Consolidated Balance Sheet (FY16/2)
FY15/2(Feb 28, 2015)(Million Yen)
FY16/2(Feb 29, 2016)

AssetsCurrent Assets
Cash and cash equivalents
Trade notes and accounts receivable
Operational investments in loans
Operational investments in securities
Real estate for sale
Deferred tax assets
OtherLess: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures
Depreciation total
Buildings and structures (net)
Equipment
Depreciation total
Equipment (net)Land
Buildings under construction
OtherDepreciation total
Other (net)Total Property, Plant, and Equipment
Intangible Assets
Goodwill
Leasehold rights
OtherTotal Intangible Assets
Investments and Other Assets
Investments in securities
Long-term loans receivable
Deferred tax assets
OtherLess: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

7

19,383
519
2,330
1,965
109,769
1,200
2,657(484)137,342

28,779
691
1,324
1,784
172,833
1,766
3,966(458)210,687

6,452(2,431)
4,021
9,479(311)
9,168
12,142
909
306
(227)
79
26,321

6,496(2,666)
3,830
13,091(824)
12,267
12,192
3,173
292
(209)
82
31,546

2,082
392
27
2,502

1,942
392
38
2,373

5,266
12
2
1,392
(95)
6,578
35,402
172,744

5,486
12
39
1,736
(124)
7,149
41,069251,757

FY15/2(Feb 28, 2015)(Million Yen)
FY16/2(Feb 29, 2016)

Liabilities
Current Liabilities
Trade notes and accounts payable
Short-term borrowings
Short-term non-recourse loans
Long-term borrowings (due within one year)
Long-term non-recourse loans (due within
one year)
Income taxes payable
Deferred tax liabilities
Accrued bonuses
Other current liabilities
Total Current Liabilities
Long-Term Liabilities
Non-recourse bonds
Long-term borrowings
Long-term non-recourse loans
Deferred tax liabilities
Long-term security deposits received
Negative goodwill
Other long-term liabilities
Total Long-Term Liabilities
Total Liabilities

124
1,416
48
3,488

80
2,188
79
8,161

786

2,975

284
30
16
3,677
9,872

631
53
13
3,979
18,161

100
53,40943,004
1,402
6,391
90
96
104,494
114,367100
94,40956,193
1,543
8,707
－
475
161,430
179,591

26,49910,873
17,201(78)54,496

26,575
10,96829,454(41)
66,956

1,208(36)6761(251)
23

1,177

533

198
2,505
58,377
172,744319
4,357
72,166
251,757

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 hedges
Foreign currency translation adjustment
Total Accumulated Other Comprehensive
IncomeStock OptionsMinority Interests
Total Net Assets
Total Liabilities and Net Assets

8Consolidated Income Statement (FY16/2)(Million Yen)
FY16/2

FY15/2
Revenues
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization of negative goodwill
Other
Total Non-Operating Profit
Non-Operating Expenses
Interest expense
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gain
Gain on sales of investment securities
Gain on redemptions of equity holdings
in subsidiaries
OtherTotal Extraordinary Gain
Extraordinary Loss
Loss on sales and retirement of fixed assetsValuation loss on investments in securities
Valuation loss on investments in capital
Provision of allowance for doubtful accounts
Office move expenses
OtherTotal Extraordinary Loss
Pre-Tax Net Income
Income Taxes – Current
Income Taxes – Deferred
Total Income Taxes
Profit before Gain on Minority Interests
Gain on Minority Interests
Net Income

9(Mar 1, 2014
to Feb 28, 2015)(Mar 1, 2015
to Feb 29, 2016)

42,70530,53912,166
3,977
8,189

49,69929,835
19,863
4,446
15,417

57890
39
213

27990
43
215

943
202
1,146
7,255

1,277
465
1,743
13,889－22357－

057－
223

0－
91－
10
93
7,220
564(220)
343
6,876
115
6,761－
49－319－
89
14,022
1,330(369)960
13,062
136
12,925

