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 Fiscal Year Ending February 2015
April 20, 2015
Ichigo Group Holdings Co., Ltd. (JASDAQ, 2337)
Representative: Kenji Iwasaki, President and Representative Statutory Executive Officer
Inquiries:Takashi Minamikawa, Senior Executive Managing Director
Telephone: +81-3-3502-4818
www.ichigo-holdings.co.jp/english
Annual General Shareholders Meeting: May 24, 2015 (expected)
Submission of the Financial Report (Yuka Shoken Hokokusho): May 25, 2015 (expected)
Dividend Payment: May 25, 2015 (expected)
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 February 28, 2015)(1) Consolidated Financial Results (Full Year)
Revenues(YOY = year-on-year % change)

Operating Profit
YOY

Recurring Profit(million yen)

YOYNet Income(million yen)

YOY(million yen)(million yen)

YOY

Feb 15 FY

42,705+21.7%

8,189+109.3%

7,255+101.7%

6,761+49.4%

Feb 14 FY

35,101+114.1%

3,912+112.1%

3,597+107.4%

4,526+176.5%

Note: Comprehensive income Feb 15 FY: 7,780 million yen (+72.2%) Feb 14 FY: 4,518 million yen (+65.5%)
Net Income perShare (basic, yen)

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

13.58

13.47

13.0

5.0

Operating
ProfitMargin (%)
19.2

Feb 14 FY

9.839.71

11.8

3.7

11.1

Return on
Equity (%)

Return on
Assets (%)(2) Consolidated Financial Condition

Feb 15 FY

172,744

58,377

32.2

Net Assets per
Share(yen)111.54

Feb 14 FY

114,944

50,842

42.2

97.42

Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Note1: Shareholders’ equity Feb 15 FY: 55,673 million yen Feb 14 FY: 48,460 million yen(3) Consolidated Cash FlowFeb 15 FY

Cash Flow fromOperations(million yen)
-34,292

Cash Flow from
Investing(million yen)
-12,485

Cash Flow fromFinancing(million yen)
41,658Cash and CashEquivalents(million yen)
18,972

Feb 14 FY

1,254-8,610

24,682

24,581

2. Dividends
Dividend per Share (yen)

Total
Dividend(millionyen)

Dividend on
Equity Ratio

Payout Ratio(consolidated)

First
Quarter

SecondQuarter

ThirdQuarter

FourthQuarter

FiscalYear

Feb 14 FY-0-

1.10

1.10

547

11.2

1.4

Feb 15 FY-0-

1.30

1.30

648

9.6

1.2

Feb 16 FY(Expected)

-0-

2.00

2.00

(consolidated)

(%)

(%)

10.9

3. Consolidated Forecast for the February 2016 Fiscal Year (from March 1, 2015 to February 29,2016)(YOY = year-on-year % change)
Revenues
Feb 16 FY

Operating Profit
YOY(million yen)

YOY(million yen)YOY

45,000+5.4%

11,700+42.9%

10,250+41.3%Net Income(million yen)Feb 16 FY

Recurring Profit(million yen)

9,150

Net Income per ShareYOY(Yen)+35.3%

18.30

Note 1: The Company has included a full-year earnings forecast only – there is no half-year earnings forecast.
Note 2: Net Income per Share for FY16 is based on the forecast number of shares after the expected exercise ofstock acquisition rights.

4. Other(1) Changes in significant consolidated subsidiaries (material changes in scope of consolidation): Yes
Two new subsidiaries: GK Omori Holdings Tokumei Kumiai, 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: 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 shares (common shares)(i) Number of outstanding shares including treasury sharesFeb 15: 500,804,600
Feb 14: 499,432,200(ii) Number of treasury sharesFeb 15: 1,670,000
Feb 14: 1,978,000(iii) Average number of outstanding sharesFeb 15: 498,011,047
Feb 14: 460,365,498

2

5. Parent Financial Results (from March 1, 2014 to February 28, 2015)(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)(%)

