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.

Internet Disclosure Material
Related to the Notice of the Fifteenth Annual Shareholder Meeting

Notes to the Consolidated Financial Statements



Notes to the Parent Financial Statements

Ichigo Group Holdings Co., Ltd.

Pursuant to the laws and regulations and Article 14 of the Company’s Articles of Incorporation, notes to theconsolidated financial statement and parent financial statement are posted on its website(http://www.ichigo-holdings.co.jp/english) for your reference.
-1-Notes to the Consolidated Financial Statements
I. Material Matters for Preparation of Consolidated Financial Statements
A. Scope of Consolidation
1. Consolidated Subsidiaries- Number of consolidated subsidiaries

67 companies- Major consolidated subsidiaries

Ichigo Real Estate Investment Advisors Co., Ltd.
Ichigo Estate Co., Ltd.
Ichigo Real Estate Services Fukuoka Co., Ltd.
Ichigo ECO Energy Co., Ltd.
Ichigo Global Capital Co., Ltd.
Ichigo Marché Co., Ltd.
Miyako City Co., Ltd.
Takara Building Maintenance Co., Ltd.

Ichigo Real Estate Services Fukuoka Co., Ltd. which the Company newly established during thecurrent fiscal year have been included in the scope of consolidation.
Thirty one investment associations in which the Company newly invested during the current fiscal
year have been included in the scope of consolidation.
One investment association has been included in the scope of consolidation because the following
rules and regulations have been applied during the current fiscal year: Accounting Standard forConsolidated Financial Statements (ASBJ Guidance, March 25, 2011), Guidance on Disclosuresabout Certain Special Purpose Entities (ASBJ Guidance, March 25, 2011), Guidance on
Determining a Subsidiary and an Affiliate (ASBJ Guidance No. 22, March 25, 2011), andPractical Solution on Application of the Control Criteria and Influence Criteria to Investment
Associations (ASBJ PITF No. 20, March 25, 2011).
Nine investment associations have been excluded from the scope of consolidation because theirimportance has decrease during the current fiscal year.
Two investment associations have been excluded from the scope of consolidation because theCompany sold all of its investment during the current fiscal year.
2.

Major Non-Consolidated Subsidiaries
N/A

3.

Reason Why Some Companies Were Not Classified as Subsidiaries in Spite of the Company
Possessing a Majority of their Voting Rights
N/A

B. Application of Equity Method
1. Affiliates under Equity Method
N/A
2. Non-Consolidated Subsidiaries under Equity Method
N/A
3. Major Non-Consolidated Subsidiaries not under Equity Method
N/A

-2-

4. Affiliates not under Equity Method
N/A
5. Reason Why Some Companies Were Not Classified as Affiliates despite the Company Possessing
20% to 50% or Less of Their Voting Rights
N/A
C. Fiscal Year of Consolidated Subsidiaries
Fiscal year dates of consolidated subsidiaries are as follows:
End of January

35 companies

End of February

18 companies

End of December

14 companies

For subsidiaries whose fiscal year ends in December or January, financial data as of that date havebeen used. However, necessary adjustments for consolidation have been made with respect tosignificant transactions which occurred by the current fiscal year end in February.
D. Accounting Standards
1. Valuation of Material Assets
a. Other Securities- With available market quotations

Carried at fair value on the current fiscal year date(unrealized gain or loss is included directly in net assets
and the cost of other shares sold is calculated by themoving average method).

- Without available market quotations Moving average cost method
However, investments in investment associations aredetailed in (vi) Other Material Matters for Preparationof Consolidated Financial Statements, c. Investment
associations.
b. Derivatives

Mark-to-market

c. Inventories- Real estate for sale:Stated at cost determined by the individual cost
method:Some consolidated subsidiaries amortize real estate
for sale in the same way as that of property andequipment.

2. Depreciation and Amortization Methods for Material Depreciable Assets- Fixed assets:

Straight-line method (in principal)- Useful lives:

Buildings and structures 7–52 years
Machinery and equipment 7–20 years

3. Accounting Standards for Material Allowancesa. Allowance for Doubtful Accounts

Reserved based on the record of bad debts with respect
to ordinary receivables, plus an estimate of
uncollectible amounts determined with reference to-3-

specific doubtful receivables from customers
experiencing financial difficulties.
b. Allowance for Bonus

Reserved based on an estimated amount for the current
fiscal year.

