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 First Quarterof the Fiscal Year Ending February 2016 (FY16/2)
July 14, 2015
Ichigo Group Holdings Co., Ltd. (JASDAQ, 2337)
Representative: Takuma Hasegawa, President and Representative Statutory Executive OfficerInquiries:
Takashi Minamikawa, Senior Executive Managing Director
Telephone: +81-3-3502-4818
www.ichigo-holdings.co.jp/english
Submission of the Quarterly Report (Shihanki Hokokusho): July 15, 2015 (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 Q1 Consolidated Financial Results (from March 1, 2015 to May 31, 2015)(1) Consolidated Financial Results(YOY = year-on-year % change)

Revenues(million yen)

Operating Profit
YOY (million yen)

YOY

Recurring Profit(million yen)

YOYNet Income(million yen) YOY

FY16/2 Q1

8,903+36.4%

2,492+11.5%

2,233+8.6%

2,375+27.4%

FY15/2 Q1

6,528-40.8%

2,236+191.2%

2,056+176.9%

1,864+37.0%

Note: Comprehensive income FY16/2 Q1: 2,331 million yen (+12.2%) FY15/2 Q1: 2,077 million yen (+41.4%)
Net Income perShare (basic, yen)

Net Income per Share(diluted, yen)

FY16/2 Q1

4.76

4.72

FY15/2 Q1

3.75

3.71

(2) Consolidated Financial Condition

FY16/2 Q1

176,38859,94932.4

Net Assets perShare(yen)114.55

FY15/2

172,744

58,37732.2

111.54

Total Assets(million yen)

Net Assets(million yen)Note1: Shareholders’ equity FY16/2 Q1: 57,193 million yen

Equity Ratio(%)

FY15/2 Q1: 55,673 million yen

2. Dividends
FirstQuarter
FY15/2-

FY16/2-

FY16/2(Expected)

Dividend per Share (yen)SecondThird
FourthQuarter Quarter Quarter

FiscalYear0-

1.30

1.30

0-

2.00

2.00

Changes since the previously announced forecast: None

3. FY16/2 Full-Year Consolidated Forecast(from March 1, 2015 to February 29, 2016)(YOY = year-on-year % change)

Revenues
FY16/2

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)

FY16/2

Recurring Profit(million yen)

9,150

Net Income per ShareYOY(Yen)+35.3%

18.30

Changes in the forecast during the period: None
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 FY16/2 is based on the forecast number of shares after the expected exerciseof stock options.

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: None
(3) Number of outstanding common shares(i) Number of outstanding shares including treasury shares
FY16/2 Q1:
500,913,600
FY15/2:500,804,600(ii) Number of treasury shares
FY16/2 Q1:
1,636,000
FY15/2:
1,670,000(iii) Average number of outstanding shares
FY16/2 Q1:
499,184,654
FY15/2:497,560,407

2

*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
Starting from the previous fiscal period, the Company has changed 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
FY15/2 Q1(from March 1, 2014 to May 31, 2014)(Million Yen)
Segment

Revenues
Revenues from ExternalCustomers
Inter-Segment Revenues
or Reclassifications
Total
Segment Profits or Losses
Segment Assets
Other
Depreciation
Impairment loss
Increase in property, plantand equipment andintangible assets

Clean
EnergyAdjustment(Note 1)

AmountRecorded in
Consolidated
FinancialStatements(Note 2)

6,528

－

6,528

0251

(251)

－

19

6,779

(251)

6,528

Asset
Management

Value-Add

1,095

5,287

125

19250

0－

1,346

5,287

125

OtherTotal

284

2,166(41)

(4)

2,405

(169)

2,236

2,775

106,650

7,731

5,351

122,508

13,899136,40728335－

121

5－－－－－－

127-

3

7,811

1,628

－

9,443

139,456

Note 1: The Adjustment to Segment Profits or Losses (-169 million yen) reflects transaction eliminations and company
expenses that were not allocated to the segments. The Adjustment to Segment Assets (13,899 million yen) reflects
company assets, such as cash and reserves, that were not allocated to the segments. The Adjustment toDepreciation (5 million yen) reflects depreciation of company assets that were not allocated to the segments. TheAdjustment 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.

