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.

FY16/2 Q3 Earnings Summary
January 13, 2016
Ichigo Inc. (Tokyo Stock Exchange First Section, 2337)
Representative: Takuma Hasegawa, President & Representative Statutory Executive Officer
Inquiries:
Takashi Minamikawa, Senior Executive Managing Director
Telephone: +81-3-3502-4818
www.ichigo.gr.jp/english
Submission of the Quarterly Report (Shihanki Hokokusho): January 14, 2016 (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. FY16/2 Q3 Consolidated Financial Results (March 1, 2015 to November 30, 2015)(1) Consolidated Financial Results(YOY = year-on-year % change)

Revenues(million yen)

Operating Profit
YOY (million yen)

YOY

Recurring Profit(million yen)

YOY

Net Income(million yen)

YOY

FY16/2 Q344,500+201.7%

13,602+201.8%12,450+220.2%

11,598+225.4%

FY15/2 Q3

14,748-48.6%

4,506+40.8%

3,888+27.4%

3,564

-3.6%

Note: Comprehensive income

FY16/2 Q3: 11,244 million yen (+146.2% YOY)
FY15/2 Q3: 4,566 million yen (+27.0% YOY)

Net Income per
Share (basic, yen)

Net Income per Share(diluted, yen)

FY16/2 Q3

23.22

23.08

FY15/2 Q3

7.16

7.10

(2) Consolidated Financial Condition

FY16/2 Q3

232,195

71,153

28.6

Net Assets per
Share
(yen)
132.86

FY15/2

172,744

58,37732.2

111.54

Total Assets(million yen)

Note: Shareholders’ equity

Net Assets(million yen)

Equity Ratio(%)

FY16/2 Q3: 66,481 million yen

FY15/2 : 55,673 million yen

Dividend per Share (yen)SecondThird
FourthQuarter
Quarter
Quarter

FiscalYear

2. Dividends
First
Quarter
FY15/2－0－

FY16/2

－

0

－

1.30

1.30

FY16/23.00
3.00(Forecast)
Changes since the previously announced forecast: None
Note: Breakdown of forecast FY16/2 dividend: ordinary 2 yen; special 1 yen3. FY16/2 Full-Year Consolidated Forecast (March 1, 2015 to February 29, 2016)(YOY = year-on-year % change)
Revenues

Operating Profit

Recurring Profit(million yen)

YOY

(million yen)

YOY

(million yen)YOY

49,000+14.7%

14,800+80.7%

13,200+81.9%

FY16/2Net Income(million yen)YOY

12,000+77.5%

FY16/2Net Income per Share
(yen)

24.00

Changes since the previously announced forecast: Yes
Note: Net Income per Share for FY16/2 is based on a forecast number of shares that reflects a partial exerciseof existing stock options.

4. Other(1) Changes in significant consolidated subsidiaries (material changes in scope of consolidation): Yes
New subsidiaries (3) : GK Kichijoji Holdings Tokumei Kumiai, GK Motoazabu Holdings
Tokumei Kumiai, and GK Ikenohata Holdings Tokumei Kumiai
Exclusion from consolidation (1): GK Sapporo Holdings Tokumei Kumiai(2) Application of special accounting methods: None
(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: None
(4) Number of outstanding common shares(i) Number of outstanding shares including treasury shares
FY16/2 Q3:
FY15/2:

501,524,400
500,804,600(ii) Number of treasury shares
FY16/2 Q3:
FY15/2:

1,138,000
1,670,000(iii) Average number of outstanding shares
FY16/2 Q3:
FY15/2 Q3:

499,417,927
497,744,9782

*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.
5. Segment Information
Segment Overview
Asset Management generates fee income via the management of the Ichigo Office REIT (8975),
Ichigo Hotel REIT (3463), and private funds and providing real estate services related to real estate
acquisition, operation (property management/building maintenance), and disposition.
Value-Add deploys the Company’s expertise to acquire and improve real estate assets, generating
rental income during the value-add period and profits on sale that reflect the higher value of the assets
after the Company’s improvements.
Clean Energy generates long-term income primarily via utility-scale solar power production thatmakes purposeful use of unused real estate nationwide and contributes to Japan’s energy
self-sufficiency.
Other is primarily legacy securities investments that are not related to the above three segments.