4. Material Hedge Accounting
a. Hedge accounting method
In principle, the Company adopts the deferral hedge accounting method. However, with respect
to certain foreign currency forward contracts, interest rate swaps, and interest rate caps whichmeet certain criteria, the Company may use another appropriate method.
b. Hedging instruments and hedged items
Hedging instruments

Interest rate swaps

Hedged items

Borrowingsc. Hedging policy
The Company hedges the risk from changes in foreign exchange rates and interest rates in its
operating and financing activities based on internal policies.
d. Evaluation method for the effectiveness of hedging activities.
The Company evaluates the effectiveness of hedging activities with reference to the accumulated
gain or loss on the hedging instruments and related hedged items for a period from thecommencement of the hedges to the time of evaluation. The evaluation of the effectiveness isomitted for interest-rate swaps that meet requirements for special treatments.
5. Amortization periods and methods for Goodwill and/or Negative Goodwill
Goodwill and negative goodwill are amortized on a straight-line basis for a period of 10 to 20
years depending on specific factors of individual subsidiaries.
6. Other Material Matters for Preparation of Consolidated Financial Statementsa. Taxes including consumption tax
Consumption taxes are excluded from the relevant revenues, costs, or expenses.
Non-deductible consumption taxes are generally accounted for as periodic costs in the current
fiscal year; however, certain items paid in connection with the acquisition of assets are amortizedbased on the straight-line method over five years.
b. Operational investments
Operational investments conducted by the Company as operations of the real estate fundbusiness and the M&A business are classified as "operational investments in securities” and“operational investments in loans” within current assets. Gains and losses arising fromoperational investments are shown under operating income and expense.
Although the Company may control the decision-making body of investment vehicles or holdsignificant influence over them by holding shares, shares are held solely for operational
investment purposes and the Company has no intention of holding them as subsidiaries oraffiliates. Therefore such investment vehicles are excluded from subsidiaries or affiliates.
c. Investment associations
The Company accounts for investments in investment associations as “operational investments insecurities.” Such investments are recorded at the time the investments are made. Gains and losses
distributed from the investment associations are recorded as Revenues and the investments inassociations increase or decrease by the same amount. Refunds received from the investment-4-

associations are credited to the Investments in associations.
d. Consolidated tax treatment
The Company qualified for consolidated tax treatment.
E. Changes in Accounting Policies(Application of Accounting Standard for Consolidated Financial Statements)
The Company made one investment association a subsidiary in line with the following rules andregulations from the current fiscal year: Accounting Standard for Consolidated Financial Statements(ASBJ Guidance, March 25, 2011), Guidance on Disclosures about Certain Special Purpose Entities(ASBJ Guidance, March 25, 2011), Guidance on Determining a Subsidiary and an Affiliate (ASBJ
Guidance No. 22, March 25, 2011), and Practical Solution on Application of the Control Criteria and
Influence Criteria to Investment Associations (ASBJ PITF No. 20, March 25, 2011).
Regarding the application of accounting standards to an investment association which will be a
subsidiary, all of its assets and liabilities related to one investment association is evaluated by market
value as of the beginning of the fiscal year of the first year the accounting standard is appliedfollowing the rules on transitional handling set out in item (4), paragraph 4 of Article 44. As a result,
the retained earnings as of the beginning of the current fiscal year increased by 97 million yen.
F. Changes in Presentation(Consolidated Balance Sheet)
The figure shown in item “Accumulated Depreciation” in Tangible fixed item which was calculatedby directly deducting from the account for each asset (direct deduction method) until the previous
fiscal year is shown as an item to be deducted from the account of each asset (indirect deduction
method) from the current fiscal year.
(Consolidated Income Statement)
The item “Gain on redemption of shares of subsidiaries” (29 million yen in the previous fiscal year)
which was included in “Others” in Extraordinary gains in has been itemized separately because it
exceeds ten percent of the total of Extraordinary gains in this current fiscal year.
The item “Valuation loss on investment in capital” (12 million yen in the previous fiscal year) which
was included in “Others” in Extraordinary gains in has been itemized separately because it exceeds
ten percent of the total of Extraordinary gains in this current fiscal year.
G. Additional Information(Changes in the purpose of ownership)
The purpose of ownership of real estate owned has been changed at the end of the current fiscal year,
and the figures below are transferred to the item “Real estate for sale.”
Building and Plant
Depreciation total
Building and Plant (net)Land
Total amount transferred¥2,838 million(¥803 million)¥2,034 million¥9,257 million¥11,291 million-5-II. Notes to Consolidated Balance Sheet
A. Assets Provided as Collateral- Assets Provided as Collateral
Cash and cash equivalents
Trade notes and accounts receivable
Trade notes and accounts receivable (reserved for collateral)
Operational investments in loans
Real estate assets for sale
Real estate assets for sale (reserved for collateral)
Current Assets – Others
Current Assets – Others (reserved for collateral)
Buildings and structures
Machinery and equipment
Machinery and equipment (reserved for collateral)
Land
Property, Plant and Equipment – Others
Leasehold rights
Leasehold rights (reserved for collateral)
Investments in securities
Investments and Other Assets – Others
Total¥1,699 million¥75 million¥8 million¥1,330 million¥49,307 million¥140 million¥0 million¥0 million¥1,791 million¥4,927 million¥ 3,355million¥9,451 million¥3 million¥62 million¥330 million¥399 million¥12 million¥72,896 million(Note) In addition to the above, ¥2,630 million of Shares in Affiliates no longer consolidated are collateralized.
Furthermore, the Company has borrowed securities (market value: ¥2,388 million) to be used forcollateral but these borrowed securities are not presented in balance sheet as they are not the Company’s
assets.
Figures shown in items “Buildings and structures,” “Machinery and equipment,” “Property, Plant andEquipment – Others” are net amount.

