Interim report
Page 1
1 FY27/2 H1 Earnings October 14, 2026 Ichigo Inc. (Tokyo Stock Exchange Prime, 2337) Representative: Takuma Hasegawa, President Inquiries: Takanori Sakamatsu, Executive Managing Director Telephone: +81-3-4485-5221 www.ichigo.gr.jp/en Dividend Payment: N/A Supplemental Materials to Financial and Business Results: Yes Financial and Business Results Briefing: Yes (for institutional investors and analysts) 1. FY27/2 H1 Consolidated Financial Results (March 1, 2026 to August 31, 2026) (1) Consolidated Financial Results ( YOY = year-on-year % change) Revenue (JPY million) YOY Operating Profit (JPY million) YOY Business Profit (JPY million) YOY Recurring Profit (JPY million) YOY FY27/2 H1 39,817 -22.0% 10,621 -5.7% 15,514 +2.6% 8,952 -1.0% FY26/2 H1 51,024 +40.6% 11,261 +64.3% 15,128 +60.2% 9,047 +62.9% Note: Comprehensive Income FY27/2 H1: JPY 8,145 million (-26.6% YOY) FY26/2 H1: JPY 11,101 million (+61.3% YOY) Business Profit = Operating Profit + Gains on Sale of Sustainable Real Estate & Hotel Assets Recorded as Extraordinary Gains Net Income (JPY million) YOY Cash Net Income (JPY million) YOY Net Income per Share (EPS) (Basic, JPY) YOY Net Income per Share (EPS) (Diluted, JPY) Cash Net Income per Share (EPS) (JPY) YOY FY27/2 H1 8,462 -1.9% 12,119 +9.8% 21.47 +4.4% 21.39 +4.2% 30.75 +16.9% FY26/2 H1 8,624 +60.7% 11,034 +45.5% 20.56 +68.0% 20.52 +68.0% 26.31 +52.1% Cash Net Income = Net Income + Depreciation + Amortization +/- Valuation Losses (Gains) (2) Consolidated Financial Condition Total Assets (JPY million) Net Assets (JPY million) Shareholders’ Equity Ratio Net Assets per Share (JPY) FY27/2 H1 445,648 115,393 25.7% 292.64 FY26/2 435,820 116,754 26.6% 288.76 Note: Shareholders’ Equity FY27/2 H1: JPY 114,709 million FY26/2: JPY 116,097 million [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.
Page 2
2 (3) Consolidated Cash Flows Cash Flows from Operations (JPY million) Cash Flows from Investments (JPY million) Cash Flows from Financing (JPY million) Cash and Cash Equivalents at Period-End (JPY million) FY27/2 H1 -16,938 8,323 5,936 39,223 FY26/2 H1 -3,666 3,978 4,175 47,065 Note: Economic Operating Cash Flow FY27/2 H1: JPY 10,527 million FY26/2 H1: JPY 8,897 million Economic Operating Cash Flow = Cash Flows from Operations - Net Change in Real Estate and Power Plants for Sale + Post-Tax Gains on Sales of Sustainable Real Estate & Hotel Assets Recorded as Extraordinary Gains 2. Dividends Dividend per Share (JPY) Total Dividends (JPY million) Payout Ratio Dividend on Equity (DOE) First Quarter Second Quarter Third Quarter Fourth Quarter Total FY26/2 – – – 11.5 11.5 4,623 28.7% 4.2% FY27/2 (Forecast) – – – 15.5 15.5 34.3% Note: Changes from the previous dividend forecast: No 3. FY27/2 Full-Year Consolidated Earnings Forecast (March 1, 2026 to February 28, 2027) (YOY = year-on-year % change) Operating Profit (JPY million) YOY Business Profit (JPY million) YOY Recurring Profit (JPY million) YOY FY27/2 20,600 +0.7% 34,000 +21.2% 14,900 -12.8% Net Income (JPY million) YOY Cash Net Income (JPY million) YOY Net Income per Share YOY Cash Net Income per Share YOY FY27/2 18,000 +8.2% 24,000 +30.1% JPY 45.13 +12.5% JPY 60.17 +35.3% Note: Changes from the previous earnings forecast: No (1) Changes in significant consolidated subsidiaries (material changes in scope of consolidation): Yes New subsidiary: GK HELIX TK Subsidiaries removed from consolidation (2): Centro Co., Ltd. GK Carpe Diem TK (2) Application of accounting treatment specific to the compilation of semi-annual consolidated financial statements: Yes N ote: For details, please refer to 2. Consolidated Financial Statements, Notes to the FY27/2 H1 Consolidated Financial Statements, Notes on Accounting Treatment Specific to H1 Consolidated Financial Statements on page 24.
Page 3
3 (3) Changes in accounting standards/principles, changes in accounting estimates, and revisions to previous 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 (4) Number of common shares outstanding (i) Number of shares outstanding (including treasury shares) at period-end FY27/2 H1: 416,608,592 FY26/2 : 415,993,612 (ii) Number of treasury shares at period-end FY27/2 H1: 24,622,426 FY26/2: 13,943,725 (iii) Average number of shares outstanding (excluding treasury shares) during the period FY27/2 H1: 394,090,828 FY26/2 H1: 419,419,836 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. For the assumptions underlying the forecasts and precautions for the use of earnings forecasts, please refer to 1. Operating Results (3) Explanation of Consolidated Earnings Forecasts on page 12.
