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.

FY18/2 Q3 Earnings
January 12, 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): January 15, 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. FY18/2 Q3 Consolidated Financial Results (March 1, 2017 to November 30, 2017)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY18/2 Q344,755 -52.3%
FY17/2 Q393,835 +110.9%

Note: Comprehensive income

Operating Profit(JPY million) YOY
15,715-7.8%
17,042+25.3%(YOY = year-on-year % change)
Recurring Profit
Net Income(JPY million) YOY (JPY million) YOY
14,461-5.9%
10,945 -14.7%
15,375+23.5%

12,837+10.7%

FY18/2 Q3: JPY 11,069 million (-9.9% YOY)
FY17/2 Q3: JPY 12,282 million (+9.2% YOY)

FY18/2 Q3Net Income
per Share(basic, JPY)
21.92

Net Income
per Share(diluted, JPY)
21.90

FY17/2 Q3

25.57

25.50

(2) Consolidated Financial Condition
Total Assets(JPY million)
FY18/2 Q3
300,703

Net Assets(JPY million)
89,153Equity Ratio
(%)
28.6

Net Assets per
Share (JPY)173.34

83,44329.4

159.60FY17/2

273,459

Note: Shareholders’ equity

FY18/2 Q3: JPY 85,901 million FY17/2: JPY 80,339 million

2. Dividends

FY17/2
FY18/2(Forecast)First
Quarter––

Dividend per Share (JPY)
SecondThird
FourthQuarter Quarter Quarter
–
–
5
–

–

6

Total
5
6

Changes since the previously announced forecast: None
3. FY18/2 Full-Year Consolidated Forecast (March 1, 2017 to February 28, 2018)(YOY = year-on-year % change)
Revenue
Operating Profit
Recurring Profit(JPY million) YOY(JPY million) YOY(JPY million) YOY
75,500-30.9%
20,600-5.4%
18,300-7.4%
FY18/2

FY18/2Net Income(JPY million) YOY
13,500-9.4%

Net Income per Share
(JPY)
26.98

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

New subsidiaries (3):SA3 GK Tokumei Kumiai,
Carpe Diem GK Tokumei Kumiai
Kinjo GK Tokumei Kumiai
None

Subsidiaries removed from consolidation:(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:Yes(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
FY18/2 Q3:
504,287,100
FY17/2:503,712,300(ii) Number of treasury shares
FY18/2 Q3:
8,718,100
FY17/2:
329,600(iii) Average number of outstanding shares
FY18/2 Q3:
FY17/2 Q3:

499,399,433
501,969,014

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.
5. 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 iscarrying out its value-add, along with earning profits on sale that reflect the real estate’s higher value
after the value-add is complete.
Clean Energy is utility-scale solar power production that supplies clean energy and brings productive use
to idle land.
Other is primarily legacy securities investments that are not related to the above three segments.

3Consolidated Balance Sheet (FY18/2 Q3)(JPY million)
FY17/2(Feb 28, 2017)
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 (net)
Solar power plant equipment (net)Land
Buildings under construction
Solar power plants under construction
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

FY18/2 Q3(November 30,
2017)

47,678
913
1,324
1,433
167,805
516
3,125
-453
222,344

52,210
1,396
1,324
72
184,351
491
2,405
-30
242,223

7,375
7,246
18,627912,30885
45,654

9,637
17,67722,482
252
2,565
129
52,746

1,864
62
29
1,956

1,652
135
97
1,884

1,426
10
339
1,820
‐92
3,504
51,115
273,459

1,769
10
278
1,882
-91
3,848
58,479300,703

(JPY million)
FY18/2 Q3(Nov 30, 2017)

FY17/2(Feb 28, 2017)
Liabilities
Current Liabilities
Trade notes and accounts payable
Short-term loans
Short-term non-recourse 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
Non-recourse 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
hedgesForeign currency translation adjustment
Total Accumulated Other Comprehensive
IncomeStock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

5

110
805
611
112
5,209

–
2,843
–
112
4,514

6,825

8,845

1,655
62
36
4,119
19,548

2,536
474
293
4,690
24,309632
100
91,60468,319
1,147
8,038
624
170,467
190,015576–
112,962
62,968
1,753
8,199
779
187,240
211,549

