Creating peace of mind through honest and committed management.

[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.

Summary of Financial and Business Results for the Third Quarterof the February 2015 Fiscal Year
January 13, 2015
Ichigo Group Holdings Co., Ltd. (JASDAQ, 2337)
Representative: Kenji Iwasaki, President and Representative Statutory Executive Officer
Inquiries:
Takashi Minamikawa, Executive Managing Director and Statutory Executive Officer
Telephone: +81-3-3502-4818
www.ichigo-holdings.co.jp/english
Filing of the Quarterly Report (Shihanki Hokokusho): January 14, 2015
Dividend Payment: N/A
Supplemental Materials to Financial and Business Results: Yes
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. Consolidated Financial Results (from March 1, 2014 to November 30, 2014)(1) Consolidated Financial Results (Cumulative)
Revenues(YOY = year-on-year % change)

Operating Profit

Recurring Profit(million yen)

YOY

(million yen)

YOY

(million yen)Feb 15 Q3

14,748-48.6%

4,506+40.8%

3,888

Feb 14 Q3

28,685+147.6%

3,199+172.6%

3,051

YOY

Net Income(million yen)YOY

+27.4%

3,564

-3.6%

+184.1%

3,695+291.3%

Note: Comprehensive income Feb 15 Q3: 4,566 million yen (+27.0%) Feb 14 Q3: 3,596 million yen (+147.2%)
The year-on-year increase in profit despite lower revenues is due to significantly higher profit on
Value-Add sales and an increase in rental income from Real Estate assets.
Net Income per
Share (basic, yen)

Net Income per Share(diluted, yen)Feb 15 Q3

7.16

7.10

Feb 14 Q3

8.22

8.10

(2) Consolidated Financial Condition

Feb 15 Q3

161,961

55,09832.4

Net Assets per
Share
(yen)
105.17

Feb 14

114,944

50,842

42.2

97.42

Total Assets(million yen)

Net Assets(million yen)

Note: Shareholders’ equity Feb 15 Q3: 52,441 million yen

Equity Ratio(%)

Feb 14: 48,460 million yen

2. Dividends
First
Quarter

Dividend per Share (yen)SecondThird
FourthQuarter
Quarter
Quarter

Feb 14-0

Feb 15-0-

Feb 15(Expected)

Fiscal
Year

1.10

1.10

1.30

1.30

Note: Changes since the previously announced forecast: None

3. Consolidated Forecast for the February 2015 Fiscal Year (from March 1, 2014 to February 28,
2015)(YOY = year-on-year % change)
Revenues
Feb 15 FY

Operating Profit
YOY(million yen)

YOY

(million yen)YOY

42,000+19.7%

7,700+96.8%

6,500+80.7%Net Income(million yen)Feb 15 FY

Recurring Profit(million yen)

6,055

Net Income per Share

YOY

(Yen)

+33.8%

12.16

Note 1: Changes in the forecast during the period: None
Note 2: Net Income per Share for FY15 is based on the average number of outstanding shares for FY15 assuming
the number of outstanding shares as of December 31, 2014 remains unchanged throughout FY15.

4. Other(1) Changes in significant consolidated subsidiaries (material changes in scope of consolidation): Yes
One new subsidiary: GK Omori Holdings Tokumei Kumiai(2) Application of accounting treatment specific to interim consolidated financial statements: None
(3) Changes in accounting standards/principles, changes in accounting estimates, and revisions toprevious financial statements(i) Changes in accounting standards/principles: Yes(ii) Changes in accounting principles other than the above: None(iii) Changes in accounting estimates: None(iv) Revisions of previous financial statements: None
(4) Number of outstanding shares (common shares)(i) Number of outstanding shares including treasury sharesFeb 15 Q3:
500,350,200
Feb 14:499,432,200(ii) Number of treasury sharesFeb 15 Q3:
1,712,000
Feb 14:
1,978,000(iii) Average number of outstanding sharesFeb 15 Q3:
497,744,978Feb 14 Q3:
449,568,023

