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 Year Ended March 31, 2019
(Based on Japanese GAAP)May 8, 2019
Company name:

ICHINEN HOLDINGS CO., LTD

Stock exchange listing: Tokyo
Stock code:
9619

URL

https://www.ichinenhd.co.jp

Representative:

President
Executive Officer

Masashi Kuroda

Inquiries:

General Manager
General Planning Dept.

Hisako Imoto

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 18, 2019
June 18, 2019

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 19, 2019
Yes

Holding of financial results meeting:

Yes

TEL

06-6309-7890(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
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%
Year ended March 31, 201987,773
7.9
6,272
6.0
6,346
6.6
5,127
33.2
Year ended March 31, 2018
81,379
2.1
5,918
4.2
5,953
8.0
3,848
1.3
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
16.0
5.1
7.1
–
13.5
5.1
7.3

Diluted earnings pershare

Earnings per shareYen
208.44156.47

Year ended March 31, 2019Year ended March 31, 2018
(2) Consolidated financial position

Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
130,015
118,476

Millions of yen
33,79830,136

Cash flows fromoperating activities
Millions of yen
909
2,358

Cash flows frominvesting activities
Millions of yen(5,299)(1,328)

Net assets per share%
26.0
25.4

Yen
1,374.01
1,225.13(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yenMillions of yen
5,213
2,201
(1,184)1,382

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

–
–

18.00
20.00

–
–

18.00
20.00

36.00
40.00

885
983

23.0
19.2

3.1
3.1

–

20.00

–

20.00

40.00

124.53. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Millions of yen
Six months ending
September 30, 2019
Full year

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

46,450

8.9

3,280

(1.6)

3,320(2.0)

2,050(37.8)

83.34

94,000

7.1

6,350

1.2

6,440

1.5

4,010

(21.8)

163.02

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 201924,612,227 shares As of March 31, 2018

24,612,227 shares

Number of treasury shares at the end of the period
As of March 31, 201913,764 shares As of March 31, 2018

13,622 shares

Average number of shares during the period
Year ended March 31, 201924,598,526 shares Year ended March 31, 20182

24,598,754 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,382
11,5632,201
13,034

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

1,169

1,516

business
Lease investment assets

2,310

2,346

17,37418,606Merchandise and finished goods
Work in process

3,177
196

4,045
786

Raw materials and supplies
Prepaid expenses

445
2,292

705
2,361

Other
Allowance for doubtful accounts

1,165
(4)

1,935
(4)

Total current assets

41,07447,534

113,348(63,341)

117,865(65,654)

50,00752,2109,805(4,004)

10,722(4,329)

5,801

6,393

4,287(2,828)

4,608(3,227)

Tools, furniture and fixtures, net

1,459

1,380

Machinery, equipment and vehicles
Accumulated depreciation

1,754(1,329)

2,748(1,448)

425

1,300

5,967
197

7,564
194

(177)

(176)

Non-current assets
Property, plant and equipment
Assets for lease
Accumulated depreciation
Lease assets,net
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net

20

17

Construction in progress

28

163

63,70969,030

1,873

1,604

30
2,670

30
3,051

3

2

4,577

4,688

Total property, plant and equipment
Intangible assets
Goodwill
Telephone subscription right
Software
Other
Total intangible assets3

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Investments and other assets
Investment securities
Long-term loans receivable

4,428
23

4,207
21

Long-term prepaid expenses
Deferred tax assets

1,731
1,121

1,827862

Deposit-recycle
Other747
1,169

753
1,157

Allowance for doubtful accounts

(137)

(107)

Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance cost
Total deferred assets

9,084

8,721

77,371

82,441

29

39

29

39

118,476

130,015

Notes and accounts payable - trade
Electronically recorded obligations - operating

9,865
1,265

11,572
1,324

Short-term loans payable
Commercial papers

4,200
1,000

4,300
4,000

Current portion of bonds
Current portion of long-term loans payable

5,342
17,433143
13,063

Lease obligations
Accounts payable - other35
1,304

25
1,271Accrued expenses
Income taxes payable

31
1,141

30
674

282

226

747

692

482

581

7519

8
796

43,65838,712

Total assets
Liabilities
Current liabilities

Accrued consumption taxes
Advances received-leasing business and maintenancebusiness
Provision for bonuses
Reserve for quality assurance
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Long-term accounts payable - other
Deferred tax liabilities
Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4

5,143

10,00037,15616

44,968
15

133
92

132
164

1,488

1,523

158

135

372

392

119

171

44,68057,50488,33996,216

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Net assets
Shareholders' equity
Capital stock

2,529

2,529

Capital surplus
Retained earnings

1,805
24,432

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

28,752

32,944

1,445
(9)

927
17–
(51)

7(98)

Treasury shares
Total shareholders' equity
Accumulated other comprehensive incomeValuation 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

51,383853

30,136

33,798118,476

130,015

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Net sales

81,37987,773

Cost of sales

62,20067,519Gross profit

19,17920,254

831
4,733

831
4,992

Provision for bonuses
Retirement benefit expenses

455
247

532
233

Provision for retirement benefits for directors (and otherofficers)

31

31

1,265
117

1,321
129

Provision of allowance for doubtful accounts
Provision for quality assurance

69
(1)

(3)
8

Depreciation
Rent expenses

497
529

554
619

Amortization of goodwill
Other

448
4,035

269
4,462

Total selling, general and administrative expenses

13,26013,982

5,918

6,272

Interest income
Dividend income

174

178

Purchase discounts
Foreign exchange gains56
357
20

Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries, allowances and bonuses

