Ichigo Preserves and Improves Real Estate[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.

FY19/2 H1 Earnings
October 11, 2018
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 12, 2018 (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. FY19/2 H1 Consolidated Financial Results (March 1, 2018 to August 31, 2018)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY19/2 H1
26,084 -21.9%
FY18/2 H133,386-61.2%

Note: Comprehensive Income

Operating Profit(JPY million) YOY
9,581 -27.6%
13,236

FY19/2 H1Net Income
per Share(Diluted, JPY)
11.29 -36.2%

FY18/2 H117.74 -25.4%

17.71 -25.2%(2) Consolidated Financial Condition
Total Assets(JPY million)
FY19/2 H1
317,123
296,512

Note: Shareholders’ Equity-15.4%

11,562-16.4%

8,873-25.7%

FY19/2 H1: JPY 5,556 million (-36.9% YOY)
FY18/2 H1: JPY 8,801 million (-22.2% YOY)

Net Income
per Share(Basic, JPY)
11.31 -36.2%

FY18/2(YOY = year-on-year % change)
Recurring Profit
Net Income(JPY million) YOY (JPY million) YOY
8,293 -28.3%
5,608 -36.8%

Net Assets(JPY million)
95,53592,725

FY19/2 H1: JPY 92,036 million

29.0%

Net Assets per
Share (JPY)185.5030.1%

180.20Equity Ratio

FY18/2: JPY 89,336 million

(3) Consolidated Cash Flows
Cash Flows fromOperations(JPY million)
FY19/2 H1-10,334
FY18/2 H1Cash Flows from
Investments(JPY million)-3,600Cash Flows from
Financing(JPY million)
15,876

Cash and Cash
Equivalents(JPY million)
40,487-556-2,544

49,141

11,657

Note: Cash Flows from Operations excluding impact of growth in Real Estate for Sale
FY19/2 H1: JPY 10,412 million FY18/2 H1: JPY15,980 million
2. Dividends
Dividend per Share (JPY)First Second Third Fourth Total
Quarter Quarter Quarter Quarter
FY18/2
FY19/2(Forecast)

–

–

–

6

Total
Dividend on
Payout Ratio
Dividend
Equity Ratio(Consolidated)(JPY million)(Consolidated)
6
2,974
21.3%
3.5%

–

–

–

7

7

23.3%

Revisions to the previously announced forecast: None
3. FY19/2 Full-Year Consolidated Earnings Forecast (March 1, 2018 to February 28, 2019)(YOY = year-on-year % change)
Operating Profit
Recurring Profit
Net Income
Net Income per(JPY million) YOY (JPY million) YOY (JPY million) YOY
Share (JPY)25,000 +19.9%
22,000 +14.7%
15,000
+7.0%
30.10
+7.0%
FY19/2
Revisions to the previously announced forecast: None
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 growing earnings (not revenue), with a particularfocus on growing long-term EPS, so from this year Ichigo is not issuing a Revenue forecast.
4. Other(1) Changes in significant consolidated subsidiaries(material changes in scope of consolidation):Yes

New subsidiaries (1):Subsidiaries removed from consolidation:

Hakata GK Tokumei Kumiai
None(2) Special accounting treatments applied toconsolidated financial statements:

Yes(3) 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

(4) Number of outstanding common shares(i) Number of outstanding shares including treasury shares
FY19/2 H1:504,832,800
FY18/2:504,484,200(ii) Number of treasury shares
FY19/2 H1:
8,686,500
FY18/2:8,706,500(iii) Average number of outstanding shares
FY19/2 H1:
FY18/2 H1:495,940,255
500,323,426

