Ichigo : Annual Audited Consolidated Financial Statements & Notes

Method of Preparation, Audit Certification, and Appropriateness

1. Method of Preparation of Consolidated Financial Statements and Financial Statements

   1. Ichigo's consolidated financial statements are prepared in accordance with the "Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements" (Ministry of Finance Ordinance No. 28 of 1976, hereinafter referred to as "Regulations for Consolidated Financial Statements").

   2. Ichigo's parent financial statements are prepared in accordance with the "Regulation on Terminology, Forms and Preparation Methods of Financial Statements" (Ministry of Finance Ordinance No. 59 of 1963, hereinafter referred to as "Regulations for Financial Statements").

      In addition, Ichigo prepares its financial statements in accordance with Article 127 of the Regulations for Financial Statements, in accordance with the provisions of Special Company Submitting Financial Statements.

2. Audit Certification

   In accordance with the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, Ichigo's consolidated financial statements and parent financial statements for FY25/2 (from March 1, 2024 to February 28, 2025) have been audited by Grant Thornton Taiyo LLC.

3. Ensuring the Appropriateness of the Consolidated Financial Statements

Ichigo works to ensure that its consolidated financial statements are appropriate within the context of accounting standards and other regulations. Specifically, in order to appropriately understand the content of accounting standards and develop a system that can appropriately respond to changes in accounting standards, Ichigo has joined the Financial Accounting Standards Foundation and participates in seminars organized by auditing firms.

Consolidated Balance Sheet

FY24/2 (Feb 29, 2024)

(JPY million)

FY25/2 (Feb 28, 2025)

(JPY million)

(JPY million)

Valuation gains (losses) on other

securities

-1,143 -399

Deferred gains (losses) on long-term interest rate hedges

44

136

Foreign currency translation

adjustment

- -241

(JPY million)

Consolidated Income Statement

FY24/2

(Mar 1, 2023 to

Feb 29, 2024)

(JPY million)

FY25/2

(Mar 1, 2024 to

Feb 28, 2025)

(Depreciation amount included in COGS) 4,626 4,567

Dividend income 361 16

Interest income 36 58

Mark-to-market gains on long-term interest rate hedges

109

1,324

Foreign exchange gains 1 235

Other 112 89

Insurance income 104 -

Interest expense 2,349 3,069

Equity-method loss - 179

Debt financing-related fees 262 423

Mark-to-market losses on long-term interest rate hedges

330 4

Other 351 592

Gains on sale of securities investments 89 608

Gains on sale of fixed assets 4,376 7,943

Redevelopment up-front rental compensation 327 -

Gains on sale of shares in affiliates 3,960 -

Other 224 289

Loss on sale of fixed assets 102 -

Loss on sale of securities investments - 23

Loss on disposal of fixed assets 45 100

Valuation losses on securities investments - 588

(JPY million)

Consolidated Statement of Comprehensive Income

FY24/2

(Mar 1, 2023 to

Feb 29, 2024)

(JPY million)

FY25/2

(Mar 1, 2024 to

Feb 28, 2025)

Comprehensive income attributable to common shareholders

10,661 15,781

Comprehensive income attributable to minority interests

227

226

Consolidated Statement of Changes in Shareholders' Equity

(FY25/2 - Current Period)

(JPY million)

Consolidated Statement of Changes in Shareholders' Equity

(FY24/2 - Previous Period)

(JPY million)

Consolidated Cash Flow Statement

FY24/2

(Mar 1, 2023 to

Feb 29, 2024)

(JPY million)

FY25/2

(Mar 1, 2024 to

Feb 28, 2025)

Pre-tax income 17,962 21,784

Amortization of goodwill 97 156

1,036 80

Increase (decrease) in security deposits received

193 385

Increase (decrease) in accrued consumption taxes

71

484

(JPY million)

Acquisition of property, plant, and equipment

-8,203

-5,044

Proceeds from redemption of securities investments

2,070 -

(JPY million)

Notes to the Consolidated Financial Statements

1. Material Matters for Preparation of the Consolidated Financial Statements
   1. Scope of Consolidation

      1. Consolidated Subsidiaries

         Number of consolidated subsidiaries: 47 Major Consolidated Subsidiaries

         Ichigo Investment Advisors Co., Ltd.

         Ichigo Estate Co., Ltd. Ichigo ECO Energy Co., Ltd. Ichigo Owners Co., Ltd.