Page 4
4 Table of Contents 1. Operating Results 5 (1) FY27/2 H1 Operating Results 5 (2) Financial Condition 12 (3) Explanation of Consolidated Earnings Forecasts 12 2. Consolidated Financial Statements 13 Consolidated Balance Sheet (FY27/2 H1) 13 Consolidated Income Statement (FY27/2 H1) 15 Consolidated Statement of Comprehensive Income (FY27/2 H1) 17 Consolidated Cash Flow Statement (FY27/2 H1) 18 Notes to the FY27/2 H1 Consolidated Financial Statements 24 Notes on Accounting Treatment Specific to H1 Consolidated Financial Statements 24 Notes to the Consolidated Balance Sheet 24 Notes to the Consolidated Income Statement 24 Notes to the Consolidated Statement of Comprehensive Income 25 Notes on Segment Information 21 Notes to the Significant Changes in Shareholders’ Equity 29 Going Concern 29
Page 5
5 1. Operating Results (1) FY27/2 H1 Operating Results A. FY27/2 H1 Overview During FY27/2 H1 the Japanese economy maintained a gradual recovery, supported by improvements in the employment and income environment and corporate earnings. Nonetheless, the forward outlook continues to warrant close attention due to uncertainties such as rising prices, the geopolitical situation in the Middle East, natural disasters, and interest rate trends in Japan and overseas. Tenant demand for office, retail, and residential assets in Tokyo and other major cities remains solid, and investment appetite for Japanese real estate is robust. In the hotel market, although growth in inbound tourist numbers shows some signs of slowing, with numbers falling below prior-year levels in some months, inbound tourism remains at high levels. Lodging demand also remains solid overall, albeit with variations across regions and markets. Against this backdrop, Ichigo has reduced its interest rate risk by lengthening loan terms, conducting fixed-rate borrowing, and hedging via interest rate swaps and caps. Furthermore, Ichigo is strengthening its earnings base to mitigate the impact of rising interest costs by increasing asset profitability via value-add initiatives, pro-active leasing, and rent increases. FY27/2 H1 business profit increased 3% year-on-year. While stock earnings fell 2% year-on-year due to asset sales in FY26/2, earnings contributions from newly acquired assets and NOI growth at existing assets largely offset the decrease, with H1 results exceeding forecast. Meanwhile, flow earnings increased 8% year-on-year, reflecting asset sales in Sustainable Real Estate, Ichigo Owners, and Asset Management. As a result, cash earnings increased 2% year-on-year. Ichigo’s stock earnings to fixed expenses coverage ratio was 196% in FY27/2 H1. Ichigo has a highly stable earnings base that is resilient to changes in the operating environment, including rising interest rates. Ichigo is addressing rapid changes in the business environment and ensuring its operating stability and flexibility via maintaining a strong financial base and robust cash generation. Core Business Growth Asset Management Although NOI grew at Ichigo Office (TSE REIT 8975) assets due to value-add initiatives and rent increases, stock earnings decreased 5 % year-on-year due to hotels owned by Ichigo Hotel (TSE REIT 3463) temporarily closing for renovations in FY27/2 H1. Flow earnings increased 148% year-on-year due to performance fees from an asset sale by Ichigo Office. As a result, Asset Management business profit increased 66% year-on-year. Ichigo Office and Ichigo Hotel have completed transitioning all of their assets to renewable energy. Ichigo supports these initiatives as their sponsor.
Page 6
6 Sustainable Real Estate (SRE) SRE is focused on providing offices designed for tenant comfort and convenience to accommodate increasingly diverse working styles. For example, SRE offers Ready-To-Move-In offices, with layouts and office furniture tailored to tenant needs. SRE also actively pursues branding initiatives that reflect the distinctive characteristics of each office’s location. Given their superior quality and mapping to tenant needs, Ichigo has thus leased its Ready To Move In offices at above-market rents, increasing asset value while providing tenants with benefits such as lower upfront costs and a reduced burden associated with relocation. These offices cater to a broad range of demand, including from small and mid-size businesses and startups, as well as large companies seeking satellite offices. As of FY27/2 H1 Ichigo has introduced Ready To Move In offices in 54 units across 11 buildings (including assets already sold). Rental income following conversion to Ready To Move In offices is averaging 1.8X the pre-conversion level. Ichigo will continue to grow earnings through value-add initiatives that address tenant needs. Stock earnings for the FY27/2 H1 decreased 4% year-on-year due to lower rental income resulting from asset sales in FY26/2. However, Ichigo is steadily offsetting this decrease through higher office occupancy, earnings contributions from newly-acquired assets, and rent increases, and remains on track to achieve the full-year SRE forecast. During FY27/2 H1 SRE acquisitions totaled JPY 15.6 billion, while asset sales totaled JPY 15.9 billion. Hotel Ichigo generates higher value in hotels through a multifaceted approach spanning the development of its own hotel brands, hotel operations, and DX services. Under THE KNOT brand, Ichigo is increasing the value of its boutique hotels by improving their interiors, food and beverage offerings, services, and operations to reflect the characteristics and lodging demand of each area, creating boutique hotels that offer more than just a place to stay. By integrating ownership, renovation, operations, and branding, Ichigo increases the earnings potential of existing hotels. In FY27/2 H1 hotel rental income increased 7% year-on-year, driven by contributions from newly acquired and newly opened hotels. However, overall stock earnings decreased 7% year- on-year on a decrease in dividends from Ichigo Hotel and lower hotel earnings resulting from temporary upfront increases in operating costs associated with an increase in the number of hotels under management. Ichigo Owners Ichigo Owners leverages strong partnerships with developers to design and develop its highly competitive GRAN PASEO residential series, reflecting the diverse needs of tenants and real estate investors. Under this fabless model, Ichigo outsources construction to external developers to reduce development risks and costs, while achieving high capital efficiency, rigorous quality control by its value-add engineering team, and an integrated business approach spanning leasing, product structuring, and sales. In FY27/2 H1 flow earnings and business profit increased 19% and 39% year-on-year, respectively, driven by asset sales to domestic institutional investors and operating companies. Ichigo Owners is on track to achieve its full-year forecast and expects to generate a record full- year profit via accelerated asset sales in H2. During FY27/2 H1 Ichigo Owners acquired JPY 30.0 billion of newly built, high-quality residences primarily in central Tokyo. Including assets for which contracts have been executed, acquisitions total JPY 43.9 billion, putting Ichigo Owners on track to achieve its full-year acquisition forecast of JPY 58.0 billion.