3

Revenues, P&L, Assets, and Other Items by Segment (FY16/2 Q3 – Current Period)(March 1, 2015 to November 30, 2015)(Million Yen)

Segment

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications

Clean
EnergyAdjustment1

AmountRecorded in
Consolidated
Financial
Statements2

44,500－44,5000

1,005(1,005)－

Asset
Management

Value-Add

4,178

38,955

1,315

51

1,002

3

－

Other

Total

Total

5,180

38,9581,315

51

45,506(1,005)44,500

Segment Profits or Losses

2,527

11,011362(16)

13,884(282)

13,602

Segment Assets

3,235

185,165

15,9806,473

210,854

21,340232,195

Other
Depreciation
Impairment Loss
Increase in Property, Plant,
and Equipment andIntangible Assets

6

181

364

－

552

24

576

－

－

－

－

－

－

－

3

34

3,966

－

4,003

33

4,037

1

The Adjustment to Segment Profits or Losses (-282 million yen) reflects transaction eliminations and company expenses
that were not allocated to the segments. The Adjustment to Segment Assets (21,340 million yen) reflects company assets,such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (24 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 (33 million yen) reflects company assets that were not allocated to thesegments.
2
Segment Profits or Losses are calculated for each segment from consolidated operating profit.

4

Revenues, P&L, Assets, and Other Items by Segment (FY15/2 Q3 – Previous Period)(March 1, 2014 to November 30, 2014)(Million Yen)

Segment

Adjustment1

AmountRecorded in
Consolidated
Financial
Statements2

14,748－14,748

0

630

(630)

－

440

25

15,379(630)

14,748

(68)

(45)

4,841

(334)

4,506

11,2986,212

151,006

10,954

161,961

Asset
Management

Value-Add

2,974

11,308

440

25

628

2

－

Total

3,602

11,310

Segment Profits or Losses

438

4,517

2,954

130,540

Revenues
Revenues from External
Customers
Inter-Segment Revenues
or Reclassifications

Segment Assets
Other
Depreciation
Impairment Loss
Increase in Property, Plant,
and Equipment andIntangible Assets

Clean
Energy

Other

Total

8

258

－
－

16

402

－

119
－

386

－

－

－

-

4

9,658

4,626

－

14,28913

14,302

1

The Adjustment to Segment Profits or Losses (-344 million yen) reflects transaction eliminations and company expenses
that were not allocated to the segments. The Adjustment to Segment Assets (10,954 million yen) reflects company assets,such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (16 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 thesegments.
2
Segment Profits or Losses are calculated for each segment from consolidated operating profit.

5

Revenues, P&L, Assets, and Other Items by Segment (FY16/2 Q3 Stand-Alone –Current Period)(September 1, 2015 to November 30, 2015)(Million Yen)

Segment

Adjustment1

AmountRecorded in
Consolidated
Financial
Statements2

29,893－29,893

－

354

(354)

－

445

38

30,247(354)

29,893

71

15

8,627

60

8,688

185,165

15,9806,473

210,854

21,340232,195

2
－

60
－

129
－

－
－

192
－

9
－

201
－

0

15

2,569

－

2,584

14

2,599

Asset
Management

Value-Add

1,213

28,196

445

38

352

1

－

Total

1,566

28,198Segment Profits or Losses

672

7,868

3,235

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications

Segment Assets

Clean
Energy

Other

Total

Other
Depreciation
Impairment Loss
Increase in Property, Plant,
and Equipment andIntangible Assets
1

The Adjustment to Segment Profits or Losses (60 million yen) reflects transaction eliminations and company expenses
that were not allocated to the segments. The Adjustment to Segment Assets (21,340 million yen) reflects company assets,such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (9 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 (14 million yen) reflects company assets that were not allocated to thesegments.
2
Segment Profits or Losses are calculated for each segment from consolidated operating profit.

6

Revenues, P&L, Assets, and Other Items by Segment (FY15/2 Q3 Stand-Alone –Previous Period)(September 1, 2014 to November 30, 2014)(Million Yen)

Segment

Adjustment1

AmountRecorded in
Consolidated
Financial
Statements2

4,869

－

4,869

－

194

(194)

－

146

0

5,063

(194)

4,869

(25)

(22)

1,439

(57)

1,382

11,2986,212

151,006

10,954

161,961

－
－

134

5

140

－

43
－

－

－

-

808

1,629

－

2,437

0

2,437

Asset
Management

Value-Add

931

3,790

146

0

193

0

－

Total

1,125

3,791

Segment Profits or Losses

66

1,421

Segment Assets

2,954

130,540

Other
Depreciation

2

88

－
－

Revenues
Revenues from External
Customers
Inter-Segment Revenues
or Reclassifications

Impairment Loss
Increase in Property, Plant,
and Equipment andIntangible Assets

Clean
Energy

Other

1

Total

The Adjustment to Segment Profits or Losses (-57 million yen) reflects transaction eliminations and company expenses
that were not allocated to the segments. The Adjustment to Segment Assets (10,954 million yen) reflects company assets,such as cash and reserves, that were not allocated to the segments. The Adjustment to Depreciation (5 million yen) reflects
depreciation of company assets that were not allocated to the segments.
2
Segment Profits or Losses are calculated for each segment from consolidated operating profit.