         Ichigo Marché Co., Ltd.

         Miyako City Co., Ltd.

         Centro Co., Ltd.

         Ichigo Animation Co., Ltd. OneFive Hotels Inc.

         Ichigo Si Co., Ltd.

         Collinear Inc.

         Ichigo Realty Management Co., Ltd.

         Ichigo Realty Management Co., Ltd. has been added to the scope of consolidation because Ichigo acquired a 100% stake in the company during FY25/2.

      2. Major Non-Consolidated Subsidiaries

         Because Ichigo's stake in Ichigo Private REIT was temporary, Ichigo Private REIT is excluded from the scope of consolidation pursuant to the "Regulations for Consolidated Financial Statements" Article 5, Clause 1, Item 1.

         Other non-consolidated subsidiaries are excluded from the scope of consolidation because total ownership of total net assets, total revenue, net income, and retained earnings were immaterial and did not have a material impact on the consolidated financial statements.

      3. Reason Why Some Companies Were Not Classified as Subsidiaries Despite the Possession of a Majority of their Voting Rights

         N/A

      4. Disclosure of Special Purpose Companies (SPC)

         Please refer to XXII. Disclosure of Special Purpose Companies, A. Overview of SPC and SPC Transactions.

   2. Equity-Method Accounting

      1. Equity-Method Affiliates

         Number of equity-method affiliate: 1

         Major Equity-Method Affiliate GIGA.GREEN GmbH

         GIGA.GREEN GmbH became an equity-method affiliate during FY25/2 because Ichigo newly acquired equity interest in the company.

      2. Non-Consolidated Subsidiaries Accounted for Under the Equity-Method N/A

      3. Major Non-Consolidated Subsidiaries Not Accounted for Under the Equity-Method

         Because Ichigo's stake in Ichigo Private REIT was temporary, Ichigo Private REIT is excluded from the scope of equity-method accounting pursuant to the "Regulations for Consolidated Financial Statements" Article 10, Clause 1, Item 1.

         Other non-consolidated subsidiaries for which equity-method accounting is not applied are excluded from the scope of equity-method accounting because total ownership of total net assets, total revenue, net income, and retained earnings were immaterial and did not have a material impact on the consolidated financial statements.

      4. Non-Equity-Method Affiliates

         There are no material non-equity-method affiliates.

         Of Ichigo's total ownership, non-equity-method affiliates' Net Income and Retained Earnings have a limited impact on the consolidated financial statements even if they are excluded from the scope of equity-method accounting due to immateriality.

      5. Reason Why Some Companies Were Not Classified as Affiliates despite Ichigo Possessing between 20% and 50% of Their Voting Rights

         N/A

   3. Fiscal Year of Consolidated Subsidiaries

      The fiscal year-ends of consolidated subsidiaries are as follows: January-end 25 companies

      February-end 10 companies

      March-end 1 company

      November-end 1 company

      December-end 10 companies

      For subsidiaries whose fiscal year-ends are in December or January, financial data as of that date have been used. For subsidiaries whose fiscal year-ends are in March and November, provisional financial data (created at a point in time within three-months from February-end) have been used. All necessary adjustments for consolidation have been made with respect to material transactions which occurred in FY25/2.

   4. Accounting Standards

      1. Valuation of Material Assets

         1. Other Securities

            Securities without market prices Mark-to-market (Any valuation difference is

            (excluding equities)

            reported as a component of shareholders' equity; the cost is calculated using the moving average cost method.)

            Equities without market prices Moving average cost method (The valuation

            method for investment partnerships is noted in

            8. (c) Investment Partnerships.)

         2. Derivatives Mark-to-market

         3. Real Estate for Sale Cost method (however, impair assets whose

            profitability declines)

      2. Depreciation Methods for Material Depreciable Assets

         Property, Plant, and Equipment Primarily straight-line method

         Useful life Buildings and structures: 8~39 years Solar and wind power plants: 20 years

      3. Accounting Standards for Material Allowances

         1. Allowance for Doubtful Accounts

            Reserved based on the record of bad debts with respect to ordinary receivables and loans, plus an estimate of uncollectible amounts determined with reference to specific doubtful receivables from customers experiencing financial difficulties.

         2. Allowance for Employee Bonuses

            Reserved based on an estimated amount for the current fiscal year.

