[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.

FY21/2 Q1 Earnings
July 14, 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
Submission of the Financial Report (Shihanki Hokokusho): July 15, 2020 (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. FY21/2 Q1 Consolidated Financial Results (March 1, 2020 to May 31, 2020)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY21/2 Q1
22,730 -13.5%
FY20/2 Q1

26,290+63.2%

Note: Comprehensive Income

FY21/2 Q1Net Income
per Share(Basic, JPY)
4.49 -54.0%

FY20/2 Q1

9.76

8,537+42.5%

7,607+45.8%

4,768+34.4%

FY21/2 Q1: JPY 1,934 million (-65.8% YOY)
FY20/2 Q1: JPY 5,651 million (+63.9% YOY)

+36.5%(2) Consolidated Financial Condition
Total Assets(JPY million)
FY21/2 Q1
334,659
FY20/2

Operating Profit(JPY million) YOY
3,650 -57.2%(YOY = year-on-year % change)
Recurring Profit
Net Income(JPY million) YOY (JPY million) YOY
3,303 -56.6%
2,164 -54.6%

333,726

Net Incomeper Share(Diluted, JPY)
4.49 -54.0%
9.76+36.6%Net Assets(JPY million)
100,177

Shareholder
Equity Ratio
29.6%

Net Assets perShare (JPY)205.50101,60730.1%

208.49Note: Shareholders’ Equity FY21/2 Q1: JPY 98,997 million FY20/2: JPY 100,434 million1(3) Consolidated Cash Flows
Cash Flows fromOperations(JPY million)

Cash Flows from
Investments(JPY million)

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

Cash Flows from
Financing(JPY million)

FY21/2 Q1

12,118-10,640

1,617

43,922

FY20/2 Q1

632-3,110-514

35,522

Note: Economic Operating Cash Flow (Cash Flows from Operations excluding net change in Real Estateand Power Plants for Sale)
FY21/2 Q1: JPY 1,780 million FY20/2 Q1: JPY 4,187 million
2. Dividends
Dividend per Share (JPY)First Second Third FourthQuarter Quarter Quarter Quarter Total
FY20/2
FY21/2(Forecast)

–––

7

Total
Dividend(JPY million)
7
3,372

––

7

7

Payout Ratio
41.5%
42.2%
~ 96.4%

Dividend on
Equity(DOE)
3.4%

Note: Ichigo is hereby announcing its FY21/2 Dividend Forecast. For details, please see “Revised
FY21/2 Full-Year Earnings Forecast (March 1, 2020 – February 28, 2021)” 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(JPY million) YOY(JPY million) YOY(JPY million) YOY
Share (JPY)FY21/27,400-53.5%
5,000~ 12,900 ~ -73.3% ~ 10,400-57.4%
3,500-2.5%~ -79.5% ~ 8,000 ~ -57.3%

7.26
-1.7%
~ 16.6 ~ -57.0%

Note: Given Covid-19 uncertainty, Ichigo is forecasting its FY21/2 earnings as a range. For details,
please see “Revised FY21/2 Full-Year Earnings Forecast (March 1, 2020 – February 28,2021)” on page 4.
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: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
FY21/2 Q1:
505,371,918
FY20/2:505,368,918(ii) Number of treasury shares at period-end
FY21/2 Q1:
23,637,400
FY20/2:
23,637,400(iii) Average number of outstanding shares (excluding treasury shares) during the period
FY21/2 Q1:
FY20/2 Q1:

481,734,257
488,510,230

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.
Note: The Sustainable Real Estate segment was formerly called Value-Add. In keeping with its Ichigo
2030 vision, Ichigo changed the segment name to Sustainable Real Estate in 2019 in order to put full
focus on Ichigo’s commitment to preserving and improving real estate as a sustainable infrastructurecompany.
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

