Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2020
(Based on Japanese GAAP)
October 30, 2020
Company name:
ICHINEN HOLDINGS CO., LTD
Stock exchange listing: Tokyo
Stock code:
Representative:

Inquiries:

9619
PresidentURL

https://www.ichinenhd.co.jp
Masashi Kuroda

Director
Executive Officer

Hisako ImotoGeneral Manager
General Planning Dept.

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 13, 2020
November 30, 2020

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

06-6309-7890(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2020
54,210
18.3
3,582
3.3
3,633
3.1
743 (65.6)
Six months ended September 30, 201945,810
7.4
3,467
4.0
3,523
4.0
2,160 (34.4)
Earnings per share

Diluted earnings per share

Yen
30.58
87.82

Six months ended September 30, 2020
Six months ended September 30, 2019

Yen
30.52
87.77(2) Consolidated financial position
Total assets

Net assets

Millions of yen
156,758
149,228

As of September 30, 2020
As of March 31, 2020

Equity ratio

Millions of yen
37,64836,915

Net assets per share%
24.0
24.7

Yen
1,547.61
1,518.16

2. Cash dividends
Annual dividends per share

Year ended March 31, 2020
Year ending March 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
20.00
20.00

Yen–

Yen
26.00

Yen
46.00

–

20.00

40.00

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Full year

Millions of yen
111,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%Yen
12.4
6,500(5.5)
6,400(7.9)
2,500 (43.5)
102.891

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2020

24,612,227 shares As of March 31, 2020

24,612,227 shares

Number of treasury shares at the end of the period
As of September 30, 2020

313,953 shares As of March 31, 2020

313,853 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

24,298,299 shares Six months ended September 30, 2019

224,598,380 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade

2,158
16,412

12,51814,852

Electronically recorded monetary claims - operating
Accounts receivable-leasing business and maintenance

2,710

2,109

business
Investments in leases

2,424

2,463

19,07919,201

Merchandise and finished goods
Work in process

7,849
1,238

7,562
805

Raw materials and supplies
Prepaid expenses

1,556
2,448

1,357
3,320

Other
Allowance for doubtful accounts

3,600
(38)

3,020
(46)

Total current assets

59,43967,166

Assets for lease
Accumulated depreciation

122,996(67,966)

126,812(69,303)

Assets for lease,net

55,03057,5088,606
23,007

8,603
23,273

Accumulated depreciation(10,265)(10,882)

Other, net

12,742

12,391

76,37978,503

Non-current assets
Property, plant and equipment

Land
Other

Total property, plant and equipment
Intangible assets
Goodwill

1,453

1,321

Other

2,932

342

Total intangible assets

4,385

1,664

Investment securities
Long-term prepaid expenses

4,204
1,751

5,019
1,645

Deferred tax assets
Other

1,084
2,053

812
2,035

Allowance for doubtful accounts

(112)

(124)

Investments and other assets

Total investments and other assets
Total non-current assets
Deferred assets
Total assets

38,981

9,389

89,74789,5564135

149,228

156,758(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade14,60812,521

Electronically recorded obligations - operating
Short-term borrowings

3,223
6,720

2,727
10,720Commercial papers
Current portion of bonds payable

3,000
260

3,000
5,260

Current portion of long-term borrowings
Lease obligations

15,777
19

19,76015

Income taxes payable
Advances received-leasing business and maintenance

1,322

299

603

587

business
Provision for bonuses

770

860

Reserve for quality assurance
Other

8
2,514

14
1,770

Total current liabilities

48,82757,537

12,0106,880Long-term borrowings
Lease obligations

47,955
14

51,15912

Retirement benefit liability
Provision for retirement benefits for directors (and other

2,236

2,235

176

171

436

437

Non-current liabilities
Bonds payable

officers)
Asset retirement obligations
Other

655

674

63,48561,571

112,312

119,109

Share capital
Capital surplus2,529
1,805

2,529
1,805

Retained earnings
Treasury shares

32,067(339)

32,178(339)

Total shareholders' equity

36,061

36,173

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

990

1,610

Deferred gains or losses on hedges
Foreign currency translation adjustment

11
(20)

(1)
(34)

Remeasurements of defined benefit plans

(154)

(143)

Total accumulated other comprehensive income

826

1,431

2644

Share acquisition rights
Total net assets
Total liabilities and net assets

436,915

37,648149,228

156,758

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Net sales
Cost of sales

45,81035,12554,21042,004Gross profit

10,685

12,205

434

488

2,372
564

3,010
662

123

162

13

13

3

20

2
134

14
149

Other

3,569

4,100

Total selling, general and administrative expenses

7,217

8,622

3,467

3,582

Non-operating income
Dividend income

50

47

Purchase discounts
Other25
33

26
69

Total non-operating income

109

143

Non-operating expenses
Interest expenses

2640

Commission expenses
Other1016

1437

Total non-operating expenses

53

92

3,523

3,633

Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries, allowances and bonuses
Provision for bonuses
Retirement benefit expenses
Provision for retirement benefits for directors (and otherofficers)
Provision of allowance for doubtful accounts
Provision for quality assurance
Amortization of goodwill

Operating profit

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

01

Gain on sales of investment securities

035

Total extraordinary income

0364155

2,389
13

Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of investment securities
Loss on sales of membership0–

Total extraordinary losses

97

2,402

Profit before income taxes

3,426

1,267

Income taxes - current
Income taxes - deferred

1,406
(140)

495
29

Total income taxes

1,266

524Profit2,160

743

Profit attributable to owners of parent

2,160

743

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2019

September 30, 2020

2,160

743

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(42)
(17)

620
(12)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(27)
5(14)
10

Total other comprehensive income

(82)

604

2,077

1,347

2,077

1,347

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2019

September 30, 2020

3,426

1,267

7,147
134

7,667
149

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

2(50)

20(48)

Interest expenses
Loss (gain) on sales and retirement of non-current assets

2641

40
2,388361(975)

2,160372(578)(7,451)(369)(8,633)

Increase (decrease) in trade payables
Interest and dividends received(713)
50(2,590)
48

Interest paid
Income taxes paid

(30)
(850)

(33)
(1,511)

Income taxes refund
Other, net

34(2,537)17(538)Net cash provided by (used in) operating activities(1,962)406(2,146)(539)

Depreciation
Amortization of goodwill

Decrease (increase) in trade receivables
Decrease (increase) in inventories
Net Decrease (increase) in lease investment assets
Decrease(Increase) in lease business assets

Cash flows from investing activities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Payments for retirement of non-current assets

58(24)(28)

Purchase of investment securities
Proceeds from sales of investment securities

(14)
1(16)
121

36(2,175)(448)

Proceeds from short-term borrowings
Repayments of short-term borrowings

1,420–

7,000(3,000)Net increase (decrease) in commercial papers
Proceeds from long-term borrowings(500)
9,900–
14,908

Repayments of long-term borrowings
Proceeds from issuance of bonds(7,249)299(7,721)–

Redemption of bonds
Repayments of lease obligations

(71)
(4)

(130)
(3)

Dividends paid
Other, net

(491)
(11)

(631)
(15)

Net cash provided by (used in) financing activities

3,289

10,407(5)(4)

Net increase (decrease) in cash and cash equivalents(852)

10,360Cash and cash equivalents at beginning of period

2,201

2,158

Cash and cash equivalents at end of period

1,348

12,518Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents

7