4

FY16/2 Q1(from March 1, 2015 to May 31, 2015)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications
Total
Segment Profits or Losses
Segment Assets

Clean
EnergyAdjustment(Note 1)

AmountRecorded inConsolidated
FinancialStatements(Note 2)

8,903

－

8,903

0210(210)－69,114(210)

8,903

Asset
Management

Value-Add

1,529

6,988

379

6209

0－

1,738

6,989

379

Other

Total

875

1,572

96(16)

2,527

(34)

2,492

2,971

139,705

13,600

6,077

162,356

14,032

176,388

2－

60－

111－

－－

174
－

7－

181
－

09

626

－

636

－

636

Other
Depreciation
Impairment loss
Increase in property, plantand equipment andintangible assets

Note 1: The Adjustment to Segment Profits or Losses (-34 million yen) reflects transaction eliminations and company
expenses that were not allocated to the segments. The Adjustment to Segment Assets (14,032 million yen) reflects
company assets, such as cash and reserves, that were not allocated to the segments. The Adjustment toDepreciation (7 million yen) reflects depreciation of 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

Consolidated Balance Sheet

FY15/2(Feb 28, 2015)(Million Yen)
FY16/2 Q1(May 31, 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
OtherLess: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures (net)
Equipment (net)Land
Other (net)Total Tangible Assets
Intangible Assets
Goodwill
Leasehold rights
Other
Total Intangible Assets
Investments and Other Assets
Investments in securities
Long-term loans receivable
Deferred tax assets
OtherLess: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

619,383
519
2,330
1,965
109,769
1,200
2,657(484)137,342

21,065
1,163
1,324
1,693
112,161
1,207
2,590(499)
140,708

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

3,968
9,677
12,186948
26,781

2,082
392
27
2,502

2,047
392
24
2,465

5,266
12
2
1,392(95)6,578
35,402
172,7445,128
12
2
1,387(96)6,434
35,680176,388

FY15/2(Feb 28, 2015)(Million Yen)
FY16/2 Q1(May 31, 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

78
735
－
3,570

786

2,873

284
30
16
3,677
9,872

112
26
182
2,884
10,464100
53,40943,004
1,402
6,391
90
96104,494
114,367100
57,15840,807
1,283
6,399
67
158
105,974
116,439

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

26,504
10,87818,767(76)
56,073

1,208(36)6

1,155(38)
3

1,177

1,120

198
2,505
58,377
172,744237
2,517
59,949176,388

Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares
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 OptionsMinority Interests
Total Net Assets
Total Liabilities and Net Assets

7Consolidated Income Statement(Million Yen)
FY16/2 Q1

FY15/2 Q1Revenues
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization of negative goodwill
OtherTotal Non-Operating Profit
Non-Operating Expenses
Interest expense
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gain
Gain on sales of investment securities
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

8(from Mar 1, 2014
to May 31, 2014)(from Mar 1, 2015
to May 31, 2015)

6,528
3,270
3,257
1,021
2,236

8,903
5,276
3,627
1,134
2,492

1
4222
31

0
422
13
41

183
27
210
2,056

265
34
300
2,233

－－
2,056
147
(0)
147
1,909
44
1,864

223
223
2,456
179
(124)
55
2,401
252,375

Consolidated Statement of Comprehensive Income(Million Yen)
FY16/2 Q1

FY15/2 Q1(from Mar 1, 2014
to May 31, 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

9(from Mar 1, 2015
to May 31, 2015)

1,909

2,401

188
(16)
(3)
168
2,077

(64)
(1)
(3)
(69)
2,331

1,902

2,318

175

12

Consolidated Cash Flow Statement(Million Yen)
FY16/2 Q1

FY15/2 Q1Cash 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 receivable
Decrease (increase) in operating loans receivable
Decrease (increase) in operational investments
in securities
Decrease (increase) in real estate for sale
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
Net Cash from (Used for) Operating Activities

10(from Mar 1, 2014
to May 31, 2014)(from Mar 1, 2015
to May 31, 2015)

2,056
124
33
34
(22)
126

2,456
181
42
34
(22)
166

4

14(6)
183
－
(146)
(1,000)

(5)
265
(223)
(643)
1,006

502

283

(16,083)
(277)
(71)
(239)
1,040
415
(13,326)
6(159)(22)(13,502)(2,392)
(130)
(444)
69
72
295
1,027
5(268)(207)
556

(Million Yen)
FY16/2 Q1

FY15/2 Q1(from Mar 1, 2014
to May 31, 2014)

Cash Flows from Investing Activities:
Payments into time deposits
Acquisition of investment securities
Proceeds from sales of investment securities
Acquisition of property and equipment
Acquisition of intangible assets
Payments for investments in capital
Proceeds from redemption of investments
Payments of security deposits
Proceeds from redemption of security deposits
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
Repayment of long-term non-recourse loans
Proceeds from exercise of stock options
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 Period11(from Mar 1, 2015to May 31, 2015)

(0)
(100)
－(2,756)(22)(0)
0(112)－0(2,991)(0)－296(1,223)－(6)－(19)
90(943)(185)－
16,099(1,714)(1,663)10(498)12,046

(681)
(48)
7,651
(3,819)(109)
8(601)
2,400

13

0

(4,433)
24,581

2,013
18,972

280

－

(345)

(330)

20,083

20,655