Performance trends for Ichigo <2337>.

2. Financial condition and performance indicators.

Total assets balance as at the end of February 2024 increased by JPY 28,395 million compared to the previous period, reaching JPY 367,015 million. The increase in current assets of JPY 29,689 million was primarily due to an increase of JPY 24,569 million in investment real estate for hotel and office properties. Fixed assets decreased by JPY 1,293 million, mainly due to a decrease in tangible fixed assets.

Total liabilities as at the end of the period increased by JPY 26,507 million compared to the previous period, reaching JPY 250,734 million. Among them, current liabilities increased by JPY 36,962 million, while fixed liabilities decreased by JPY 10,454 million. The increase in borrowings for acquisition of real estate of JPY 20,967 million and the increase in bonds of JPY 1,865 million were the main factors behind the increase.

In terms of financial indicators, the current ratio (280.9%, with 200% or more being a safe benchmark) and the fixed assets to long-term liabilities ratio (67.3%, with 100% or less being a safe benchmark) are extremely safe. Although the equity ratio is 28.5%, the equity ratio calculated by deducting unrealized gains from real estate evaluated by external appraisers and risks that do not belong to the company is 43.6%, which is a higher number.

(Written by FISCO Guest Analyst, Hideo Kakuta)