- Secured obligations
Long-term loans (due within one year)
Long-term borrowings
Total¥2,730 million¥52,486 million¥55,217 million

B. Non-Recourse Loans
Non-recourse loans and corporate bonds are borrowings where funds for repayment are limited only tothe value of the underlying real estate and profits from such real estate. The lender has no recourse to
the Company in the event of a failure of payment.
Debts where funds for repayment are likely to fall short are presented excluding such shortfall on the
consolidated balance sheet. The valuation amounts presented in the prior fiscal year are omitted fromthe current fiscal year, because they no longer qualify as being important.
Assets provided as collateral and secured obligations with respect to the non-recourse loans andnon-recourse bonds are as follows:-6-

- Assets Provided as Collateral
Cash and cash equivalents
Real estate for sale
Buildings and structures
Land
Tangible assets – otherTotal¥4,923 million¥56,495 million¥775 million¥1,011 million¥0¥63,206 million

Figures shown in “Buildings and structures” and “Tangible assets – other” are net amount.
- Secured obligations
Short-term non-recourse loans
Long-term non-recourse loans (due within one year)
Non-recourse corporate bonds
Long-term non-recourse loans
Total¥48 million¥786 million¥100 million¥43,004 million¥43,938 million

III. Notes to Consolidated Statement of Changes in Shareholders' Equity
A. Type and Number of Shares Issued and Type and Number of Treasury Stock
Number of sharesat the beginning of
the current fiscal
year

Increase in shares
during the current
fiscal year1

499,432,200
499,432,200

1,372,400
1,372,400

Shares issued
Common stock
Total
Treasury stock
Common stock
Total

Decrease in shares
during the current
fiscal year2

Number of sharesat the end of thecurrent fiscal year
500,804,600
500,804,600

1,978,000
1,978,000

308,000
308,000

1,670,000
1,670,000

1

Details of increase in shares issued:
Exercise of stock option: 1,372,400 shares
2
Details of decreased number of treasury shares
Sale in exercise of stock option: 308,000 shares

B. Stock Acquisition Rights

Stock acquisitionrightsShares intheCompany

Type ofshares

As of theend of theprevious
fiscal year

Number of shares to be issued
Increase
Decrease
As of thein thein theend of thecurrent
current
current
fiscal year fiscal year
fiscal year

Balance asof the end of
the current
fiscal year

9th
stock acquisitionright plan

Commonstock

673,400－

194,400

479,000¥14 million

10thstock acquisitionright plan

Commonstock

1,756,000－

311,000

1,445,000¥23 million

11thstock acquisitionright plan

Commonstock

4,341,000－

1,189,000

3,152,000¥64 million

12th 1stock acquisitionright plan

Commonstock

1,060,000－

18,5001,041,500¥88 million

13th 1stock acquisitionright plan

Commonstock－

1,900,000

2,200

1,897,800¥7 million-7-

Total1－

7,830,400

1,900,000

1,715,100

8,015,300¥198 million

The exercise dates of 12th stock acquisition right plan and 13th stock acquisition right plan have not arrived yet.

