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 Three Months Ended June 30, 2019
(Based on Japanese GAAP)
July 31, 2019
Company name:
ICHINEN HOLDINGS CO., LTD
Stock exchange listing: Tokyo
Stock code:
9619
URL https://www.ichinenhd.co.jp
Representative:
President
Masashi Kuroda
Director Executive Officer General Manager
Inquiries:
Hisako ImotoGeneral Planning Dept.
Scheduled date to file Quarterly Securities Report:
August 14, 2019
Scheduled date to commence dividend payments:–Preparation of supplementary material on quarterly financial results: No
Holding of quarterly financial results meeting:
NoTEL

06-6309-7890(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2019 (from April 1, 2019 to June 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2019
Three months ended June 30, 2018Millions of yen
22,26221,094

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
5.5
1,454(2.6)
1,500(1.5)
920
(4.7)
4.6
1,494
8.4
1,523
8.8
965
12.4

Earnings per share

Diluted earnings per share

Yen
37.42
39.25

Three months ended June 30, 2019
Three months ended June 30, 2018

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2019
As of March 31, 2019

Net assets

Millions of yen133,850
130,015

Equity ratio

Millions of yen
34,18733,798

Net assets per share%
25.5
26.0

Yen
1,389.81
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

Yen–

Yen
20.00

Yen
40.00

20.00

–

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)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
46,4508.9
3,280(1.6)
3,320(2.0)
2,050 (37.8)
83.34
September 30, 2019
Full year
94,000
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 three months ended June 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 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 June 30, 201913,825 shares As of March 31, 201913,764 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 201924,598,402 shares Three months ended June 30, 20182

24,598,587 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019
AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable-leasing business and maintenancebusiness
Investments in leases
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Assets for lease
Accumulated depreciation-lease business assets
Lease Aseets NetLand
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assetsInvestments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

3

As of June 30, 2019

2,201
13,034
1,516

1,435
12,271
1,757

2,346

2,351

18,606
4,045
786
705
2,361
1,935
(4)

18,455
4,946
724
848
3,642
2,911
(3)

47,53449,342

117,865(65,654)

118,826(66,049)

52,21052,776

7,564
18,438(9,182)

7,595
20,215(9,409)9,255

10,80669,030

71,178

1,604
3,084

1,536
3,120

4,688

4,657

4,207
1,827
862
1,931
(107)

4,150
1,702
946
1,942(107)

8,721

8,635

82,441

84,47239

36

130,015

133,850

(Millions of yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Commercial papers
Current portion of bonds
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Advances received-leasing business and maintenancebusiness
Provision for bonusesReserve for quality assurance
Other

As of June 30, 201911,572
1,324
4,300
4,000
143
13,06325
674

10,947
1,310
5,720
5,000
143
13,396
23
438

692

722

581
8
2,325

883
9
2,047

38,71240,641

10,00044,96815
1,523

10,00046,549
17
1,491

135

138

392
468

398
425

57,50459,021

Total liabilities

96,216

99,663

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

2,529
1,805
28,624
(14)

2,529
1,805
29,053(14)

32,94433,373

927
17
7(98)

887
(1)24(95)

Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)
Asset retirement obligations
Other
Total non-current liabilities

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4853

813

33,79834,187130,015

133,850

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
June 30, 2018

Three months ended
June 30, 2019

Net sales
Cost of sales

21,094
16,26922,262
17,258Gross profit

4,825

5,003

207
1,030
255
62

214
1,145
273
62

7

6(5)
167

(1)
167

Other

1,704

1,777

Total selling, general and administrative expenses

3,331

3,548

1,4941,454

27
16
1136
14
22

55

73

125713
6825

27

1,523

1,5000–00

00

934

934

Profit before income taxes

1,514

1,466

Income taxes - current
Income taxes - deferred

595
(46)

633
(87)

Total income taxes

548

546

Profit965

920

Profit attributable to owners of parent

965

920

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
Non-operating income
Dividend income
Purchase discounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Total extraordinary losses

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2018
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

Three months ended
June 30, 2019
965

920

(285)
18–
1(40)
(18)
162(266)(39)

Comprehensive income

699

880

Comprehensive income attributable toComprehensive income attributable to owners of parent

699

880

Total other comprehensive income

6Consolidated statements of cash flows(Millions of yen)Three months ended
June 30, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease(Increase)in lease business investment assets
Decrease(Increase) in lease business assets
Increase (decrease) in trade payables
Interest and dividends received
Interest paid
Income taxes paid

Three months ended
June 30, 2019

1,514
3,374
67(6)
(27)
12(269)(400)(150)(3,496)266
26(14)(1,290)

1,466
3,546
67
(1)
(36)
13
521
(1,090)63(3,572)(652)
36(10)(848)

Other, net(1,565)(2,359)Net cash provided by (used in) operating activities(1,959)(2,856)(853)(1,724)

0

5

(138)
(4)
–
(1)

(20)
(5)
1(0)

(997)

(1,743)100
2,000
5,000(3,906)
(2)
(442)
(5)

1,420
1,000
5,500
(3,586)
(3)
(491)
(7)

2,742

3,831

–

2

Net increase (decrease) in cash and cash equivalents

(214)

(766)

Cash and cash equivalents at beginning of period

1,382

2,201

Cash and cash equivalents at end of period

1,167

1,435

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
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Net increase (decrease) in commercial papers
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Dividends paid
Other, netNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

7