Ichigo : FY23/2 Q1 Earnings

[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.

FY23/2 Q1 Earnings

July 14, 2022

Ichigo Inc. (Tokyo Stock Exchange Prime, 2337)
Representative:	Takuma Hasegawa, President
Inquiries:	Takanori Sakamatsu, Senior Statutory Executive Officer
	Telephone: [phone]	www.ichigo.gr.jp/en

Submission of the Financial Report (Shihanki Hokokusho): July 15, 2022 (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. FY23/2 Q1 Consolidated Financial Results (March 1, 2022 to May 31, 2022)

(1) Consolidated Financial Results				(YOY = year-on-year % change)
		Revenue	Operating Profit	All-In	Recurring Profit
		Operating Profit
		(JPY million) YOY	(JPY million) YOY	(JPY million) YOY
		(JPY million) YOY
	FY23/2 Q1	16,638	+31.3%	2,723	-13.8%	2,723	-13.8%	2,367	-0.7%
	FY22/2 Q1	12,674	-44.2%	3,159	-13.5%	3,159	-13.5%	2,384	-27.8%
	Note: Comprehensive Income FY23/2 Q1: JPY 1,914 million (+14.5% YOY)
			FY22/2 Q1: JPY 1,671 million (-13.6% YOY)

All-In Operating Profit = Operating Profit + Gains on Sale of Sustainable Real Estate Assets Recorded as Extraordinary Gains

	Net Income			Net Income		Net Income
			per Share		per Share
	(JPY million) YOY
			(Basic, JPY)		(Diluted, JPY)
FY23/2 Q1	1,534	-0.7%			3.29	+0.1%		-	-
FY22/2 Q1	1,546	-28.6%			3.28	-26.9%		-	-
(2) Consolidated Financial Condition
	Total Assets		Net Assets		Shareholders'		Net Assets per
	(JPY million)		(JPY million)		Equity Ratio		Share (JPY)
FY23/2 Q1		336,658			109,746		29.2%	211.80
FY22/2		337,887			112,191		29.8%	215.46
Note: Shareholders' Equity FY23/2 Q1: JPY 98,301 million	FY22/2: JPY 100,815 million

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(3) Consolidated Cash Flows

	Cash Flows from	Cash Flows from	Cash Flows from	Cash and Cash
	Equivalents
	Operations	Investments	Financing
	at Period-End
	(JPY million)	(JPY million)	(JPY million)
	(JPY million)
FY23/2 Q1	1,017	-4,214	-380	42,637
FY22/2 Q1	-2,559	-1,403	4,606	51,234

Note: Economic Operating Cash Flow (Cash Flows from Operations excluding net change in Real Estate and Power Plants for Sale)

FY23/2 Q1: JPY 777 million FY22/2 Q1: JPY 1,416 million

2. Dividends

Dividend per Share (JPY)

Total

Dividend on

First

Second

Third

Fourth

Total

Dividend

Payout Ratio

Equity

Quarter

Quarter

Quarter

Quarter

(JPY million)

(DOE)

FY22/2

-

-

-

7

7

3,275

50.7%

3.3%

FY23/2

-

-

-

7

7

38.1%~

(Forecast)

49.9%

3. FY23/2 Full-Year Consolidated Earnings Forecast (March 1, 2022 to February 28, 2023)

(YOY = year-on-year % change)

Operating Profit

All-In

Recurring Profit

Net Income

Operating Profit

Net Income per

(JPY million)

(JPY million)

(JPY million)

(JPY million)

Share (JPY) YOY

YOY

YOY

YOY

YOY

FY23/2

9,700~

-3.2%~

12,700~

-4.3%~

6,700~ -10.3%~

6,500~

+0.4%~

14.04~

+1.7%~

10,600

+5.8%

15,600

+17.6%

7,600

+1.7%

8,500

+31.3%

18.36

+33.0%

Note: Ichigo is reporting its FY23/2 earnings forecast as a range.

4. Other
(1) Changes in significant consolidated subsidiary
(material changes in scope of consolidation):	No

1. Changes in accounting standards/principles, changes in accounting estimates, and revisions to previous 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

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1. Number of outstanding common shares
2. 1. Number of outstanding shares (including treasury shares) at period-end

FY23/2 Q1:	505,381,018
FY22/2:	505,381,018

(ii) Number of treasury shares at period-end

FY23/2 Q1:	41,246,500
FY22/2:	37,466,500

(iii) Average number of outstanding shares (excluding treasury shares) during the period

FY23/2 Q1:	467,047,779
FY22/2 Q1:	471,211,514

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 real estate's higher value after the value-add is complete.

Clean Energy(CE) is utility-scale solar and wind power production that supplies clean energy and brings productive use to idle land.

Note on Appropriate Use of Forecasts

Forward-looking statements contained in these materials are based on judgments regarding information that was available to Ichigo as of the announcement date. However, these statements involve risk and uncertainties, and actual earnings may differ significantly from the indicated forecasts.

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Consolidated Balance Sheet (FY23/2 Q1)
			(JPY million)
		FY22/2	FY23/2 Q1
		(Feb 28, 2022)	(May 31, 2022)
Assets
Current Assets
Cash and deposits	46,458	42,862
Trade notes and accounts receivable	1,819	2,464
Operational loan investments	1,324	1,324
Operational securities investments	2,547	72
Real estate for sale	68,666	68,425
Other	2,613	3,294
Less: allowance for doubtful accounts		-633	-49
Total Current Assets	122,798	118,395
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 under construction

Solar and wind power plants under construction

Other

Depreciation

66,501	66,778
-10,292	-11,009
56,208	55,768
34,298	34,752
-6,345	-6,815
27,953	27,937
116,079	119,336
435	593
	2,095		2,036
2,884	2,940
-1,618	-1,710

Other (net)	1,265	1,229
Total Property, Plant, and Equipment	204,038	206,902
Intangible Assets
Goodwill	1,580	1,536
Leasehold rights	1,365	1,365
Other	605	521
Total Intangible Assets	3,551	3,424
Investments and Other Assets
Securities investments	3,463	3,710
Long-term loans receivable	270	262
Deferred tax assets	883	781

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			(JPY million)
		FY22/2	FY23/2 Q1
		(Feb 28, 2022)	(May 31, 2022)
Other	3,013	3,198
Less: allowance for doubtful accounts	-131	-16
Total Investments and Other Assets	7,498	7,936
Total Fixed Assets	215,089	218,263
Total Assets		337,887	336,658

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