Page 7
7 Clean Energy In FY27/2 H1 clean energy power generation revenue (stock earnings) decreased 9% year-on- year and business profit decreased 17% year-on-year, primarily due to temporary shutdowns at some power plants caused by lightning strikes. In addition to continuing to invest in solar power plants, Ichigo is growing its battery storage business, which provides essential infrastructure for expanding the adoption of renewable energy. Ichigo’s first battery storage facility, Ichigo Onjuku Iwawada ECO Battery Storage Plant, began operation in June 2026. Ichigo will continue to diversify its power sources while addressing important issues faced by local communities. The social significance of the clean energy business is expected to grow in response to global environmental challenges. Ichigo will continue to contribute to realizing a decarbonized society while supporting local communities through its clean energy business. Ichigo owns and operates a total of 64 power plants with a total generation capacity of 188.2MW. Strengthening Financial Base to Support Growth Ichigo continues to strengthen both its earnings and financial base via measures such as lengthening borrowing terms, reducing borrowing costs, hedging against increases in interest- rates, and borrowing via unsecured loans. Ichigo has fixed the interest rates on 51% of its borrowings as of FY27/2 H1-end, thus limiting the impact of higher interest rates. Ichigo has also increased funding via ESG-linked loans, newly financing JPY 4.2 billion in FY27/2 H1. Ichigo will continue implementing these measures to support its growth as a sustainable infrastructure company.
Page 8
8 Shareholder Returns Flexible Share Buybacks (10 Consecutive Years) In line with its Ichigo 2030 long-term vision, Ichigo conducts flexible share buybacks to drive shareholder value. During FY27/2 H1 Ichigo conducted a share buyback amounting to JPY 5.1 billion in line with the resolution made in FY26/2. Ichigo is working to grow EPS as a critical driver of shareholder value, and will continue to grow its core profitability while conducting value-enhancing share buybacks. Dividends (FY27/2 Dividend Increase) Underpinned by its robust earnings stability, Ichigo has also adopted a progressive dividend policy, under which Ichigo’s dividend is maintained or raised every year, but not cut. Although the use of a dividend payout ratio is more common in shareholder return policies, dividend payout ratios are highly sensitive to short-term earnings fluctuations. Ichigo has established a Dividend on Equity (DOE) payout ratio policy paying dividends based upon more stable shareholder equity. Through these measures, Ichigo is working to drive long-term shareholder value with a shareholder return policy that focuses on dividend stability, transparency, and growth, demonstrating its commitment to long-term value growth for its shareholders. In light of steady progress in building a sustainable earnings base, as well as continued growth in stock earnings, Ichigo has raised its DOE target from 4% to 5% from FY27/2. Accordingly, Ichigo has forecast a FY27/2 dividend of JPY 15.5 (+35% increase from FY26/2). Ichigo will continue to work to drive long-term shareholder value. Shareholder Program In 2019 Ichigo became a J.League Top Partner and launched an Ichigo Shareholder Program that offers free tickets to J.League games to Ichigo, Ichigo Office, Ichigo Hotel, its listed solar power producer Ichigo Green (TSE Infrastructure 9282) shareholders. With the conclusion of the J.League Top Partner agreement on June 30, 2026, the Ichigo J.League Shareholder Program was discontinued. Following its conclusion, Ichigo has launched a new Ichigo THANKS! Monthly Present program which offers shareholders every month an opportunity to win special gifts produced by Ichigo’s agricultural business via lottery from June 2026. For details of the program, please see the Ichigo THANKS! Monthly Present program page (Japanese only) on Ichigo’s website. Ichigo THANKS! Monthly Present Program Website www.ichigo.gr.jp/ir/stocks/shareholder_program.html
Page 9
9 Ichigo as a Sustainable Infrastructure Comp any Ichigo is a Japanese sustainable infrastructure company dedicated to making the world more sustainable. Ichigo is expanding the scope of its real estate and clean energy businesses to further contribute to a sustainable society and grow long-term value for its shareholders. Ichigo believes that working on behalf of the environment and society is a fundamental social responsibility. As Ichigo grows and takes on new challenges as a sustainable infrastructure company, sustainability remains at the core of everything we do. Ichigo is committed to contributing towards a better world that can be handed to future generations. Ichigo achieves CO2 reductions via its clean energy generation at Ichigo and Ichigo Green solar and wind power plants, striving to contribute to the formation of a sustainable society. Ichigo will continue to be Climate Positive via CO2 reductions that exceed total CO2 emissions (Scope 1 & 2) from Ichigo’s operations including Ichigo Office, Ichigo Hotel, and Ichigo Green. In addressing environmental issues and working to build a sustainable society, Ichigo has set KPIs such as continuing to be Climate Positive and being included in the CDP Climate Change and Water Security A Lists. 1 Ichigo was selected as an A List Company in both the 2025 CDP Climate Change and Water Security Assessments (3 consecutive years on the Climate Change A List and 2 consecutive years on the Water Security A List), achieving this KPI. Of the 22,000 companies worldwide participating in the 2025 CDP assessments, only 150 companies were selected as Double A List Companies. That Ichigo was selected to be among this top group of global companies reflects the extraordinary strength of Ichigo’s environmental initiatives. Ichigo will continue to proactively address environmental issues and maintain its KPIs. Ichigo also supports the recommendations provided by the TCFD (Task Force on Climate- Related Financial Disclosures), identifying climate-related risks and establishing appropriate risk management procedures while also identifying new business opportunities that can help solve the global problem of climate change. Ichigo has signed the UN Global Compact, a global sustainability initiative that calls for companies and organizations to take leadership as members of society to implement universal sustainability principles. Companies and organizations that sign the UN Global Compact are required to achieve the Ten Principles regarding human rights, labor, environment, and anti- corruption based on CEO commitments. As a company committed to passing on a better world to future generations, Ichigo will continue to contribute to society by creating new social value, addressing important social problems, and protecting the environment through leveraging its value-add expertise. 1 Carbon Disclosure Project (CDP): A global non-profit that runs the world’s only independent environmental disclosure system for companies, capital markets, cities, states, and regions to manage their environmental impacts.