5. Revised FY21/2 Full-Year Earnings Forecast (March 1, 2020 – February 28, 2021)
Ichigo revised up its FY21/2 full-year forecast and announced its FY21/2 dividend forecast in
today’s release “FY21/2 Full-Year Earnings Forecast Revision.”
Ichigo provides a full-year earnings forecast, but not a half-year forecast, because we believe thelonger 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.
Ichigo is focused on earnings growth (not revenue growth), with a particular focus on growing longterm EPS, so does not issue a Revenue forecast.
Reflecting Covid-19 uncertainties, Ichigo is forecasting its FY21/2 earnings as a range.
In line with its Progressive Dividend Policy, Ichigo is forecasting its FY21/2 Dividend to be JPY 7(unchanged from FY20/2).
While Covid-19 is impacting hotel and retail asset rental income, Ichigo does not expect it to affectthe carrying value of its Sustainable Real Estate assets.
(JPY million)
EPS(JPY)

Operating
ProfitRecurring
ProfitNet Income

Initial Forecast (A)6,200~12,900

3,400~10,400

2,000~8,000

4.15~16.60

Revised Forecast (B)7,400~12,900

5,000~10,400

3,500~8,000

7.26~16.60

Change (B) – (A)% Change+1,200+19.4%+1,600+47.1%+1,500+75.0%+3.11+74.9%

Reference:
FY20/2 Actual

27,721

24,395

8,201

16.89

4

Consolidated Balance Sheet (FY21/2 Q1)
FY20/2(Feb 29, 2020)(JPY million)
FY21/2 Q1(May 31, 2020)

AssetsCurrent Assets
Cash and cash equivalents
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 power plant equipment
Depreciation
Solar power plant equipment (net)Land
Buildings under construction
Solar power plants under construction
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

5

41,067
2,308
1,324
902
68,2903,721-6
117,608

44,164
1,686
1,324
597
58,1544,324-7110,244

60,131-5,08055,050
26,713-3,28723,425
122,1142,432
2,058
1,844-727
1,116
206,198

63,818-5,682
58,13528,049-3,634
24,415
124,773
4,484
1,140
2,013
-795
1,218
214,167

1,090
687
705
2,482

1,062
1,132
834
3,028

4,321
510
568

4,518
10580

OtherLess: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

6

FY20/2(Feb 29, 2020)
2,128-91
7,436
216,118
333,726(JPY million)
FY21/2 Q1(May 31, 2020)
2,200
-91
7,217
224,414334,659

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

FY21/2 Q1(May 31, 2020)

3,086
274
12,277

4,366
274
12,734

1,178

1,178

2,416
33
5,013

1,057
205
3,987

24,28023,804

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

6,111
154,683
39,043
1,892
8,049
896

Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares

207,838
232,119

210,677
234,481

26,885
11,272
71,505-8,98826,886
11,27270,297-8,988

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

100,674

99,468

158

-64

-397

-406

-239

-470

988
184

996
183

101,607
333,726

100,177
334,659

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 Net Assets
Total Liabilities and Net Assets

7

Consolidated Income Statement (FY21/2 Q1)
FY20/2 Q1(Mar 1, 2019 toMay 31, 2019)26,29015,994
10,295
1,758
8,537(JPY million）
FY21/2 Q1(Mar 1, 2020 toMay 31, 2021)
22,73017,440
5,289
1,638
3,650

135

354–239

151653314

558
39573
998

10236
49

759

Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Gains on sale of securities investments
Gains on sale of subsidiary shares
Other982
7,607

660
3,303

11169
35–––

Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Covid-19 writedown of securities
investments
Total Extraordinary Losses
Pre-Tax Net Income
Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to MinorityInterests
Net Income

215

–

27––

114

27
7,796
2,094
5,701

115
3,188
1,023
2,165

932

14,7682,164

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Mark-to-market gain on long-term interest
rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
Foreign currency valuation losses
Mark-to-market loss on long-term interest
rate hedges
Debt financing-related fees
Other8

Consolidated Statement of Comprehensive Income (FY21/2 Q1)

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

9FY20/2 Q1(Mar 1, 2019 toMay 31, 2019)
5,701(JPY million)
FY21/2 Q1(Mar 1, 2020 toMay 31, 2021)
2,165-37-222-12-8-49
5,651-231
1,934