26,65011,05642,840-15
80,532

26,686
11,08051,260-2,99986,027

117

262

-365

-387

55

–

-192

-125

491
2,612
83,443
273,459

638
2,612
89,153
300,703

Consolidated Income Statement (FY18/2 Q3)(JPY million)

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
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
Gain on sale of securities investments
Other
Total Extraordinary Gains
Extraordinary Losses
Office move expenses
Loss on disposal of fixed assets
Impairment loss
Earthquake-related damages
Total Extraordinary Losses
Pre-Tax Net Income
Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

6

FY17/2 Q3(Mar 1, 2016
to Nov 30, 2016)
93,83573,045
20,7903,748
17,042

FY18/2 Q3(Mar 1, 2017
to Nov 30, 2017)
44,75525,422
19,332
3,617
15,715

–
80
35
115

3
52
104
159

1,034

925

–

233

580
167
1,782
15,375

158
95
1,413
14,461

–
2,427
–
2,427

1,221
–
41
1,263

–
–
–
269
269
17,533
4,398
13,135

–
11
327
–
338
15,385
4,381
11,003297

57

12,837

10,945

Consolidated Income Statement (FY18/2 Q3 Stand-Alone)(JPY million)

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
Debt financing-related fees
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Other
Total Extraordinary Gains
Extraordinary Losses
Office move expenses
Impairment loss
Earthquake-related damages
Total Extraordinary Losses
Pre-Tax Net Income
Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

7

FY17/2 Q3(Sep 1, 2016
to Nov 30, 2016)
7,844
4,522
3,321
1,263
2,058

FY18/2 Q3(Sep 1, 2017
to Nov 30, 2017)
11,369
7,049
4,319
1,254
3,065

–
68

–
25

–

71

20
89

74
172

312
234
59
606
1,541

329
2
7
338
2,898

–
–

41
41

–
–
26
27
1,513
585
928

–
327
–
327
2,613
519
2,093

26

21

902

2,071

Consolidated Statement of Comprehensive Income (FY18/2 Q3)(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

FY17/2 Q3(Mar 1, 2016
to Nov 30, 2016)
13,135

FY18/2 Q3(Mar 1, 2017
to Nov 30, 2017)
11,003

-588

133

-220

-22

-44
-853
12,282-45
65
11,06912,005

11,023276

46

Consolidated Statement of Comprehensive Income (FY18/2 Q3 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

FY17/2 Q3(Sep 1, 2016
to Nov 30, 2016)
928

FY18/2 Q3(Sep 1, 2017
to Nov 30, 2017)
2,093

–

180

62

-5

-18
45
973

–
174
2,268

952

2,246

21

21

Consolidated Cash Flow Statement (FY18/2 Q3)
FY17/2 Q3(Mar 1, 2016
to Nov 30, 2016)
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
Loss (gain) on sale of securities investments
Impairment loss
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
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
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)
FY18/2 Q3(Mar 1, 2017
to Nov 30, 2017)17,533
615
167
106
234

15,385
668
168
76
290

–

-353

-80
1,034
–
-2,427–-55925-1,221
–
327

-691

-768

2,616

1,598

3,956
–
-190
147
-217
-638
40
-726
-1,573
19,906
80
-909
-840
1,153
19,390-6,834
996
831
-25
18
-385
-226
-167
1,077
12,32755-800-3,58114
8,015

(JPY million)

Cash Flows from Investments:
Payments into time deposits
Redemptions 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
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
Proceeds from bond issuance
Repayment of maturing bond principal tobondholders
Repayment of maturing non-recourse bondprincipal to bondholders
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
Payments to minority interests
Share buyback
Dividends paid
Dividends paid to minority interests
Net Cash from (Used for) Financing
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
Exclusion from Consolidation
Cash and Cash Equivalents at End of Period

11

FY17/2 Q3(Mar 1, 2016
to Nov 30, 2016)