Page 10
10 Details of Operating Results Ichigo recorded FY27/2 H1 revenue of JPY 39.8 billion (-22.0% year-on-year), operating profit of JPY 10.6 billion (-5.7% year-on-year), business profit of JPY 15.5 billion (+2.6% year-on- year), recurring profit of JPY 9.0 billion (-1.0% year-on-year), net income of JPY 8.5 billion (-1.9% year-on-year), and cash net income of JPY 12.1 billion (+9.8% year-on-year). Definitions Business Profit = Operating Profit + Gains on Sale of Sustainable Real Estate & Hotel Assets Recorded as Extraordinary Gains Cash Net Income = Net Income + Depreciation + Amortization +/- Valuation Losses (Gains) Segment Earnings Details (i) Asset Management Revenue and business profit increased to JPY 2.8 billion (+36.5% year-on-year) and JPY 1.7 billion (+66.4% year-on-year), respectively, on Ichigo Office gains on sale performance fees, while AM base fees from Ichigo Hotel decreased due to lower NOI from the temporary closure of two hotels for renovations. (ii) Sustainable Real Estate Due to a drop off of gains from the sale of equity investments recorded in FY26/2 H1, revenue decreased to JPY 9.5 billion (-21.7% year-on-year). However, business profit increased to JPY 7.1 billion (+38.2% year-on-year) driven by gains on the sale of shares of a real estate holding subsidiary and gains on SRE real estate sales. (iii) Hotel Revenue increased to JPY 7.8 billion (+4.0% year-on-year), primarily due to contributions from hotels acquired in FY26/2, while business profit decreased to JPY 2.3 billion (-57.5% year-on- year), primarily due to the drop off of gains on hotel sales recorded in FY26/2 H1. (iv) Ichigo Owners In contrast to FY26/2 H1, which had a number of bulk asset sales, FY27/2 H1 sales consisted primarily of higher-profitability individual asset sales. As a result, revenue decreased to JPY 16.8 billion (-35.7% year-on-year), while business profit increased to JPY 3.5 billion (+38.7% year- on-year). (v) Clean Energy Due to temporary shutdowns at some power plants caused by lightning strikes, revenue and business profit decreased to JPY 3.3 billion (-5.7% year-on-year) and JPY 1.0 billion (-17.0% year-on-year), respectively. B. Consolidated Income Statement Details Revenue Revenue decreased to JPY 39.8 billion (-22.0% year-on-year). While AM performance fees associated with asset sales increased, real estate sales decreased due to a drop off of the Ichigo Owners bulk asset sales in FY26/2 H1. The revenue breakdown was as follows: real estate sales of JPY 18.2 billion (SRE JPY 2.7 billion, Ichigo Owners JPY 15.4 billion), real estate rental income of JPY 14.9 billion (SRE JPY 5.9 billion, Hotel JPY 7.6 billion, Ichigo Owners JPY 1.4 billion), real estate management fee income of JPY 2.4 billion, and clean energy power production revenue of JPY 3.2 billion.
Page 11
11 Operating Profit Operating profit decreased to JPY 10.6 billion (-5.7% year-on-year), despite higher AM performance fees, due to the dropping out of sales of SRE equity investments recorded in FY26/2 H1 and the expenses associated with hotel renovation work. Business profit increased to JPY 15.5 billion (+2.6% year-on-year), supported by gains on the sales of SRE real estate fixed assets and equity investments recorded as extraordinary gains. Non-Operating Income & Expenses Non-operating income was JPY 1.5 billion (+147.5% year-on-year) due to a year-on-year increase in interest-rate hedging derivative valuation gains (JPY 1.4 billion). Ichigo has executed interest rate swaps and caps to hedge against increased interest rates. Non-operating expenses totaled JPY 3.1 billion (+11.6% year-on-year) due to an increase in interest expenses resulting from new loans for asset acquisitions. Interest expenses were JPY 2.7 billion. Extraordinary Gains & Losses Extraordinary gains totaled JPY 4.9 billion (+25.0% year-on-year), including a JPY 3.0 billion gain on sale of affiliate shares associated with the sale of shares of a real estate holding subsidiary and JPY 1.9 billion gains on sales of SRE fixed assets. Extraordinary losses totaled JPY 71 million (-36.7% year-on-year) primarily due to a JPY 57 million loss recorded in allowance for doubtful accounts. Net Income Income taxes totaled JPY 5.3 billion and net income attributable to minority interests totaled JPY 4 million. As a result, net income decreased to JPY 8.5 billion (-1.9% year-on-year). Cash net income increased to JPY 12.1 billion (+9.8% year-on-year). C. Cash Flows FY27/2 H1-end cash and cash equivalents amounted to JPY 39.2 billion, a JPY 2.8 billion decrease from FY26/2-end JPY 42.0 billion. Cash Flows from Operations Net cash from operations was -JPY 16.9 billion (vs. -JPY 3.7 billion in FY26/2 H1), primarily attributable to a FY27/2 H1 pre-tax profit of JPY 13.8 billion, offset by an increase in real estate for sale of JPY 22.9 billion resulting from asset acquisitions, interest payments of JPY 2.6 billion, and income taxes paid of JPY 7.7 billion. Cash Flows from Investments Net cash from investments was JPY 8.3 billion (vs. JPY 4.0 billion in FY26/2 H1), primarily attributable to proceeds from sale of property, plant, and equipment of JPY 3.7 billion, proceeds from sale of securities investments of JPY 2.2 billion, payments received for loans receivable of JPY 1.8 billion, and proceeds from the sale of shares in a subsidiary accompanying a change in the scope of consolidation of JPY 8.1 billion, offset by acquisitions of property, plant, and equipment of JPY 6.1 billion and payments of loans receivable of JPY 995 million.
