[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.

FY24/2 Q1 Earnings
July 13, 2023
Ichigo Inc. (Tokyo Stock Exchange Prime, 2337)
Representative: Takuma Hasegawa, President
Inquiries:
Takanori Sakamatsu, Senior Statutory Executive Officer
Telephone: +81-3-3502-4818
www.ichigo.gr.jp/en
Submission of the Financial Report (Shihanki Hokokusho): July 14, 2023 (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. FY24/2 Q1 Consolidated Financial Results (March 1, 2023 to May 31, 2023)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY24/2 Q1

10,152

FY23/2 Q1

16,638 +31.3%-39.0%(YOY = year-on-year % change)
All-InOperating Profit
Recurring Profit
Operating Profit(JPY million) YOY(JPY million) YOY(JPY million) YOY
2,445 -10.2%
2,691-1.2%
1,469 -37.9%
2,723-13.8%

2,723-13.8%

2,367-0.7%

Note: Comprehensive Income

FY24/2 Q1: JPY 1,331 million (-30.4% YOY)
FY23/2 Q1: JPY 1,914 million (+14.5% YOY)
All-In Operating Profit = Operating Profit + Gains on Sale of Sustainable Real Estate Assets
Recorded as Extraordinary Gains

FY24/2 Q1

1,455-5.2%

Net Income
per Share(Basic, JPY)
3.21-2.3%

FY23/2 Q1

1,534-0.7%

3.29

Net Income(JPY million) YOY(2) Consolidated Financial Condition
Total Assets(JPY million)
FY24/2 Q1
355,198
FY23/2

338,619

Net Incomeper Share(Diluted, JPY)––+0.1%––Net Assets(JPY million)
112,083

Shareholders’Equity Ratio
28.3%

Net Assets perShare (JPY)222.05

114,39330.4%

227.24

Note: Shareholders’ Equity FY24/2 Q1: JPY 100,673 million

1

FY23/2: JPY 103,026 million

(3) Consolidated Cash Flows
Cash Flows from
Financing(JPY million)

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

Cash Flows fromOperations(JPY million)

Cash Flows from
Investments(JPY million)

FY24/2 Q1-15,490-3,404

16,22337,642

FY23/2 Q1

1,017-4,214-380

42,637

Note: Economic Operating Cash Flow (Cash Flows from Operations, excluding net change in RealEstate and Power Plants for Sale, plus post-tax gains on sales of Sustainable Real Estate assets
recorded as extraordinary gains)
FY24/2 Q1: JPY 1,079 million FY23/2 Q1: JPY 777 million
From FY24/2 Q1, gains on sales of Sustainable Real Estate assets recorded as extraordinary
gains are included under Economic Operating Cash Flow. The FY23/2 Q1 figure reflects thischange.
2. Dividends

FY23/2
FY24/2(Forecast)

Dividend per Share (JPY)
Total
Dividend
First Second Third FourthQuarter Quarter Quarter Quarter Total (JPY million)–––
883,627–––

88

Payout Ratio
39.1%

Dividend onEquity
(DOE)
3.6%

36.3%

3. FY24/2 Full-Year Consolidated Earnings Forecast (March 1, 2023 to February 29, 2024)(YOY = year-on-year % change)
All-InOperating Profit
Recurring Profit
Net Income
Net Income per
Operating Profit(JPY million)(JPY million)(JPY million)
Share (JPY)(JPY million)
YOY
YOY
YOYYOYYOY
FY24/29,500 -24.0% 18,000 +6.5% 6,000 -44.7% 10,000 +6.3% 22.06 +7.9%2

4. Other(1) Changes in significant consolidated subsidiaries(material changes in scope of consolidation):

None(2) 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(3) Number of outstanding common shares(i) Number of outstanding shares (including treasury shares) at period-end
FY24/2 Q1:
505,381,018
FY23/2:505,381,018(ii) Number of treasury shares at period-end
FY24/2 Q1:
51,992,200
FY23/2:
51,992,200(iii) Average number of outstanding shares (excluding treasury shares) during the period
FY24/2 Q1:
FY23/2:

453,388,818
467,047,779

Segment Information
Asset Management (AM) generates fee income via the management of Ichigo Office (8975), Ichigo
Hotel (3463), Ichigo Green (9282), and private real estate funds.
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.
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 (FY24/2 Q1)
FY23/2(Feb 28, 2023)(JPY million)
FY24/2 Q1(May 31, 2023)

AssetsCurrent Assets
Cash and deposits
Trade notes and accounts receivable
Operational loan investments
Operational securities investments
Real estate for sale
OtherLess: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures
Depreciation
Buildings and structures (net)
Solar and wind power plants
Depreciation
Solar and wind power plants (net)Land
Buildings and structures underconstruction
Solar and wind power plants underconstruction
OtherDepreciation
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

