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 2014
April 17, 2014
Ichigo Group Holdings Co., Ltd. (JASDAQ, 2337)
Representative: Kenji Iwasaki, President and Representative Statutory Executive Officer
Inquiries: Takashi Minamikawa, Executive Managing Director and Statutory Executive Officer
Telephone: +81-3-3502-4818
www.ichigo-holdings.co.jp/english
Annual General Shareholders Meeting: May 25, 2014 (expected)
Submission of the Yuka Shoken Hokokusho (Financial Report): May 26, 2014 (expected)
Dividend Payment: May 26, 2014 (expected)
Supplemental Material to Financial and Business Results: Yes
Financial and Business Results Briefing: Yes (for institutional investors and analysts)

1. Consolidated Financial Results (from March 1, 2013 to February 28, 2014)(1) Consolidated Financial Results (Full Year)(% change is year-on-year)
Revenues

Operating Profit

Recurring Profit

Net Profit(million yen)(%)(million yen)(%)(million yen)(%)(million yen)(%)

Feb 14 FY

35,101

114.1

3,912

112.1

3,597

107.4

4,526

176.5

Feb 13 FY

16,397

-13.5

1,844

75.6

1,734

77.1

1,637

-7.5

Note: Comprehensive income for Feb 14 FY: 4,518 million yen (65.5%); for Feb 13 FY: 2,729 million yen(113.6%)

Feb 14 FY

9.83

Net Profit per
Share(diluted, yen)
9.71

Feb 13 FY

3.66

3.66

Net Profit per
Share (basic, yen)

Return on
Equity (%)

Return on
Assets (%)

Operating Profit
Margin (%)

11.8

3.7

11.1

6.0

2.1

11.2

Note: On September 1, 2013, Ichigo split each of its shares into 200 shares. For ease of comparison, thenet profit per share figures for both 2013 and 2014 reflect the stock split.

(2) Consolidated Financial Condition

Feb 14 FY

114,944

50,842

42.2

Net Assets per
Share
(yen)
97.42

Feb 13 FY

80,42831,066

35.4

63.52

Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Reference: Shareholders’ equity for Feb 14 FY: 48,460 million yen; for Feb 13 FY: 28,457 million yen
Note: On September 1, 2013, Ichigo split each of its shares into 200 shares. For ease of comparison, thenet assets per share figures for both 2013 and 2014 reflect the stock split.

1(3) Consolidated Cash FlowFeb 14 FY

Cash Flow fromOperations(million yen)
1,254

Cash Flow from
Investing(million yen)
-8,610Cash Flow from
Financing(million yen)
24,682

Cash and Cash
Equivalents(million yen)
24,581

Feb 13 FY

4,609

-27

-3,9359,512

2. Dividends
Dividend per Share (yen)

Total
Dividend(millionyen)

Payout Ratio(consolidated)

Dividend on
Equity Ratio

First
Quarter

SecondQuarter

Third
Quarter

FourthQuarter

FiscalYear

Feb 13 FY-

0-

200.00200.00

447

27.3

1.6

Feb 14 FY

-

0

-

1.10

1.10

547

11.2

1.4

Feb 15 FY(Expected)

-

0

-

1.30

1.30

(%)

(consolidated)

(%)

9.4

(Note) The above dividend for Feb 13 FY does not reflect the 200 for 1 stock split effective September 1,
2013. The dividend for Feb 13 FY reflecting the stock split is 1.00 yen.

3. Consolidated Forecast for the Fiscal Year Ending February 2015 (from March 1, 2014 to
February 28, 2015)(% change is year-on-year)
Revenues(million yen)Feb 15 FY

42,000Operating Profit(%)(million yen)

19.7

7,700

Net Profit(million yen)Feb 15 FY

6,055

(%)

96.8

Recurring Profit(million yen)

6,500

(%)

80.7

Net Profit per Share
(%)

(Yen)

33.8

12.17

(Note)
1. The Company has included a full-year earnings forecast only – there is no half-year earnings forecast.
2. Net Profit per Share for Feb 15 FY assumes that the number of outstanding shares as of March 31,
2014 remains unchanged throughout Feb 15 FY.

