Ichigo Inc. · TSE:2337
Ichigo — Q3 FY2020/2 Earnings Presentation
75 slides from Ichigo's earnings presentation, Jan 10, 2020
Slide 1: FY20/2 Q3 Corporate Presentation
FY20/2 Q3 Corporate Presentation January 11, 2020 January 10, 2019 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en
Slide 2: Make The World More Sustainable
Make The World More Sustainable © Ichigo Inc. All rights reserved.
Slide 3: © Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Slide 4: © Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Slide 5: Contents
Contents FY20/2 Q3 Earnings Appendices ‒ FY20/2 Q3 Summary Ichigo’s Sustainability Commitment (ESG) ‒ Operating Profit +22%, Net Income +24%, EPS +26% (YOY) ‒ Ichigo Sustainability Policy ‒ Segment Earnings Details ‒ Ichigo ESG – Environmental ‒ Ichigo ESG – Social Powerful Value-Add Business Model
Slide 6: FY20/2 Q3 Earnings
FY20/2 Q3 Earnings © Ichigo Inc. All rights reserved. 6
Slide 7: FY20/2 Q3 Summary
FY20/2 Q3 Summary Durable Earnings Model Robust Stock Earnings Stock Earnings/Fixed Expenses Depreciation (Gross Profit: JPY M) 207% +4% Asset Management (AM) Sustainable Real Estate (SRE) Clean Energy (CE) 1,180 1,800 983 395 Gross Profit 12,504 12,471 JPY 30.33B 9,265 9,208 784 816 1,543 1,599 1,6
Slide 8: Operating Profit +22%, Net Income +24%, EPS +26% (YOY)
Operating Profit +22%, Net Income +24%, EPS +26% (YOY) (JPY million) FY19/2 Q3 FY20/2 Q3 Full-Year Cumulative Cumulative YOY Forecast (9M) (9M) Operating Profit 20,553 25,032 +21.8% 26,500 Recurring Profit 18,264 22,665 +24.1% 22,800 Net Income 12,183 15,141 +24.3% 15,000 EPS JPY 24.59 JPY 31.09 +26
Slide 9: Segment Earnings Details
Segment Earnings Details − Asset Management: Base AM Fees +2% YOY − Sustainable Real Estate: Rental Income -1% YOY (Pre-depreciation: +5%) Gains on Sales +39% YOY − Clean Energy: Power Generation Revenue -2% YOY (Pre-depreciation: flat) (JPY million) Operating Profit Gross Profit Earnings Drivers FY
Slide 10: Powerful Value-Add Business Model Underpins Growth
Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 10
Slide 11: Business Model (1) Stock + Flow Earnings
Business Model (1) Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Base AM Fees, and Power Generation Revenues) 33.8 Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) 32.1 Fixed Expenses (Fixed SG&A + Interest Expenses) 30.3 Gross Profit 27.9 (JPY billion) 27.0 15.3 18.0
Slide 12: Business Model (2) Embedded Forward Earnings
Business Model (2) Embedded Forward Earnings Full Economic Earnings from Value-Add Exceed Accounting Earnings Value- Add Thus Generates Significant Unrealized Gains that are an “Earnings Bank” for Future Periods (JPY billion) 50.9 45.4 36.8 28.1 19.6 12.3 FY14/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 Ap
Slide 13: Business Model (3) Value-Add Drives Durable Value Growth
Business Model (3) Value-Add Drives Durable Value Growth Gains on Sales Consistently Exceed 2.8X Appraisal Value-Based Unrealized Gains 2.5X Appraisal Value-Based Unrealized Gains Gains on Sales (Gross Profit) 4.4X GPM = Gross Profit Margin 1.6X JPY 16.9B 2.2X JPY 15.0B JPY 12.0B JPY 10.5B JPY 7.2B
Slide 14: Business Model (4) Robust Cash Generation
Business Model (4) Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income Net Income (JPY billion) Economic Operating Cash Flow 1.7X 1.4X 1.3X 1.2X 25.5 21.5 17.1 16.7 14.9 15.4 12.9 14.0 FY16/2 FY17/2 FY18/2 FY19/2 Note: Economic Operating Cash Flow = Cash Flows from Operations excl
Slide 15: Strong Financial Base
Strong Financial Base Average Interest Rate and Loan Term Weighted Average Loan Period Weighted Average Remaining Loan Maturity (Interest Rate) Weighted Average Interest Rate (Loan Term, Years) 2.5% 12 10.8 years 10.2 years 10.3 years 10.0 years 1.96% 9.0 years 8.7 years 2.0% 9 9.6 years 8.3 years 7
Slide 16: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 16
Slide 17: Selective on Acquisitions and Sales
Sustainable Real Estate Selective on Acquisitions and Sales − Continuing Sellers’ Market – FY20/2 Q3 Cumulative GPM: 29% (H1 GPM also 29%) − Ichigo Owners Continues High Level of Activity Acquisitions: JPY 19.81B (36% of total); Sales: JPY 7.35B (13% of total) FY20/2 Q3 Cumulative Net Sales: JPY 3.5
Slide 18: Q3 Asset Sales