440,536
3,866
1,324
47
79,151
3,197-66

37,865
4,813
1,324
–
95,3413,428-33

128,057

142,740

66,790-12,751
54,03934,956-8,094
26,862114,431

66,528-13,413
53,11434,956-8,532
26,423113,039

679

1,802

2,250

3,799

3,040
-1,9801,060

3,045-2,055989

199,323

199,168

717
1,397
283

696
1,397
249

2,398

2,343

4,455
240
341

6,489
232
431

OtherLess: allowance for doubtful accounts

FY23/2(Feb 28, 2023)
3,937
-133

(JPY million)
FY24/2 Q1(May 31, 2023)
3,928
-135

Total Investments and Other Assets
Total Fixed Assets
Total Assets

8,840
210,562
338,619

10,945
212,457
355,198

5

(JPY million)
FY24/2 Q1(May 31, 2023)

FY23/2(Feb 28, 2023)
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
Accrued bonuses
Other current liabilities

962
364
8,539

3,500
364
14,285

4,218

4,220

949
112
4,053

864
308
3,100

19,20026,643

5,239
152,624
38,012
1,589
7,163
396

5,198
164,254
37,863
1,590
7,078
485

Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ EquityCapital
Capital reserve
Retained earnings
Treasury shares

205,026
224,226

216,472
243,115

26,888
11,26682,438-17,91426,888
11,26680,266-17,914

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

102,678

100,506

296

261

51

-94

347

167

814
10,552
114,393338,619801
10,607
112,083
355,198

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 (FY24/2 Q1)Revenue
Cost of Goods Sold(Depreciation)
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Foreign exchange gains
Mark-to-market gains on long-term interest
rate hedges
Government subsidy income
OtherTotal 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 fixed assets
Gains on sale of securities investments
Redevelopment up-front rental compensation
Other
Total Extraordinary Gains
Pre-Tax Income
Total Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to MinorityInterests
Net Income

7

FY23/2 Q1(Mar 1, 2022 toMay 31, 2022)
16,63812,320
1,280
4,317
1,593
2,723

(JPY million)
FY24/2 Q1(Mar 1, 2023toMay 31, 2023)
10,152
5,915
1,213
4,236
1,791
2,44511881114–

186–

620242

16
4
48

534

551

–

393

16
48
599
2,367

1167
1,024
1,469

–
–––
–
2,367
776
1,590

246
85
327
46705
2,175
663
1,511

56

56

1,534

1,455

Consolidated Statement of Comprehensive Income (FY24/2 Q1)(JPY million)
FY23/2 Q1
FY24/2 Q1(Mar 1, 2022 to(Mar 1, 2023 toMay 31, 2022)
May 31, 2023)
Pre-Minority Interest Net Income
1,590
1,511
Other Comprehensive Income
Valuation gains (losses) on other securities
260-34
Deferred gains (losses) on long-term
63-145interest rate hedges
Total Other Comprehensive Income
323-180
Comprehensive Income
1,914
1,331
Comprehensive income attributable to
1,858
1,274
common shareholders
Comprehensive income attributable to56
56
minority interests

8Consolidated Cash Flow Statement (FY24/2 Q1)(JPY million)
FY24/2 Q1(Mar 1, 2023 to
May 31, 2023)

FY23/2 Q1(Mar 1, 2022 to
May 31, 2022)
Cash Flows from Operations:Pre-tax income
Depreciation
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend incomeInterest expense
Losses (gains) on sale of securities
investments
Losses (gains) on sales of fixed assets
Decrease (increase) in trading notes andreceivables
Decrease (increase) in operational securities
investments
Decrease (increase) in real estate for sale

2,367
1,334
44
134

2,175
1,267
21
196

–

-31-20
534

-26
551

–

-85

–

-246

-644

-947

1,890

47

240

-16,189

Decrease (increase) in advances paid

-25-48Decrease (increase) in prepaid expenses-220-313

Decrease (increase) in accounts receivable
Decrease (increase) in consumption taxes
receivable
Increase (decrease) in accounts payable

-22

43

310

-21-738-1,164

Increase (decrease) in accrued expenses-4-12

Increase (decrease) in advances received

-938

23

Increase (decrease) in deposits received
Increase (decrease) in security deposits
received
Increase (decrease) in accrued consumption
taxes
Other
Sub-TotalInterest and dividends received
Interest expense paid
Income taxes paid
Net Cash from (Used for) Operations

735

242

24-84-568-141-184
4,249
20-471-2,781
1,017

357-14,390
26-462-665-15,4909

(JPY million)
FY24/2 Q1(Mar 1, 2023toMay 31, 2023)

FY23/2 Q1(Mar 1, 2022 toMay 31, 2022)
Cash Flows from Investments:
Payments into time deposits––

