[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.

FY23/2 Q3 Earnings
January 12, 2023
Ichigo Inc. (Tokyo Stock Exchange Prime, 2337)
Representative: Takuma Hasegawa, President
Inquiries:
Takanori Sakamatsu, Senior Statutory Executive Officer
Telephone: +81-3-3502-4818
www.ichigo.gr.jp/en
Submission of the Financial Report (Shihanki Hokokusho): January 13, 2023 (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. FY23/2 Q3 Consolidated Financial Results (March 1, 2022 to November 30, 2022)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY23/2 Q3

52,797+79.7%

FY22/2 Q3

29,386-46.8%(YOY = year-on-year % change)
All-InOperating Profit
Recurring Profit
Operating Profit(JPY million) YOY(JPY million) YOY(JPY million) YOY
9,111 +80.9%
13,527 +167.1%
8,000 +164.0%
5,036-41.1%

5,065-40.8%

3,030-53.6%

Note: Comprehensive Income

FY23/2 Q3: JPY 9,083 million (+321.5% YOY)
FY22/2 Q3: JPY 2,154 million (-46.4% YOY)
All-In Operating Profit = Operating Profit + Gains on Sale of Sustainable Real Estate Assets
Recorded as Extraordinary Gains

FY23/2 Q38,470 +330.1%

Net Income
per Share(Basic, JPY)
18.32 +336.1%

FY22/2 Q3

1,969

4.20

Net Income(JPY million) YOY-53.8%(2) Consolidated Financial Condition
Total Assets(JPY million)
FY23/2 Q3
336,055
FY22/2337,887-52.6%Net Income
per Share(Diluted, JPY)
–
–
–

–

Net Assets(JPY million)
113,534

Shareholders’Equity Ratio
30.3%

Net Assets per
Share (JPY)224.90112,19129.8%

215.46

Note: Shareholders’ Equity FY23/2 Q3: JPY 101,966 million

1

FY22/2: JPY 100,815 million

(3) Consolidated Cash Flows
Cash Flows from
Financing(JPY million)

Cash and Cash
Equivalents
at Period-End(JPY million)

Cash Flows fromOperations(JPY million)

Cash Flows from
Investments(JPY million)

FY23/2 Q3

5,041

5,601

-8,14646,751

FY22/2 Q3-10,993-3,217

1,068

35,961

Note: Economic Operating Cash Flow (Cash Flows from Operations excluding net change in Real Estate
and Power Plants for Sale)
FY23/2 Q3: JPY 8,321 million FY22/2 Q3: JPY 5,659 million
2. Dividends

FY22/2
FY23/2(Forecast)

Dividend per Share (JPY)
Total
Dividend
First Second Third Fourth Total
Quarter Quarter Quarter Quarter(JPY million)
–
–
–
7
7
3,275
–

–

–

7

7

Payout Ratio
50.7%

Dividend on
Equity
(DOE)
3.3%

35.8%

3. FY23/2 Full-Year Consolidated Earnings Forecast (March 1, 2022 to February 28, 2023)(YOY = year-on-year % change)
All-In
Revenue
Operating Profit
Recurring Profit
Net Income
Operating Profit(JPY million)(JPY million)(JPY million)(JPY million)(JPY million)
YOY
YOY
YOY
YOY
YOY
FY23/2 67,200 18.0% 11,900 18.8% 16,300 22.9% 10,000 33.9% 9,000 39.0%
Net Income per
Share (JPY) YOY
FY23/2
19.56
41.6%
Note: Ichigo revised its FY23/2 earnings today. For details, please refer to “FY23/2 Full-Year
Earnings Forecast Revision” on page 4.
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:Yes(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
FY23/2 Q3:
505,381,018
FY22/2:505,381,018(ii) Number of treasury shares at period-end
FY23/2 Q3:51,992,200
FY22/2:
37,466,500(iii) Average number of outstanding shares (excluding treasury shares) during the period
FY23/2 Q3:
FY22/2 Q3:

462,456,628
469,016,646

Segment Information
Asset Management (AM) generates fee income via the management of Ichigo Office (8975), Ichigo
Hotel (3463), Ichigo Green (9282), and private real estate funds.
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 sales that reflect the realestate’s higher value after the value-add is complete.
Clean Energy (CE) is utility-scale solar and wind power production that supplies clean energy andbrings 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

5. FY23/2 Full-Year Earnings Forecast Revision
Ichigo revised its FY23/2 consolidated full-year earnings forecast announced in a range on
April 19, 2022.