Page 12
12 Cash Flows from Financing Net cash from financing was JPY 5.9 billion (vs. JPY 4.2 billion in FY26/2 H1), primarily attributable to an increase in short-term loans of JPY 3.5 billion and proceeds from long-term loans of JPY 40.7 billion, offset by long-term loan repayments of JPY 30.8 billion, a share buyback of JPY 5.2 billion, and dividend payments of JPY 4.5 billion. (2) Financial Condition Assets Total assets amounted to JPY 445.6 billion, an increase of JPY 9.8 billion (+2.3% vs. FY26/2- end). This was primarily due to a JPY 21.6 billion increase in real estate for sale as a result of asset acquisitions, primarily residential assets, while property, plant, and equipment decreased by JPY 3.9 billion, operational securities investments by JPY 3.0 billion, and securities investments by JPY 2.8 billion, primarily due to sales. Liabilities Total liabilities amounted to JPY 330.3 billion, an increase of JPY 11.2 billion (+3.5% vs. FY26/2-end). This was primarily due to a JPY 12.7 billion increase in loans used for asset acquisitions and growth investments. Net Assets Total net assets amounted to JPY 115.4 billion, a decrease of JPY 1.4 billion (-1.2% vs. FY26/2- end). This was primarily due to dividend payments of JPY 4.6 billion and a JPY 5.2 billion share buyback, which exceeded JPY 8.5 billion in net income. Ichigo’s shareholders’ equity ratio was 25.7% (-0.9pt vs. FY26/2-end). (3) Explanation of Consolidated Earnings Forecasts No change from the FY27/2 consolidated earnings forecast presented in the April 14, 2026 release “FY26/2 Earnings.” In line with global best practices and the Corporate Governance Code, Ichigo provides forecasts for full-year results as it focuses on long-term corporate value enhancement and sustainable growth.
Page 13
13 2. Consolidated Financial Statements Consolidated Balance Sheet (FY27/2 H1) (JPY million) FY26/2 (Feb 28, 2026) FY27/2 H1 (Aug 31, 2026) Assets Current Assets Cash and deposits 42,059 39,223 Accounts receivable 4,079 4,731 Operational loan investments 1,324 1,324 Operational securities investments 3,180 219 Real estate for sale 176,904 198,537 Other 8,303 8,171 Less: allowance for doubtful accounts -59 -49 Total Current Assets 235,792 252,158 Fixed Assets Property, Plant, and Equipment Buildings and structures 59,558 65,427 Accumulated depreciation -15,728 -16,046 Buildings and structures (net) 43,829 49,380 Solar and wind power plants 39,463 39,851 Accumulated depreciation -13,851 -14,855 Solar and wind power plants (net) 25,611 24,996 Land 88,432 84,245 Buildings and structures under construction 6,327 1,591 Solar and wind power plants under construction 748 743 Other 3,179 3,417 Accumulated depreciation -2,093 -2,263 Other (net) 1,086 1,153 Total Property, Plant, and Equipment 166,035 162,111 Intangible Assets Goodwill 460 417 Leasehold rights 827 428 Other 83 109 Total Intangible Assets 1,371 955 Investments and Other Assets Securities investments 22,149 19,337 Long-term loans receivable 267 340 Deferred tax assets 2,220 481 Other 9,068 11,420 Less: allowance for doubtful accounts -1,084 -1,157 Total Investments and Other Assets 32,621 30,422 Total Fixed Assets 200,028 193,489 Total Assets 435,820 445,648
Page 14
14 (JPY million) FY26/2 (Feb 28, 2026) FY27/2 H1 (Aug 31, 2026) Liabilities Current Liabilities Short-term loans 6,421 9,907 Bonds (due within one year) 2,162 162 Long-term loans (due within one year) 24,082 14,534 Long-term non-recourse loans (due within one year) 18,062 15,209 Income taxes payable 6,040 3,205 Current year employee bonus accrual 300 671 Provision for loss on debt guarantees 36 38 Other current liabilities 5,740 4,218 Total Current Liabilities 62,848 47,947 Long-Term Liabilities Bonds 7,812 12,430 Long-term loans 213,596 232,914 Long-term non-recourse loans 25,090 27,405 Deferred tax liabilities 1,479 1,219 Provision for loss on debt guarantees 345 332 Long-term security deposits received 7,587 7,692 Other long-term liabilities 305 311 Total Long-Term Liabilities 256,218 282,308 Total Liabilities 319,066 330,255 Net Assets Shareholders’ Equity Capital 27,012 27,126 Capital reserve 10,429 10,548 Retained earnings 81,909 85,748 Treasury shares -5,467 -10,605 Total Shareholders’ Equity 113,884 112,818 Accumulated Other Comprehensive Income Valuation gains (losses) on other securities 1,664 1,182 Deferred gains (losses) on long-term interest rate hedges 547 709 Total Accumulated Other Comprehensive Income 2,212 1,891 Stock Options 559 585 Minority Interests 97 97 Total Net Assets 116,754 115,393 Total Liabilities and Net Assets 435,820 445,648
Page 15
15 Consolidated Income Statement (FY27/2 H1) (JPY million) FY26/2 H1 (Mar 1, 2025 to Aug 31, 2025) FY27/2 H1 (Mar 1, 2026 to Aug 31, 2026) Revenue 51,024 39,817 Cost of Goods Sold 35,017 24,564 (Depreciation amount included in COGS) 2,245 2,459 Gross Profit 16,006 15,252 SG&A 4,745 4,630 Operating Profit 11,261 10,621 Non-Operating Income Interest income 30 40 Dividend income 12 2 Mark-to-market gains on long-term interest rate hedges 517 1,382 Other 28 31 Total Non-Operating Income 588 1,456 Non-Operating Expenses Interest expense 2,050 2,676 Foreign exchange loss 199 1 Equity-method loss 215 – Mark-to-market losses on long-term interest rate hedges 159 153 Debt financing-related fees 15 117 Other 161 176 Total Non-Operating Expenses 2,802 3,125 Recurring Profit 9,047 8,952 Extraordinary Gains Gains on sale of fixed assets 3,422 1,887 Gains on sale of securities investments 407 0 Gains on sale of shares in affiliates – 3,017 Other 119 29 Total Extraordinary Gains 3,949 4,934 Extraordinary Loss Loss on removal of fixed assets 1 – Loss on sale of fixed assets – 14 Loss on sale of securities investments 74 – Allowance for doubtful accounts – 57 Impairment loss 35 – Other 1 – Total Extraordinary Loss 113 71 Pre-Tax Income 12,883 13,815 Total Income Taxes 4,144 5,348 Pre-Minority Interest Net Income 8,739 8,466 Net Income Attributable to Minority Interests 114 4 Net Income 8,624 8,462
Page 16
