Ichigo Inc. · TSE:2337

Ichigo — Q3 FY2013 Earnings Presentation

31 slides from Ichigo's earnings presentation, Jan 17, 2013

Slide 1: Corporate Presentation Feb. 2013 Fiscal Year Q3
Feb. 2013 Fiscal Year Q3 (March – November 2012) Corporate p Presentation January 17, 2013 Ichigo g Group p Holdings g Co.,, Ltd. (2337) ( ) © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved. www.ichigo-holdings.co.jp/english
Slide 4: Creating peace of mind through honest and committed management
Creating peace of mind through honest and committed management. management © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved.
Slide 5: Agenda: Accelerating Growth and Appendix
Accelerating Growth - Ichigo Growth Strategy - ECO Energy Business Launch - Full-Service Real Estate Asset Manager - F b 2013 Q3 Consolidated Feb. C lid t d Fi Financial i lRResults lt - Feb. 2013 Q3 Assets Under Management (AUM) - Structural Profitability - Strong Cash Position to Fund Growth Inves
Slide 7: Ichigo Growth Strategy
Ichigo Growth Strategy Having Achieved Structural Profitability, Entering Accelerated Growth Stage Launched ECO Energy Business to Drive Additional Value from Real Estate Building Structural Accelerated Growth Stage T Target: t Profitability Tokyo Stock Exchange Stable Financial Base ・Optimizing bal
Slide 8: ECO Energy Business Launch
ECO Energy Business Launch • Launched ECO Energy Business to Contribute to a Sustainable Society and Solidify Position as a Full-Service Real Estate Asset Manager - Launched Ichigo ECO Energy Co., Ltd. (November 2012) - New growth engine for socially-meaningful business development - Building on meg
Slide 9: Full-Service Real Estate Asset Manager
Full-Service Real Estate Asset Manager Launched ECO Energy Business to Drive Additional Value from Real Estate Full-Service Asset Management Group Ichigo Group Holdings Co., Ltd. JASDAQ：2337 (Holding Company) Group Strategy/Management & Risk Management (Warehousing Assets for AM Business, Principal
Slide 10: Feb. 2013 Q3 Consolidated Financial Results
Feb. 2013 Q3 Consolidated Financial Results (Million yen) Feb 13 Q3 Actual vs. Feb 13 Full-Year Forecast Feb. 2013 Q3 Financial Results Revenues 68.1%, Net Profit 94.4% (Million yen) FY 13 Feb 13 Q3 vs. Full-Year Cumulative Forecast Forecast Revenues 11,585 17,000 68.1% Operating Profit 1,173 1,500
Slide 11: Feb. 2013 Q3 Assets Under Management (AUM)
Feb. 2013 Q3 Assets Under Management (AUM) QoQ AUM Decreased Due to Disposition/Return of Assets - Disposition fees and gains on sales of c. JPY 200 million - Prioritizing profitability over increase in AUM - New AM mandate in December 2012 (office & residential, c. JPY 9.4 billion) PE RE Fund Asset
Slide 12: Structural Profitability
Structural Profitability On Track to Achieve Fixed Revenues > 120% of Fixed Costs Fixed Revenues ((“Locked-in” Locked-in revenues, revenues excludes transaction fees fees, capital gains gains, etc etc.)) Fixed Costs (SG&A + Interest Expense) Coverage: 119.5% (Million yen) BM Fees 336 Coverage: 91.7%
Slide 13: Strong Cash Position to Fund Growth Investments
Strong Cash Position to Fund Growth Investments • Structural Profitability and Sound Financial Base - 71.4% shareholder equity ratio as of Q3-end (+1.4% QoQ) - Reduced interest-bearing debt by JPY 600M to JPY 8.4B through asset sales • Growth Investments and Expansion of Cash Position - Deploying ca
Slide 14: Refinancing Debt at Significantly Improved Terms
Refinancing Debt at Significantly Improved Terms Recent Corporate Refinancing of JPY 3.4B - Lowered interest rate and extended loan term by 7 years - Increases profit p by y c. JPY 24M yyen p p.a. - Increases cash flow by JPY 275M p.a. via decreased interest and amortization payments ■ Trend in Weig
Slide 15: Ichigo REIT (8975) Growth
Ichigo REIT (8975) Growth • Accelerate Growth of Ichigo REIT by Maximizing Synergies with Ichigo Group in Financing, Value Enhancement, and Deal Sourcing • Expand Ichigo Group’s Group s Profitability by Optimizing Portfolio and Increasing Size g REIT Growth Cycle • Ichigo y - Currently in Stage II,
Slide 17: Pro Forma Disclosure to Improve Transparency
Pro Forma Disclosure to Improve Transparency • Under Japanese accounting rules, SPCs in which Ichigo Group Holdings (“IGH”) is a greater than 50% investor or SPCs for which IGH is the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated onto IG
Slide 18: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 12 Feb 13 Q1 Feb 13 Q2 Feb 13 Q3 Change (QoQ) Total Assets 37,980 40,038 38,327 38,692 365 Cash and Cash Equivalents 5,713 5,730 5,817 6,298 481 I Investment t t (Real (R l Estate) E t t ) 8 151 8,151 8 447 8,447 8 558 8,558 8 640 8,640 82 Investment (Dome
Slide 19: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) Feb 13 Q3 Feb 13 Q3 Feb 12 Feb 13 Q1 Feb 13 Q2 Feb 13 Q3 Cumulative Cumulative Revenues 7,927 1,736 4,116 3,339 9,192 Revenues 9,192 Real Estate Management Fees 1,294 Cost of Revenues 4,101 663 3,014 2,119 5,797 Advisory Fees 52 Gross Profit 3,826 1,073 1,102
Slide 20: Balance Sheet NAV
Balance Sheet NAV Significant Unrealized Gains on Balance Sheet Assets - Real Estate (Million yen) Book Value Appraisal Value Acquisition Value Unrealized Gain (As of Nov 12) (As of Feb 12) Directly Owned on B/S 14,997 10,362 12,664 +2,282 Investment in IGH Funds 16,203 8,640 14,195 +5,555 T t l Tot
Slide 22: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 12 Feb 13 Q1 Feb 13 Q2 Feb 13 Q3 QoQ change Total Assets 82,170 84,010 81,629 81,666 37 Cash and Cash Equivalents 9,791 9,944 10,076 10,499 423 Operating Investments in Securities 4,226 4,281 4,445 3,826 -619 Real Estate Held for Sale 49 674 49,674 51 8
Slide 23: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Million yen) Feb 12 Feb 13 Q1 Feb 13 Q2 Feb 13 Q3 QoQ Change Outside The Outside The Outside The Outside The in the Amount Investors' Company's Amount Investors' Company's Amount Investors' Company's Amount Investors' Company's Com pany's Interests Interests Inter
Slide 24: P&L (Consolidated)
P&L (Consolidated) Breakdown (Million yen) Feb 13 Q3 Full-Year vs. Feb 12 Feb 13 Q1 Feb 13 Q2 Feb 13 Q3 Cumulative Forecast Forecast Feb 13 Q3 Revenues 18,952 2,362 5,274 3,948 11,585 17,000 68.1% Revenues 11,585 Cost of Revenues 15,030 1,260 4,158 2,690 8,108 －－ Real Estate Management Fees 1,021 A
Slide 26: Assets Under Management (AUM)
Assets Under Management (AUM) Net AUM Decreased by JPY18B Due to Asset Dispositions (As of November 2012) (Billion yen) 600 530.1 Development 496.0 REIT 500 Operating 62.0 32% Operating REIT 68% 426.5 400 385.3 379.6 330.6 335.9 321.5 257.0 335.0 113.8 106.1 300 56.0 320.7 104.3 123.4 200 166.4 312.
Slide 27: Real Estate Portfolio
Real Estate Portfolio • Track record in a variety of asset types including office, residential, retail, and ground leases • Strong in mid-sized Tokyo assets, which are highly liquid and have stable cash flows AUM b by Type T pe # of Properties by b Type T pe (As of November 2012) (Unit: # of buildin
Slide 28: Real Estate Cap Rates
Real Estate Cap Rates • Conservative assessment of cap rates vis-à-vis market cap rates • Continually mark assets to market • Unrealized gains in both client and IGH assets (As of November 2012) Real Estate Investments held by Funds (SPCs) (Million yen) Book Value NOI Cap rate (at Acquisition) Cap R
Slide 31: Disclaimer
These materials were prepared to explain the Company’s businesses and are not for the purpose of soliciting investment in marketable securities issued by the Company. The Company does not guarantee the accuracy g y of the figures, g , information,, estimates or other statements included herein,, and