Operating Profit

Revenue

Bottom ofRange

Top of
Range

9,700

10,600(JPY million)
All-InOperating Profit1
BottomTop ofof Range
Range

Previous
Forecast (A)Revised
Forecast (B)67,200Change(B) – (A)+10,266+2,200+1,300+3,600+700% Change+18.0%+22.7%+12.3%+28.3%+4.5%

Reference:
FY22/2 Actual

56,934

10,01813,266

Recurring Profit

Net Income

EPS

Previous
Forecast (A)Revised
Forecast (B)–11,900Bottom ofRange

Top ofRange

Bottom of
Range

6,700

7,600

6,500

10,00012,70015,60016,300Top ofRange

Bottom ofRange

Top ofRange

8,500 JPY 14.04 JPY 18.36

9,000

JPY 19.56

Change(B) – (A)

+3,300+2,400+2,500+500 + JPY 5.52 + JPY 1.20

% Change+49.3%+31.6%+38.5%+5.9%+39.3%+6.5%

Reference:
7,471
6,473
JPY 13.81
FY22/2 Actual1
All-In Operating Profit = Operating Profit + Gains on Sale of Sustainable Real Estate Assets
Recorded as Extraordinary Gains
FY23/2 Full-Year Earnings Forecast Revision Rationale
Ichigo is revising up its earnings forecast to reflect earnings growth in its Sustainable Real
Estate and Asset Management businesses. In Sustainable Real Estate, Ichigo’s value-add
activity is driving earnings growth across-the-board in a strong real estate market, while its
hotel business is benefiting from a rapid recovery in domestic travel demand.
In Asset Management, Ichigo is the only J-REIT sponsor that has adopted a no fixed fee,
performance-fee only asset management fee structure to maximize asset manager alignment
with positive shareholder outcomes. Ichigo will thus receive a higher asset management fee as aresult of earnings growth at Ichigo Office (8975).
As a sustainable infrastructure company committed to contributing to a sustainable society,
Ichigo is working to drive long-term value growth for Ichigo shareholders and all stakeholders.
4Consolidated Balance Sheet (FY23/2 Q3)
FY22/2(Feb 28, 2022)(JPY million)
FY23/2 Q3(November 30, 2022)

AssetsCurrent Assets
Cash and deposits
Trade notes and accounts receivable
Operational loan investments
Operational securities investments
Real estate for sale
Other
Less: allowance for doubtful accounts

46,458
1,819
1,324
2,547
68,666
2,613-633

Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures
Depreciation
Buildings and structures (net)
Solar and wind power plants
Depreciation
Solar and wind power plants (net)Land
Buildings and structures underconstruction
Solar and wind power plants underconstruction
Other
Depreciation
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

5

122,798

46,974
1,980
1,324
69
72,134
3,074-49
125,508

66,501-10,292
56,20834,298-6,34527,953116,079

66,093-12,01754,07534,925-7,65627,268113,859

435

354

2,095

2,090

2,884
-1,6181,265

3,052-1,8951,156

204,038

198,805

1,580
1,365
605

1,447
1,365
383

3,551

3,197

3,463
270
883

3,972
247
746

OtherLess: allowance for doubtful accounts

FY22/2(Feb 28, 2022)
3,013
-131

Total Investments and Other Assets
Total Fixed Assets
Total Assets

7,498
215,089
337,887

6(JPY million)
FY23/2 Q3(November 30, 2022)
3,593
-16
8,543
210,546
336,055

(JPY million)
FY23/2 Q3(November 30, 2022)