16 Consolidated Income Statement (FY27/2 Q2 Stand-Alone) (JPY million) FY26/2 Q2 (Jun 1, 2025 to Aug 31, 2025) FY27/2 Q2 (Jun 1, 2026 to Aug 31, 2026) Revenue 38,537 29,319 Cost of Goods Sold 28,365 19,011 (Depreciation amount included in COGS) 1,114 1,242 Gross Profit 10,172 10,308 SG&A 2,379 2,273 Operating Profit 7,792 8,034 Non-Operating Income Interest income 29 35 Dividend income 11 2 Mark-to-market gains on long-term interest rate hedges 273 903 Other 16 20 Total Non-Operating Income 331 961 Non-Operating Expenses Interest expense 1,056 1,400 Foreign exchange loss 93 – Equity-method loss 116 – Mark-to-market losses on long-term interest rate hedges 46 – Debt financing-related fees 11 8 Other 80 82 Total Non-Operating Expenses 1,405 1,491 Recurring Profit 6,719 7,504 Extraordinary Gains Gains on sale of fixed assets 2,640 658 Gains on sale of securities investments – – Other 1 11 Total Extraordinary Gains 2,641 669 Extraordinary Loss Allowance for doubtful accounts – – Other – – Total Extraordinary Loss – – Pre-Tax Income 9,361 8,173 Total Income Taxes 3,010 2,593 Pre-Minority Interest Net Income 6,350 5,580 Net Income Attributable to Minority Interests 57 2 Net Income 6,292 5,578
Page 17
17 Consolidated Statement of Comprehensive Income (FY27/2 H1) (JPY million) FY26/2 H1 (Mar 1, 2025 to Aug 31, 2025) FY27/2 H1 (Mar 1, 2026 to Aug 31, 2026) Pre-Minority Interest Net Income 8,739 8,466 Other Comprehensive Income Valuation gains (losses) on other securities 2,138 -482 Deferred gains (losses) on long-term interest rate hedges 113 161 Share of other comprehensive income of equity method affiliates 110 – Total Other Comprehensive Income 2,362 -321 Comprehensive Income 11,101 8,145 Comprehensive income attributable to common shareholders 10,986 8,140 Comprehensive income attributable to minority interests 114 4
Page 18
18 Consolidated Cash Flow Statement (FY27/2 H1) (JPY million) FY26/2 H1 (Mar 1, 2025 to Aug 31, 2025) FY27/2 H1 (Mar 1, 2026 to Aug 31, 2026) Cash Flows from Operations: Pre-tax income 12,883 13,815 Depreciation 2,319 2,535 Amortization of goodwill 65 42 Increase (decrease) in current year employee bonus accrual 354 399 Increase (decrease) in allowance for doubtful accounts -292 62 Interest and dividend income -42 -43 Interest expense 2,050 2,676 Forex losses (gains) 199 1 Losses (gains) on investment in equity-method affiliates 215 – Losses (gains) on sale of shares in affiliates – -3,017 Losses (gains) on sale of securities investments -332 – Loss on removal of fixed assets 1 – Losses (gains) on sales of fixed assets -3,422 -1,873 Impairment loss 35 – Decrease (increase) in trading notes and receivables 792 -663 Decrease (increase) in operational securities investments -204 3,083 Decrease (increase) in real estate for sale -9,014 -22,873 Decrease (increase) in advances paid 254 – Decrease (increase) in prepaid expenses -372 -955 Decrease (increase) in accounts receivable 14 7 Decrease (increase) in consumption taxes receivable -8 941 Increase (decrease) in accounts payable -1,183 -1,573 Increase (decrease) in accrued expenses -269 -35 Increase (decrease) in advances received -6 21 Increase (decrease) in deposits received 191 -80 Increase (decrease) in security deposits received 63 300 Increase (decrease) in accrued consumption taxes -710 176 Other -235 369 Sub-Total 3,347 -6,679 Interest and dividends received 42 43 Interest expense paid -1,990 -2,630 Income taxes paid -5,066 -7,691 Income taxes refunded – 19 Net Cash from (Used for) Operations -3,666 -16,938
Page 19
19 (JPY million) FY26/2 H1 (Mar 1, 2025 to Aug 31, 2025) FY27/2 H1 (Mar 1, 2026 to Aug 31, 2026) Cash Flows from Investments: Payments into time deposits -221 – Redemptions of time deposits 80 – Payments for securities investments -40 -80 Proceeds from sale of securities investments 407 2,200 Proceeds from redemption of securities investments 40 – Acquisition of property, plant, and equipment -4,117 -6,141 Proceeds from sale of property, plant, and equipment 8,764 3,693 Acquisition of intangible assets -66 -48 Payments of SPC capital contributions – -250 Payments of security deposits – -1 Proceeds from subsidiary sale associated with change in consolidated scope – 8,098 Payments of loans receivable -2,476 -995 Payments received for loans receivable 1,670 1,823 Other -61 25 Net Cash from (Used for) Investments 3,978 8,323
Page 20
20 (JPY million) FY26/2 H1 (Mar 1, 2025 to Aug 31, 2025) FY27/2 H1 (Mar 1, 2026 to Aug 31, 2026) Cash Flows from Financing: Net increase (decrease) in short-term loans 9,063 3,486 Proceeds from bond issuance – 4,681 Repayment of maturing bond principal to bondholders -151 -2,081 Proceeds from long-term loans 30,393 40,662 Repayment of long-term loans -24,876 -30,766 Proceeds from long-term non-recourse loans – 3,000 Repayment of long-term non-recourse loans -864 -3,538 Proceeds from exercise of stock options 6 198 Share buyback -4,999 -5,163 Dividends paid -4,391 -4,538 Dividends paid to minority interests -3 -4 Net Cash from (Used for) Financing 4,175 5,936 Effect of Exchange Rate Change on Cash and Cash Equivalents – 6 Increase (Decrease) in Cash and Cash Equivalents 4,488 -2,672 Cash and Cash Equivalents at Beginning of Period 42,576 42,019 Change in Cash and Cash Equivalents Resulting from Exclusion from Consolidation – -123 Cash and Cash Equivalents at End of Period 47,065 39,223
Page 21