      4. Standards for Recognition of Material Revenues and Expenses

         1. Revenue Recognition

            Details of the performance obligations and the fulfillment of performance obligations (i.e., time of revenue recognition) accounted for by its core businesses that arise from contracts with Ichigo's and Ichigo subsidiaries' customers are as follows:

            Asset Management

            Asset-Related Fee Revenue

            With respect to fees received from the listed REITs and infrastructure fund and private funds, the performance obligation to operate and manage an asset arises based on the client contract. A performance obligation is satisfied over a certain period as stipulated in the contract, and revenue is recognized during that period. However, fees linked to asset acquisitions and sales are recognized as revenue at the time of the closing of the acquisition or sale, as the obligation is fulfilled all at once.

            Sustainable Real Estate, Ichigo Owners, and Hotel Revenue from Asset Sales

            With respect to revenue from asset sales, the performance obligation to transfer ownership of an asset arises based on the purchase and sale agreement with the client. The performance obligation is fulfilled and revenue is recognized at the time of the closing of the sale.

            The sale price is determined in the purchase and sale agreement, and part of the sale price is typically received as a deposit upon the signing of the contract, with the balance paid when the asset is transferred.

            Real Estate Rental Revenue

            Real estate rental revenue is recognized in accordance with the Accounting Standard for Lease Transactions (Accounting Standards Board of Japan ("ASBJ") Statement No. 13, March 30, 2007).

            In addition, fees arising from the provision of ancillary services to lease contracts are recognized as revenue when the term of service ends or throughout the contract term depending on the details of the agreement.

            Clean Energy

            Power Production Revenue

            Ichigo's consolidated subsidiary bears the performance obligation to supply electricity generated at its power plants based on its power supply contracts with its customers. The performance obligation is satisfied and revenue is recognized at the time electricity is supplied.

      5. Material Hedge Accounting Method

         1. Hedge Accounting Method

            In general, Ichigo adopts the deferral hedge accounting method. However, interest rate swaps and interest rate caps that meet the criteria for special treatment are accounted for under the special treatment method.

         2. Hedging Instruments and Hedging Targets

            Hedging instruments Interest rate swaps and interest rate caps

            Hedging targets Loans and other borrowings

         3. Hedging Policy

            Pursuant to its internal rules, Ichigo hedges against interest rate risks that arise from its business activities.

         4. Evaluation Method of the Effectiveness of Hedges

            Ichigo evaluates the effectiveness of hedging activities with reference to the accumulated gain or loss on the hedging instruments and related hedging targets for the period from the commencement of the hedges to the time of evaluation. Interest-rate swaps and interest rate caps accounted for under the special treatment method are omitted from this evaluation.

      6. Goodwill Amortization Period and Method

         Goodwill is amortized on a straight-line basis for a period of 10 to 20 years depending on the specific characteristics of each subsidiary.

      7. Scope of Funds in the Consolidated Cash Flow Statement

         Funds include cash-on-hand, readily available cash, and short-term investments that are readily convertible into cash, incur limited price fluctuation risks, and have a maturity of three months or less.

      8. Other Material Matters Related to the Preparation of the Financial Statements

         1. Consumption Tax

            Non-deductible consumption taxes are generally accounted for as expenses in the current fiscal year; however, certain items paid in connection with the acquisition of assets are amortized over 5 years using the straight-line method or are included in acquisition costs.

         2. Operational Investments

            Operational investments are separated from non-operational investments and are accounted for as Operational Securities Investments and Operational Loan Investments within Current Assets. Profits and losses arising from operational investments are accounted for as Operating Profits and Losses.

            Although Ichigo may control the decision-making body of investment vehicles or hold significant influence over them by holding shares, shares are held solely for operational investment purposes and Ichigo has no intention of holding them as subsidiaries or affiliates. Therefore, such investment vehicles are excluded from subsidiaries or affiliates.

         3. Investment Partnerships

            Ichigo accounts for investments in investment partnerships as Operational Securities Investments. Such investments are recorded at the time the investments are made.

            Gains and losses distributed from the investment partnerships are recorded as Revenue, and Operational Securities Investments increase or decrease by the same amount. Refunds received from the investment partnerships are credited to Operational Securities Investments.

         4. Group Tax Sharing System

            Ichigo qualifies for the Group Tax Sharing System.