C. Distribution of Retained Earnings
1. Amount of Dividends Paid
In the Regular Meeting of the Board of Directors on April 17, 2014, the following was resolved.
(a) Total Amount to be Distributed

547 million yen(b) Source of Distribution

Retained earnings(c) Amount of Dividend per Share

1.1 yen(d) Calculation Date

February 28, 2014(e) Effective Date

May 26, 2014

2. Dividends where Record Date is in the Current Fiscal Year but the Effective Date is in the Next
Fiscal YearIn the Regular Meeting of the Board of Directors on April 20, 2015, the following was resolved.
(a)Total Amount to be Distributed

648 million yen(b)Source of Distribution

Retained earnings(c)Amount of Dividend per Share

1.3 yen(d)Calculation Date

February 28, 2015(e)Effective Date

May 25, 2015-8-

IV. Notes on Financial Instruments
A. Matters Concerning Status of Financial Instruments
1. Policies on Financial Instruments
The Company finances its necessary operating capital mainly via bank loans and corporate bonds inlight of new investment and asset disposition plans. Short-term excess funds are managed in liquid
financial instruments such as bank deposits, and short-term working capital is financed via bankloans. As Company policy, derivatives transactions are used for the purpose to avert risks mentioned
below. Speculative derivatives transactions are not conducted.
2. Details and Risks of Financial Instruments
Notes receivable and accounts receivable are operating receivables that are exposed to customer
credit risks. Foreign currency-denominated financial instruments in overseas business operations are
exposed to currency risks.
Operational investments in securities include investments in corporate equities both inside andoutside of Japan and domestic real estate funds, and investments in securities mainly take the form ofequity and are typically investments in companies with which the Company has a business
relationship. All of these investments are exposed to issuer credit risk, interest rate risk and pricefluctuation risks. Financial instruments denominated in foreign currencies are exposed to currency
risk.
Most of notes payable and accounts payable are operating payables that are due within three months
and denominated in Japanese yen.
Borrowings, non-recourse bonds, and non-recourse loans are for the purpose of financing investments
and capital expenditures, and are expected to be redeemed or repaid within approximately thirty years
after the fiscal year end. Floating-rate loans are exposed to interest rate risk, a part of which is hedged
utilizing derivatives transactions (e.g., interest rate swaps). Please refer to (iv) Material Hedge
Accounting, (4) Accounting Standards of 1. Material Matters for Preparation of Consolidated
Financial Statements for method, objects, policies, and evaluation of effectiveness of hedging
activities.
3. Risk Management of Financial Instruments(a) Management of Credit Risk
Operating receivables exist mainly at subsidiaries. Responsible departments monitor thecollection status pursuant to the designated procedure for mitigation of collection risk. Other
operating receivables arise irregularly, e.g., at a time of investment monetization, the responsible
department determines the execution of the transaction based on the term needed for dispositionand credit worthiness of the counterparty, and monitors the receivable until it is collected inaccordance with the agreement. The Company monitors operational investments in securities andinvestments in securities with respect to the financial status of the issuers and reviews holding
policies, as necessary and appropriate.
(b) Management of Market Risk
The Company utilizes interest rate swaps and interest rate caps for the purpose of reducing
interest rate risk on interest payables. The Company monitors operational investments insecurities and investments in securities, which have market risks (e.g., real estate funds) or are
denominated in foreign currencies regularly for the impact from the market value and currency
rate and review the holding policies as necessary. Derivative transactions are executed andcontrolled in the Finance Department in accordance with the designated procedure.
(c) Management of Liquidity Risk
The Company establishes and updates its funding plan as necessary based on new investment anddisposition plans established by the responsible departments, as well as manages liquidity risk by-9-maintaining short-term liquidity.
4. Supplement to Matters Concerning Market Values of Financial Instruments
Market values of financial instruments include prices based on the market price as well as prices
calculated based on rational assumptions if the market price is not available. Such prices may
fluctuate, since they reflect the fluctuating variables and assumptions in the calculation process.
B. Adjustments to Market Values of Financial Instruments
Amounts recorded on the consolidated balance sheet for market values and their differences as ofFebruary 28, 2015 are shown below. (Note that there are no differences recorded for this fiscal year.)Those which were deemed difficult to obtain the market value are not included in the table below(See note below).
(Million yen)Amount Recordedon Consolidated

Market Value

Difference

Balance Sheet(1) Cash and cash equivalents

19,383

19,383

-

519

519

-

2,330

2,330

-

364

364

-

532

532

-

2

2

0

23,13323,133

0

124

124

-

1,416

1,416

-

48

48

3,488

3,488

-

786

786

-

(6) Corporate Tax Payable

284

284

-

(7) Non-Recourse Bonds

100

100

(8) Long-Term Corporate Debt

53,40953,662

252(9) Long-Term Non-Recourse Loans

43,004

43,213209

Total Debt

102,662

103,124

462

Derivatives

(51)

(51)

-

(2) Notes Receivables and Accounts
Receivable1(3) Operating Loans(4) Operating investments in securities1(5) Investments in securities

1(6) Long-Term Loans 1
Total Assets(1) Notes Payable and Accounts Payable(2) Short-Term Borrowings(3) Short-Term Non-recourse loans(4) Long-Term Loans (due within one year)(5) Non-Recourse Loans (due within one
year)

1

Excluding allowance for doubtful accounts which are recorded separately.