21 Consolidated Cash Flow Statement (FY27/2 Q2 Stand-Alone) (JPY million) FY26/2 Q2 (Jun 1, 2025 to Aug 31, 2025) FY27/2 Q2 (Jun 1, 2026 to Aug 31, 2026) Cash Flows from Operations: Pre-tax income 9,361 8,173 Depreciation 1,143 1,280 Amortization of goodwill 32 21 Increase (decrease) in current year employee bonus accrual 180 239 Increase (decrease) in allowance for doubtful accounts – 1 Interest and dividend income -41 -37 Interest expense 1,056 1,400 Forex losses (gains) 93 – Losses (gains) on investment in equity-method affiliates 116 – Losses (gains) on sale of securities investments – – Losses (gains) on sales of fixed assets -2,640 -658 Decrease (increase) in trading notes and receivables 410 -619 Decrease (increase) in operational securities investments -204 163 Decrease (increase) in real estate for sale 5,372 147 Decrease (increase) in advances paid -145 -40 Decrease (increase) in prepaid expenses 108 -6 Decrease (increase) in accounts receivable -14 73 Decrease (increase) in consumption taxes receivable 181 1,780 Increase (decrease) in accounts payable 313 -24 Increase (decrease) in accrued expenses – -75 Increase (decrease) in advances received -6 -44 Increase (decrease) in deposits received -572 -206 Increase (decrease) in security deposits received 11 95 Increase (decrease) in accrued consumption taxes -262 171 Other -129 -786 Sub-Total 14,365 11,051 Interest and dividends received 41 37 Interest expense paid -1,124 -1,425 Income taxes paid -188 -148 Income taxes refunded – 19 Net Cash from (Used for) Operations 13,095 9,535
Page 22
22 (JPY million) FY26/2 Q2 (Jun 1, 2025 to Aug 31, 2025) FY27/2 Q2 (Jun 1, 2026 to Aug 31, 2026) Cash Flows from Investments: Payments into time deposits -221 – Proceeds from sale of securities investments – 2,200 Proceeds from redemption of securities investments 40 – Acquisition of property, plant, and equipment -2,043 -4,416 Proceeds from sale of property, plant, and equipment 6,750 1,650 Acquisition of intangible assets -31 -21 Payments of SPC capital contributions – -250 Payments of security deposits – -1 Payments of loans receivable -1,037 -651 Payments received for loans receivable 800 1,348 Other -2 33 Net Cash from (Used for) Investments 4,253 -110
Page 23
23 (JPY million) FY26/2 Q2 (Jun 1, 2025 to Aug 31, 2025) FY27/2 Q2 (Jun 1, 2026 to Aug 31, 2026) Cash Flows from Financing: Net increase (decrease) in short-term loans 5,695 -792 Proceeds from bond issuance – 4,681 Repayment of maturing bond principal to bondholders -40 -2,040 Proceeds from long-term loans 8,705 12,958 Repayment of long-term loans -20,919 -18,184 Repayment of long-term non-recourse loans -745 -735 Proceeds from exercise of stock options 4 3 Share buyback -2,560 -306 Dividends paid -52 -47 Dividends paid to minority interests -2 -2 Net Cash from (Used for) Financing -9,915 -4,465 Effect of Exchange Rate Change on Cash and Cash Equivalents – – Increase (Decrease) in Cash and Cash Equivalents 7,433 4,959 Cash and Cash Equivalents at Beginning of Period 39,631 34,263 Cash and Cash Equivalents at End of Period 47,065 39,223
Page 24
24 Notes to the FY27/2 H1 Consolidated Financial Statements Notes on Accounting Treatment Specific to H1 Consolidated Financial Statements Calculation of Tax Expenses Ichigo uses a reasonable estimate of the effective tax rate based on Pre-Tax Income for the fiscal year, including the H1 of the fiscal year, after applying tax effect accounting. FY27/2 H1 tax expenses are then calculated by applying this effective tax rate to Pre-Tax Income. Notes to the Consolidated Balance Sheet Deferred Gains (Losses) on Long-Term Interest Rate Hedges FY26/2 (February 28, 2026) Using interest rate swaps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Unrealized mark-to-market gains or losses on these hedges calculated are recorded as Deferred gains (losses) on long-term interest rate hedges. FY27/2 H1 (August 31, 2026) Using interest rate swaps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Unrealized mark-to-market gains or losses on these hedges calculated are recorded as Deferred gains (losses) on long-term interest rate hedges. Notes to the Consolidated Income Statement Mark-to-Market Gains (Losses) on Long-Term Interest Rate Hedges FY26/2 H1 (Mar 1, 2025 to Aug 31, 2025) Using interest rate swaps and interest rate caps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Any increase (decrease) in the market value of these instruments is recorded as Mark-to-market gains on (losses) long-term interest rate hedges. FY27/2 H1 (Mar 1, 2026 to Aug 31, 2026) Using interest rate swaps and interest rate caps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Any increase (decrease) in the market value of these instruments is recorded as Mark-to-market gains (losses) on long-term interest rate hedges. Notes to the Consolidated Statement of Comprehensive Income Deferred Gains (Losses) on Long-Term Interest Rate Hedges FY26/2 H1 (Mar 1, 2025 to Aug 31, 2025) Using interest rate swaps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Unrealized mark-to-market gains or losses on these hedges calculated are recorded as Deferred gains (losses) on long-term interest rate hedges. FY27/2 H1 (Mar 1, 2026 to Aug 31, 2026) Using interest rate swaps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Unrealized mark-to-market gains or losses on these hedges calculated using mark-to-market valuation are recorded as Deferred gains (losses) on long-term interest rate hedges.
Page 25
25 Notes on Segment Information Segment Information Overview of Reporting Segments Asset Management (AM) generates fee income via management of the Tokyo Stock Exchange- listed Ichigo Office, Ichigo Hotel, and Ichigo Green, private real estate funds, and real estate- backed security tokens. 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. Hotel leverages Ichigo’s deep value-add expertise and management capabilities as a hotel owner and operator. Ichigo improves hotel functionality, aesthetics, and guest services to drive higher guest comfort and satisfaction, develops and operates Ichigo brand hotels, and deploys PROPERA (Ichigo’s AI-based hotel revenue management system) to drive significant increases in hotel cash flows, earnings, and asset value. Ichigo Owners develops high-quality real estate assets for Japanese real estate owners via a highly capital-efficient, asset-light business model. Ichigo outsources construction to third-party developers, focusing on design and planning, construction engineering quality control, and post- construction leasing tailored to tenant and investor needs. Clean Energy (CE) is utility-scale solar and wind power production that produces clean energy and brings productive use to idle land.