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.
Segment Information
Asset Management 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.
Value-Add preserves and improves real estate. Ichigo receives rental income during the period it carries
out its value-add, along with earning profits on sale that reflect the real estate’s higher value after thevalue-add is complete.
Clean Energy is utility-scale solar power production that supplies clean energy and brings productive
use to idle land.
Note: From FY19/2, the Other segment has been eliminated and its remaining items allocated to othersegments and adjustments, because Ichigo finished selling off the legacy overseas private
equity assets which had been the material constituents of Other in FY18/2. To facilitatecomparison to FY19/2, the FY18/2 data on pp. 15 & 17 has thus been restated with the Other
segment eliminated.
Change in Accounting Treatment of Non-Recourse Loan Expenses from Cost of Goods Sold toNon-Operating Expenses
From FY19/2, non-recourse loan interest expenses (and related costs) are accounted as NonOperating Expenses. Previously, in view of the non-recourse nature of the debt they had been
included in Cost of Goods Sold, but treating them equivalently to corporate loan interest expenses(which are accounted as Non-Operating Expenses) will unify and simplify the accounting treatment.
To facilitate comparison to FY19/2, the FY18/2 data on pp. 1 & 6-13 has thus been restated under
this accounting treatment. Cost of Goods Sold thus decreases by JPY 586 million and Gross Profit
and Operating Profit each increase by JPY 586 million. Within Non-Operating Expenses, Interest
Expense, Debt-Financing Related Fees, and Mark-to-Market Loss on Long-Term Interest Rate
Hedges increase by JPY 514 million, JPY 39 million, and JPY 31 million, respectively. Within Cash
Flows from Operations, Interest Expense, Decrease (Increase) in Prepaid Expenses, Increase(Decrease) in Accrued Expenses, Other, and Interest Expense Paid increase by JPY 514 million, JPY
104 million, JPY 210 million, JPY 39 million, and JPY 661 million, respectively.

3

Consolidated Balance Sheet (FY19/2 H1)(JPY million)
FY18/2(Feb 28, 2018)
AssetsCurrent Assets
Cash and cash equivalents
Trade notes and accounts receivable
Operational loan investments
Operational securities investments
Real estate for sale
Deferred tax assets
Other
Less: allowance for doubtful accounts
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)Total Property, Plant, and Equipment
Intangible Assets
Goodwill
Leasehold rights
Other
Total Intangible Assets
Investments and Other Assets
Securities investments
Long-term loans receivable
Deferred tax assets
Other
Less: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

4

FY19/2 H1(Aug 31, 2018)

45,510
1,097
1,324
2
180,789
342
2,643
-28
231,681

46,676
1,550
1,324
1,212
196,922
361
1,856
-2
249,902

14,273-3,673
10,60020,895-1,122
19,773
26,993
97
969
483
-359
124
58,55814,856-3,918
10,937
20,916-1,644
19,272
28,260
193
1,798
526
-379
147
60,609

1,600
135
233
1,968

1,506
316
277
2,100

2,184
10
68
2,132
-91
4,303
64,831
296,512

2,026
10
103
2,463
-91
4,511
67,220317,123

(JPY million)
FY18/2(Feb 28, 2018)
Liabilities
Current Liabilities
Short-term loans
Bonds (due within one year)
Long-term loans (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
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
hedgesTotal Accumulated Other Comprehensive
IncomeStock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

5

FY19/2 H1(Aug 31, 2018)

1,042
112
4,449

6,985
112
8,613

3,921

1,703

1,609
494
34
4,652
16,316

1,367
493
282
4,329
23,887

520
112,366
63,588
1,744
8,492
758
187,470
203,787464
128,316
58,656
1,734
7,840
688
197,700
221,588

26,723
11,11354,324-2,99589,16526,804
11,18956,958-2,98891,965

543

437

-372

-365

171

71

666
2,722
92,725296,512729
2,769
95,535317,123

Consolidated Income Statement (FY19/2 H1)(JPY million)

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Valuation gain on foreign currency
Mark-to-market gain on long-term interest
rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
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 shares in affiliates
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

