[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.

FY22/2 Q1 Earnings
July 14, 2021
Ichigo Inc. (Tokyo Stock Exchange First Section, 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): July 15, 2021 (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. FY22/2 Q1 Consolidated Financial Results (March 1, 2021 to May 31, 2021)(1) Consolidated Financial Results
Revenue(JPY million) YOY
FY22/2 Q1
12,674 -44.2%
FY21/2 Q1

22,730Operating Profit(JPY million) YOY
3,159 -13.5%-13.5%

Note: Comprehensive Income

FY22/2 Q1Net Incomeper Share(Basic, JPY)
3.28 -26.9%

FY21/2 Q1

4.49 -54.0%

3,6503,303-56.6%

2,164-54.6%

FY22/2 Q1: JPY 1,671 million (-13.6% YOY)
FY21/2 Q1: JPY 1,934 million (-65.8% YOY)
Net Incomeper Share(Diluted, JPY)–––

(2) Consolidated Financial Condition
Total Assets(JPY million)
FY22/2 Q1
351,422
FY21/2-57.2%(YOY = year-on-year % change)
Recurring Profit
Net Income(JPY million) YOY (JPY million) YOY
2,384 -27.8%
1,546 -28.6%

347,076–

Net Assets(JPY million)
107,342

Shareholder
Equity Ratio
27.3%

Net Assets perShare (JPY)205.13110,255

28.5%

209.81

Note: Shareholders’ Equity FY22/2 Q1: JPY 96,063 million FY21/2: JPY 99,050 million1(3) Consolidated Cash Flows
Cash Flows fromOperations(JPY million)

Cash Flows fromInvestments(JPY million)

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

Cash Flows fromFinancing(JPY million)

FY22/2 Q1-2,559-1,403

4,606

51,234

FY21/2 Q1

12,118-10,640

1,617

43,922

Note: Economic Operating Cash Flow (Cash Flows from Operations excluding net change in Real Estateand Power Plants for Sale)
FY22/2 Q1: JPY 1,416 million FY21/2 Q1: JPY 1,780 million
2. Dividends
Dividend per Share (JPY)First Second Third FourthQuarter Quarter Quarter Quarter Total
FY21/2
FY22/2(Forecast)–––

7TotalDividend(JPY million)
73,304–––

77

Payout Ratio
66.8%
40.9%~
65.5%

Dividend on
Equity(DOE)
3.3%

3. FY22/2 Full-Year Consolidated Earnings Forecast (March 1, 2021 to February 28, 2022)(YOY = year-on-year % change)
Operating Profit
Recurring Profit
Net IncomeNet Income per(JPY million) YOY (JPY million) YOY (JPY million) YOY Share (JPY) YOY
FY22/29,100~
12,000-5.9%~+24.1%

6,000~
8,900-16.4%~ 5,000~+24.0% 8,000-0.5%~ 10.69~+59.1% 17.10

Note: Given Covid uncertainty, Ichigo is reporting its FY22/2 earnings forecast as a range.
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:None(ii) Changes in accounting principles other than the above:None(iii) Changes in accounting estimates:None(iv) Revisions of previous financial statements:
None

2+2.0%~+63.2%

(3) Number of outstanding common shares(i) Number of outstanding shares (including treasury shares) at period-end
FY22/2 Q1 :505,381,018
FY21/2 :505,381,018(ii) Number of treasury shares at period-end
FY22/2 Q1:
37,063,200
FY21/2:33,283,200(iii) Average number of outstanding shares (excluding treasury shares) during the period
FY22/2 Q1:
FY21/2:471,211,514
481,734,257

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.
Note: The Sustainable Real Estate segment was formerly called Value-Add. In keeping with its Ichigo
2030 vision, Ichigo changed the segment name to Sustainable Real Estate in 2019 in order to put full
focus on Ichigo’s commitment to preserving and improving real estate as a sustainable infrastructurecompany.
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

Consolidated Balance Sheet (FY22/2 Q1)
FY21/2(Feb 28, 2021)(JPY million)
FY22/2 Q1(May 31, 2021)