Sustainable Real Estate Q3 Asset Sales High Demand for Central Tokyo Residential Assets on Expected NOI Growth Ichigo Owners Growth Further Strengthening SRE Business Ichigo Estate Ichigo Owners Private Fund Business Growth SRE Sales Channel Expansion Ichigo Investment Advisors won long-term AM Capt
Slide 19: Value-Add Case – Tradepia Odaiba
Sustainable Real Estate Value-Add Case – Tradepia Odaiba Ongoing Tenant Satisfaction Activities − Carried out 2nd tenant survey (c. 5,000 tenants) to identify tenant needs − Conducted advanced first-aid training for tenants − Joint training, seminars, and social events for employees of building main
Slide 20: Growth Support for TSE REITs & YieldCo
Asset Management Growth Support for TSE REITs & YieldCo Office Hotel Green Infrastructure Ichigo Office Ichigo Hotel Ichigo Green (8975) (3463) (9282) IPO IPO IPO October 12, 2005 November 30, 2015 December 1, 2016 Portfolio Portfolio Portfolio 85 Assets JPY 203.2B 22 Hotels JPY 50.8B 15 Plants JPY
Slide 21: Scaling Rapidly (In-Development Plants +66%)
Clean Energy Scaling Rapidly (In-Development Plants +66%) 2 New Plants Began Operation this month – Ichigo Minakami Aramaki ECO Power Plant (12MW, FIT: JPY 36) 174MW – Ichigo Takashima Kutsuki ECO Power Plant (3.7MW, FIT: JPY 32) (+17%) 148.5MW Power Generation Growth (+18%) 126.1MW Operating (+18%)
Slide 22: FY18/2 – FY20/2 New Plant Development
Clean Energy FY18/2 – FY20/2 New Plant Development Total 5 New Plants (23MW) Online in FY20/2 (2X MW Growth YOY) New Plants Will Drive FY21/2 Growth & Contribute to Stock Earnings Panel Total Panel FIT Operation Solar Power Plant Output Output (JPY) Start Date (MW) (MW) Ichigo Sera Aomizu 32 2.87 Au
Slide 23: Hotel Business Expansion
Sustainable Infrastructure Initiative – Real Estate x Tourism x IT Hotel Business Expansion Scaling Hotel Business Drawing upon Ichigo’s Hotel Management Capabilities – Stock earnings growth via non-asset business – Synergies between Ichigo-owned and managed hotels Asset + Non-Asset Business Non-Ass
Slide 24: Working Closely with Local Communities
Sustainable Infrastructure Initiative – Real Estate x Agriculture x Tourism x Entertainment x Culture x Energy x Public Works Working Closely with Local Communities Selected as Operator of Yokosuka Port Market – Deploying Ichigo’s value-add real estate capabilities to renovate a 30-year old building
Slide 25: Launch of Ichigo J.League Shareholder Program
Launch of Ichigo J.League Shareholder Program Represents Two Firsts for a Shareholder Program in Japan − Ichigo is the first Japanese company to include not just its own shareholders, but also the shareholders of the REITs and YieldCo that it manages, in its shareholder program − Ichigo is the first
Slide 26: Share Buyback
Share Buyback Purpose: Grow Value for Ichigo’s Shareholders FY20/2 (Current Fiscal Year) Number of Shares 7,081,200 (1.4% shares outstanding) Average Share Price JPY 424 Amount JPY 3B Reference FY19/2 Number of Shares 7,869,700 (1.6% shares outstanding) Average Share Price JPY 381 Amount JPY 3B FY18
Slide 27: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 27
Slide 28: Ichigo Sustainability Policy
Ichigo Sustainability Policy Harmony with the Environment Ichigo actively monitors and minimizes the environmental impact of its business operations. Energy Conservation, CO2 Reduction, and Recycling Ichigo seeks to contribute to a low-carbon, low-waste society by reducing energy consumption, extend
Slide 29: Ichigo ESG – Environmental
Ichigo ESG – Environmental Sustainable Real Estate Solar and Wind Energy: Safe and Clean Preserve & Enhance Existing Buildings Annual Power Generation Annual CO2 Reduction to End Wasteful Demolish & Rebuild 140,167,036 kWh 92,510,242 kg ‒ Lengthen useful life of existing real estate ‒ Shrink footpri
Slide 30: Ichigo ESG – Social
Ichigo ESG – Social Sports & Arts Children’s Cancer Treatment Support Outstanding, Support University of Miyazaki Faculty World-Class Athletes of Medicine’s Program for Children ‒ Weightlifting with Cancer ‒ Riflery ‒ Issued CSR bond & donated a portion of ‒ Track & Field underwriter commission to t
Slide 31: Ichigo ESG – Governance
Ichigo ESG – Governance Early Adopter of Independent Three Committee (Nominating, Audit, & Compensation) Corporate Governance Structure – Adopted in 2006 to incorporate global best practice – Exceeded legal requirements by establishing Compliance Committee in addition to Nominating, Audit, and Compe