2

The net receivables and debt that occurred in derivative transactions are shown as net amount, and for
those that are net debt are indicated in parentheses ( ).

- 10 -

(Note1) Calculation Method of Market Value of Financial Instruments and Matters Concerning
Securities and Derivatives Transactions
Assets(1) Cash and Cash Equivalents
Carried at book value because of the market value’s closeness to book value due to ashort settlement period.
(2) Notes Receivables and Accounts Receivable
Carried at market value which is the book value less any provision for loan losses.
(3) Operating Loans Receivable
Generally, loans are carried at book value because of the market value’s closeness tobook value due to a short settlement period.
(4) Operational Investments in Securities and (5) Investments in Securities
The market values of equities are the last traded exchange price, and bonds are thelast-traded exchange price or dealer-indicated price.
(6) Long-Term Loans
The market values of long-term loans are calculated based on the present value of thetotal amount of the principal using an interest rate expected for similar new loans.
Certain debts such as loans with default risk are at book value less the estimateddoubtful accounts.
Debt(1) Notes Payable and Accounts Payable, (2) Short-Term Loans, (3) Short-Term
Non-Recourse Loans, (4) Long-Term Loans with Maturity within 1 Year, (5)Long-Term Non-Recourse Loans with Maturity within 1 Year, and (6) Income Tax
Payable within 1 Year
Carried at book value because of the market value’s closeness to book value due to ashort settlement period.
(7) Non-Recourse Corporate Bonds, (9) Long-Term Non-Recourse Loans
Floating-rate borrowings among non-recourse corporate bonds and long-term
non-recourse loans are carried at book value because of the market value’s closeness tothe book value due to the floating-rate nature of the debt. The market values of partial
variable-rate non-recourse borrowings are subject to the special accounting treatment ofinterest rate swap, therefore it is calculated based on the present value of the total amountof the principal reflecting the interest rate swap arrangements using an interest rate
expected for similar new loans.
The market values of fixed-rate borrowings are calculated based on the present value ofthe total amount of the principal using an interest rate expected for similar new loans.
The borrowings with shortfalls in repayment funds are calculated by subtracting theshortfall from present value, since the obtained value is close to market value.
(8) Long-Term Loans
Floating-rate borrowings among long-term borrowings are carried at book value becauseof the market value’s closeness to the book value due to the floating-rate nature of thedebt. The market values of partial variable-rate borrowings are subject to the special
accounting treatment of interest rate swap, therefore it is calculated based on the present
value of the total amount of the principal reflecting the interest rate swap arrangements
using an interest rate expected for similar new loans.
The market values of fixed-rate borrowings are calculated based on the present value ofthe total amount of the principal using an interest rate expected for similar new loans.
Derivative Transactions
The market values of derivative transactions are the prices presented by financial
institutions. The market value of interest rate swap under special treatment is included in- 11 -

loan-term loans and long-term non-recourse loans since it is handled as a whole with its
hedging loans.
(Note 2) Financial Instruments for which it is Difficult to Obtain Market Values(Million yen)Amount Recorded inClassification

Consolidated Balance Sheet(1) Operational investments in securities*

1,170(2) Investments in securities*

4,658(3) Long-term security deposits received

6,391*Allowance for bad debts deducted.
(1) Operational investments in securities are not subject to the market value disclosure despite being
investment securities, since they are not priced in the market and it is difficult to estimate theirmarket values.
(2) Investments in securities are not subject to the market value disclosure despite being securities of
non-listed securities, since they are not priced in the market, it is difficult to estimate their market
values.

(3) Long-term security deposits received which are security deposits received from tenants of rental
properties are not subject to market value disclosure, since it is deemed highly difficult to estimate areasonable cash flow since they are not priced in the market and it is difficult to know in advance thesecurity deposit period.

V. Notes on Rental Properties
1. Conditions with respect to Rental Properties
The Company and certain of its consolidated subsidiaries hold rental offices and retail properties inTokyo and other locations. Profit and Loss on rental properties (Rental profit is presented in Revenues
and Rental Cost is presented in Cost of Revenues.) in the current fiscal year is ¥853 million.
2. Market Value of Rental Properties(Million yen)Book Value on Consolidated Balance Sheet1
Market Value
Balance
as of Mar 2014

Increase / Decrease2

17,320(1,174)

1

Balance

as of Feb 20153

as of Feb 2015
16,146

17,407

Book Value on Consolidated Balance Sheet = Acquired Cost – (Cumulative Depreciation + Cumulative
Impairment Loss)2
The increase in the current fiscal year is mainly due to the acquisition of new assets for rent worth ¥3,617 million
and the change in consolidated subsidiaries worth ¥6,663 million. The decrease is due to transferring ¥11,291
million to Real estate for sale owing to the change in the purpose of ownership3Market Value as of February 2015 is mainly assessed by the External Real Estate Appraisers.