FY22/2(Feb 28, 2022)
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’ Equity
Accumulated Other Comprehensive
IncomeValuation gains (losses) on othersecurities
Deferred gains (losses) on long-term
interest rate hedges
Total Accumulated Other
Comprehensive Income
Stock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

7

2,382
274
9,888

1,925
360
9,079

1,375

4,238

1,888
39
5,012

1,449
327
3,198

20,861

20,5785,603
150,389
39,489
1,795
6,749
805

5,339
148,737
38,716
1,639
6,974
536

204,833
225,695

201,942
222,521

26,888
11,26876,310-13,423
101,043

26,888
11,266
81,507-17,914
101,747

25

329

-254

-109

-228

219

961
10,415
112,191
337,887993
10,574
113,534
336,055

Consolidated Income Statement (FY23/2 Q3)Revenue
Cost of Goods Sold
(Depreciation)
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Foreign exchange gains
Mark-to-market gains on long-term interest
rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
Mark-to-market losses on long-term interest
rate hedges
Debt financing-related fees
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Gains on sale of fixed assets
Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Other
Total Extraordinary Losses
Pre-Tax Income
Total Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

8

FY22/2 Q3(Mar 1, 2021 to
Nov 30, 2021)
29,386
19,773
3,951
9,613
4,576
5,036

(JPY million)
FY23/2 Q3(Mar 1, 2022 to
Nov 30, 2022)
52,797
38,847
3,856
13,950
4,839
9,111

17
27
38

34
36
16

51

642

83
218

66
796

1,772

1,629

192

–

40
218
2,224
3,030

97
180
1,907
8,000

33
33

4,416
4,416

4
3
7
3,055
920
2,135

–
–
–
12,416
3,781
8,634

166

164

1,969

8,470

Consolidated Income Statement (FY23/2 Q3 Stand-Alone)

Revenue
Cost of Goods Sold
(Depreciation)
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Foreign exchange gains
Mark-to-market gains 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
Gains on sale of fixed assets
Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Other
Total Extraordinary Losses
Pre-Tax Income
Total Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

9

FY22/2 Q3(Sep 1, 2021 to
Nov 30, 2021)
6,083
3,838
1,291
2,244
1,451
793

(JPY million)
FY23/2 Q3(Sep 1, 2022 to
Nov 30, 2022)
27,322
21,671
1,295
5,651
1,623
4,028

6
17
19

11
22
3

151

388

29
225

14
440

567
5
81
654
364

546
5
83
635
3,834

29
29

3,321
3,321

3
2
5
387
94
293

–
–
–
7,155
2,057
5,097

54

56

238

5,041

Consolidated Statement of Comprehensive Income (FY23/2 Q3)(JPY million)
FY22/2 Q3
FY23/2 Q3(Mar 1, 2021 to(Mar 1, 2022 to
Nov 30, 2021)
Nov 30, 2022)
2,135
8,634
Pre-Minority Interest Net Income
Other Comprehensive Income
Valuation gains (losses) on other securities-42
303
Deferred gains (losses) on long-term
62
144
interest rate hedges
Total Other Comprehensive Income
19448
Comprehensive Income
2,154
9,083
Comprehensive income attributable to
1,988
8,919
common shareholders
Comprehensive income attributable to166
164
minority interests

10Consolidated Statement of Comprehensive Income (FY23/2 Q3 Stand-Alone)(JPY million)
FY22/2 Q3
FY23/2 Q3(Sep 1, 2021 to(Sep 1, 2022 to
Nov 30, 2021)
Nov 30, 2022)
Pre-Minority Interest Net Income
293
5,097
Other Comprehensive Income
Valuation gains (losses) on other securities-91
50
Deferred gains (losses) on long-term
58
87
interest rate hedges
Total Other Comprehensive Income-32
137
Comprehensive Income
260
5,235
Comprehensive income attributable to
205
5,178
common shareholders
Comprehensive income attributable to54
56
minority interests