Feb 15 FY

9,198

72.0

6,857

111.7

6,650

149.7

6,719

66.8

Feb 14 FY

5,346

70.1

3,238

187.4

2,633

198.7

4,027

169.0

Net Profit per Share(basic, yen)Feb 15 FY
Feb 14 FY

13.49
8.75

Net Profit per
Share(diluted, yen)
13.38
8.64

(2) Parent Financial Condition

Feb 15 FY

82,204

53,115

64.4

Net Assets perShare(yen)
106.02

Feb 14 FY

66,221

45,981

69.9

92.19

Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Reference: Shareholders’ equity for Feb 15 FY: 52,916 million yen; for Feb 14 FY: 45,860 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
Starting from the current fiscal period, the Company will change its segment disclosure from theprevious five segments to four segments. Previously, the Company had segmented its business into
“Asset Management,” “Real Estate,” “Value-Add,” “Clean Energy,” and “Other.” However, because
the Company has increasingly been carrying out value-add activities in both the Real Estate andValue-Add segments, the segment division has lost its meaning. Therefore, Real Estate and Value-Add
are being integrated into a single Value-Add segment.
Asset Management generates fee income via the management of the Ichigo REIT, private funds, andother fee-generating real estate services related to the sourcing, financing, operation, property
management, facility management, and disposition of real estate assets, with the aim of maximizing
both asset and shareholder value.
Value-Add deploys the Company’s expertise to acquire and add value via improvements to real estate
assets, generating rental income during the value-add period and profits on asset sales that reflect thehigher value of the assets after the Company’s improvements.
Clean Energy generates long-term income primarily via utility-scale solar power production with theaim to make effective reuse of real estate and contribute to Japan’s energy self-sufficiency.
Other is primarily legacy securities investments that are not related to the above three segments.
The Company has reflected these changes in the previous year’s segment information.

3

Revenues, P&L, Assets, Liabilities, and Other Items by Segment
February 2014 Fiscal Year(from March 1, 2013 to February 28, 2014)(Million Yen)
Segment

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

Clean
EnergyAmountRecorded inConsolidated
FinancialStatements(Note 2)Adjustment(Note 1)

Asset
Management

Value-Add

4,118

30,159126697

35,101-

35,101

876

2

940

928(928)-

4,994

30,161

136

737

36,029(928)

35,101

1,170

3,150(253)143

4,210(298)

3,912

2,746

81,291

5,000

5,052

94,091

20,853

114,944

9-

246
307

30-

-

286
307

17-

304
307

104,836

4,335-

9,182

46

9,228

Other

Total

Note 1: The Adjustment to Segment Profits or Losses (-298 million yen) reflects transaction eliminations and company
expenses that were not allocated to the segments. The Adjustment to Segment Assets (20,853 million yen) reflects
company assets, such as cash and reserves, that were not allocated to the segments. The Adjustment toDepreciation (17 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 (46 million yen) reflects company
assets that were not allocated to the segments.
Note 2: Segment Profits or Losses are calculated for each segment from consolidated operating profit.

4

February 2015 Fiscal Year(from March 1, 2014 to February 28, 2015)(Million Yen)
Segment

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

Adjustment(Note 1)

AmountRecorded in
Consolidated
FinancialStatements(Note 2)42,705－42,705

0948

(948)

－

605

25

43,654(948)

42,705

7,871

(93)

(66)

8,490

(301)

8,189

2,691

138,061

12,846

6,222

159,822

12,922

172,74410－

349－

184－－－

544－

21－

565－

4

10,455

6,399－

16,85913

16,872

Asset
Management

Value-Add

Clean
Energy3,967

38,107

605

24

945

3－

4,913

38,110

779

Other

Total

OthersDepreciation
Impairment loss
Increase in property, plantand equipment andintangible assets

Note 1: The 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 toDepreciation (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 the segments.
Note 2: Segment Profits or Losses are calculated for each segment from consolidated operating profit.

5

(2) Goodwill and Amortization by Segment
February 2014 Fiscal Year (from March 1, 2013 to February 28, 2014)
Goodwill(Million Yen)

Segment

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

AmountRecorded in
Consolidated
Financial
Statements

Adjustment

Asset
Management

Value-Add

Clean
Energy

111

1512-

139-

139

1,854

142

225-

2,221-

2,221

Other

Total

Negative Goodwill(Million Yen)

Segment

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

AmountRecorded in
Consolidated
Financial
Statements

Adjustment

Asset
Management

Value-Add

Clean
Energy-90--

90-

90-

180--

180-

180

Other6Total

February 2015 Fiscal Year (from March 1, 2014 to February 28, 2015)
Goodwill(Million Yen)