Consolidated Statement of Comprehensive Income (FY16/2)(Million Yen)
FY16/2

FY15/2(Mar 1, 2014
to Feb 28, 2015)

Profit before Gain on Minority Interests
Other Comprehensive Income
Valuation gain (loss) on other securities
Deferred gain (loss) on hedges
Foreign currency translation adjustment
Total Other Comprehensive Income
Comprehensive Income
Comprehensive income for shareholders of theparent company
Comprehensive income for minority interests

10(Mar 1, 2015
to Feb 29, 2016)

6,876

13,062

937
(36)
2903
7,780(667)
(214)
(26)
(908)
12,153

7,528

12,258251(104)

Consolidated Cash Flow Statement (FY16/2)(Million Yen)
FY16/2

FY15/2(Mar 1, 2014
to Feb 28, 2015)

Cash Flows from Operating Activities:
Pre-tax net income
Depreciation
Share-based compensation expenses
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend incomeInterest expense
Loss (gain) on sales of investment securities
Valuation loss on investments in securities
Decrease (increase) in trading notes and receivables
Decrease (increase) in operating loan receivables
Decrease (increase) in operational investments
in securities
Valuation loss on operational investments insecurities
Decrease (increase) in real estate for sale
Valuation loss on investments in capital
Decrease (increase) in advances paid
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in security deposits received
OtherSub-total
Interest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net Cash from (Used for) Operating Activities

11(Mar 1, 2015
to Feb 29, 2016)

7,220
565
112
139
(90)
1

14,022
792
174
139
(90)
(3)

65

3

(83)
943
－－
(68)
(1,230)

(81)
1,277
(223)
49(172)
1,006

1,110

1,239－

19(42,991)
91－
(739)
(1,079)
388
16
211
1,391
332
(33,693)
83(843)(378)
539(63,070)11(990)(492)(1,140)
535
42
317
2,380
927
(43,324)81(1,226)
(990)
804

(34,292)(44,654)

(Million Yen)
FY16/2

FY15/2(Mar 1, 2014
to Feb 28, 2015)

Cash Flows from Investing Activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Acquisition of investment securities
Proceeds from sales of investment securities
Proceeds from redemptions of investment securities
Acquisition of property and equipment
Acquisition of intangible assets
Payments for investments
Proceeds from redemptions of investments
Payments of security deposits
Proceeds from redemptions of security deposits
Proceeds from sales of subsidiaries resulting in thechange of consolidation scope
Payments for acquisitions of newly consolidated
subsidiaries
Other(Mar 1, 2015
to Feb 29, 2016)

(325)
325
(210)
－0(10,769)
(23)
(10)
0(127)－(0)－(671)
296
3(6,628)
(21)
(9)
6(37)
9

2

－

(1,349)－20(12,485)(7,052)

Cash Flows from Financing Activities:
Increase (decrease) in short-term bank loans, net
Increase (decrease) in short-term non-recourse loans, net
Proceeds from long-term bank loans
Repayment of long-term bank loans
Proceeds from long-term non-recourse loans
Repayment of long-term non-recourse loans
Proceeds from exercise of stock options
Proceeds from minority interests
Cash dividends paid
Cash dividends paid to minority interests

466
48
47,203(19,557)
19,900(5,958)
99－
(543)
－

771
31
64,866(19,192)
18,150(2,772)153
2,000(646)(43)

Net Cash from (Used for) Financing Activities

41,65863,31810(5)Increase (Decrease) in Cash and Cash Equivalents(5,108)

11,604

Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents Resulting from New Entity
Consolidation
Cash and Cash Equivalents Resulting from Exclusionfrom Consolidation

24,581

18,972280－(780)(2,208)Cash and Cash Equivalents at End of Period

18,97228,368Net Cash from (Used for) Investing Activities

Effect of Exchange Rate Changes
on Cash and Cash Equivalents

12