Page 26
26 Revenue, P&L, and Assets by Segment (Current FY27/2 H1) (Mar 1, 2026 to Aug 31, 2026) (JPY million) Segment Adjustment3 Amount Recorded in Consolidated Financial Statements Asset Management (AM) Sustainable Real Estate (SRE) Hotel Ichigo Owners Clean Energy (CE) Total Revenue Revenue from External Customers 2,474 9,493 7,785 16,807 3,256 39,817 – 39,817 Inter-Segment Activities or Reclassifications 285 50 10 – – 346 -346 – Total 2,760 9,544 7,795 16,807 3,256 40,163 -346 39,817 Operating Profit 1,713 2,222 2,250 3,463 1,006 10,656 -34 10,621 Gains on Sale of Sustainable Real Estate & Hotel Assets Recorded as Extraordinary Gains2 – 4,893 – – – 4,893 – 4,893 Segment P&L (Business Profit)1 1,713 7,115 2,250 3,463 1,006 15,549 -34 15,514 Segment P&L Details Stock Earnings (Rental Income, Base AM Fees, FIT Solar Power Earnings, etc.) 4 954 2,742 2,250 652 1,006 7,605 – – Flow Earnings (Gains on Sustainable Real Estate & Hotel Sales, Gains on Solar Power Plant Sales, AM Performance Fees, etc.) 4 759 4,373 – 2,810 – 7,943 – – Segment Assets 2,981 186,809 100,434 91,705 34,606 416,538 29,110 445,648 Other Depreciation – 789 683 – 1,009 2,483 52 2,535 Increase in Property, Plant, and Equipment and Intangible Assets – 4,705 160 – 463 5,329 18 5,348 1 Segment P&L (Business Profit) = Operating Profit + Gains on Sale of Sustainable Real Estate & Hotel Assets Recorded as Extraordinary Gains
Page 27
27 2 Sustainable Real Estate & Hotel Assets refers to real estate assets belonging to the Sustainable Real Estate and Hotel businesses, as well as equity interests in investments backed by such real estate. 3 The Adjustment to Segment P&L (-JPY 34 million) reflects transaction eliminations and corporate expenses that were not allocated to the segments. The Adjustment to Segment Assets (JPY 29,110 million) reflects corporate assets, such as cash and deposits, that were not allocated to the segments. The Adjustment to Depreciation (JPY 52 million) reflects depreciation of corporate assets that were not allocated to the segments. The Adjustment to Increase in Property, Plant, and Equipment and Intangible Assets (JPY 18 million) reflects corporate assets that were not allocated to the segments. 4 SG&A expenses are allocated between stock and flow earnings based on their respective revenues, and are reflected in the calculation of each earnings category. Information on Impairment Loss of Fixed Assets or Goodwill by Reporting Segment N/A
Page 28
28 Revenue, P&L, and Assets by Segment (Previous FY26/2 H1) (Mar 1, 2025 to Aug 31, 2025) (JPY million) Segment Adjustment3 Amount Recorded in Financial Statements Asset Management (AM) Sustainable Real Estate (SRE) Hotel Ichigo Owners (IO) Clean Energy (CE) Total Revenue Revenue from External Customers 1,835 12,113 7,493 26,129 3,452 51,024 – 51,024 Inter-Segment Activities or Reclassifications 186 74 – – – 260 -260 – Total 2,022 12,187 7,493 26,129 3,452 51,285 -260 51,024 Operating Profit 1,029 3,919 2,650 2,496 1,211 11,308 -47 11,261 Gains on Sale of Sustainable Real Estate & Hotel Assets Recorded as Extraordinary Gains2 – 1,227 2,639 – – 3,867 – 3,867 Segment P&L (Business Profit)1 1,029 5,147 5,290 2,496 1,211 15,176 -47 15,128 Segment P&L Details Stock Earnings (Rental Income, Base AM Fees, FIT Solar Power Earnings, etc.) 4 788 2,697 2,963 264 1,211 7,925 – – Flow Earnings (Gains on Sustainable Real Estate & Hotel Sales, Gains on Solar Power Plant Sales, AM Performance Fees, etc.) 4 240 2,450 2,327 2,232 – 7,251 – – Segment Assets 1,767 202,618 87,902 56,598 39,043 387,929 32,260 420,190 Other Depreciation – 711 562 – 1,001 2,276 43 2,319 Impairment loss – 35 – – – 35 – 35 Increase in Property, Plant, and Equipment and Intangible Assets – 576 3,204 – 140 3,921 124 4,046
Page 29
29 1 Segment P&L (Business Profit) = Operating Profit + Gains on Sale of Sustainable Real Estate & Hotel Assets Recorded as Extraordinary Gains 2 Sustainable Real Estate & Hotel Assets refers to real estate assets belonging to the Sustainable Real Estate and Hotel businesses, as well as equity interests in investments backed by such real estate. 3 The Adjustment to Segment P&L (-JPY 47 million) reflects transaction eliminations and corporate expenses that were not allocated to the segments. The Adjustment to Segment Assets (JPY 32,260 million) reflects corporate assets, such as cash and deposits, that were not allocated to the segments. The Adjustment to Depreciation (JPY 43 million) reflects depreciation of corporate assets that were not allocated to the segments. The Adjustment to Increase in Property, Plant, and Equipment and Intangible Assets (JPY 124 million) reflects corporate assets that were not allocated to the segments. 4 SG&A expenses are allocated between stock and flow earnings based on their respective revenues, and are reflected in the calculation of each earnings category. Information on Impairment Loss of Fixed Assets or Goodwill by Reporting Segment Omitted due to immateriality. Notes to the Significant Changes in Shareholders’ Equity N/A Going Concern N/A