VII. Per Share Data
1. Net assets per share¥111.54

2. Net income per share¥13.583. Net income per share (fully diluted)¥13.47

VIII. Material Subsequent Events- 12 -

N/A

Notes to the Parent Financial Statements
I. Material Accounting Policies
A. Valuation Standards and Method for Securities
1. Shares in subsidiaries and affiliates:

Moving average cost method

2. Other securities
Shares with market value:

Mark-to-market on the last date of fiscal year (valuationdifference is reported as a component of shareholders’equity and cost of revenues is calculated with moving
average cost method)

Shares without market value:

Moving average cost method. The valuation forinvestment associations is noted in (6) Material Changes
in Presentation at (iii) Investment Associations.

3. Derivatives:

Mark-to-market

4. Inventory assets:
Real estate for sale:Individual cost method (write-down method for the low
profitable assets on balance sheet)

B. Depreciation Method for Property and Equipment
1. Fixed assets:

Mainly straight-line method

Main useful lives are as follows:
Buildings and Structures
2. Intangible assets:

8-39 years
Straight-line method

Main useful life is as follows:
Software5 years

C. Amortization of Deferred Assets
Issuance cost of corporate bonds: Full amount is recorded as cost.

D. Accounting Standards for Allowances
Allowance for doubtful accounts
The allowance is provided for doubtful accounts based on the historical experience for normal
receivables and an estimate of the collectability for receivables from companies which areexperiencing financial difficulties.

- 13 -

E. Hedge Accounting Method
1. Hedge accounting method
In principle, the Company adopts the deferral hedge accounting method. However, with respect tosome interest rate swaps which meet certain criteria, the Company uses an alternative accounting
method, as reasonable and appropriate.
2. Hedging instruments and hedged items
Hedging instruments:

Interest rate swaps

Hedged items:

Borrowings

3. Hedging Policy
The Company uses derivative financial instruments in its financing activities to hedge possible
future movements in interest rates.
4. Assessment of Hedge Effectiveness
The Company omits evaluating hedge effectiveness since it only applies to interest rate swaps
which meet certain criteria.

F. Material Changes in Presentation
1. Consumption Tax
Consumption taxes are excluded from the relevant revenue, costs or expenses. Non-deductible
consumption taxes are generally accounted for as expenses depreciated equally over five years.
2. Operating Investments
Operating investments in securities are included in operating investments in securities andoperating loans in current assets, separate from non-operating investments. Profits and losses
incurred from operating investments are recorded as operating profits and losses. Operating
investments in which the Company has a control stake are not considered as subsidiaries oraffiliates since the Company does not have an intention to control management.
3. Investment Associations
Assets held by investment associations are categorized as operating investments in securities andinvestment in securities of other affiliates (“Investments in investment associations”) inproportion to the holding percentage. Profits on dividends are recorded as revenues and an
adjustment to Investments in investment associations. Redemption of principle is recorded as adecrease of Investments in investment associations.
4.

Consolidated Tax Treatment
The Company qualifies for consolidated tax treatment.

II. Changes in Presentation(Consolidated Balance Sheet)
The figure shown in item “Accumulated Depreciation” in Tangible Assets which was calculated bydirectly deducting from the account for each asset (direct deduction method) until the previous fiscal
year is shown as an item to be deducted from the account of each asset (indirect deduction method)from the current fiscal year.

III. Additional Information(Changes in the purpose of ownership)- 14 -

The purpose of ownership of real estate owned has been changed at the end of the current fiscal year,
and the figures below are transferred to the item “Real estate for sale.”
Buildings and structures
Accumulated depreciation
Buildings and structures (net)Land
Total amount transferred¥1,229 million- ¥144 million¥1,084 million¥2,736 million¥3,820 million

IV. Balance Sheet
A. Assets Provided as Collateral and Secured Obligations
Assets provided as collateral are as follows:
Cash and cash equivalents
Real estate for sale
Buildings and structure
Land
Tangible assets – other
Investments in securities
Shares of affiliated companies
Long-term loans to affiliates
Total¥133 million¥5,816 million¥230 million¥2,094 million¥2 million¥399 million¥2,632 million¥1,399 million¥12,708 million

In addition, the Company has borrowed securities (market value: ¥2,388 million) to be used forcollateral but these borrowed securities are not presented in balance sheet as they are not theCompany’s assets. Figures in “Buildings and structures” and “Tangible assets – other” are net
amount.
Secured obligations are as follows:
Long-term borrowings (due within one year)
Long-term borrowings
Total¥972 million¥9,580 million¥10,553 million