2. Notes on Accounting Estimates

   Valuation of Real Estate

   1. Amount Recorded in Financial Statements

      	FY24/2	FY25/2
      Real Estate for Sale	JPY 103,721 million	JPY 143,993 million
      Fixed Assets	JPY 152,926 million	JPY 143,659 million

   2. Information on Material Accounting Estimates for Specific Line Items

      Ichigo and its subsidiaries invest in real estate including offices, hotels, residential assets, and retail assets, and have recorded real estate expected to be sold as Real Estate for Sale as of FY25/2-end. Real estate expected to be held over the longer term is recorded as Fixed Assets.

      If the estimated mark-to-market value of Real Estate for Sale is less than the book value, the estimated mark-to-market value is recorded on the balance sheet, and the difference is recorded as a Valuation Loss on Real Estate for Sale under Cost of Goods Sold. With respect to Fixed Assets, for assets and asset groups that show indications of impairment, if the total undiscounted future cash flow is less than the book value, Ichigo impairs the book value to the asset's recoverable amount. When recording the impairment, the estimated mark-to-market value is recorded as the recoverable amount.

      Ichigo uses the lower of the internally-calculated valuation amount based on the direct capitalization method (income approach) and the third-party real estate appraisal value as the estimated mark-to-market value.

      Both the internal valuation amount and third-party real estate appraisal value are calculated using the income approach based on the net income or the future cash flows expected to be generated by the real estate assets and the cap rate.

      Net income and future cash flow forecasts are impacted by rent levels in the area where the asset is located and by the asset's occupancy. The cap rate is impacted by interest rate fluctuations, land prices per region and asset type, real estate market conditions, and the age, grade, rights, and regulatory compliance of the asset. Due to sustained high real estate transaction prices, cap rates trended downward in FY25/2. As a result, the impact on the valuation of real estate is limited.

      Ichigo makes efforts to reduce the uncertainty of its internally-calculated valuations that are based on publicly available data via means such as obtaining third-party verifications of the cap rates per region and asset type. However, because there exists a large number of factors that impact the estimated mark-to-market value, any change in the preconditions and assumptions of the valuation caused by a change in business environment may result in the recording of a Valuation Loss on Real Estate for Sale or an Impairment Loss.

3. Accounting Standards Issued but Not Yet Effective

   Accounting Standard for Leases

   • Accounting Standard for Leases (ASBJ Statement No 34, September 13, 2024)

   • Implementation Guidance on Accounting Standard for Leases (ASBJ Guidance No. 33, September 13, 2024)

   1. Overview

      As part of initiatives to align Japanese accounting standards to international standards, the ASBJ has been developing accounting standards with respect to leases recognizing the assets and liabilities of all lessee leases based on the single lessee accounting model under IFRS 16. By only incorporating the major stipulations instead of the entire IFRS 16, the ASBJ announced a simple, convenient accounting standard for leases that aims to generally eliminate revisions when applying IFRS 16 to individual financial statements.

      For lessee accounting, consistent with IFRS 16, a single accounting model is applied to all leases, irrespective of whether the lease is classified as a finance lease or an operating lease, under which the lessee recognizes depreciation of the right-of-use asset and interest expense on the lease liability.

   2. Application Date

      Ichigo will apply these accounting standards from the beginning of FY29/2.

   3. Impact of Application of These Accounting Standards

      Ichigo is currently evaluating the impact of applying the accounting standards for leases on its consolidated financial statements.

4. Notes on Changes in Accounting Policies

   Application of Practical Solution on the Accounting for and Disclosure of the Issuance and Holding of Electronically Recorded Transferable Rights That Must Be Indicated on Securities

   The Practical Solution on the Accounting for and Disclosure of the Issuance and Holding of Electronically Recorded Transferable Rights That Must Be Indicated on Securities (ASBJ Statement Practical Solution No. 43, August 26, 2022) has been applied from the beginning of FY25/2.

   There is no impact from this change.

5. Notes to the Consolidated Balance Sheet
   1. Assets Provided as Collateral and Secured Obligations

      Assets Provided as Collateral

      FY24/2

      (February 29, 2024)

      (JPY million)

      FY25/2

      (February 28, 2025)

      Cash and deposits 2,400 2,957

      Accounts receivable 180 194

      Operational loan investments 1,324 1,324

      Real estate for sale 60,961 90,428

      Real estate for sale (reserved for collateral)	1,478	5,735
      Current assets - other	11	16
      Buildings and structures	24,762	23,592
      Solar and wind power plants	9,311	8,816
      Land	63,107	59,776
      Buildings and structures under construction	2	1,383
      Buildings and structures under construction	2,667	3,117
      (reserved for collateral)
      Property, plant, and equipment -other	548	409
      Leasehold rights	1,220	1,220
      Securities investments	9,038	9,476
      Total	177,016	208,448

      Figures shown in "Building and structures," "Solar and wind power plants," and "Property, plant, and equipment - other" are net amounts.