Redemptions of time deposits

20–

Payments for securities investments-29-2,094

Proceeds from sale of securities investments–

100

Acquisition of property, plant, and equipment
Proceeds from sale of property, plant, andequipment
Acquisition of intangible assets-4,170-2,031

－

1,030

-4

-1

Payments of SPC capital contributions-6–

Payments of security deposits–-127

Payments of loans receivable

-32

-10

Payments received for loans receivable

77

Other

2-277

-4,214-3,404

Net Cash from (Used for) Investments(JPY million)
FY24/2 Q1(Mar 1, 2023 toMay 31, 2023)

FY23/2 Q1(Mar 1, 2022 toMay 31, 2022)
Cash Flows from Financing:
Net increase (decrease) in short-term loans
Repayment of maturing bond principal tobondholders
Proceeds from long-term loans

2,417

2,537

-40

-40

10,984

21,264-12,354-3,888Proceeds from long-term non-recourse loans

3,000–Repayment of long-term non-recourse loans
Share buyback

-141

-147

-1,096–

Dividends paid

-3,148-3,499–-1-380

16,223––-3,576-2,671

46,21440,313

42,63737,642

Repayment of long-term loans

Dividends paid to minority interests
Net Cash from (Used for) Financing
Effect of Exchange Rate Change on Cash andCash Equivalents
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning ofPeriod
Cash and Cash Equivalents at End of Period10Revenue, P&L, and Assets by Segment (Current FY24/2 Q1)(Mar 1, 2023 to May 31, 2023)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment
Financial
Statements
2

Revenue
Revenue from
External
Customers

619

8,004

1,528

10,152–

10,152

Inter-Segment
Activities or
Reclassifications

103

－－

103

-103

－

722
386

8,004
1,480

1,528
576

10,256
2,442

-103
2

10,152
2,445

－

246

－

246

－

246

386

1,726

576

2,689

2

2,691

361

1,420

576

2,358

–

–

24

306

－

330

–

–

3,643

287,770

37,038 328,452

26,746355,198–808

439

1,248

15

1,263

–

277

1,548

1,825

–

1,826

Total
Operating Profit1
Gains on Sale of
Sustainable Real
Estate Assets
Recorded as
Extraordinary
Gains
Segment P&L(All-In OperatingProfit) 1
Segment P&L
Details
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Gains on
Sustainable Real
Estate Sales,
Gains on Solar
Power Plant
Sales, Spot AM
Fees, etc.)
Segment Assets
OtherDepreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets11

1

Segment P&L (All-In Operating Profit) = Operating Profit + Gains on Sale of Sustainable
Real Estate Assets Recorded as Extraordinary Gains
2The Adjustment to Segment P&L (JPY 2 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 26,746 million) reflects corporate assets, such as cash and deposits, that werenot allocated to the segments. The Adjustment to Depreciation (JPY 15 million) reflects
depreciation of corporate assets that were not allocated to the segments. The Adjustment toIncrease in Property, Plant, and Equipment and Intangible Assets (less than JPY 1 million)
reflects corporate assets that were not allocated to the segments.

12

Revenue, P&L, and Assets by Segment (Previous FY23/2 Q1)(Mar 1, 2022 to May 31, 2022)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

471

14,591

1,574

16,638－

16,638Inter-Segment
Activities or
Reclassifications

106－－

106

-106

－

578
322

14,592
1,751

1,574
659

16,745
2,733

-106
-9

16,6382,723－－－－－－

322

1,751

659

2,733

-9

2,723

322

509

659

1,491

–––

1,241

－

1,241

–

–

2,160

269,261

36,909 308,331

28,327

336,658

–

882

438

1,320

13

1,334

–

3,750

361

4,112

3

4,116

Total
Segment P&L1
Gains on Sale of
Sustainable Real
Estate Assets
Recorded as
Extraordinary
Gains
Segment P&L(All-In OperatingProfit) 1
Segment P&L
Details
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Gains on
Sustainable Real
Estate Sales,
Gains on Solar
Power Plant
Sales, Spot AM
Fees, etc.)Segment Assets
Other
Depreciation
Increase in
Property, Plant,and Equipment
and Intangible
Assets1Segment P&L (All-In Operating Profit) = Operating Profit + Gains on Sale of Sustainable
Real Estate Assets Recorded as Extraordinary Gains
132The Adjustment to Segment P&L (-JPY 9 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 28,327 million) reflects corporate assets, such as cash and deposits, that werenot allocated to the segments. The Adjustment to Depreciation (JPY 13 million) reflectsdepreciation of corporate assets that were not allocated to the segments. The Adjustment toIncrease in Property, Plant, and Equipment and Intangible Assets (JPY 3 million) reflects
corporate assets that were not allocated to the segments.

14