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, 2019
(Based on Japanese GAAP)
November 5, 2019
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 14, 2019
November 29, 2019

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, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changesProfit 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, 201945,810
7.4
3,467
4.0
3,523
4.0
2,160 (34.4)
Six months ended September 30, 2018
42,654
4.7
3,334
8.2
3,386
9.1
3,294
71.2
Earnings per share

Diluted earnings per share

Yen
87.82
133.94Six months ended September 30, 2019
Six months ended September 30, 2018

Yen
87.77
–(2) Consolidated financial position
Total assets

Net assets

Millions of yen
134,529130,015

As of September 30, 2019
As of March 31, 2019

Equity ratio

Millions of yen
35,392
33,798

Net assets per share%
26.3
26.0

Yen
1,438.46
1,374.01

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
20.00
20.00

Yen–

Yen
20.00

Yen
40.00

–

20.00

40.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Full year

Millions of yen
94,000Percentages 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
7.1
6,350
1.2
6,440
1.5
4,010 (21.8)
163.02

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(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:

NoNo

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, 201924,612,227 shares As of March 31, 201924,612,227 shares

Number of treasury shares at the end of the period
As of September 30, 201913,869 shares As of March 31, 201913,764 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201924,598,380 shares Six months ended September 30, 20182

24,598,567 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,201
13,034

1,348
12,224

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

1,516

1,962

business
Investments in leases

2,346

2,360

18,606

18,946Merchandise and finished goods
Work in process

4,045
786

4,400
762

Raw materials and supplies
Prepaid expenses

705
2,361

932
3,325

Other
Allowance for doubtful accounts

1,935
(4)

2,694
(3)

Total current assets

47,534

48,955

Assets for lease
Accumulated depreciation

117,865(65,654)

120,092(66,254)

Assets for lease,net

52,21053,8387,564
18,438

7,594
20,462

Non-current assets
Property, plant and equipment

Land
Other
Accumulated depreciation(9,182)(9,687)

Other, net

9,255

10,774

69,03072,207

Total property, plant and equipment
Intangible assets
Goodwill

1,604

1,469

Other

3,084

3,202

Total intangible assets

4,688

4,672

Investment securities
Long-term prepaid expenses

4,207
1,827

4,104
1,729

Deferred tax assets
Other

862
1,931

994
1,942

Allowance for doubtful accounts

(107)

(111)

Investments and other assets

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

3

8,721

8,659

82,44185,54039

33

130,015

134,529

(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

11,572

10,925

Electronically recorded obligations - operating
Short-term borrowings

1,324
4,300

1,274
5,720

Commercial papers
Current portion of bonds

4,000
143

3,500
131

Current portion of long-term borrowings
Lease obligations

13,06325

13,595
21674

1,218

692

696

Income taxes payableAdvances received-leasing business and maintenancebusiness
Provision for bonuses

581

730

Reserve for quality assurance
Other

8
2,325

10
1,513

Total current liabilities

38,71239,336

10,000

10,240Long-term borrowings
Lease obligations

44,96815

47,087
14

Retirement benefit liability
Provision for retirement benefits for directors (and other1,523

1,484

135

144

392

407

Non-current liabilities
Bonds payable

officers)
Asset retirement obligations
Other

468

421

57,504

59,79996,216

99,136

Share capital
Capital surplus

2,529
1,805

2,529
1,805Retained earnings
Treasury shares

28,624(14)

30,293(14)

Total shareholders' equity

32,944

34,612

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

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

927

885

Deferred gains or losses on hedges
Foreign currency translation adjustment

17
7(0)
(20)

Remeasurements of defined benefit plans

(98)

(93)

Total accumulated other comprehensive income

853

770

–8

Share acquisition rights
Total net assets
Total liabilities and net assets

433,798

35,392130,015

134,529

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, 2018

September 30, 2019

Net sales
Cost of sales

42,65432,52445,81035,125Gross profit

10,12910,685

416
2,173
497
119

434
2,372
564
123

15

13(3)
1
134
3,439

32
134
3,569

6,795

7,217

3,334

3,467

39
28
34

50
25
33

102

109

25
8
1526
10
16

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
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Purchase discounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission expenses
Other5053

Ordinary profit

Total non-operating expenses3,386

3,523

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
National subsidies
Gain on bargain purchase04326
1,14500––

1,476

0

230326
–

4155
–
0350

97

Profit before income taxes

4,511

3,426

Income taxes - current
Income taxes - deferred

1,294
(77)

1,406(140)

Total income taxes

1,217

1,266

Profit

3,294

2,160

Profit attributable to owners of parent

3,294

2,160

Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assetsLoss on valuation of investment securities
Loss on tax purpose reduction entry of non-current assets
Loss on sales of membership
Total extraordinary losses

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2018

September 30, 2019

3,294

2,160

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(1)
17(42)(17)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax–3(27)5Total other comprehensive income20(82)

3,315

2,077

3,315

2,077

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, 2018

September 30, 2019

4,511

3,426

Depreciation
Amortization of goodwill

6,807
134

7,147
134

Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts(1,145)(3)–
2

Interest and dividend income
Interest expenses(39)
25(50)
26

Decrease (increase) in trade receivables
Decrease (increase) in inventories

(299)
(287)

361(975)(361)(7,399)(578)(7,451)(284)
39(713)50

Interest paid
Income taxes paid

(16)
(1,291)

(30)
(850)

Income taxes refund
Other, net

9(1,223)34(2,496)(822)(1,962)(1,097)(2,146)

Net Decrease (increase) in lease investment assets
Decrease(Increase) in lease business assets
Increase (decrease) in trade payables
Interest and dividends received

Net cash provided by (used in) operating activities
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

05(144)(24)

Purchase of investment securities
Proceeds from sales of investment securities

(213)
5(14)
1

Payments for absorption-type split
Other, net(2,120)3–3Net cash provided by (used in) investing activities(3,567)(2,175)

100

1,420

Net increase (decrease) in commercial papers
Proceeds from long-term borrowings

1,000
12,000

(500)
9,900

Repayments of long-term borrowings
Proceeds from issuance of bonds(7,991)–(7,249)299

Redemption of bonds
Repayments of lease obligations

(171)
(4)

(71)
(4)

Dividends paid
Other, net

(442)
(9)

(491)
(11)

Net cash provided by (used in) financing activities

4,480

3,289

–

(5)

Cash flows from financing activities
Proceeds from short-term borrowings

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

91(852)

Cash and cash equivalents at beginning of period

1,382

2,201

Cash and cash equivalents at end of period

1,473

1,348

7