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.

Summary of Financial and Business Results for the First Quarterof the Fiscal Year Ending February 2015
July 14, 2014
Ichigo Group Holdings Co., Ltd. (JASDAQ, 2337)
Representative: Kenji Iwasaki, President and Representative Statutory Executive OfficerInquiries:
Takashi Minamikawa, Executive Managing Director and Statutory Executive Officer
Telephone: +81-3-3502-4818
www.ichigo-holdings.co.jp/english
Filing of the Shihanki Hokokusho (Quarterly Report): July 15, 2014
Dividend Payment: N/A
Supplemental Materials to Financial and Business Results: Yes
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. Consolidated Financial Results (from March 1, 2014 to May 31, 2014)(1) Consolidated Financial Results (Accumulated)
Revenues(% change is year-on-year)

Operating Profit

Recurring Profit

Net Profit(million yen)(%)(million yen)(%)(million yen)(%)(million yen)(%)

Feb 15 Q1

6,528-40.8

2,236

191.2

2,056

176.9

1,86437.0

Feb 14 Q1

11,023366.5

767

128.6

742

141.2

1,360413.5

Note: Comprehensive income Feb 15 Q1: 2,077 million yen (41.4%) Feb 14 Q1: 1,469 million yen (479.1%)
The increase in year-on-year operating profit despite lower revenues is due to significantly higher profit on
Value-Add sales and an increase in rental income from Real Estate assets.

Feb 15 Q1

3.75

Net Profit perShare(diluted, yen)
3.71

Feb 14 Q1

3.03

2.98

Net Profit per
Share (basic, yen)

Note: On September 1, 2013, Ichigo split each of its shares into 200 shares. For ease of comparison, the net
profit per share figures for both 2014 and 2015 reflect the stock split.

(2) Consolidated Financial Condition

Feb 15 Q1

136,40752,497

36.6

Net Assets per
Share(yen)100.33

Feb 14

114,944

50,842

42.2

97.42

Total Assets(million yen)

Reference: Shareholders’ equity

Net Assets(million yen)

Equity Ratio(%)

Feb 15 Q1: 49,927 million yen

Feb 14: 48,460 million yen2. Dividends
FirstQuarterFeb 14-

Feb 15-Dividend per Share (yen)SecondThird
FourthQuarter
Quarter
Quarter

Feb 15(Expected)

FiscalYear0-1.101.100-

1.30

1.30

Note 1: Changes since the previously announced forecast: None

3. Consolidated Forecast for the Fiscal Year Ending February 2015 (from March 1, 2014 to February
28, 2015)(% change is year-on-year)
Revenues(million yen)Feb 15 FY

42,000Operating Profit(%)

19.7

Net Profit(million yen)Feb 15 FY

6,055(million yen)

7,700

(%)

96.8

Recurring Profit(million yen)

6,500(%)

80.7

Net Profit per Share(%)

(Yen)

33.8

12.17

Note 1: Changes in the forecast during the period: None
Note 2: The Company has included a full-year earnings forecast only – there is no half-year earnings forecast.
Note 3: Net Profit per Share for FY15 is based on the average number of outstanding shares for FY15 assuming thenumber of outstanding shares as of June 30, 2014 remains unchanged throughout FY15.

4. Other(1) Changes in significant consolidated subsidiaries (material changes in scope of consolidation): Yes
One new subsidiary: GK Omori Holdings Tokumei Kumiai(2) Application of accounting treatment specific to interim consolidated financial statements: None
(3) 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: None
(4) Number of outstanding shares (common shares)(i) Number of outstanding shares including treasury sharesFeb 15 Q1:
499,432,200
Feb 14:499,432,200(ii) Number of treasury sharesFeb 15 Q1:
1,791,000
Feb 14:
1,978,000(iii) Average number of outstanding sharesFeb 15 Q1:
497,560,407
Feb 14 Q1:
448,369,857

2

Note: On September 1, 2013, Ichigo split each of its shares into 200 shares. For ease of comparison, the numbersof outstanding shares reflect the stock split.
*Explanation on Appropriate Use of Earnings Projection
Forward-looking statements contained in these materials are based on judgments regarding information that wasavailable to the Company and the Group as of the announcement date. However, these statements involve risk
and uncertainties. Therefore, please note that actual earnings may differ significantly from the indicated earnings
projection as a result of various factors.

