[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.

FY20/2 Q1 Earnings
July 11, 2019
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): July 12, 2019 (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. FY20/2 Q1 Consolidated Financial Results (March 1, 2019 to May 31, 2019)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY20/2 Q1
26,290 +63.2%
FY19/2 Q1

16,108Operating Profit(JPY million) YOY
8,537 +42.5%+24.7%

Note: Comprehensive Income

FY20/2 Q1Net Income
per Share(Basic, JPY)
9.76 +36.5%

FY19/2 Q1

7.15

5,992

5,217 +148.7%

3,547+58.5%

FY20/2 Q1: JPY 5,651 million (+63.9% YOY)
FY19/2 Q1: JPY 3,448 million (+61.5% YOY)
Net Incomeper Share(Diluted, JPY)
9.76 +36.6%+60.4%(2) Consolidated Financial Condition
Total Assets(JPY million)
FY20/2 Q1
318,220
FY19/2+90.2%(YOY = year-on-year % change)
Recurring Profit
Net Income(JPY million) YOY (JPY million) YOY
7,607 +45.8%
4,768 +34.4%

319,343

7.14+60.4%Net Assets(JPY million)
101,118

Shareholder
Equity Ratio
31.4%Net Assets perShare (JPY)204.79102,85930.9%

202.14

Note: Shareholders’ Equity FY20/2 Q1: JPY 100,040 million FY19/2: JPY 98,748 million
To facilitate comparison to FY20/2, FY19/2 Total Assets have been restated to reflect a minor change
in Japanese accounting treatment of tax assets from FY20/2. The restatement is not material: prerestated FY19/2 Total Assets were JPY 319,599 million.

(3) Consolidated Cash Flows
Cash Flows fromOperations(JPY million)
FY20/2 Q1

632

Cash Flows fromInvestments(JPY million)-3,110FY19/2 Q1

1,772-953

Cash Flows fromFinancing(JPY million)-514

Cash and Cash
Equivalents(JPY million)
35,522

7,433

46,857

Note: Economic Operating Cash Flow (Cash Flows from Operations excluding net investment in Real
Estate and Power Plants for Sale)
FY20/2 Q1: JPY 4,187 million FY19/2 Q1: JPY 2,996 million
2. Dividends
Dividend per Share (JPY)First Second Third Fourth
Quarter Quarter Quarter Quarter Total
FY19/2
FY20/2(Forecast)–––

7TotalDividend(JPY million)
73,419–––77

Payout Ratio

Dividend on
Equity Ratio

22.5%

3.7%23.0%

3. FY20/2 Full-Year Consolidated Earnings Forecast (March 1, 2019 to February 29, 2020)(YOY = year-on-year % change)
Operating Profit
Recurring Profit
Net IncomeNet Income per(JPY million) YOY (JPY million) YOY (JPY million) YOY
Share (JPY)FY20/2
26,500+0.8%
22,800-1.2%
15,000
-2.4%
30.39
-2.4%
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 corporatevalue. In addition, Ichigo is focused on earnings growth (not revenue growth), with aparticular focus on growing long-term EPS, so does not issue a Revenue forecast.
4. Other(1) Changes in significant consolidated subsidiaries(material changes in scope of consolidation):Yes

New subsidiaries:
Subsidiary removed from consolidation:

None
YK PIT PARTNERS Tokumei Kumiai(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
FY20/2 Q1:
505,066,430
FY19/2:505,066,430(ii) Number of treasury shares at period-end
FY20/2 Q1:
16,556,200
FY19/2:
16,556,200(iii) Average number of outstanding shares during the period
FY20/2 Q1:
FY19/2 Q1:

488,510,230
495,835,604

Segment Information
Asset Management (AM) 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.
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 sale 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 recently
announced Ichigo 2030 vision, Ichigo is changing the segment name to Sustainable Real Estate from
FY20/2 in order to put full focus on Ichigo’s commitment to preserving and improving real estate as asustainable infrastructure company.
Clean Energy (CE) is utility-scale solar power production that supplies clean energy and brings
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 (FY20/2 Q1)
FY19/2(Feb 28, 2019)(JPY million)
FY20/2 Q1(May 31, 2019)