      Secured Obligations		(JPY million)
      	FY24/2 (February 29, 2024)	FY25/2 (February 28, 2025)
      Short-term loans	13,200	162
      Long-term loans (due within one year)	8,398	6,963
      Long-term loans	112,051	156,625
      Total	133,649	163,750

   2. Securities Investments in Non-Consolidated Subsidiaries and Affiliates

      (JPY million)

      	FY24/2 (February 29, 2024)	FY25/2 (February 28, 2025)
      Operational securities investments	14	-
      Securities investments	889	7,384

   3. Liabilities from Client Contracts

      Liabilities from client contracts are recorded under Other Current Liabilities. Please refer to XIX. Revenue Recognition, C. Information for Understanding FY25/2 and FY24/2 Revenues, 1. Contract Assets and Contract Liabilities for contract liability amounts.

   4. Non-Recourse Loans

      Non-recourse loans are borrowings where funds for repayment are limited only to the value of the underlying real estate and profits from such real estate.

      1. Assets Provided as Collateral		(JPY million)
      	FY24/2 (February 29, 2024)	FY25/2 (February 28, 2025)
      Cash and deposits	5,290	6,453
      Accounts receivable	260	291
      Current assets - other	11	20
      Buildings and structures	12,110	13,780
      Solar and wind power plants	13,239	16,041
      Land	29,582	32,118

      Buildings and structures under construction

      Property, plant, and equipment -other

      45 188

      90 123

      Investments and other assets - other	340	337
      Total	60,972	69,357

      Figures shown in "Building and structures," "Solar and wind power plants," and "Property, plant and equipment - other" are net amounts.

      2. Non-Recourse Loans

      FY24/2

      (February 29, 2024)

      (JPY million)

      FY25/2

      (February 28, 2025)

      Long-term non-recourse loans (due within one year)	6,413	4,478
      Long-term non-recourse loans	35,265	40,991
      Total	41,678	45,470

   5. Deferred Gains (Losses on Long-Term Interest Rate Hedges)

      FY25/2 (February 28, 2025)

      Using interest rate swaps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Any unrealized gains (losses) on these hedges are recorded as deferred gains (losses) on long-term interest rate hedges.

      FY24/2 (February 29, 2024)

      Using interest rate swaps, Ichigo has significantly reduced its interest rate risk should Japanese interest rates rise. Any unrealized gains (losses) on these hedges are recorded as deferred gains (losses) on long-term interest rate hedges.

   6. Overdraft, Loan Commitment, and Term Loan Agreements

      To secure funding flexibility and stability, Ichigo has overdraft, loan commitment, and term loan agreements with financial institutions.

      Unused balances of the above Agreements (as of end of FY24/2 and FY25/2)

      (JPY million)

      	FY24/2 (February 29, 2024)	FY25/2 (February 28, 2025)
      Total amount of overdraft, loan commitment, and term loan	59,467	57,065
      agreements
      Draw-down amount	36,911	39,130
      Unused balance	22,555	17,934

   7. Guarantee of Subsidiary Liabilities

      Ichigo guarantees the following subsidiary's loans from financial institutions.

      (JPY million)

      FY24/2

      (February 29, 2024)

      FY25/2

      (February 28, 2025)

      Ichigo Private REIT Investment Corporation

      - 10,000

      Total - 10,000

6. Notes to the Consolidated Income Statement
   1. Revenue from Client Contracts

      Ichigo does not disclose revenue from client contracts and other revenue separately. Please refer to XIX. Revenue Recognition, A. Breakdown of Revenue from Contracts with Customers for revenue amounts from client contracts.

   2. Valuation Gains (Losses) on Real Estate for Sale

The period-end Real Estate for Sale is the amount after the write-down of book value resulting from a decrease in profitability, and the valuation gains (losses) on Real Estate for Sale included under Cost of Goods Sold are as follows.