6

FY18/2 H1(Mar 1, 2017
to Aug 31, 2017)33,386
17,786
15,5992,362
13,236

FY19/2 H1(Mar 1, 2018
to Aug 31, 2018)26,084
13,62912,454
2,872
9,581

3
26
–

2
28
22

–

83

29
59

59
196

1,111

1,139

337

56

196
88
1,733
11,562

242
45
1,484
8,293

–
1,221
1,221

2
–
2

11
11
12,772
3,862
8,910

–
–
8,296
2,640
5,655

36

46

8,873

5,608

Consolidated Income Statement (FY19/2 Q2 Stand-Alone)(JPY million)

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Valuation gain on foreign currency
Mark-to-market gain on long-term interest
rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
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 shares in affiliates
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

FY18/2 Q2(Jun 1, 2017
to Aug 31, 2017)
20,4709,212
11,2581,171
10,086

FY19/2 Q2(Jun 1, 2018
to Aug 31, 2018)
9,975
4,975
4,999
1,410
3,589

3
6
–

2
6
7

–

76

11
21

45
138

547

570

51

56

4
39
642
9,465

16
8
651
3,076

86
86

–
–

11
11
9,539
2,860
6,678

–
–
3,076
989
2,086

42

24

6,635

2,061

Consolidated Statement of Comprehensive Income (FY19/2 H1)(JPY million)

Net Income
Other Comprehensive Income
Valuation gain (loss) on other securities
Deferred gain (loss) on long-term interest rate
hedgesForeign currency translation adjustment
Total Other Comprehensive Income
Comprehensive Income
Comprehensive income attributable toshareholders
Comprehensive income attributable to minority
interests

8

FY18/2 H1(Mar 1, 2017
to Aug 31, 2017)
8,910

FY19/2 H1(Mar 1, 2018
to Aug 31, 2018)
5,655

-46

-106

-16

7

-45
-108
8,801

–
-99
5,556

8,513

5,509

287

46

Consolidated Statement of Comprehensive Income (FY19/2 Q2 Stand-Alone)(JPY million)

Net Income
Other Comprehensive Income
Valuation gain (loss) on other securities
Deferred gain (loss) on long-term interest rate
hedgesForeign currency translation adjustment
Total Other Comprehensive Income
Comprehensive Income
Comprehensive income attributable toshareholders
Comprehensive income attributable to minority
interests

9

FY18/2 Q2(Jun 1, 2017
to Aug 31, 2017)
6,678

FY19/2 Q2(Jun 1, 2018
to Aug 31, 2018)
2,086

-8

-5

19

25

-23
-13
6,665

–
20
2,107

6,359

2,082

306

24

Consolidated Cash Flow Statement (FY19/2 H1)
FY18/2 H1(Mar 1, 2017
to Aug 31, 2017)
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 securities investments
Loss (gain) on sale of shares in affiliates
Decrease (increase) in trading notes andreceivables
Decrease (increase) in operational securities
investments
Decrease (increase) in real estate for sale
Decrease (increase) in solar power plants for sale
Decrease (increase) in advances paid
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable
Decrease (increase) in consumption tax receivable
Increase (decrease) in accounts payable
Increase (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

10(JPY million)
FY19/2 H1(Mar 1, 2018
to Aug 31, 2018)12,772
359
110
50
148

8,296
795
107
94
248

-353

-26

-29
1,111
–
-1,221

-30
1,139
-2
–

-161

-453

1,594

-425

-1,638
996
980
-129
21
776
-542
33
-38
-135
440
15,14329-1,174-2,356
14
11,657-16,132
–
-70
-98
-56
949
-593
27
388
-696
22
-6,51730-1,041-2,8071-10,334