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

50,225
1,344
1,324
1,218
161,3222,156-2

38,711
1,671
1,324
3,839
164,7032,131-3

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)217,590

212,378

24,577-4,23820,33821,229-2,17019,05849,924
956
3,656
1,441
-399
1,042

26,505-4,45422,051
21,636-2,43819,19752,025
1,047
3,607
1,489
-478
1,011

Total Property, Plant, and Equipment
Intangible Assets
Goodwill
Leasehold rights
Other

94,976

98,941

1,346
316
331

1,302
316
485

Total Intangible Assets
Investments and Other Assets
Securities investments
Long-term loans receivable
Deferred tax assets

1,993

2,104

2,455
10
177

2,559
10
186

4

OtherLess: allowance for doubtful accounts

FY19/2(Feb 28, 2019)
2,231-91(JPY million)
FY20/2 Q1(May 31, 2019)
2,131
-91

Total Investments and Other Assets
Total Fixed Assets
Total Assets

4,782
101,752
319,343

4,795
105,842
318,220

5

FY19/2(Feb 28, 2019)
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
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 Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares
Total Shareholders’ EquityAccumulated Other Comprehensive
IncomeValuation gain (loss) on other securities
Deferred gain (loss) on long-term
interest rate hedges
Total Accumulated OtherComprehensive Income
Stock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

6(JPY million)
FY20/2 Q1(May 31, 2019)

3,275
112
7,881

6,467
112
8,660

1,666

1,666

3,760
31
5,178

1,326
281
4,065

21,90522,579538
131,569
51,068
2,164
8,292
946

538
133,508
49,341
2,175
7,995
964

194,579
216,484

194,523
217,102

26,820
11,207
66,730-5,98826,820
11,207
68,072-5,98898,769100,111

386

349

-408

-420

-21-71

827
3,283
102,859
319,343890
186
101,118
318,220

Consolidated Income Statement (FY20/2 Q1)Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Foreign currency valuation gain
Mark-to-market gain on long-term
interest rate hedges
OtherTotal Non-Operating Income
Non-Operating Expenses
Interest expense
Foreign currency valuation loss
Mark-to-market loss on long-term
interest rate hedges
Debt financing-related feesOther
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Gain on sale of securities investments
Gain on sale of subsidiary shares
Other
Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Total Extraordinary Losses
Pre-Tax Net Income
Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

7

FY19/2 Q1(Mar 1, 2018 toMay 31, 2018)16,108
8,653
7,454
1,461
5,992

(JPY million）
FY20/2 Q1(Mar 1, 2019 toMay 31, 2019)26,29015,994
10,295
1,758
8,537–2115135–

6–

14

15

57

53

569–

558
39–

98

226
37

236
49

833
5,217

982
7,607

2––

11169
35

2215–

27–
5,220
1,651
3,568

27
7,796
2,094
5,701

21

932

3,547

4,768

Consolidated Statement of Comprehensive Income (FY20/2 Q1)

Pre-Minority Interest Net Income
Other Comprehensive Income
Valuation loss (gain) on othersecurities
Deferred loss (gain) on long-term
interest rate hedges
Total Other Comprehensive Income
Comprehensive Income
Comprehensive income attributable tocommon shareholders
Comprehensive income attributable tominority interests

8FY19/2 Q1(Mar 1, 2018 to
May 31, 2018)
3,568(JPY million)
FY20/2 Q1(Mar 1, 2019 toMay 31, 2019)
5,701-101-37-18-12-119
3,448-49
5,651

3,427

4,718

21932

Consolidated Cash Flow Statement (FY20/2 Q1)(JPY million)
FY20/2 Q1(Mar 1, 2019 toMay 31, 2019)