FY18/2 Q3(Mar 1, 2017
to Nov 30, 2017)-6,100
201
-300
6,021
-5,604
-1
-401
-5
10

-3
–
-139
–
-2,503
-75
-28
-36
–

-93

-2,635–2,096

8-6,263-16-3,342-1,588

1,494

532

-611

785

–

–

-56

–

-100

49,177-59,556
22,350-15,23299-2,000–-1,500-39-6,972

31,418-11,499
2,200-16,74454–-2,999-2,508
–
647

-12

-2

6,141
28,3685,317
41,369-2,068-828

32,44145,858

Consolidated Cash Flow Statement (FY18/2 Q3 Stand-Alone)
FY17/2 Q3(Sep 1, 2016
to Nov 30, 2016)
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
Impairment loss
Decrease (increase) in trading notes andreceivables
Decrease (increase) in operational securities
investments
Decrease (increase) in real estate for sale
Decrease (increase) in advances paid
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
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)
FY18/2 Q3(Sep 1, 2017
to Nov 30, 2017)

1,513
154
52
35
123

2,613
309
57
25
142

32

–

-68
312
–

-25
329
327

-360

-606

45

4

-33,685
-200
-252
100
-57
23
1,740
-1,371-31,861
68
-274
-291
–
-32,358-5,196
-148
–
-2
157
-49
-31
-60
-2,15425-287-1,225–-3,641

(JPY million)

Cash Flows from Investments:
Payments into time deposits
Payments for securities investments
Acquisition of property, plant, and equipment
Acquisition of intangible assets
Payments of SPC capital contributions
Payments of security deposits
Redemptions of security deposits
Acquisition of subsidiary shares resulting inchange of consolidation 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 non-recourse bondprincipal to bondholders
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 and Cash 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 Period

13

FY17/2 Q3(Sep 1, 2016
to Nov 30, 2016)

FY18/2 Q3(Sep 1, 2017
to Nov 30, 2017)‐3,100–‐1,062
–
‐399
‐5
5

-3
-110
-1,386
-67
-9
-25
–

–

-1,182

7-4,554–-2,786

‐810

406

532

–

–

-100

16,900‐8,23318,000‐238
69––
26,2209,154-3,806–-1,00846-1,499
-1
3,191

‐1

–

‐10,694
43,264-3,23649,141‐128-47

32,44145,858

Revenue, P&L, and Assets by Segment (Current FY18/2 Q3)(Mar 1, 2017 to Nov 30, 2017)
Segment
Asset
Management Value-Add
Revenue
Revenue from
External
Customers
Inter-Segment
Activities or
Reclassifications
Total
Segment P&L1

Clean
EnergyOther(JPY million)

AmountRecorded in
Adjustment2 Consolidated
Financial
Statements1

Total

1,911

39,8942,843

106

44,755–44,755

771

1

–

–

772

-772

–

2,682
1,592

39,895
13,448

2,843
748

106
-60

45,527
15,730-772-1444,755
15,715

1,254

5,762

438

–

–

–

–

338

7,686

309

–

–

–

–

1,904

244,845

24,523

1,744

273,017

27,685

300,703

–
–

263
327

386
–

–
–

649
327

18
–

668
327

–

7,193

2,394

–

9,588

79

9,668

Segment P&L
Details1
Stock Earnings(Rental Income,Ongoing AM
Fees, FIT Solar
Power Sale
Earnings, etc.)
Flow Earnings(Profits on
Value-Add Real
Estate Sales,
Profits on Solar
Power Plant
Sales, AM
PerformanceFees, etc.)
Segment Assets
Other
Depreciation
Impairment loss
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 14 million) reflects transaction eliminations and corporate expenses thatwere not allocated to the segments. The Adjustment to Segment Assets (JPY 27,685 million) reflects corporate
assets, such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (JPY
18 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 79 million) reflects corporate assets thatwere not allocated to the segments.