11Consolidated Cash Flow Statement (FY23/2 Q3)(JPY million)
FY23/2 Q3(Mar 1, 2022 to
Nov 30, 2022)

FY22/2 Q3(Mar 1, 2021 to
Nov 30, 2021)
Cash Flows from Operations:Pre-tax income
Depreciation
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expense
Loss on disposal of fixed assets

3,055
4,212
123
307

12,416
4,002
133
288

–

–

-44
1,772

-71
1,629

4

–

-33

-4,416

-576

-160

1,097

3,155

-16,616-3,468

1

–

11

-35

Decrease (increase) in prepaid expenses

-49

-188

Decrease (increase) in accounts receivable
Decrease (increase) in consumption taxes
receivable
Increase (decrease) in accounts payable

108

-33

-146

231

-545

-546

Increase (decrease) in accrued expenses

4-42

Increase (decrease) in advances received

164

-969

Increase (decrease) in deposits received
Increase (decrease) in security deposits
received
Increase (decrease) in accrued consumption
taxes
Other
Sub-TotalInterest and dividends received
Interest expense paid
Income taxes paid
Income taxes refunded
Net Cash from (Used for) Operations

-158

63

-626

224

-670

-561

239
-8,36344-1,589-1,283
198-10,993471
12,12371-1,500-5,67927
5,041

Gains on sale of fixed assets
Decrease (increase) in trading notes andreceivables
Decrease (increase) in operational securities
investments
Decrease (increase) in real estate for sale
Valuation losses on SPC capital
contributions
Decrease (increase) in advances paid

12

(JPY million)
FY23/2 Q3(Mar 1, 2022 to
Nov 30, 2022)

FY22/2 Q3(Mar 1, 2021 to
Nov 30, 2021)
Cash Flows from Investments:
Payments into time deposits-6-1

Redemptions of time deposits–

23

Payments for securities investments

-604

-256

Proceeds from sale of securities investments

568–

Acquisition of property, plant, and equipment
Proceeds from sale of property, plant, andequipment
Acquisition of intangible assets-3,462-8,158744

14,065-185-21

Payments of SPC capital contributions-4-6

Payments of security deposits-16–

Loans made

-290

-75

Payments received on loans made

26

22

Other

13

10

-3,217

5,601

Net Cash from (Used for) Investments

13

(JPY million)
FY23/2 Q3(Mar 1, 2022 to
Nov 30, 2022)

FY22/2 Q3(Mar 1, 2021 to
Nov 30, 2021)
Cash Flows from Financing:
Net increase (decrease) in short-term loans
Repayment of maturing bond principal tobondholders
Proceeds from long-term loans-1,584

-457

-177

-177

19,64932,888-11,242-34,787

Proceeds from long-term non-recourse loans

–

3,000

Repayment of long-term non-recourse loans
Share buyback

-844

-910

-1,499-4,499Dividends paid

-3,229-3,197

-1

-4

1,068

-8,146––-13,142

2,496

50,59046,214-1,485-1,95935,96146,751

Repayment of long-term loans

Dividends paid to minority interests
Net Cash from (Used for) Financing
Effect of Exchange Rate Change on Cash andCash Equivalents
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
PeriodChange in Cash and Cash Equivalents
Resulting from Exclusion from Consolidation
Cash and Cash Equivalents at End of Period

14Consolidated Cash Flow Statement (FY23/2 Q3 Stand-Alone)(JPY million)
FY23/2 Q3(Sep 1, 2022 to
Nov 30, 2022)

FY22/2 Q3(Sep 1, 2021 to
Nov 30, 2021)
Cash Flows from Operations:Pre-tax income
Depreciation
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expense
Loss on disposal of fixed assets
Gains on sale of fixed assets
Decrease (increase) in trading notes andreceivables
Decrease (increase) in operational securities
investments
Decrease (increase) in real estate for sale
Valuation losses on SPC capital
Contributions
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 payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Increase (decrease) in security deposits
received
Increase (decrease) in accrued consumption
taxes
Other