(JPY million)
FY18/2 H1(Mar 1, 2017 to
Aug 31, 2017)
Cash Flows from Investments:
Payments into time deposits
Redemptions of time deposits
Acquisition of 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 subsidiary shares resulting inchange of consolidation scope
Sale of subsidiary shares resulting in change ofconsolidation scope
Other
Net Cash from (Used for) Investments
Cash Flows from Financing:
Net increase (decrease) in short-term loans
Net increase (decrease) in short-term
non-recourse loans
Repayment of maturing bond principal tobondholders
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
Dividends paid
Net Cash from (Used for) Financing
Effect of Exchange Rate Changes on Cash andCash 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 Quarter11

FY19/2 H1(Mar 1, 2018 toAug 31, 2018)

–
–
-29
–
-1,117
-7
-18
–
-10
–

-57
10
-25
32
-3,040
-359
–
32
-15
–

-1,453

–

2,096

–

-16
-556

-176
-3,600

1,087

5,942

-611

–

-56

-56

22,263-7,692
2,200-15,736
7-1,499-2,506-2,54424,855-4,6653,500-10,850120–-2,97015,876

-2

–

8,553
41,3691,941
39,365-781-820

49,141

40,487

Consolidated Cash Flow Statement (FY19/2 Q2 Stand-Alone)
FY18/2 Q2(Jun 1, 2017
to Aug 31, 2017)
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 shares in affiliates
Decrease (increase) in trading notes andreceivables
Decrease (increase) in operational securities
investments
Decrease (increase) in real estate for sale
Decrease (increase) in solar power plants for sale
Decrease (increase) in advances paid
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable
Decrease (increase) in consumption tax receivable
Increase (decrease) in accounts payable
Increase (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

12(JPY million)
FY19/2 Q2(Jun 1, 2018
to Aug 31, 2018)

9,539
169
57
25
10

3,076
401
55
43
24

-348

–

-9
547
-86

-9
570
–

462

-123

1,520

137

1,353
996
780
37
-5
935
234
-4
-89
-83
80
16,124
9
-513
-608
14
15,025-15,329
–
-147
26
-49
535
641
-90
-121
-199
-230
-10,789
9
-473
-854
1
-12,106

(JPY million)
FY18/2 Q2(Jun 1, 2017 to
Aug 31, 2017)
Cash Flows from Investments:
Payments into time deposits
Redemptions of time deposits
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 subsidiary shares resulting inchange of consolidation scope
Sale of subsidiary shares resulting in change ofconsolidation scope
Other
Net Cash from (Used for) Investments
Cash Flows from Financing:
Net increase (decrease) in short-term loans
Net increase (decrease) in short-term
non-recourse loans
Repayment of maturing bond principal tobondholders
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
Dividends paid
Net Cash from (Used for) Financing
Effect of Exchange Rate Changes on Cash andCash 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 Quarter

13

FY19/2 Q2(Jun 1, 2018 toAug 31, 2018)

–
–
-237
-5
-18
–
–
–

-3
–
-2,307
-216
–
32
–
–

-1,453

–

430

–

–
-1,283-153-2,646

507

2,055

-611

–

-56

-56

3,633
-2,5992,200-6,7131-104-3,742

11,642-1,417–-3,767
60
-75
8,442

–

–

10,00039,232-6,311
46,857-91-59

49,141

40,487

Revenue, P&L, and Assets by Segment (Current FY19/2 H1)(Mar 1, 2018 to Aug 31, 2018)(JPY million)
Segment
Amount2 Recorded in
Adjustment
Asset
Clean
Financial
Management Value-Add Energy Total
Statements
Revenue
Revenue from
External
Customers

1,203

22,753

2,127

26,084–26,084

469

–

–

469

-469

–

1,672
1,012

22,753
7,620

2,127
968

26,553
9,602

-469
-20

26,084
9,581

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)

912

4,394

968

6,276

–

–

Flow Earnings(Profits on ValueAdd Real Estate
Sales, Profits on
Solar Power Plant
Sales, Spot AM
Fees, etc.)

100

3,225

–

3,326

–

–

1,930

255,698

26,325 283,954

33,169317,123

–

260

524

784

10

795

–

2,059

980

3,039

44

3,084

Inter-Segment
Activities or
Reclassifications
Total
Segment P&L1
Segment P&L
Details1

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 33,169 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.