4,718

1,933

932

1

Consolidated Cash Flow Statement (FY21/2 Q1)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 doubtfulaccounts
Interest and dividend income
Interest expenses
Losses (gains) on sale of subsidiary shares
Losses (gains) on sale of securities investments
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
Valuation losses on SPC capital contributions
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 deposits received
Increase (decrease) in security deposits received
OtherSub-Total
Interest and dividends received
Interest expense paid
Income taxes paid
Net Cash from (Used for) Operations

10

FY20/2 Q1(Mar 1, 2019 to
May 31, 2019)(JPY million)
FY21/2 Q1(Mar 1, 2020 toMay 31, 2020)

7,796
610
62
43250

3,188
1,046
8
27
172

–

–

-37
558
-169
-11-58
573
–––

114

-326

622

611

305

-3,380–122-119
51-32-824
104
595
-297
-190
5,418
37-463-4,35863210,114
3291-228-20-99-1,079
97
-1-67
-301
14,71058-494-2,155
12,118Cash Flows from Investments:
Payments into time deposits
Proceeds from withdrawal 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
Payments of loans receivable
OtherNet 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 tobondholders
Proceeds from long-term loans
Repayment of long-term loans
Repayment of long term non-recourse loans
Proceeds from employee exercise of stock options
Payments to minority interests
Dividends paid
Dividends paid to minority interests
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 fromExclusion from Consolidation
Cash and Cash Equivalents at End of Period

11

FY20/2 Q1(Mar 1, 2019 toMay 31, 2019)(JPY million)
FY21/2 Q1(Mar 1, 2020 toMay 31, 2020)

-3
2,009
-93
111
-5,000
-70
-2
–
-20
-40
-1
-3,110-2–-46–-9,612
-611
-3
15
–
-368
-11
-10,640

3,192
–

1,280
70

–

-40

14,805-12,164-1,727–-1,276-3,342–-514

13,515-9,858-112
1–-3,235
-1
1,617

–

–

-2,99145,0293,095
40,826-6,514–35,522

43,922

Revenue, P&L, and Assets by Segment (Current FY21/2 Q1)(Mar 1, 2020 to May 31, 2020)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

501

20,9401,288

22,730–22,730Inter-Segment
Activities or
Reclassifications

140–

–

141

-141

–

Total
Segment P&L1

642
334

20,940
2,748

1,288
594

22,871
3,677

-141
-26

22,730
3,650

301

1,206

594

2,102–

–

32

1,541

–

1,574

–

–

1,614

271,128

32,311 305,054

29,604

334,659–691

348

1,039

9

1,049

–

9,027

507

9,534

54

9,589

Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar PowerEarnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AMFees, 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 26 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 29,604 million) reflects corporate assets, such as cash and deposits, that werenot allocated to the segments. The Adjustment to Depreciation (JPY 9 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 54 million) reflects
corporate assets that were not allocated to the segments.

12

Revenue, P&L, and Assets by Segment (Previous FY20/2 Q1)(Mar 1, 2019 to May 31, 2019)(JPY million)
Segment
AssetSustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

626

24,643

1,020

26,290–26,290Inter-Segment
Activities or
Reclassifications

288

–

–

289

-289

–

Total
Segment P&L1

915
519

24,643
7,644

1,020
377

26,579
8,542

-289
-5

26,290
8,537

408

2,512

377

3,298

–

–

111

5,132

–

5,243

–

–

1,941

266,295

28,344 296,580

21,640318,220

–

335

268

604

6610

–

4,261

460

4,722

50

4,772

Segment P&L
Details1Stock Earnings(Rental Income,Base AM Fees,FIT Solar PowerEarnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AMFees, etc.)
Segment Assets
OtherDepreciation
Increase in
Property, Plant,and Equipment
and Intangible
Assets12Segment P&L is on an Operating Profit basis.
The Adjustment to Segment P&L (-JPY 5 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment Assets(JPY 21,640 million) reflects corporate assets, such as cash and deposits, that were not allocatedto the segments. The Adjustment to Depreciation (JPY 6 million) reflects depreciation ofcorporate assets that were not allocated to the segments. The Adjustment to Increase in Property,Plant, and Equipment and Intangible Assets (JPY 50 million) reflects corporate assets that werenot allocated to the segments.

13