5. Segment Information(i) Segment Overview
Starting from the previous fiscal period, to improve earnings transparency and reflect changes
in the Company’s earnings structure, such as the expansion of its clean energy business, asset
acquisition to support Ichigo REIT’s growth, and a substantial increase in investments invalue-add and prime real estate, the Company has changed its segment disclosure from theprevious two segments to the below five segments.
“Asset management” generates fee income via the management of the Ichigo REIT and private
funds and other fee-generating real estate services related to the sourcing, financing, operation,property management, facility management, and disposition of real estate assets.
“Real Estate” generates on-going rental income for the Company as a real estate
owner/operator. Specifically, the Company either owns and operates real estate over the longterm or holds assets on a short-term basis on behalf of Ichigo REIT until Ichigo REIT is able
to acquire the assets.
“Value-Add” generates rental income and capital gains by deploying the Company’s expertiseto acquire, add value to, and sell real estate assets at a profit.
“Clean Energy” generates long-term income primarily via megasolar power production.
“Other” is primarily legacy securities investments that are not related to the above foursegments.
The Company has reflected these changes in the previous year’s first quarter segment
information.

3

(ii) Revenues, P&L by Segment
February 2014 First Quarter (from March 1, 2013 to May 31, 2013)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Revenues
or Reclassifications
TotalSegment Profits or Losses
(-)

Clean
EnergyAmountRecorded in
Consolidated
FinancialStatements(Note 2)Adjustment(Note 1)

AssetManagement

Real Estate

Value-Add

1,149

556

8,912

0405

11,023-

11,023

125

00-

-125

(125)

-

1,274

556

8,912

0405

11,148(125)

11,023306

200411(81)(3)

834(66)

767

OtherTotal(Note 1) Adjustments to Segment Profits and Losses (-66 million yen) contains transaction eliminations
and company expenses that were not distributed throughout the segments.
(Note 2) Segment Profits and Losses is adjusted with the Operating Profit from the Consolidated IncomeStatement.

February 2015 First Quarter (from March 1, 2014 to May 31, 2014)(Million Yen)
Segment

Revenues
Revenues from External
Customers
Inter-Segment Activities
or Reclassifications
TotalSegment Profits or Losses(-)

AmountRecorded inConsolidated
FinancialStatements(Note 2)Adjustment(Note 1)

AssetManagement

Real Estate

Value-Add

1,095

1,322

3,964125

196,528-6,528

250

00-0251(251)

-

1,346

1,323

3,964

125

19

6,779(251)

6,528

207

831

1,412(41)(4)

2,405(169)2,236

CleanEnergy

OtherTotal(Note 1) Adjustments to Segment Profits and Losses (-169 million yen) contains transaction eliminations
and company expenses that were not distributed throughout the segments.
(Note 2) Segment Profits and Losses is adjusted with the Operating Profit from the Consolidated Income
Statement.

4

Consolidated Balance Sheet
Feb 14 Full Year
(Feb 28, 2014)
AssetsCurrent Assets
Cash and cash equivalents
Trade notes and accounts receivable
Operational investments in loans
Operational investments in securities
Real estate for sale
Deferred tax assets
OthersLess: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant and Equipment
LandOthers (net)Total Tangible Assets
Intangible Assets
Goodwill
Leasehold rights
OthersTotal Intangible Assets
Investments and Other Assets
Investments in securities
Long-term loans receivable
Deferred tax assets
OthersLess: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

5(Million Yen)Feb 15 Q1(May 31, 2014)

24,991
451
1,100
3,583
54,084576
1,384(410)
85,761

20,493
597
2,100
2,247
70,168576
1,858(413)
97,62812,433
8,867
21,30019,21911,39530,614

2,221
392
71
2,686

2,186
392
90
2,669

4,278
13
222
780
(97)
5,196
29,183
114,944

4,409
13
222
946
(97)
5,494
38,778
136,407

Feb 14 Full Year
(Feb 28, 2014)
Liabilities
Current Liabilities
Trade notes and accounts payable
Short-term borrowings
Long-term borrowings (due within one year)
Long-term non-recourse loans (due withinone year)
Income taxes payable
Deferred tax liabilities
Accrued bonuses
Other current liabilities
Total Current Liabilities
Long Term Liabilities
Non-recourse bonds
Long-term borrowings
Long-term non-recourse loans
Deferred tax liabilities
Long-term security deposits received
Negative goodwill
Other long-term liabilities
Total Long Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury stock
Total Shareholders’ Equity
Accumulated Other Comprehensive
IncomeUnrealized gain on other securities, net
Deferred loss on hedges
Foreign currency translation adjustment
Total Accumulated Other Comprehensive
IncomeStock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

6(Million Yen)Feb 15 Q1(May 31, 2014)