Ichigo Group Holdings — Q3 FY2013 Earnings Presentation on 6ix

Ichigo — Q3 FY2013 Earnings Presentation

Slide 1: Corporate Presentation Feb. 2013 Fiscal Year Q3

Slide 2: © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved.

Slide 3: © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved.

Slide 4: Creating peace of mind through honest and committed management

Slide 5: Agenda: Accelerating Growth and Appendix

Slide 6: Accelerating Growth

Slide 7: Ichigo Growth Strategy

Slide 8: ECO Energy Business Launch

Slide 9: Full-Service Real Estate Asset Manager

Slide 10: Feb. 2013 Q3 Consolidated Financial Results

Slide 11: Feb. 2013 Q3 Assets Under Management (AUM)

Slide 12: Structural Profitability

Slide 13: Strong Cash Position to Fund Growth Investments

Slide 14: Refinancing Debt at Significantly Improved Terms

Slide 15: Ichigo REIT (8975) Growth

Slide 16: Appendix: Pro Forma Financial Data

Slide 17: Pro Forma Disclosure to Improve Transparency

Slide 18: Balance Sheet (Pro Forma)

Slide 19: P&L (Pro Forma)

Slide 20: Balance Sheet NAV

Slide 21: Appendix: Consolidated Financial Data

Slide 22: Balance Sheet (Consolidated)

Slide 23: Breakdown of Assets (Consolidated)

Slide 24: P&L (Consolidated)

Slide 25: Appendix: Real Estate Data

Slide 26: Assets Under Management (AUM)

Slide 27: Real Estate Portfolio

Slide 28: Real Estate Cap Rates

Slide 29: MEMO

Slide 30: MEMO

Slide 31: Disclaimer