7

Consolidated Balance Sheet (FY16/2 Q3)
FY15/2(Feb 28, 2015)(Million Yen)
FY16/2 Q3(Nov 30, 2015)

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
Other
Less: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures (net)
Equipment (net)Land
Other (net)Total Property, Plant, and Equipment
Intangible Assets
Goodwill
Leasehold rights
Other
Total Intangible Assets
Investments and Other Assets
Investments in securities
Long-term loans receivable
Deferred tax assets
Other
Less: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

8

19,383
519
2,330
1,965
109,769
1,200
2,657
(484)
137,342

31,078
1,447
1,324
2,485
152,275
1,300
3,235
(491)
192,656

4,021
9,168
12,142989
26,321

3,869
9,869
12,192
3,851
29,783

2,082
392
27
2,502

1,977
392
34
2,404

5,266
12
2
1,392
(95)
6,578
35,402
172,744

5,799
12
16
1,617
(94)
7,351
39,538232,195

FY15/2(Feb 28, 2015)(Million Yen)
FY16/2 Q3(Nov 30, 2015)

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 within
one 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

124
1,416
48
3,488

105
1,255
522
7,723

786

2,995

284
30
16
3,677
9,872

484
32
352
3,954
17,425100
53,40943,004
1,402
6,391
90
96
104,494
114,367100
77,33256,371
1,236
8,227
22
325
143,616
161,041

26,49910,873
17,201(78)
54,496

26,52910,91528,126(53)
65,518

1,208
(36)
6

1,090
(153)
25

1,177

962

198
2,505
58,377
172,744300
4,370
71,153
232,195

Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares
Total Shareholders’ Equity
Accumulated Other Comprehensive
IncomeUnrealized gain on other securities, net
Deferred gain (loss) on hedges
Foreign currency translation adjustment
Total Accumulated Other Comprehensive
IncomeStock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

9Consolidated Income Statement (FY16/2 Q3)Revenues
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization of negative goodwill
Other
Total Non-Operating Profit
Non-Operating Expenses
Interest expense
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gain
Gain on sales of investment securities
Gain on redemptions of equity holdings
in subsidiaries
Total Extraordinary Gain
Extraordinary Loss
Office move expenses
Total 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 Income

10

FY15/2 Q3(Million Yen)
FY16/2 Q3(Mar 1, 2014
to Nov 30, 2014)(Mar 1, 2015
to Nov 30, 2015)

14,748
7,292
7,456
2,949
4,506

44,50027,45817,041
3,439
13,602

4
72
67
16
161

1
74
67
34
177

699
79
779
3,888

950
379
1,329
12,450

－

223

57

－

57

223

－
－
3,946
324
(37)
287
3,658
94
3,564

9
9
12,664
1,185
(223)
962
11,702
104
11,598

Consolidated Income Statement (FY16/2 Q3 Stand-Alone)

Revenues
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization of negative goodwill
Other
Total Non-Operating Profit
Non-Operating Expenses
Interest expense
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gain
Gain on redemptions of equity holdings
in subsidiaries
Total Extraordinary Gain
Profit before Income Taxes
Income Taxes – Current
Income Taxes – Deferred
Total Income Taxes
Profit before Gain on Minority Interests
Gain on Minority Interests
Net Income

11

FY15/2 Q3(Million Yen)
FY16/2 Q3(Sep 1, 2014
to Nov 30, 2014)(Sep 1, 2015
to Nov 30, 2015)

4,869
2,523
2,345
963
1,382

29,89320,015
9,878
1,189
8,688

1
61
22
5
91

0
60
22
9
92

276
23
300
1,173

372
309
682
8,099

57

－

57
1,230
131
0
131
1,098
25
1,073

8,099
676
(3)
672
7,426
50
7,376

－

Consolidated Statement of Comprehensive Income (FY16/2 Q3)Profit before Gain on Minority Interests
Other Comprehensive Income
Valuation gain (loss) on other securities
Deferred gain (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

12

FY15/2 Q3(Million Yen)
FY16/2 Q3(Mar 1, 2014
to Nov 30, 2014)(Mar 1, 2015
to Nov 30, 2015)

3,658

11,702

919
(19)
7
907
4,566

(337)
(116)
(2)
(457)
11,244

4,337

11,361228(116)

Consolidated Statement of Comprehensive Income (FY16/2 Q3 Stand-Alone)

Profit before Gain on Minority Interests
Other Comprehensive Income
Valuation gain (loss) on other securities
Deferred gain (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