4. Other(1) Changes in significant consolidated subsidiaries (material changes in scope of
consolidation): Yes – one new subsidiary: GK Minami Ikebukuro Jisho Tokumei Kumiai(2) Changes in accounting standards/principles, changes in accounting estimates, and revisions
to previous 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 shares (common shares)(i) Number of outstanding shares including treasury stock
Feb 14:499,432,200
Feb 13:451,986,800(ii) Number of shares of treasury stock
Feb 14:
1,978,000
Feb 13:4,000,000(iii) Average number of outstanding sharesFeb 14:
460,365,498
Feb 13:447,330,564
Note: On September 1, 2013, Ichigo split each of its shares into 200 shares. For ease of comparison, theabove share amounts for both 2013 and 2014 reflect the stock split.

5. Parent Financial Results (from March 1, 2013 to February 28, 2014)(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 14 FY

5,346

70.1

3,238

187.4

2,663

198.7

4,027

169.0

Feb 13 FY

3,143

-22.2

1,126

423.7

891

-

1,497

-10.5

Net Profit per Share(basic, yen)Feb 14 FY
Feb 13 FY

8.75
3.35

Net Profit per
Share(diluted, yen)
8.64
3.34

Note: On September 1, 2013, Ichigo split each of its shares into 200 shares. For ease of comparison, thenet profit per share figures for both 2013 and 2014 reflect the stock split.

(2) Parent Financial Condition

Feb 14 FY

66,221

45,981

69.3

Net Assets per
Share
(yen)
92.19

Feb 13 FY

33,40425,341

75.4

56.25

Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Reference: Shareholders’ equity for Feb 14 FY: 45,860 million yen; for Feb 13 FY: 25,198 million yen
Note: On September 1, 2013, Ichigo split each of its shares into 200 shares. For ease of comparison, thenet assets per share figures for both 2013 and 2014 reflect the stock split.

Appropriate Use of this Earnings Projection
Forward-looking statements contained in this announcement are based on judgments obtained
from information that was available to the Company and the Group as of the announcement date
and are not guarantees of future results. However, these statements involve risks anduncertainties. Therefore, please note that actual earnings may differ significantly from thedescribed earnings projection as a result of various factors.

3

6. Key Performance Indicators (KPIs)
The Company has established the below KPIs as announced in its Shift Up 2016 Mid-TermBusiness Plan on January 10, 2014.
(1) Grow Earnings per Share (EPS) to 18.25 yen by Feb 16 FY(2) Grow structural profitability (expense coverage ratio) to 150% and 165% by Feb 15 FY andFeb 16 FY, respectively (Note 1)(3) Target a 40% pro-forma shareholder equity ratio (Note 2)(4) Improve capital efficiency by profitably disposing existing assets and reinvesting in new
projects at ROI > 15%(Note 1) The expense coverage ratio is the ratio of stable revenues (such as rental revenues and asset
management fees) over fixed expenses (fixed SG&A + interest expenses).
(Note 2) The Company’s consolidated financial statements include client-related assets and liabilities
which do not belong to the Company. In order to more accurately reflect the true economic
exposures borne by our shareholders, the Company calculates and discloses Pro Formafinancials which remove these client assets and liabilities.

47. Segment Information(1) Segment Information(i) Segment Overview
Starting from the current fiscal period, to improve the Company’s earnings transparency
and reflect changes in the Company’s earnings structure, such as the expansion of its
clean energy business, asset acquisition to support Ichigo REIT’s growth, and asubstantial increase in investments in value-add and prime real estate, the Company haschanged its segment disclosure from the previous two segments to the below fivesegments.
“Asset management” generates fee income via the management of the Ichigo REIT and
private funds and other fee-generating real estate services related to the sourcing,financing, operation, property management, facility management, and disposition of realestate assets.
“Real Estate” generates on-going rental income for the Company as a real estate
owner/operator and Ichigo REIT sponsor. Specifically, the Company either owns andoperates real estate over the long term or holds assets on a short-term basis on behalf of
Ichigo REIT until Ichigo REIT is able to acquire the assets.
“Value-Add” generates capital gains by deploying the Company’s expertise to acquire,
add value to, and sell real estate assets at a profit.
“Clean Energy” generates long-term income primarily via megasolar power production.
“Other” is primarily legacy securities investments that are not related to the above four
segments.
The Company has reflected these changes in the previous year’s segment information.

(ii) Segment Accounting Method for Revenues, P&L, Assets, and Liabilities
The accounting method of each segment is in line with the method used for the
consolidated financial statements.
Segment Profit is based on operating profit. In addition, inter-segment revenues include
reclassifications and are marked-to-market.