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

450,832
1,382
1,324
590
64,1092,698-167
120,771

51,477
2,116
1,324
602
68,082
2,193-167
125,628

68,277-7,60360,67328,893-4,702
24,191
122,592277

68,348-8,35059,99732,383-5,111
27,271
122,597
321

5,038

1,988

2,745
-1,126
1,619

2,732-1,254
1,478

214,392

213,653

968
1,272
1,797

931
1,272
1,675

4,038

3,879

5,147
10
605

5,349
292
569

FY21/2(Feb 28, 2021)
2,202-91
7,874
226,305
347,076

Other
Less: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

5(JPY million)
FY22/2 Q1(May 31, 2021)
2,141-91
8,260
225,793351,422

(JPY million)
FY22/2 Q1(May 31, 2021)

FY21/2(Feb 28, 2021)
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

6

4,879
274
9,751

7,989
274
9,870

1,358

1,358

573
9
5,527

801
168
3,363

22,37423,826

5,878
156,890
40,974
1,868
7,795
1,039

5,837
162,943
40,822
1,844
7,685
1,119

214,446
236,820

220,252
244,07926,888
11,27573,160-11,988
99,33526,888
11,27571,402-13,286

90

145

-375

-360

-285

-214

1,007
10,197110,255
347,076

1,026
10,251
107,342
351,422

96,278

Consolidated Income Statement (FY22/2 Q1)Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Mark-to-market gains on long-term interest
rate hedges
Foreign exchange gains
OtherTotal Non-Operating Income
Non-Operating Expenses
Interest expense
Foreign exchange losses
Mark-to-market losses on long-term interest
rate hedges
Debt financing-related fees
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Losses
Loss on disposal of fixed assets
Valuation losses on securities investments
Total Extraordinary Losses
Pre-Tax Income
Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority
Interests
Net Income

7

FY21/2 Q1(Mar 1, 2020 toMay 31, 2020)
22,73017,4405,289
1,638
3,650(JPY million)
FY22/2 Q1(Mar 1, 2021 toMay 31, 2021)
12,674
7,931
4,743
1,583
3,159

35455239

8–
16314

182562573
9593–

10175

7596603,303

24
44837
2,384–
114
115
3,188
1,023
2,165–
––
2,384
782
1,601

155

2,164

1,546

Consolidated Statement of Comprehensive Income (FY22/2 Q1)(JPY million)
FY21/2 Q1
FY22/2 Q1(Mar 1, 2020 to(Mar 1, 2021 toMay 31, 2020)
May 31, 2021)
Pre-Minority Interest Net Income
2,165
1,601
Other Comprehensive Income
Valuation gains (losses) on other securities-222
54
Deferred gains (losses) on long-term-8
15
interest rate hedges
Total Other Comprehensive Income-231
70
Comprehensive Income
1,934
1,671
Comprehensive income attributable to
1,933
1,616
common shareholders
Comprehensive income attributable to155
minority interests

8Consolidated Cash Flow Statement (FY22/2 Q1)(JPY million)
FY22/2 Q1(Mar 1, 2021 toMay 31, 2021)

FY21/2 Q1(Mar 1, 2020 to
May 31, 2020)
Cash Flows from Operations:Pre-tax income
Depreciation
Share-based compensation expenses
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses
Valuation losses on securities investments
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 deposits received
Increase (decrease) in security deposits
received
Increase (decrease) in accrued consumptiontaxes
Other
Sub-TotalInterest and dividends received
Interest expense paid
Income taxes paid
Net Cash from (Used for) Operations

93,188
1,046
8
27
172

2,384
1,413
19
36
159

–

–-58
573
114

-10
593
–

622

-733

305

-11

10,114-3,972

3

–

291
-228
-20

106-131125-99251-1,07997-1-1,075
29-209-67-109

312-835-613
14,71058-494-2,155
12,118433-1,53610-504-528-2,559(JPY million)
FY22/2 Q1(Mar 1, 2021 toMay 31, 2021)

FY21/2 Q1(Mar 1, 2020 to
May 31, 2020)Cash Flows from Investments:
Payments into time deposits
Payments for securities investments
Acquisition of property, plant, and equipment
Acquisition of intangible assets
Payments of SPC capital contributions
Redemptions of SPC capital contributions
Payments of security deposits
Payments of loans receivable
Payments received for loans receivable
Other-2-46-9,612-611-3
15–-368–-11-10,640

Net Cash from (Used for) Investments(JPY million)
FY22/2 Q1(Mar 1, 2021 toMay 31, 2021)