FY19/2 Q1(Mar 1, 2018 toMay 31, 2018)
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 expenses
Gain (loss) on sale of subsidiary shares
Loss (gain) on sale of securities
investments
Decrease (increase) in trading notes
and receivables
Decrease (increase) in operational
securities investments
Decrease (increase) in real estate forsale
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
payableIncrease (decrease) in accrued
expenses
Increase (decrease) in depositsreceived
Increase (decrease) in security deposits
received
Other
Sub-TotalInterest and dividend income received
Interest expense paid
Income taxes paid
Net Cash from (Used for)
Operations

9

5,220
394
51
51
224

7,796
610
62
43
250

-26

–

-21
569
–

-37
558
-169

-2

-11-329

-326

-562

611

-803

-3,380

76

122

-124

-119

-651

413

-32

-1,234

-824

117

104

510

595

-497

-297

252
4,272
21-567-1,953-190
5,418
37-463-4,358

1,772

632

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

FY19/2 Q1(Mar 1, 2018 toMay 31, 2018)
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, andequipment
Acquisition of intangible assets
Payments of SPC capital contributions
Payments of security deposits
Payments of loans receivable
Other
Net Cash from (Used for)Investments
Cash Flows from Financing:
Net increase (decrease) in short-term
loans
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 ofstock options
Payments to minority interests
Dividends paid
Net Cash from (Used for) Financing
Effect of Exchange Rate Change on
Cash and Cash Equivalents
Increase (Decrease) in Cash and CashEquivalents
Cash and Cash Equivalents at
Beginning of Period
Cash and Cash Equivalents Resulting
from Exclusion from Consolidation
Cash and Cash Equivalents at End ofPeriod

10-54

-3

92,009-25-9332

111-733-5,000-142–-15–-23-70-2-20-40-1-953-3,110

3,887

3,192

13,212-3,24814,805-12,164

3,500–-7,082-1,72759––-2,895
7,433-1,276-3,342
-514

–

–

8,253

-2,99139,36545,029-760-6,51446,85735,522

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

Total

AmountRecordedin
Adjustment
Financial
Statements
2

Revenue
Revenue from
External
Customers

626

24,643

1,020

26,290–26,290Inter-Segment
Activities orReclassifications

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

411

2,512

377

3,301

––

108

5,132

–

5,240

–

–

1,941

266,295

28,344 296,580

21,640318,220

–

335

268

604

6

610

–

4,261

460

4,722

50

4,772

Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AM
Fees, etc.)
Segment Assets
Other
DepreciationIncrease 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 cash equivalents, that were notallocated to the segments. The Adjustment to Depreciation (JPY 6 million) reflects depreciationof corporate 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 assetsthat were not allocated to the segments.

11

Revenue, P&L, and Assets by Segment (Previous FY19/2 Q1)(Mar 1, 2018 to May 31, 2018)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment
Financial
Statements
2

Revenue
Revenue from
External
Customers

550

14,546

1,012

16,108–

16,108Inter-Segment
Activities or
Reclassifications

243––

243

-243

–

Total
Segment P&L1793
454

14,546
5,105

1,012
421

16,351
5,980

-243
11

16,108
5,992

398

2,310

421

3,129–

–

56

2,794

–

2,851

–

–

1,805

241,969

26,687 270,463

36,069306,533

–

127

261

388

5394–

345

669

1,014

11

1,025

Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Profits on
Sustainable Real
Estate Sales,
Profits on Solar
Power Plant
Sales, Spot AM
Fees, 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 11 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 36,069 million) reflects corporate assets, such as cash and cash equivalents, thatwere not allocated to the segments. The Adjustment to Depreciation (JPY 5 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 11 million) reflects
corporate assets that were not allocated to the segments.

Note: To facilitate comparison to FY20/2, FY19/2 Segment Assets have been restated toreflect a minor change in Japanese accounting treatment of tax assets from FY20/2. The
restatement is not material.
12