132
950
3,123

152
765
2,760

428

1,277

96
24
14
2,817
7,588

178
32
141
3,270
8,578

26,12624,178
1,213
4,770
180
44
56,51364,102

100
40,874
26,908
1,212
6,016
157
61
75,331
83,91026,443
10,808
10,891(92)
48,05026,443
10,813
12,306(84)
49,4794009456(16)
8409

448

121
2,261
50,842
114,944151
2,41852,497
136,407

Consolidated Income Statement(Million Yen)Feb 15 Q1

Feb 14 Q1(From Mar 1, 2013
To May 31, 2013)

Revenues
Cost of Revenues
Gross Profit
SG&A
Operating Profit
Non-Operating Profit
Interest income
Dividend income
Amortization of negative goodwill
OthersTotal Non-Operating Profit
Non-Operating Expenses
Interest on debt
OthersTotal Non-Operating Expenses
Recurring Profit
Extraordinary Gain
Gain on sales of investment securities
Receipt of share trading proceeds
OthersTotal Extraordinary Gain
Profit before Income Taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit before Gain on Minority Interests
Gain on Minority Interests
Net Profit7(From Mar 1, 2014
To May 31, 2014)

11,023
9,385
1,638
870
767

6,528
3,270
3,257
1,021
2,236

0
922
436

1
422
2
31

58
361
742

183
27
210
2,056

198
434
33
667
1,410
15(0)
14
1,395
34
1,360

2,056
147
(0)
147
1,909
44
1,864

Consolidated Statements of Comprehensive Income
Feb 14 Q1Profit before Gain on Minority Interests
Other Comprehensive Income
Valuation gain on other securities
Deferred loss on hedges
Foreign currency translation adjustment
Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive income for shareholders of theparent company
Comprehensive income for minority interests

8(Million Yen)Feb 15 Q1(From Mar 1, 2013
To May 31, 2013)(From Mar 1, 2014
To May 31, 2014)

1,395

1,909

100
(25)
74
1,469

188
(16)
(3)
168
2,077

1,573

1,902(103)175

Consolidated Cash Flow Statement(Million Yen)Feb 15 Q1

Feb 14 Q1
Cash Flows from Operating Activities:
Income before income taxes
Depreciation
Share-based compensation expenses
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest on debt
Loss (gain) on sales of investment securities
Decrease (increase) in trading notes and receivable
Decrease (increase) in operating loans receivable
Decrease (increase) in operational investments
in securities
Loss on valuation of investment securities
Decrease (increase) in real estate for sale
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued expensesIncrease (decrease) in security deposits received
OthersSub-totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net Cash from (Used for) Operating Activities

9(From Mar 1, 2013
To May 31, 2013)(From Mar 1, 2014
To May 31, 2014)

1,410
57
2034(22)
79

2,056
124
33
34
(22)
126

40

4(9)
58(198)
(23)
-(6)
183
(146)
(1,000)(1,268)

502

14
4,575
(122)
(35)
(318)
(233)
656
4,715
9(62)
(37)
4,624

(16,083)
(277)
(71)
(239)
1,040
415
(13,326)
6(159)(22)(13,502)

(Million Yen)Feb 15 Q1

Feb 14 Q1
Cash Flows from Investing Activities:
Payments into time deposits
Acquisition of investment securities
Proceeds from sales of investment securities
Acquisition of property and equipment
Proceeds from sale of property and equipment
Acquisition of intangible assets
Payments for investments in capital
Proceeds from redemption of investments
Payments of deposits
Payments for acquisitions of subsidiaries resulting
in the change of consolidation scopeCollection of loans receivable
OthersNet Cash from (Used for) Investing Activities
Cash Flows from Financing Activities:
Increase (decrease) in short-term bank loans, net
Proceeds from long-term loans
Repayment of long-term loans
Repayment of non-recourse loans
Proceeds from exercise of stock option
Cash dividends paid
Net Cash from (Used for) Financing Activities
Effect of Exchange Rate Changes
on Cash and Cash Equivalents
Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents resulting from New
Entity Consolidation
Cash and Cash Equivalents resulting from Exclusionfrom Consolidation
Cash and Cash Equivalents at End of Period10(From Mar 1, 2013
To May 31, 2013)(From Mar 1, 2014
To May 31, 2014)(0)(0)
272(313)0(310)
(1)
4(5)

(0)
(100)
(2,756)(22)(0)
0(112)(1,409)-0
2(1,760)0(0)(2,991)

2,149
5,100
(1,817)(7,995)78(413)(2,898)(185)
16,099(1,714)(1,663)10(498)12,046

25

13(9)
9,512

(4,433)
24,581

-

280

(312)

(345)

9,189

20,083