5

(iii) Revenues, P&L, Assets, and Liabilities by Segment
February 2013 Fiscal Year (from March 1, 2012 to February 28, 2013)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Revenues
or Reclassifications
Total
Segment Operating Profit
Segment Assets
Other Items
Depreciation
Impairment
Increase in Tangible/
Intangible Assets

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements

Adjustment(Note)

Asset
Management

Real Estate

Value-Add

3,743

4,071

7,537

4

1,041

16,397-

16,397

557

-

0

2

39

600

(600)

-

4,300

4,071

7,537

7

1,080

16,998(600)

16,397

Other

Total

358

454

869

(50)

219

1,852

(7)

1,844

2,919

18,23046,328296

6,751

74,526

5,902

80,428

8
-

173
5

29
28

0
-

-

212
33

17
-

230
33

3

153

-

11

-

168

14

183

(Note) Adjustments are made for any items that relate to the Company but are not allocated to any segment. The
5,902 million Adjustment in Segment Assets relates to assets that are mostly cash and cash equivalents.

February 2014 Fiscal Year (from March 1, 2013 to February 28, 2014)(Million Yen)
Segment

Adjustment(Note)

Asset
Management

Real Estate

Value-Add

4,118

7,853

22,305126697

35,101-

35,101

876

1

0

9

40

928

(928)

-

Total

4,994

7,855

22,305136

737

36,029(928)

35,101

Segment Operating Profit

919

1,528

1,873

(253)

143

4,210

(298)

3,912

2,746

38,11343,178

5,000

5,052

94,091

20,853

114,944

9
-

234
-

11
307

30
-

-

286
307

17
-

304
307

10

4,836

-

4,335

-

9,182

46

9,228

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications

Segment Assets
Other Items
Depreciation
Impairment
Increase of Tangible/
Intangible Assets

Clean
EnergyAmountRecorded in
Consolidated
Financial
Statements

Other

Total

(Note) Adjustments are made for any items that relate to the Company but are not allocated to any segment. The
20,853 million Adjustment in Segment Assets relates to assets that are mostly cash and cash equivalents.

6(2) Goodwill and Amortization by Segment
February 2013 Fiscal Year (from March 1, 2012 to February 28, 2013)
Goodwill(Million Yen)

Segment

Asset
Management

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

Real Estate

Adjustment

Clean
EnergyValue-Add

AmountRecorded in
Consolidated
Financial
Statements

Other

Total

111

-

-

3

-

114

-

114

1,966

-

-

237

-

2,203

-

2,203

Negative Goodwill(Million Yen)

Segment

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

AmountRecorded in
Consolidated
Financial
Statements

Adjustment

Asset
Management

Real Estate

Clean
Energy

-

90

-

-

-

90

-

90

-

270

-

-

-

270

-

270

Value-Add

7

Other

Total

February 2014 Fiscal Year (from March 1, 2013 to February 28, 2014)
Goodwill(Million Yen)

Segment

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

AmountRecorded in
Consolidated
Financial
Statements

Adjustment

Asset
Management

Real Estate

Clean
Energy

111

15

-

12

-

139

-

139

1,854

142

-

225

-

2,221

-

2,221

Value-Add

Other

Total

Negative Goodwill(Million Yen)

Segment

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

AmountRecorded in
Consolidated
Financial
Statements

Adjustment

Asset
Management

Real Estate

Clean
Energy

-

90

-

-

-

90

-

90

-

180

-

-

-

180

-

180

Value-Add

8

Other

Total

Consolidated Balance Sheet(Million Yen)Feb 13 Full Year
(Feb 28, 2013)
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
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery and equipment
Accumulated depreciation
Machinery and equipment (net)Land
Construction in progress
Others
Accumulated Depreciation
Other (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

9

Feb 14 Full Year
(Feb 28, 2014)

9,713
548
3,636
4,271
46,176369
2,042(3,177)
63,581

24,991
451
1,100
3,583
54,084
576
1,384
(410)
85,761

4,842(1,979)
2,863
110
(88)
21
7,082
3
275
(198)
76
10,0477,214(2,313)
4,901
2,166
(122)
2,044
12,433
1,837
286
(201)
84
21,300

2,203
20
2,223

2,221
392
71
2,686

4,117
13
0
545
(101)
4,575
16,84680,428

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

Feb 13 Full Year
(Feb 28, 2013)
Liabilities
Current Liabilities
Trade notes and accounts payable
Short-term borrowings
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
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 Income
Unrealized gain on other securities, net
Foreign currency translation adjustment
Total Accumulated Other Comprehensive Income
Stock Acquisition Rights
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