FY21/2 Q1(Mar 1, 2020 toMay 31, 2020)
Cash Flows from Financing:Net increase (decrease) in short-term loans
Proceeds from bond issuance
Repayment of maturing bond principal tobondholders
Proceeds from long-term loans
Repayment of long-term loans
Repayment of long term non-recourse loans
Proceeds from employee exercise of stock
options
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 ofPeriod
Cash and Cash Equivalents at End of Period

10-2-120-907-72-3–-16-290
8–-1,4031,280
70

3,110－-40-4013,515-9,858-112

11,087-4,922-151

1––-3,235-1
1,617-1,298-3,177
–
4,606

–

–

3,095

644

40,82650,59043,922

51,234

Additional Note
Restatement of Items in Consolidated Balance Sheet
From FY22/2 Q1, those items previously treated as “Solar power plants” and “Solar power
plants under construction” under Fixed Assets are restated as “Solar and wind power plants”
and “Solar and wind power plants under construction” to reflect the start of operations at
Ichigo’s first wind power plant, the Ichigo Yonezawa Itaya ECO Power Plant.
As a result of the restatement, JPY 3,632 million of “Buildings and structures underconstruction” decreased, while JPY 3,632 million of “Solar and wind power plants underconstruction” increased in the FY21/2 Consolidated Balance Sheet.

11Revenue, P&L, and Assets by Segment (Current FY22/2 Q1)(Mar 1, 2021 to May 31, 2021)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

TotalAmountRecordedin
Adjustment2
FinancialStatements

Revenue
Revenue from
External
Customers

503

10,631

1,538

12,674–

12,674

Inter-Segment
Activities orReclassifications

120

––120

-120

–

Total
Segment P&L1

623
353

10,632
2,061

1,538
743

12,794
3,158

-120
–

12,674
3,159

353

744

743

1,840

––

–

1,317

–

1,317

–

–

1,969

282,077

35,937 319,984

31,437351,422

–

986

412

1,399

14

1,413

–

193

355

549

2

552

Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)Flow Earnings(Gains onSustainable Real
Estate Sales,
Gains on Solar
Power Plant
Sales, Spot AMFees, etc.)
Segment Assets
OtherDepreciation
Increase inProperty, Plant,and Equipment
and Intangible
Assets12Segment P&L is on an Operating Profit basis.
The Adjustment to Segment Assets (JPY 31,437 million) reflects corporate assets, such as
cash and deposits, that were not allocated to the segments. The Adjustment to Depreciation(JPY 14 million) reflects depreciation of corporate assets that were not allocated to thesegments. The Adjustment to Increase in Property, Plant, and Equipment and Intangible
Assets (JPY 2 million) reflects corporate assets that were not allocated to the segments.

12Revenue, P&L, and Assets by Segment (Previous FY21/2 Q1)(Mar 1, 2020 to May 31, 2020)(JPY million)
Segment
Asset
Sustainable Clean
Management Real Estate Energy
(AM)
(SRE)
(CE)

Total

AmountRecordedin
Adjustment2
Financial
Statements

Revenue
Revenue from
External
Customers

501

20,9401,288

22,730–22,730Inter-Segment
Activities or
Reclassifications

140––

141-141–

Total
Segment P&L1642
334

20,940
2,748

1,288
594

22,871
3,677

-141
-26

22,730
3,650

301

1,206

594

2,102––

32

1,541

–

1,574

–

–

1,614

271,128

32,311 305,054

29,604

334,659

–

691

348

1,039

9

1,049

–

9,027

507

9,534

54

9,589

Segment P&L
Details1
Stock Earnings(Rental Income,Base AM Fees,
FIT Solar Power
Earnings, etc.)
Flow Earnings(Gains on
Sustainable Real
Estate Sales,
Gains on Solar
Power Plant
Sales, Spot AM
Fees, etc.)
Segment Assets
Other
Depreciation
Increase in
Property, Plant,
and Equipment
and Intangible
Assets12

Segment P&L is on an Operating Profit basis.
The Adjustment to Segment P&L (-JPY 26 million) reflects transaction eliminations andcorporate expenses that were not allocated to the segments. The Adjustment to Segment Assets(JPY 29,604 million) reflects corporate assets, such as cash and deposits, that were not allocatedto the segments. The Adjustment to Depreciation (JPY 9 million) reflects depreciation ofcorporate assets that were not allocated to the segments. The Adjustment to Increase in Property,Plant, and Equipment and Intangible Assets (JPY 54 million) reflects corporate assets that werenot allocated to the segments.

13