FY24/2

(Mar 1, 2023 to

(JPY million)

FY25/2

(Mar 1, 2024 to

Feb 29, 2024) Feb 28, 2025)

1. Total R&D Expenses Included in SG&A

   FY24/2

   (Mar 1, 2023 to

   Feb 29, 2024)

   (JPY million)

   FY25/2

   (Mar 1, 2024 to

   Feb 28, 2025)

   R&D expenses 39 31

2. Gains (Losses) on Sale of Fixed Assets

   FY25/2 (Mar 1, 2024 to Feb 28, 2025)

   The gains on sale of fixed assets are from the sales of land and buildings.

   FY24/2 (Mar 1, 2023 to Feb 29, 2024)

   The gains on sale of fixed assets and loss on sale of fixed assets are from the sales of land and buildings.

3. Impairment Losses

   FY25/2 (Mar 1, 2024 to Feb 28, 2025)

   N/A (omitted due to immateriality)

   FY24/2 (Mar 1, 2023 to Feb 29, 2024)

   N/A (omitted due to immateriality)
4. Mark-to-Market Gains (Losses) on Long-Term Interest Rate Hedges

FY25/2 (Mar 1, 2024 to Feb 28, 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 (losses) on longterm interest rate hedges.

FY24/2 (Mar 1, 2023 to Feb 29, 2024)

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 longterm interest rate hedges.

1. Notes to the Consolidated Statement of Comprehensive Income
   1. Reclassification and Tax Effects of Other Comprehensive Income

      (JPY million)

      	FY24/2 (Mar 1, 2023 to Feb 29, 2024)	FY25/2 (Mar 1, 2024 to Feb 28, 2025)
      Valuation gains (losses) on other securities:
      Amount arising during the fiscal year	-1,476	739
      Reclassification adjustments	-	74
      Amount before tax effects	-1,476	813
      Tax effects	36	-69

      Valuation gains (losses) on other securities

      Deferred gains (losses) on long-term interest rate hedges:

      -1,439 743

      Amount arising during the fiscal year	-90	60
      Reclassification adjustments	80	71
      Amount before tax effects	-10	132
      Tax effects	3	-40

      Deferred gains (losses) on long-term interest rate hedges

      Foreign currency translation adjustment:

      -6 92

      Reclassification adjustments	-	-241
      Foreign currency translation adjustment	-	-241

      FY24/2

      (Mar 1, 2023 to

      Feb 29, 2024)

      FY25/2

      (Mar 1, 2024 to

      Feb 28, 2025)

      Other Comprehensive Income -1,446 594

   2. Deferred Gains (Losses) on Long-Term Interest Rate Hedges

      FY25/2 (Mar 1, 2024 to Feb 28, 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 are recorded as deferred gains (losses) on long-term interest rate hedges.

      FY24/2 (Mar 1, 2023 to Feb 29, 2024)

      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 are recorded as deferred gains (losses) on long-term interest rate hedges.

2. Notes to the Consolidated Statement of Changes in Shareholders' Equity

   FY25/2 (Mar 1, 2024 to Feb 28, 2025)

   1. Type and Number of Shares Outstanding and Treasury Shares

      	Number of Shares at the Beginning of FY25/2	Increase in Shares During FY25/2	Decrease in Shares During FY25/2	Number of Shares at the End of FY25/2
      Shares outstanding
      Common shares1	505,402,018	263,100	60,000,000	445,665,118
      Total	505,402,018	263,100	60,000,000	445,665,118
      Treasury shares
      Common shares2	64,982,000	14,607,711	60,000,000	19,589,711
      Total	64,982,000	14,607,711	60,000,000	19,589,711

      1Increase in shares outstanding due to exercising of stock options: 263,100 shares Decrease in shares outstanding due to cancellation of treasury shares: 60,000,000 shares

      2Increase in treasury shares due to share buyback: 14,607,711 shares

      Decrease in treasury shares due to cancellation of treasury shares: 60,000,000 shares

   2. Employee Stock Options

      Stock Options	Share Type	Underlying Number of Shares				Value2(JPY million)
      		Mar 1, 2024	Increase in FY25/2	Decrease in FY25/2	Feb 28, 2025
      15th stock option issuance	Common shares	-	-	-	-	-
      16th stock option issuance	Common shares	-	-	-	-	264
      17th stock option issuance	Common shares	-	-	-	-	98
      18th stock option issuance	Common shares	-	-	-	-	81
      19th stock option issuance	Common shares	-	-	-	-	98
      20th stock option issuance1	Common shares	-	-	-	-	87
      21st stock option issuance1	Common shares	-	-	-	-	63
      22nd stock option issuance1	Common shares	-	-	-	-	30
      Total	-	-	-	-	-	724

      1The 20th, 21st, and 22ndstock option issuances are currently not exercisable, because their exercise dates are in the future.