2

*Statement on Quarterly Review Procedures in accordance with the Financial Instruments andExchange Law (FIEL)
While this financial summary is not required to be reviewed under the FIEL review procedures, theCompany has nonetheless completed such FIEL review procedures.
*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.
5. Segment Information(i) Segment Overview
Starting from the previous fiscal period, to improve earnings transparency and reflect changes
in the Company’s earnings structure such as the expansion of its clean energy business, asset
acquisition to support Ichigo REIT’s growth, and a substantial increase in investments invalue-add and prime real estate, the Company has changed its segment disclosure from theprevious two segments to the below five segments.
“Asset management” generates fee income via the management of the Ichigo REIT and private
funds and other fee-generating real estate services related to the sourcing, financing, operation,
property management, facility management, and disposition of real estate assets.
“Real Estate” generates on-going rental income for the Company as a real estate
owner/operator. Specifically, the Company either owns and operates real estate over the longterm or holds assets on a short-term basis on behalf of Ichigo REIT until Ichigo REIT is able
to acquire the assets.
“Value-Add” generates rental income and capital gains by deploying the Company’s expertiseto acquire, add value to, and sell real estate assets at a profit.
“Clean Energy” generates long-term income primarily via megasolar power production.
“Other” is primarily legacy securities investments that are not related to the above four
segments.
The Company has reflected these changes in the previous year’s third quarter segment
information.

3

(ii) Revenues, P&L, Assets,Liabilities and Other Items by Segment
Previous February 2014 Q3 Cumulative(from March 1, 2013 to November 30, 2013)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Revenues
or Reclassifications
Total
Segment Profits or Losses(-)
Segment Assets
OthersDepreciation
Impairment loss
Increase in property, plantand equipment andintangible assets

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements(Note 1)

Adjustment(Note 2)

Asset
Management

Real Estate

Value-Add

3,247

3,259

21,421

86

670

28,685-28,685

789

1

0

3

0

795

(795)

-

4,037

3,260

21,421

89671

29,480(795)

28,685

1,003

951

1,638

(188)

103

3,508

(308)

3,199

2,988

36,16043,401

3,500

5,924

91,975

4,674

96,650

6
-

168
-

10
-

15
-

-

200
-

12
-

212
-

2

7,927

-

2,430

0

10,3603

10,363

Other

Total

(Note 1) Segment Profits or Losses are calculated for each segment from consolidated operating profit.
(Note 2) The Adjustment to Segment Profits or Losses (-308 million yen) reflects transaction eliminations and company
expenses that were not allocated to the segments. The Adjustment to Segment Assets (4,674 million yen) reflects
company assets, such as cash and reserves, that were not allocated to the segments. The Adjustment toDepreciation (12 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 (3 million yen) reflects
company assets that were not allocated to the segments.

4Current February 2015 Q3 Cumulative(from March 1, 2014 to November 30, 2014)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications
Total
Segment Profits or Losses(-)
Segment Assets

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements(Note 1)

Adjustment(Note 2)

Asset
Management

Real Estate

Value-Add

2,974

3,656

7,652

440

25

14,748-14,748

628

1

0

-

0

630

(630)

-

3,602

3,658

7,652

440

25

15,379(630)

14,748

181

2,006

2,768

(68)

(45)

4,841

(334)

4,506

2,954

51,77478,766

11,2986,212

151,006

10,954

161,961

8
-

208
-

49
-

119
-

-

386
-

16
-

402
-

4

2,974

6,684

4,626

-

14,28913

14,302

Other

Total

OthersDepreciation
Impairment loss
Increase in property, plantand equipment andintangible assets(Note 1) Segment Profits or Losses are calculated for each segment from consolidated operating profit.
(Note 2) The Adjustment to Segment Profits or Losses (-334 million yen) reflects transaction eliminations and company
expenses that were not allocated to the segments. The Adjustment to Segment Assets (10,954 million yen)reflects company assets, such as cash and reserves, that were not allocated to the segments. The Adjustment toDepreciation (16 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 the segments.

5

Previous February 2014 Q3(from September 1, 2013 to November 30, 2013)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Revenues
or Reclassifications
Total
Segment Profits or Losses(-)
Segment Assets
OthersDepreciation
Impairment loss
Increase in property, plantand equipment andintangible assets

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements(Note 1)

Adjustment(Note 2)

Asset
Management

Real Estate

Value-Add

1,117

699

6,235

42

3

8,098

-

8,098

394

0

0

0

0

396

(396)

-

1,512

700

6,235

42

4

8,495

(396)

8,098

419

268

451

(47)

(20)

1,069

(113)

956

2,988

36,16043,401

3,500

5,924

91,975

4,674

96,650

2
-

64
-

4
-

12
-

-

84
-

4
-

88
-

0

2,955

-

1,287

(0)

4,244

-

4,244

Other

Total

(Note 1) Segment Profits or Losses are calculated for each segment from consolidated operating profit.
(Note 2) The Adjustment to Segment Profits or Losses (-113 million yen) reflects transaction eliminations and company
expenses that were not allocated to the segments. The Adjustment to Segment Assets (4,674 million yen) reflects
company assets, such as cash and reserves, that were not allocated to the segments. The Adjustment toDepreciation (4 million yen) reflects depreciation of company assets that were not allocated to the segments.