387
1,395
25
159

7,155
1,352
44
160

–

–

-24
567
3
-29

-34
546
–
-3,321

-375

-321

1,109

1,242

-12,852

3,776

1

–

-65
-9
-25

165
-14
25

-170

-359

85
1
255
84

2
-5
14
28

93

185

-4

76

Sub-TotalInterest and dividends received
Interest expense paid
Income taxes paid
Income taxes refunded-547-9,933
24
-485
-624
32

529
11,25034-476-2,523–

Net Cash from (Used for) Operations-10,9878,285

15

(JPY million)
FY23/2 Q3(Sep 1, 2022 to
Nov 30, 2022)

FY22/2 Q3(Sep 1, 2021 to
Nov 30, 2021)
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, and equipment
Proceeds from sale of property, plant, andequipment
Acquisition of intangible assets
Payments of SPC capital contributions
Payments of security deposits
Loans madePayments received on loans madeOther
Net Cash from (Used for) Investments

16

-2
–
-376

–
3
–

566

–

-1,274-3,657740

12,265

-111
-1
–
–
8
13
-437

-8
–
–
-23
7
5
8,591

(JPY million)
FY23/2 Q3(Sep 1, 2022 to
Nov 30, 2022)

FY22/2 Q3(Sep 1, 2021 to
Nov 30, 2021)
Cash Flows from Financing:
Net increase (decrease) in short-term loans
Repayment of maturing bond principal tobondholders
Proceeds from long-term loans
Repayment of long-term loans
Repayment of long-term non-recourse loans
Share buyback
Dividends paid
Dividends paid to minority interests
Net Cash from (Used for) Financing
Effect of Exchange Rate Change on Cash andCash Equivalents
Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
PeriodChange in Cash and Cash Equivalents
Resulting from Exclusion from Consolidation
Cash and Cash Equivalents at End of Period

17-1,163

-962

-40

-40

5,195
-1,609
-133
–
–
–
2,247

12,117-19,725-121-2,832–-2-11,569––-9,176

5,307

45,13841,555––35,96146,751

Changes in Accounting Policies
1. Application of Revenue Recognition Accounting Standard
The “Accounting Standard for Revenue Recognition” (Accounting Standard Board of Japan(“ASBJ”) Statement No. 29, March 31, 2020; hereinafter the “Revenue Recognition
Accounting Standard”) has been applied from the beginning of FY23/2 Q1. Under thisaccounting standard, revenue is recognized in an amount expected to be received in exchange
for goods or services when control of promised goods or services is transferred to a customer.
Ichigo applies the transitional treatment provided in the notes to Clause 84, and there is no
impact from this change on retained earnings as of the beginning of FY23/2.
Accordingly, the impact from the change in Revenue Recognition Accounting Standard on
FY23/2 Q3 earnings is minimal.
Pursuant to the transitional treatment provided in Paragraph 28-15 of the Accounting Standard
for Quarterly Financial Statements” (ASBJ Statement No. 12, March 31, 2020), details of
earnings from contracts made with clients during the previous period (FY22/2 Q3) is notprovided.
2. Application of Accounting Standard for Fair Value Measurement
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,
2019; hereinafter the “Fair Value Measurement Accounting Standard”) has been applied fromthe beginning of FY23/2 Q1. In accordance with the transitional treatment provided for in
Paragraph 19 of the “Accounting Standard for Fair Value Measurement” and Paragraph 44–2
of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4,2019), the Fair Value Measurement Accounting Standard will henceforth be applied on an
ongoing basis.
Financial instruments such as corporate bonds and other bonds that are recognized as being
difficult to obtain a market value for were previously recorded on the quarterly balance sheet
based on acquisition price. Under the Fair Value Measurement Accounting Standard, thesefinancial instruments will be recorded on the quarterly balance sheet using a market value
derived from unobservable inputs based on best available information.