14

Revenue, P&L, and Assets by Segment (Previous FY17/2 Q3)(Mar 1, 2016 to Nov 30, 2016)
Segment
Asset
Management Value-Add
Revenue
Revenue from
External
Customers
Inter-Segment
Activities or
Reclassifications
Total
Segment P&L1

Clean
EnergyOther(JPY million)

AmountRecorded in
Adjustment2 Consolidated
Financial
Statements1

Total

3,556

88,4811,783

1493,835–93,835

1,177

3

–

–

1,181

-1,181

–

4,734
1,859

88,485
14,637

1,783
537

14
-142

95,017
16,892-1,181150

93,83517,042

1,186

5,877

537

–

–

–

–

673

8,759

–

–

–

–

–

3,049

203,635

26,386

1,982

235,052

23,800258,853

4
–

180
–

412
–

–
–

597
–

17
–

615
–

–

43

7,882

–

7,925

2

7,927

Segment P&L
Details1
Stock Earnings(Rental Income,Ongoing AM
Fees, FIT Solar
Power Sale
Earnings, etc.)
Flow Earnings(Profits on
Value-Add Real
Estate Sales,
Profits on Solar
Power Plant
Sales, AM
PerformanceFees, etc.)
Segment Assets
Other
Depreciation
Impairment loss
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 150 million) reflects transaction eliminations and corporate expenses thatwere not allocated to the segments. The Adjustment to Segment Assets (JPY 23,800 million) reflects corporate
assets, such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (JPY
17 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 2 million) reflects corporate assets thatwere not allocated to the segments.

15

Revenue, P&L, and Assets by Segment (Current FY18/2 Q3 Stand-Alone)(Sep 1, 2017 to Nov 30, 2017)(JPY million)
Segment
AmountRecorded in
Adjustment2 Consolidated
Asset
Clean
Value-Add
Other
Total
Financial
Management
EnergyStatements1
Revenue
Revenue from
External
Customers
Inter-Segment
Activities or
Reclassifications
Total
Segment P&L1

681

10,084602–

11,369–11,369

204

–

–

–

205

‐205

–

886
592

10,085
2,356

602
151

–
‐15

11,574
3,085

‐205
‐20

11,369
3,065

453

1,794

151

–

–

–

–

139

562

–

–

–

–

–

1,904

244,845

24,523

1,744

273,017

27,685

300,703

–
–

112
327

191
–

–
–

303
327

6
–

309
327

–

595

1,105

–

1,701

–

1,701

Segment P&L
Details1
Stock Earnings(Rental Income,Ongoing AM
Fees, FIT Solar
Power Sale
Earnings, etc.)
Flow Earnings(Profits on
Value-Add Real
Estate Sales,
Profits on Solar
Power Plant
Sales, AM
PerformanceFees, etc.)
Segment Assets
Other
Depreciation
Impairment loss
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 and corporate expenses thatwere not allocated to the segments. The Adjustment to Segment Assets (JPY 27,685 million) reflects corporate
assets, such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (JPY
6 million) reflects depreciation of corporate assets that were not allocated to the segments.

16

Revenue, P&L, and Assets by Segment (Previous FY17/2 Q3 Stand-Alone)(Sep 1, 2016 to Nov 30, 2016)
Segment
Asset
Management Value-Add
Revenue
Revenue from
External
Customers
Inter-Segment
Activities or
Reclassifications
Total
Segment P&L1
Segment P&L
Details1
Stock Earnings(Rental Income,Ongoing AM
Fees, FIT Solar
Power Sale
Earnings, etc.)
Flow Earnings(Profits on
Value-Add Real
Estate Sales,
Profits on Solar
Power Plant
Sales, AM
PerformanceFees, etc.)
Segment Assets
Other
Depreciation
Impairment loss
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1
2

Clean
EnergyOther(JPY million)

AmountRecorded in
Adjustment2 Consolidated
Financial
Statements1

Total

1,095

6,176

568

3

7,844

–

7,844

266

1

–

–

267

‐267

–

1,362
386

6,177
1,544

568
186

3
‐6

8,112
2,110

‐267
‐51

7,844
2,058

317

1,387

186

–

–

–

–

68

156

–

–

–

–

–

3,049

203,635

26,386

1,982

235,052

23,800258,853

1
–

60
–

86
–

–
–

148
–

5
–

154
–

–

16

2,447

–

2,464

–

2,464

Segment P&L is on an Operating Profit basis.
The Adjustment to Segment P&L (-JPY 51 million) reflects transaction eliminations and corporate expenses thatwere not allocated to the segments. The Adjustment to Segment Assets (JPY 23,800 million) reflects corporate
assets, such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (JPY
5 million) reflects depreciation of corporate assets that were not allocated to the segments.

17