B. Contingent Liabilities
1. The Company guarantees the following companies’ borrowings from financial institutions.
Ichigo Estate Co., Ltd.
Ichigo ECO Energy Co., Ltd.
Ichigo Real Estate Services Fukuoka Co, Ltd.
Takara Building Maintenance Co., Ltd.
GK Azabu Juban Jisho
GK Shijo Holdings
GK Kawaramachi Holdings
GK Ichigo ECO Power Plant Holdings 1
GK Ichigo ECO Ichigo Fuchu Jogecho Yano ECOPower Plant
GK Ichigo Nago Futami ECO Power Plant
GK Ichigo Motomombetsu ECO Power Plant
GK Ichigo Muroran Hatchodaira ECO Power Plant
GK Ichigo Higashi-Hiroshima Saijocho Taguchi
ECO Power Plant
GK Ichigo Engaru Kiyokawa ECO Power Plant
GK Ichigo Miyakonojo Yasuhisacho ECO PowerPlant
GK Ichigo Nakashibetsu Midorigaoka ECO PowerPlant
GK Ichigo Toyokoro Sasadamachi ECO PowerPlant
GK Ichigo Betsukai Kawakamicho ECO PowerPlant
GK Ichigo Toyokoro ECO Power Plant
GK Ichigo Akkeshi Shirahama ECO Power Plant- 15 -¥11,852 million¥2,416 million¥5,565 million¥16 million¥270 million¥365 million¥2,400 million¥604 million¥193 million¥1,749 million¥280 million¥280 million¥570 million¥233 million¥343 million¥442 million¥175 million¥250 million¥255 million¥150 million

2. The Company guarantees the payment of a construction assistance fund and the return of a security
deposit by GK Myodani Fudosan¥388 million
3. The Company guarantees GK Ichigo Akkeshi Shirahama ECO Power Plant’s debt related to a
construction contract¥58 million
Total¥31,440 million

C. Debts to Affiliates (excluding items separately indicated)
Short-term receivables from affiliates¥935 million

Long-term receivables from affiliates¥57 million

Short-term debt to affiliates¥28 million

Long-term debt to affiliates¥45 million

V. Income Statement(i) Transactions with affiliates
Revenue
Revenue¥7,085 million

Cost of Sales¥94 million

Non-operational transactions¥428 million

VI. Statement of Changes in Shareholders' Equity
Types and Amounts of Treasury Stock
Ordinary shares

1,670,000- 16 -

VII. Tax Effect
A. Breakdown of Cause of Deferred Tax Assets and Liabilities
Deferred tax assets
Maximum amount of allowance for doubtful accounts
Write-down of operating investments in securities
Write-down of investments in securities
Write-down of investments in real estate
Write-down of securities of affiliates
Loss carried forward
Other
Subtotal
Allowance for valuation
Deferred tax assets¥509 million¥71 million¥397 million¥2,383 million¥939 million¥5,927 million¥444 million¥10,672 million(¥9,519) million¥ 1,153 million

Deferred tax liabilities
Unrealized gain on other securities, net(¥15 million)

Asset retirement obligation expense
Total(¥2 million)(¥18 million)

Net deferred tax assets¥1,135 million

B. Change of Tax Rate of Corporate Tax after Current Fiscal Year
Based on Partial Amendment of the Income Tax Act (Law No. 9, 2015) and Partial Amendment toRegional Tax Act (Law No.2, 2015) issued on March 31, 2015, corporate taxes will be decreased fromthe fiscal year starting on or after April 1, 2015. Reflecting this change, the effective statutory tax rateused for the calculation of deferred tax assets and liabilities is reduced from 35.64% to 33.10% for the
fiscal year beginning on March 1, 2016, and from 35.64% to 32.34% for the fiscal year beginning on
March 1, 2017. The impact from the change on the Company’s financial position is expected to beminimal.

- 17 -

VIII. Related Party Transactions(Million yen)Type

Subsidiary

VotingConnection with
Name
RightsTransaction Typethe Related Party
Held (%)
Service
Ichigo Real Estate
contract;
Receipt ofInvestment
100
Managerial management fee
Advisors Co., Ltd.
guidance
1

Loans

Interest received

Subsidiary

Ichigo Estate Co.,
Ltd. (Note 6)100Servicecontract;
Managerial
guidance

Provision of guaranteeof liabilities2
Receipt of guaranteeof liabilities3,4Receipt of guaranteeof liabilities andcollateral5

Payment to guarantor

Subsidiary

Subsidiary

Ichigo ECOEnergy Co., Ltd.
(Note 6)

Ichigo Real Estate
Services Fukuoka
Co., Ltd.