Segment

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

AmountRecorded in
Consolidated
Financial
Statements

Adjustment

Asset
Management

Value-Add

Clean
Energy

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

AmountRecorded in
Consolidated
Financial
Statements

Adjustment

Asset
Management

Value-Add

Clean
Energy-90--90-90-90--90-

90

Other

7Total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
Building and Plant
Depreciation total
Building and Plant (net)
Equipment
Depreciation total
Equipment (net)Land
Building under construction
OthersDepreciation total
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(Feb 28, 2015)

24,991
451
1,100
3,583
54,084576
1,384(410)
85,761

19,383
519
2,330
1,965
109,769
1,200
2,657(484)137,3427,214(2,313)
4,901
2,166
(122)
2,044
12,433
1,837
286
(201)
84
21,3006,452(2,431)
4,021
9,479(311)
9,168
12,142909
306(227)79
26,321

2,221
39271
2,686

2,082
392
27
2,502

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

5,266
12
2
1,392
(95)
6,578
35,402
172,744(Million Yen)Feb 15(Feb 28, 2015)

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 withinone 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

9132
950
3,123

124
1,416
48
3,488

428

786

96
24
14
2,817
7,588

284
30
16
3,677
9,872

26,12624,178
1,213
4,770
180
44
56,51364,102100
53,40943,004
1,402
6,391
90
96
104,494
114,367

26,443
10,808
10,891(92)
48,05026,49910,873
17,201(78)54,496400
91,208(36)
6409

1,177

121
2,261
50,842
114,944

198
2,505
58,377
172,744

Consolidated Income Statement(Million Yen)Feb 15

Feb 14
Revenues
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend incomeAmortization 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 fixed assets
Gain on sales of investment securities
Receipt of share trading proceeds
Gain on redemption of equity holdings in subsidiaries
OthersTotal Extraordinary Gain
Extraordinary Loss
Loss on sales and retirement of fixed assets
Valuation loss on investments in capital
Office move expenses
Impairment loss
OthersTotal 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 Income10(from Mar 1, 2013
to Feb 28, 2014)(from Mar 1, 2014
to Feb 28, 2015)

35,101
27,666
7,435
3,522
3,912

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

4
112
90
31
238

5
78
90
39
213

370
89
93
553
3,597

943
1
201
1,146
7,255

7
204
434
29
3
680

－－－
57
0
57

1
12
21
307
1
344
3,933
43(616)
(573)
4,506
(19)
4,526

0
91
1－
0
93
7,220
564(220)
343
6,876
115
6,761Consolidated Statement of Comprehensive Income(Million Yen)Feb 15

Feb 14(from Mar 1, 2013
to Feb 28, 2014)

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

11(from Mar 1, 2014
to Feb 28, 2015)

4,506

6,876

70－(58)
12
4,518

937
(36)
2903
7,780

4,718

7,528

(200)

251

Consolidated Cash Flow Statement(Million Yen)Feb 15

Feb 14
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
Impairment loss
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
Valuation loss on investments
Increase (decrease) 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
OthersSub-totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net Cash from (Used for) Operating Activities

12(from Mar 1, 2013
to Feb 28, 2014)(from Mar 1, 2014
to Feb 28, 2015)

3,933
304
69
139(90)
(11)

7,220
565
112
139(90)
1

33

65

(116)
370
(204)
(6)
307
97
218

(83)
943
－－－
(68)
(1,230)

1,635

1,110

114
(6,729)12(258)
(255)
(139)
137
38
1,230
781
1,611
116
(378)
(94)
1,254

－
(42,991)
91
(689)
(539)
388
16
96
1,391
114
(33,437)
83
(892)
(45)
(34,292)

(Million Yen)Feb 15

Feb 14(from Mar 1, 2013
to Feb 28, 2014)

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
Proceeds from sales of subsidiaries resulting
in the change of consolidation scope
Payments for acquisitions of newly consolidatedsubsidiaries
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 issuance of common shares
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 Period13(from Mar 1, 2014
to Feb 28, 2015)

(0)
－－
282
2
(7,150)72(389)
(5)
7(5)

(325)
325
(210)
－
0
(10,769)
－
(23)
(10)
0(127)(1,389)－－2－(1,349)(35)(8,610)2(12,485)

465－
26,777(5,388)
5,675(19,030)
16,387242(445)
24,682466
48
47,203(19,557)
19,900(5,958)－99(543)
41,65841

1017,3689,512(5,108)24,581－280(2,299)(780)

24,581

18,972