      2Value is as of FY25/2 period-end (February 28, 2025).

   3. Dividends

      1. Dividends Paid

         The following dividend was approved at the Annual Shareholder Meeting held on May 26, 2024:

         1. Total Dividend JPY 3,963 million

         2. Source Retained earnings

         3. Dividend per Share JPY 9

         4. Record Date February 29, 2024

         5. Payment Date May 27, 2024

      2. Dividends where the Record Date is in FY25/2, but the Payment Date is in FY26/2

         The following dividend was approved at the Annual Shareholder Meeting held on May 25, 2025:

         1. Total Dividend JPY 4,473 million

         2. Source Retained earnings

         3. Dividend per Share JPY 10.5

         4. Record Date February 28, 2025

         5. Payment Date May 26, 2025

   FY24/2 (Mar 1, 2024 to Feb 29, 2024)

   1. Type and Number of Shares Outstanding and Treasury Shares

      	Number of Shares at the Beginning of FY24/2	Increase in Shares During FY24/2	Decrease in Shares During FY24/2	Number of Shares at the End of FY24/2
      Shares outstanding
      Common shares1	505,381,018	21,000	-	505,402,018
      Total	505,381,018	21,000	-	505,402,018
      Treasury shares
      Common shares2	51,992,200	13,687,000	697,200	64,982,000
      Total	51,992,200	13,687,000	697,200	64,982,000

      1Increase in shares outstanding due to exercising of stock options: 21,000 shares

      2Increase in treasury shares due to share buyback: 13,687,000 shares Decrease in treasury shares due to disposal of treasury shares: 697,200 shares

   2. Employee Stock Options

      Stock Options	Share Type	Underlying Number of Shares				Value2(JPY million)
      		Mar 1, 2023	Increase in FY24/2	Decrease in FY24/2	Feb 29, 2024
      15th stock option issuance	Common shares	-	-	-	-	223
      16th stock option issuance	Common shares	-	-	-	-	273
      17th stock option issuance	Common shares	-	-	-	-	102
      18th stock option issuance	Common shares	-	-	-	-	96
      19th stock option issuance1	Common shares	-	-	-	-	98
      20th stock option issuance1	Common shares	-	-	-	-	54
      21st stock option issuance1	Common shares	-	-	-	-	29
      Total	-	-	-	-	-	879

      1The 19th, 20th, and 21ststock option issuances are currently not exercisable, because their exercise dates are in the future.

      2Value is as of FY24/2 period-end (February 29, 2024).

   3. Dividends

      1. Dividends Paid

         The following dividend was approved by Ichigo's Board of Directors on April 19, 2023:

         1. Total Dividend JPY 3,627 million

         2. Source Retained earnings

         3. Dividend per Share JPY 8

         4. Record Date February 28, 2023

         5. Payment Date May 29, 2023

      2. Dividends where the Record Date is in FY24/2, but the Payment Date is in FY25/2

         The following dividend was approved at the Annual Shareholder Meeting held on May 26, 2024:

         1. Total Dividend JPY 3,963 million

         2. Source Retained earnings

         3. Dividend per Share JPY 9

         4. Record Date February 29, 2024

         5. Payment Date May 27, 2024

3. Notes to the Consolidated Cash Flow Statement
   1. Cash and Cash Equivalents at Period-End and Relationship to Balance Sheet Line-Item Amounts

      FY24/2

      (Mar 1, 2023 to

      Feb 29, 2024)

      (JPY million)

      FY25/2

      (Mar 1, 2024 to

      Feb 28, 2025)

      Cash and deposits 46,917 42,689

      Time deposits with maturities of more than three months

      -816 -112

      Cash and cash equivalents 46,101 42,576

   2. Breakdown of Assets and Liabilities of Newly Consolidated Subsidiaries due to Share Purchases

      FY25/2 (Mar 1, 2024 to Feb 28, 2025)

      Omitted because the assets and liabilities amounts of the companies that newly became consolidated subsidiaries via share purchases during the period are immaterial.

      FY24/2 (Mar 1, 2023 to Feb 29, 2024)

      N/A

   3. Breakdown of Assets and Liabilities of Deconsolidated Subsidiaries due to Share Sales

FY25/2 (Mar 1, 2024 to Feb 28, 2025)

N/A