18

Revenue, P&L, and Assets by Segment (Current FY23/2 Q3)(Mar 1, 2022 to Nov 30, 2022)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

1,493

46,783

4,520

52,797–

52,797

Inter-Segment
Activities or
Reclassifications

382

1

–

384

-384

–

Total
Operating Profit

1,876
1,055

46,785
6,313

4,520
1,772

53,182
9,140

-384
-29

52,797
9,111

Gains on Sale of
Sustainable Real
Estate Assets
Recorded as
Extraordinary
Gains

–

4,416

–

4,416

–

4,416

1,055

10,7291,772

13,557-29

13,527

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar & Wind
Power Earnings,
etc.)

1,022

2,470

1,772

5,265

–

–

Flow Earnings(Gains on Sale of
Sustainable Real
Estate, Spot AM
Fees, etc.)

32

8,258

–

8,291

–

–

1,768

269,263

35,907 306,939

29,116

336,055

–

2,640

1,315

3,955

47

4,002

–

7,563

621

8,185

65

8,250

Segment P&L(All-In Operating
Profit) 1
Segment P&L
Details

Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L (All-In Operating Profit) = Operating Profit + Gains on Sale of Sustainable
Real Estate Assets Recorded as Extraordinary Gains
19

2

The Adjustment to Segment P&L of -JPY 29 million reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 29,116 million) reflects corporate assets, such as cash and deposits, that were
not allocated to the segments. The Adjustment to Depreciation (JPY 47 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 65 million) reflects
corporate assets that were not allocated to the segments.
3
From FY23/2 Q1, Ichigo has adjusted the allocation of general corporate expenses to certain
subsidiaries to more accurately reflect their use of corporate resources.

20Revenue, P&L, and Assets by Segment (Previous FY22/2 Q3)(Mar 1, 2021 to Nov 30, 2021)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

1,548

23,601

4,236

29,386–

29,386

Inter-Segment
Activities or
Reclassifications

369

1

–

370

-370

–

Total
Operating Profit

1,917
1,124

23,603
2,091

4,236
1,814

29,757
5,030

-370
5

29,386
5,036

Gains on Sale of
Sustainable Real
Estate Assets
Recorded as
Extraordinary
Gains

–

29

–

29

–

29

1,124

2,120

1,814

5,059

5

5,065

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar & Wind
Power Earnings,
etc.)

1,115

1,226

1,814

4,156

–

–

Flow Earnings(Gains on Sale of
Sustainable Real
Estate, Spot AM
Fees, etc.)

9

893

–

903

–

–

1,938

288,472

36,407 326,818

21,085347,903

–

2,941

1,226

4,167

44

4,212

–

951

1,763

2,714

16

2,731

Segment P&L(All-In Operating
Profit) 1, 3Segment P&L(All-In) Details

Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L (All-In Operating Profit) = Operating Profit + Gains on Sale of Sustainable
Real Estate Assets Recorded as Extraordinary Gains
21

2

The Adjustment to Segment P&L of JPY 5 million reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment Assets(JPY 21,085 million) reflects corporate assets, such as cash and deposits, that were not allocatedto the segments. The Adjustment to Depreciation (JPY 44 million) reflects depreciation of
corporate assets that were not allocated to the segments. The Adjustment to Increase in Property,
Plant, and Equipment and Intangible Assets (JPY 16 million) reflects corporate assets that were
not allocated to the segments.
3
From FY23/2 Q1, Ichigo has adjusted the allocation of general corporate expenses to certain
subsidiaries to more accurately reflect their use of corporate resources. If the new allocation
methodology is applied to the previous FY22/2 Q3 period, Segment P&L would have been
JPY 1,190 million for Asset Management, JPY 2,153 million for Sustainable Real Estate,
and JPY 1,744 million for Clean Energy.