100

100

Servicecontract;
Managerial
guidance
Financialsupport;Servicecontract;
Managerial
guidance

Loans1
Interest received

Transaction
AmountAccount

Balance
Outstanding

968 Receivables

78

Short-term loans
to affiliates
13,520Long-term loans
to affiliates“Others” inCurrent Assets
278“Others” inCurrent Assets

Subsidiary

Subsidiary

A. F. Co., Ltd.

KK Kimura
Building

100

100

-

Advance
Payment
0 “Others” inInvestments andOther Assets
Short-term loans
3,950
to affiliates“Others” in70
Current Assets

Loans1

2,340

Short-term loans
to affiliates“Others” in20
Current Assets

5,565 Long-term loans
to affiliates“Others” inInvestments andOther Assets

Interest received
Receipt of guaranteeof liabilities andcollateral4, 5Loans1

Subsidiary

SC13 Limited
Company

Financialsupport

Subsidiary

GK Minami
Ikebukuro Jisho

07-

Subsidiary

GK Mita Holdings

07-Interest received
Receipt of collateral8
Receipt of guaranteeof liabilities andcollateral4, 5Receipt of guaranteeof liabilities andcollateral5
Payment to guarantor- 18 -

4

7,968 -

Loans1
Financialsupport130

2,361 -

2,416 -

Provision of guaranteeof liabilities2

8,462

11,852 -Provision of guaranteeof liabilities2

Interest received

4,313

0
5
3,295
27

1,363
12
1,207
57

2,361 Long-term loans
to affiliates“Others” in
34 Investments andOther Assets
987 -

1,399
16
-

2,361 -

1,125
0Advance
Payment-

“Others” inInvestments andOther Assets
Subsidiary

GK Hamamatsu
Holdings

07-

Receipt of collateral88Receipt of collateral
Subsidiary

GK Koriyama
Holdings

07

Payment to guarantor

Receipt of guaranteeof liabilities andcollateral5
Subsidiary

GK Gotanda
Holdings

07
Payment to guarantor

Receipt of guaranteeof liabilities andcollateral5
Subsidiary

GK Shinagawa
Holdings

07
Payment to guarantor

Subsidiary

Subsidiary

Subsidiary

7

GK Ichigaya Jisho

0966 1,309 Advance
Payment
0 “Others” inInvestments andOther Assets
1,406 Advance
Payment
0 “Others” inInvestments andOther Assets
1,949 Advance
Payment
0 “Others” inInvestments andOther Assets

Provision of guaranteeof liabilities2

2,580 -

Receipt of guarantor

0

Provision of guaranteeof liabilities2

2,400 -

Receipt of guarantor

0

Advances
received

GK Kawaramachi
Holdings0

GK Ichigo ECONago Futami
Power Plant

07

Provision of guaranteeof liabilities2

1,749 -

64.46%
Owner oftheCompany

Receipt of collateral4,85,478 -

Major
Ichigo Trust
shareholder

7

Advances
received

1
0
3

0
3

0
4
7
6
-

Payment to guarantor91

36 Accounts payable

The interest rate on loans is determined reasonably with respect to the interest rate the Company actually pays, with special
consideration of the circumstances for certain affiliates.
2
The Company has become guarantor for loans from banks.
3
The Company has received guarantees for loans from banks.
4
The Company has received guarantees and collateral from its subsidiaries for a loan of ¥2,361 million from banks.
5
The Company has received both guarantees and collateral for loans from banks.
6
The Company has reserved ¥897 million of allowance for bad accounts for long-term loans to affiliates. In addition, The
Company reversed ¥306 million if allowance for bad accounts for the current fiscal year.
7
The Company holds 0% of voting rights and the subsidiary holds 100% of execution power of the Tokumei Kumiai in itself.
However, it is considered as the Company’s subsidiary because the Company adopted “Practical Solution on Application ofControl Criteria and Influence Criteria to Investment Associations” (Accounting Standards Board of Japan Practical Issues
Task Force No. 20, September 8, 2006).
8
The Company has received collateral for loans from banks.
9
The amount provided as collateral is decided based on the prevailing amount in the market in general trading.
10
The above transaction amounts do not include consumption and other taxes. The amounts recorded on the balance sheet as of
fiscal year-end do include consumption and other taxes.

IX. Per Share Data
A. Net assets per share¥106.02

B. Net Income per share¥13.49- 19 -

8

C. Net Income per share (diluted)¥13.38X. Material Subsequent Events
N/A- 20 -