6

Current February 2015 Q3(from September 1, 2014 to November 30, 2014)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications
Total
Segment Profits or Losses(-)
Segment Assets
OthersDepreciation
Impairment loss
Increase in property, plantand equipment andintangible assets

AmountRecorded in
Consolidated
Financial
Statements(Note 1)

Adjustment(Note 2)

Asset
Management

Real Estate

Value-Add

931

1,220

2,569

146

0

4,869

-

4,869

193

0

0

-

-

194

(194)

-

1,125

1,221

2,570

146

0

5,063

(194)

4,869

(27)

629

886

(25)

(22)

1,439

(57)

1,382

2,954

51,77478,766

11,2986,212

151,006

10,954

161,961

2
-

72
-

16
-

43
-

-

134
-

5
-

140
-

-

808

-

1,629

-

2,437

0

2,437

Clean
Energy

Other

Total

(Note 1) Segment Profits or Losses are calculated for each segment from consolidated operating profit.
(Note 2) The Adjustment to Segment Profits or Losses (-57 million yen) reflects transaction eliminations and company
expenses that were not allocated to the segments. The Adjustment to Segment Assets (10,954 million yen)reflects company assets, such as cash and reserves, that were not allocated to the segments. The Adjustment toDepreciation (5 million yen) reflects depreciation of company assets that were not allocated to the segments. The
Adjustments to Increase in Property, Plant and Equipment and Intangible assets (0 million yen) reflects company
assets that were not allocated to the segments.

7

Consolidated Balance Sheet
Feb 14(Feb 28, 2014)
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
OthersLess: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant and Equipment
Land
Others (net)Total Tangible Assets
Intangible Assets
Goodwill
Leasehold rights
OthersTotal Intangible Assets
Investments and Other Assets
Investments in securities
Long-term loans receivable
Deferred tax assets
OthersLess: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

8(Million Yen)Feb 15 Q3(Nov 30, 2014)

24,991
451
1,100
3,583
54,084
576
1,384
(410)
85,761

19,097
822
2,100
1,762
92,080
608
1,788
(476)
117,784

12,433
8,867
21,30020,79814,40435,202

2,221
392
71
2,686

2,117
392
28
2,538

4,278
13
222
780
(97)
5,196
29,183
114,944

5,203
12
220
1,094
(96)
6,435
44,176
161,961(Million Yen)Feb 15 Q3(Nov 30, 2014)

Feb 14(Feb 28, 2014)
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
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury stock
Total Shareholders’ Equity
Accumulated Other Comprehensive
IncomeUnrealized gain on other securities, net
Deferred loss on hedges
Foreign currency translation adjustment
Total Accumulated Other Comprehensive
IncomeStock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

9

132
950
3,123

189
1,213
48
3,759

428

1,225

96
24
14
2,817
7,588

146
31
222
3,291
10,126

26,12624,178
1,213
4,770
180
44
56,51364,102

100
58,612
29,764
1,216
6,853
112
75
96,735
106,862

26,443
10,808
10,891(92)
48,05026,47910,852
14,006(80)
51,258

400
9

1,190
(19)
11

409

1,183

121
2,261
50,842
114,944185
2,471
55,098161,961

Q3 Cumulative Consolidated Income Statement(Million Yen)Feb 15 Q3

Feb 14 Q3(from Mar 1, 2013
to Nov 30, 2013)

Revenues
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization of negative goodwill
OthersTotal Non-Operating Profit
Non-Operating Expenses
Interest on debt
Stock issuance cost
OthersTotal Non-Operating Expenses
Recurring Profit
Extraordinary Gain
Gain on sales of investment securities
Receipt of share trading proceeds
Gain on redemption of equity holdings in
subsidiaries
OthersTotal Extraordinary Gain
Extraordinary Loss
Valuation loss on investments in capital
Office move expenses
Total Extraordinary Loss
Profit before Income Taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit before Gain on Minority Interests
Gain on Minority Interests
Net Income

10(from Mar 1, 2014
to Nov 30, 2014)