22Revenue, P&L, and Assets by Segment (Current FY23/2 Q3 Stand-Alone)(Sep 1, 2022 to Nov 30, 2022)(JPY million)
Segment
AmountRecordedin
Asset
Sustainable Clean
Adjustment2
Financial
Management Real Estate Energy Total
Statements
(AM)
(SRE)
(CE)
Revenue
Revenue from
External
Customers

494

25,512

1,315

27,322–

27,322

Inter-Segment
Activities or
Reclassifications

151

–

–

152

-152

–

Total
Operating Profit

646
374

25,513
3,272

1,315
392

27,475
4,038

-152
-9

27,322
4,028

Gains on Sale of
Sustainable Real
Estate Assets
Recorded as
Extraordinary
Gains

–

3,321

–

3,321

–

3,321

374

6,593

392

7,359

-9

7,350

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar & Wind
Power Earnings,
etc.)

350

1,067

392

1,810

–

–

Flow Earnings(Gains on Sale of
Sustainable Real
Estate, Spot AM
Fees, etc.)

23

5,525

–

5,549

–

–

1,768

269,263

35,907 306,939

29,116

336,055

–

895

438

1,334

17

1,352

–

3,552

136

3,688

11

3,700

Segment P&L(All-In Operating
Profit) 1
Segment P&L
Details

Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L (All-In Operating Profit) = Operating Profit + Gains on Sale of Sustainable
Real Estate Assets Recorded as Extraordinary Gains23

2

The Adjustment to Segment P&L of -JPY 9 million reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment
Assets (JPY 29,116 million) reflects corporate assets, such as cash and deposits, 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 11 million) reflects
corporate assets that were not allocated to the segments.
3
From FY23/2 Q1, Ichigo has adjusted the allocation of general corporate expenses to certain
subsidiaries to more accurately reflect their use of corporate resources.

24Revenue, P&L, and Assets by Segment (Previous FY22/2 Q3 Stand-Alone)(Sep 1, 2021 to Nov 30, 2021)(JPY million)
Segment
AmountRecordedin
Asset
Sustainable Clean
Adjustment2
Financial
Management Real Estate Energy Total
Statements
(AM)
(SRE)
(CE)
Revenue
Revenue from
External
Customers

507

4,331

1,244

6,083

–

6,083

Inter-Segment
Activities or
Reclassifications

114

–

–

114

-114

–

Total
Operating Profit

621
353

4,331
16

1,244
420

6,197
790

-114
2

6,083
793

Gains on Sale of
Sustainable Real
Estate Assets
Recorded as
Extraordinary
Gains

–

29

–

29

–

29

353

45

420

819

2

822

Stock Earnings(Rental Income,Base AM Fees,
FIT Solar & Wind
Power Earnings,
etc.)

353

43

420

817

–

–

Flow Earnings(Gains on Sale of
Sustainable Real
Estate, Spot AM
Fees, etc.)

–

2

–

2

–

–

1,938

288,472

36,407 326,818

21,085347,903

–

979

401

1,380

15

1,395

–

369

544

913

1

914

Segment P&L(All-In Operating
Profit) 1, 3Segment P&L(All-In) Details

Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets1

Segment P&L (All-In Operating Profit) = Operating Profit + Gains on Sale of Sustainable
Real Estate Assets Recorded as Extraordinary Gains25

2

The Adjustment to Segment P&L of JPY 2 million reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment Assets(JPY 21,085 million) reflects corporate assets, such as cash and deposits, that were not allocatedto the segments. The Adjustment to Depreciation (JPY 15 million) reflects depreciation of
corporate assets that were not allocated to the segments. The Adjustment to Increase in Property,
Plant, and Equipment and Intangible Assets (JPY 1 million) reflects corporate assets that were
not allocated to the segments.
3
From FY23/2 Q1, Ichigo has adjusted the allocation of general corporate expenses to certain
subsidiaries to more accurately reflect their use of corporate resources. If the new allocation
methodology is applied to the previous FY22/2 Q3 stand-alone period, Segment P&L would
have been JPY 375 million for Asset Management, JPY 53 million for Sustainable Real
Estate, and JPY 398 million for Clean Energy.

.

26