Welfare expenses
Entertainment expenses

Operating profit
Non-operating income

Other

63

44

Total non-operating income

199

202

Interest expenses
Interest on bonds

51
22

25
27

Interest on commercial papers
Commission expenses

716

315

Amortization of bond issuance cost
Nondeductible consumption tax

19
18

17
18

Other29

19

Non-operating expenses

Total non-operating expenses

164

127

5,953

6,346

Gain on sales of non-current assets
Gain on sales of investment securities

20439108

State subsidy
Gain on bargain purchase

160
166

327
1,145

Total extraordinary income

923

1,482

Ordinary profit
Extraordinary income

6(Millions of yen)

Extraordinary losses
Loss on sales and retirement of non-current assets

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019
665

91

Impairment loss
Loss on reduction of non-current assets

49
160

–
327

Loss on sales of investment securities
Loss on valuation of investment securities

––

17875

428

Profit before income taxes

6,000

7,401

Income taxes - current

2,420

2,163

Total extraordinary losses

Income taxes - deferred(269)110

Total income taxes

2,151

2,273

Profit

3,848

5,127

Profit attributable to owners of parent

3,848

5,127

7

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019
3,848

5,127

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

374(4)(517)
26

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax–467(46)Total other comprehensive income

415(530)

4,264

4,597

4,264

4,597

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

8Consolidated statements of changes in equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,529

Retained earnings

1,805

Total shareholders'equity

Treasury shares

21,493(13)

25,814

Changes of items during period
Dividends of surplus

(910)

(910)

Profit attributable to ownersof parent

3,848

3,848

Purchase of treasury shares
Disposal of treasury shares

0(0)

(0)

00

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

–0

2,938

(0)

2,938

2,529

1,805

24,432(14)

28,752

Accumulated other comprehensive income
Valuation
Total accumulated
Remeasurements
difference on
Deferred gains orotherof defined benefit
available-for-sale losses on hedges
comprehensiveplanssecurities
incomeBalance at beginning of current
period1,071(5)(97)

Total net assets

968

26,782

Dividends of surplus

–

(910)

Profit attributable to ownersof parent–

3,848

Purchase of treasury shares–(0)

Disposal of treasury shares–0Changes of items during period

Net changes of items otherthan shareholders' equity

374

(4)

46415

415

Total changes of items during
period

374

(4)

46415

3,354

Balance at end of current period

1,445

(9)

(51)

1,383

30,136

9Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,529

Retained earnings

1,805

Total shareholders'equityTreasury shares

24,432(14)

28,752

Changes of items during period
Dividends of surplus

(934)

(934)

Profit attributable to ownersof parent

5,127

5,127

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

––

4,192

(0)

4,192

2,529

1,805

28,624(14)

32,944

Accumulated other comprehensive income
Valuationdifference on
Deferred gains oravailable-for-sale losses on hedges
securities
Balance at beginning of current
period1,445

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans

(9)

–

(51)

Total accumulated
othercomprehensive
incomeTotal net assets

1,383

30,136

Dividends of surplus

–

(934)

Profit attributable to ownersof parent–

5,127

Purchase of treasury shares–(0)Changes of items during period

Net changes of items otherthan shareholders' equity(517)

267(46)

(530)

(530)

Total changes of items during
period(517)

26

7(46)(530)3,662Balance at end of current period

927

177(98)853

33,798

10Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019
6,000

7,401

13,08949

13,799–Amortization of goodwill
Gain on bargain purchase448(166)269(1,145)

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

66(75)(3)(79)

Interest expenses
Loss (gain) on sales of investment securities

81(391)

56(7)Other loss (gain)
Decrease (increase) in notes and accounts receivable - trade

113
665

111(845)

Decrease (increase) in accounts receivable-leasing businessand maintenance business

(108)

(35)

Decrease (increase) in inventories
Net decrease and increase in lease investment assets

322(958)(644)(1,696)

Net decrease and increase in lease business assets
Increase (decrease) in retirement benefit liability(14,019)(37)(14,415)(81)

22(22)(1,158)782

20(54)

637

139

4,601

3,528

75
(81)

79(56)(136)(2,100)6(2,658)

092,358

909

(1)
1(0)
79

Purchase of property, plant and equipment and intangible
assets(2,797)(2,671)

Proceeds from sales of property, plant and equipment andintangible assets

1,327

23

Payments for retirement of non-current assets
Purchase of investment securities

(6)
(428)

(369)
(266)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope762

21(302)–29––(2,120)Depreciation
Impairment loss

Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts receivable-leasing businessand maintenance business
Increase and decrease in other assets and debt
SubtotalInterest and dividend income received
Interest expenses paid
Business security receive(paid)
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time depositsof consolidation
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments for absorption-type split
Other, net
Net cash provided by (used in) investing activities1186

4(1,328)(5,299)(Millions of yen)

Cash flows from financing activities
Increase in short-term loans payable

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019
200100Decrease in short-term loans payable
Net increase (decrease) in commercial papers(85)(3,000)–3,000

Proceeds from long-term loans payable
Repayments of long-term loans payable

20,500(17,501)

22,300(18,856)

Proceeds from issuance of bonds
Redemption of bonds–(362)

4,973(5,342)

Repayments of lease obligations
Cash dividends paid by parent company

(7)
(910)

(7)
(934)

Balance by buying and saling self-stock
Other, net

(0)
(17)

(0)
(17)

(1,184)

5,213

–

(4)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

(153)

819

Cash and cash equivalents at beginning of period

1,535

1,382

Cash and cash equivalents at end of period

1,382

2,20112