28,68522,888
5,796
2,596
3,199

14,748
7,292
7,456
2,949
4,506

3
110
67
20
201

4
72
67
16
161

232
81
35
349
3,051

699
0
78
779
3,888

204
434

-

29

57

11
680

57

7
24
32
3,699
56
(7)
49
3,650
(45)
3,695

3,946
324
(37)
287
3,658
94
3,564

Q3 Consolidated Income Statement(Million Yen)Feb 15 Q3

Feb 14 Q3(from Sep 1, 2013
to Nov 30, 2013)

Revenues
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization of negative goodwill
OthersTotal Non-Operating Profit
Non-Operating Expenses
Interest on debt
Stock issuance cost
OthersTotal Non-Operating Expenses
Recurring Profit
Extraordinary Gain
Gain on redemption of equity holdings in
subsidiaries
OthersTotal Extraordinary Gain
Extraordinary Loss
Valuation loss on investments in capital
Office move expenses
Total Extraordinary Loss
Profit before Income Taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit before Gain on Minority Interests
Gain on Minority Interests
Net Income

11(from Sep 1, 2014
to Nov 30, 2014)

8,098
6,243
1,855
899
956

4,869
2,523
2,345
963
1,382

1
98
22
9
132

1
61
22
5
91

96
81
17
195
893

276
0
22
300
1,173

0

57

7
7

57

7
24
32
868
10
(6)
3
865
(74)
939

1,230
131
0
131
1,098
25
1,073

Q3 Cumulative Consolidated Statement of Comprehensive Income
Feb 14 Q3(from Mar 1, 2013
to Nov 30, 2013)

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

12(Million Yen)Feb 15 Q3(from Mar 1, 2014
to Nov 30, 2014)

3,650

3,658

70
(124)
(54)
3,596

919
(19)
7
907
4,566

3,874

4,337

(278)

228

Q3 Consolidated Statement of Comprehensive Income(Million Yen)Feb 15 Q3

Feb 14 Q3(From Sep 1, 2013
To Nov 30, 2013)

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

13(From Sep 1, 2014
To Nov 30, 2014)

865

1,098

178
0
179
1,045

624
9
14
648
1,746

1,146

1,716

(101)

30

Q3 Cumulative Consolidated Cash Flow Statement(Million Yen)Feb 15 Q3

Feb 14 Q3
Cash Flows from Operating Activities:
Income before income taxes
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 income
Interest on debt
Loss (gain) on sales of investment securities
Loss (gain) on sales/retirement of fixed assets
Decrease (increase) in trading notes and receivable
Decrease (increase) in operating loans receivable
Decrease (increase) in operational investments
in securities
Valuation loss on investment securities
Decrease (increase) in real estate for sale
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in security deposits received
OthersSub-totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net Cash from (Used for) Operating Activities

14(from Mar 1, 2013
to Nov 30, 2013)(from Mar 1, 2014
to Nov 30, 2014)

3,699
212
50
104
(67)
145

3,946
393
87
104
(67)
207

39

63

(113)
232
(204)
(7)
(173)
218

(76)
699
(371)
(1,000)

1,214

1,078

14
(3,303)
(189)
(163)
(124)
1,123
695
3,404
113
(233)
(62)
3,221

(36,594)
50
400
(273)
1,853
300
(29,197)
76
(663)
(47)
(29,831)(Million Yen)Feb 15 Q3

Feb 14 Q3(from Mar 1, 2013
to Nov 30, 2013)

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 redemption of investment securities
Acquisition of property and equipment
Proceeds from sale of property and equipment
Acquisition of intangible assets
Payments for investments in capital
Proceeds from redemption of investments
Payments of deposits
Payments for acquisitions of subsidiaries resulting
in the change of consolidation scope
Payments for acquisitions of newly consolidated
subsidiaries
Collection of loans receivable
OthersNet Cash from (Used for) Investing Activities
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 option
Cash dividends paid
Net Cash from (Used for) Financing Activities
Effect of Exchange Rate Changes
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 New Entity
Consolidation
Cash and Cash Equivalents resulting from Exclusionfrom Consolidation
Cash and Cash Equivalents at End of Period

15(from Mar 1, 2014
to Nov 30, 2014)

(0)
282
2
(5,949)
72
(333)
(3)
5
(5)

(325)
325
(210)
0
(8,319)
(22)
(4)
0
(127)

(1,389)--(1,349)0(5)(7,323)0
2(10,030)

1,461
21,583(4,170)4,950(17,853)
174
(445)
5,699

262
48
37,362(4,241)
4,200(3,058)69(542)
34,100

34

(67)

1,632
9,512

(5,829)24,581-280(1,741)

(345)

9,403

18,687