10(Million Yen)Feb 14 Full Year
(Feb 28, 2014)

64
484
966

132
950
3,123

2,263

428

65
15
25
3,419
7,304

96
24
14
2,817
7,588

5,456
32,776
277
3,230
270
46
42,05649,361

26,12624,178
1,213
4,770
180
44
56,51364,102

18,113
2,429
7,923
(187)
28,27926,443
10,808
10,891(92)
48,050

160
16
177
143
2,466
31,06680,428

400
9
409
121
2,261
50,842
114,944

Consolidated Income Statement(Million Yen)Feb 14

Feb 13(From Mar 1, 2012
To Feb 28, 2013)

Revenues
Cost of Revenues
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization 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
OthersTotal Extraordinary Gain
Extraordinary Loss
Loss on sale and retirement of fixed assets
Loss on valuation of investment securities
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 (loss) on Minority Interests
Net Profit

11(From Mar 1, 2013
To Feb 28, 2014)

16,397
11,422
4,974
3,130
1,844

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

3
24
90
36
155

4
112
90
31
238

238
0
26
265
1,734

370
89
93
553
3,597

9
72
0
83

7
204
434
33
680

1
62
19
33
8
124
1,693
54
(106)
(51)
1,745
108
1,637

1
21
307
13
344
3,933
43
(616)
(573)
4,506
(19)
4,526

Consolidated Statements of Comprehensive Income(Million Yen)Feb 14

Feb 13(From Mar 1, 2012
To Feb 28, 2013)

Profit before Gain on Minority Interests
Other Comprehensive Income
Valuation gain on other securities
Foreign currency translation adjustment
Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive income for shareholders of theparent company
Comprehensive income for minority interests

12(From Mar 1, 2013
To Feb 28, 2014)

1,745

4,506

1,014
(30)
984
2,729

70
(58)
12
4,518

2,426

4,718

303

(200)

Consolidated Cash Flow Statement(Million Yen)Feb 14

Feb 13(From Mar 1, 2012
To Feb 28, 2013)

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
Increase (decrease) in other allowancesInterest and dividend income
Interest on debt
Loss (gain) on sales of investment securities
Loss (gain) on sales/retirement of fixed assets
Impairment loss
Loss on valuation of investment securities
Decrease (increase) in trading notes and receivable
Decrease (increase) in operating loans receivable
Decrease (increase) in operational investments
in securities
Loss on valuation of operational investments
in securities
Decrease (increase) in real estate for sale
Loss on valuation of real estate for sale
Loss on valuation of investments
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

13(From Mar 1, 2013
To Feb 28, 2014)

1,693
230
49
114
(90)
3

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

195

33

(11)
(28)
238
(72)
(8)
33
62
515
(1,100)

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

723

1,635

63

114

2,556
119
1
(380)
(39)
519
11
(253)
(239)
4,908
28
(220)
(106)
4,609

(6,729)
12
(255)
(139)
137
38
1,230
522
1,611
116
(378)
(94)
1,254

(Million Yen)Feb 14

Feb 13(From Mar 1, 2012
To Feb 28, 2013)

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 for acquisitions of subsidiaries resulting
in the change of consolidation scope
OthersNet Cash from (Used for) Investing Activities
Cash Flows from Financing Activities:
Increase (decrease) in short-term bank loans, net
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from non-recourse loans
Repayment of non-recourse loans
Proceeds from issuance of common shares
Proceeds from exercise of stock option
Cash dividends paid
Share issuance to minority shareholders
Payments to minority shareholders for redemptionof common stock
Cash dividends paid to minority shareholders
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 Excluded from
Consolidation
Cash and Cash Equivalents at End of Period

14(From Mar 1, 2013
To Feb 28, 2014)

(0)
151
(15)
76
30
(124)
17
(0)
(4)
0

(0)
282
2
(7,150)
72
(389)
(5)
7

(218)

(1,389)

60
(27)

(40)
(8,610)314
5,440(8,199)12,346(13,885)48
20

465
26,777(5,388)
5,675(19,030)
16,387
242
(445)
-

(19)

-

(0)
(3,935)

24,682

18

41

664
9,438

17,368
9,512

(591)

(2,299)9,512

24,581