14

Revenue, P&L, and Assets by Segment (Previous FY18/2 H1)(Mar 1, 2017 to Aug 31, 2017)(JPY million)
Segment
Amount2,3 Recorded in
Adjustment
Asset
Clean
Financial
Management Value-Add Energy Total
Statements
Revenue
Revenue from
External
Customers

1,229

29,8092,241

33,280105

33,386

566

–

–

566

-566

–

1,795
999

29,81011,6792,241
596

33,847
13,275-461-39

33,386
13,236

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)

798

4,335

265

5,400

–

–

Flow Earnings(Profits on ValueAdd Real Estate
Sales, Profits on
Solar Power Plant
Sales, Spot AM
Fees, etc.)

201

7,343

331

7,875

–

–

1,491

231,502

21,864 254,859

31,872286,732

–

151

195

346

12

359

–

6,598

1,288

7,886

79

7,966

Inter-Segment
Activities or
Reclassifications
Total
Segment P&L1
Segment P&L
Details1

Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L is on an Operating Profit basis.
Other segment eliminated and data restated for consistency with FY19/2 per note on page 3.
3
The Adjustment to Segment P&L (-JPY 39 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 31,872 million) reflects corporate assets, such as cash and cash equivalents, thatwere not allocated to the segments. The Adjustment to Depreciation (JPY 12 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 79
million) reflects corporate assets that were not allocated to the segments.
2

15

Revenue, P&L, and Assets by Segment (Current FY19/2 Q2 Stand-Alone)(Jun 1, 2018 to Aug 31, 2018)(JPY million)
Segment
Amount2 Recorded in
Adjustment
Asset
Clean
Financial
Management Value-Add Energy Total
Statements
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

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)

515

2,001

547

3,146

–

–

Flow Earnings(Profits on ValueAdd Real Estate
Sales, Profits on
Solar Power Plant
Sales, Spot AM
Fees, etc.)

42

514

–

474

–

–

1,930

255,698

26,325 283,954

33,169317,123

–

133

262

395

5

401

–

1,714

311

2,025

33

2,058

Segment P&L
Details1

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 32 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment Assets(JPY 33,169 million) reflects corporate assets, such as cash and cash equivalents, that were notallocated to the segments. The Adjustment to Depreciation (JPY 5 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 33 million) reflects corporate assetsthat were not allocated to the segments.

16

Revenue, P&L, and Assets by Segment (Previous FY18/2 Q2 Stand-Alone)(Jun 1, 2017 to Aug 31, 2017)(JPY million)
Segment
Amount2,3 Recorded in
Adjustment
Asset
Clean
Financial
Management Value-Add Energy Total
Statements
Revenue
Revenue from
External
Customers

547

18,036

1,868

20,452

18

20,470Inter-Segment
Activities or
Reclassifications

327

–

–

327

-327

–

Total
Segment P&L1

874
495

18,036
9,070

1,868
544

20,77910,109-308-23

20,47010,086

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)

441

2,414

213

3,069

–

–

Flow Earnings(Profits on ValueAdd Real Estate
Sales, Profits on
Solar Power Plant
Sales, Spot AM
Fees, etc.)

53

6,656

331

7,040

–

–

1,491

231,502

21,864 254,859

31,872286,732

–

70

92

163

6

169

–

6,580

452

7,032

70

7,103

Segment P&L
Details1

Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L is on an Operating Profit basis.
Other segment eliminated and data restated for consistency with FY19/2 per note on page 3.
3
The Adjustment to Segment P&L (-JPY 23 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 31,872 million) reflects corporate assets, such as cash and cash equivalents, thatwere not allocated to the segments. The Adjustment to Depreciation (JPY 6 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 70 million) reflects
corporate assets that were not allocated to the segments.
2

17