13

FY15/2 Q3(Million Yen)
FY16/2 Q3(Sep 1, 2014
to Nov 30, 2014)(Sep 1, 2015
to Nov 30, 2015)

1,098

7,426

624
9
14
648
1,746

90
(117)
(4)
(31)
7,394

1,716

7,353

30

40

Consolidated Cash Flow Statement (FY16/2 Q3)Cash Flows from Operating Activities:
Pre-tax net income
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 expense
Loss (gain) on sales of investment securities
Decrease (increase) in trading notes and receivables
Decrease (increase) in operating loan receivables
Decrease (increase) in operational investments
in securities
Decrease (increase) in real estate for sale
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 expenses paid
Income taxes paid
Income taxes refund
Net Cash from (Used for) Operating Activities

14

FY15/2 Q3(Million Yen)
FY16/2 Q3(Mar 1, 2014
to Nov 30, 2014)(Mar 1, 2015
to Nov 30, 2015)

3,946
393
87
104
(67)
207

12,664
576
126
104
(67)
336

63

6

(76)
699
－
(371)
(1,000)

(75)
950
(223)
(928)
1,006

1,078

587

(36,594)
(322)
(489)
400
(273)
1,853
586
(29,773)
76
(625)
(47)
539
(29,831)(42,505)
(327)
(860)
(309)
130
1,901
243
(26,664)
75
(910)
(301)
804
(26,996)

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 redemptions of investment securities
Acquisition of property and equipment
Acquisition of intangible assets
Payments for investments
Proceeds from redemptions of investments
Payments of security deposits
Proceeds from redemptions of security deposits
Payments for acquisitions of newly consolidated
subsidiaries
Other
Net 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 exercise of stock options
Proceeds from minority interests
Cash dividends paid
Cash dividends paid to minority interests
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 Period15

FY15/2 Q3(Million Yen)
FY16/2 Q3(Mar 1, 2014
to Nov 30, 2014)(Mar 1, 2015
to Nov 30, 2015)

(325)
325
(210)
－
0
(8,319)
(22)
(4)
0
(127)
－

(0)
－
(671)
296
－
(4,135)
(10)
(9)
0
(37)
9

(1,349)－2(10,030)

0(4,557)262
48
37,362(4,241)
4,200(3,058)
69
－
(542)
－
34,100(161)
474
46,423(18,264)
18,150(2,573)
73
2,000
(645)
(17)
45,456(67)

0(5,829)24,581

13,903
18,972

280

－

(345)

(2,208)18,68730,667

Consolidated Cash Flow Statement (FY16/2 Q3 Stand-Alone)

Cash Flows from Operating Activities:
Pre-tax net income
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 expense
Decrease (increase) in trading notes and receivables
Decrease (increase) in operational investments
in securities
Decrease (increase) in real estate for sale
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Decrease (increase) in accrued expenses
Increase (decrease) in security deposits received
Other
Sub-totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net Cash from (Used for) Operating Activities

16

FY15/2 Q3(Million Yen)
FY16/2 Q3(Sep 1, 2014
to Nov 30, 2014)(Sep 1, 2015
to Nov 30, 2015)

1,230
137
20
34
(22)
103

8,099
201
42
34
(22)
151

49

6

(62)
276
(230)

(60)
372
(333)

(19)

1,111

(4,390)
21
(130)
258
(100)
298
241
(2,284)
62
(247)
(24)
(2,493)

13,838
123
(762)
(7)
69
(322)
(163)
22,378
60
(351)
(92)
21,994

Cash Flows from Investing Activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Acquisition of investment securities
Proceeds from redemptions of investment securities
Acquisition of property and equipment
Acquisition of intangible assets
Payments for investments
Proceeds from redemptions of investments
Payments of security deposits
Proceeds from security deposits
Payments for acquisitions of newly consolidated
subsidiaries
Other
Net 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 exercise of stock options
Cash dividends paid
Cash dividends paid to minority interests
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
Exclusion from Consolidation
Cash and Cash Equivalents at End of Period

17

FY15/2 Q3(Million Yen)
FY16/2 Q3(Sep 1, 2014
to Nov 30, 2014)(Sep 1, 2015
to Nov 30, 2015)

(0)
325
(43)
0
(2,803)
－
(1)
－
(4)
－

(0)
－
(371)
－
(2,263)
(10)
(1)
0
(13)
0

(1,349)－1(3,874)0(2,658)

(240)
－
7,490
(692)
－
(985)
52
(0)
－
5,623

515
79
4,751
(13,254)1,650(2,067)52(0)(17)(8,292)

(97)

(1)

(841)
19,52911,04221,503－(1,878)18,68730,667