Slide 32: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 32
Slide 33: Significant Unrealized Gains on Balance Sheet
Significant Unrealized Gains on Balance Sheet JPY 47.8B (Appraisal Value Basis), -3.69% vs. FY19/2-end Real Estate Directly Held by Ichigo (JPY million) Book Value as of Unrealized Appraisal NOI Cap Rate Appraisal Value Location November 30, 2019 Gains (B) (B)/(A) (C) (A) (C) - (A) Tokyo 95,242 5,05
Slide 34: Net Consolidated Risk-Based Balance Sheet
Net Consolidated Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 390.8B (Book Value JPY 340B + Unrealized Gains JPY 50.8B) Cash & Cash Equivalents Non-Recourse Loans & JPY 34.0B Related Liabilities JPY 44.8B Net Consolidated Risk-Based Balance Sheet: Non-Recourse Loans & JPY
Slide 35: Business Segments
Business Segments Asset Management (AM) generates fee income via management of Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282), Asset Management and real estate services related to real estate acquisition, operations, and disposition. Sustainable Real Estate (SRE) preserves and im
Slide 36: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash and Operational Operational Power Real Estate Fixed Intangible Securities Other Segment Cash Loan Securities Plants for Total Assets for Sale Assets Assets Investments Assets Equivalents Investments Investments Sale Asset Management (A
Slide 37: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) Gross Profit Operating Profit Segment FY20/2 FY19/2 Q3 FY20/2 Q3 YOY Change FY19/2 Q3 FY20/2 Q3 YOY Change Full-Year Forecast Asset Management (AM) 1,770 2,109 +19.2% 1,571 1,696 +7.9% 1,821 Stock Earnings (Base AM Fees) 1,543 1,599 +3.6% – – – – Flo
Slide 38: Asset Management AUM Detail
Asset Management AUM Detail FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Q3 (12M) (12M) (12M) (12M) (12M) (9M) AUM (Fiscal Year End) JPY 123.8B JPY 165.1B JPY 194.5B JPY 196.9B JPY 203.0B JPY 203.2B Ichigo Office (8975) Base AM Fee Gross Profit (Actual) JPY 759M JPY 1,016M JPY 1,291M JPY 1,373M JPY 1,4
Slide 39: Powerful Sustainable Real Estate Business Model
Powerful Sustainable Real Estate Business Model Significant Synergies Between Ichigo’s Sustainable Real Estate and Asset Management Businesses Sustainable Real Estate Business Model Green Infrastructure Solar Plants Buy Ichigo Green (9282) Office Sell Real Third- Estate Party Ichigo Office (8975) Va
Slide 40: Sustainable Real Estate Social Significance
Sustainable Real Estate Social Significance Sustainable Real Estate Serving a Sustainable Society End Demolish and Rebuild and Embrace Sustainable Value-Add ‒ Preserve and enhance high-function real estate ‒ Lengthen useful life and improve quality of existing assets via Sustainable Value-Add Sustai
Slide 41: Ichigo Sustainable Real Estate Earnings Model Example
Ichigo Sustainable Real Estate Earnings Model Example 5.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.5% Interest Rate, JPY 50M Capex, 15% Increase in NOI, 3-Year Value-Add Period Value-Add Steps: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new ten
Slide 42: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Value-Add Supports Ongoing High GPM FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Q3 GPM 23.0% 13.6% 33.7% 25.5% 29.2% (vs. Revenue) GPM 29.9% 15.8% 50.9% 34.3% 41.3% (Vs. Book value) Revenue 31,674 77,502 35,733 58,693 57,882 (JPY M) Gross Profit 7,283
Slide 43: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease 1% Other Hokkaido 2% Logistics 3% 2% Sendai 3% Osaka 3% Hokkaido Other 3.5 Nagoya 3% 5% Residence 14% Retail 31% Tokyo Metro* Tokyo 11% 52% Hotel Tokyo 23% 122.5 Office 26% Fukuoka 21% Sendai 5.9 *Ex-Tokyo Nagoya
Slide 44: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 171 Assets, JPY 236B, Forecast NOI JPY 11.6B (5.8% Yield) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year1 Investment Multiple 2 IRR3 1 Wholesale Market Fixed A
Slide 45: Sustainable Real Estate Asset Breakdown (2)
Sustainable Real Estate Asset Breakdown (2) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year1 Investment Multiple 2 IRR3 32 Retail Fixed Asset Fukuoka JPY 1B-2B 2014/04 13 years JPY 58M JPY 279M – – 37 Ret
Slide 46: Sustainable Real Estate Asset Breakdown (3)
Sustainable Real Estate Asset Breakdown (3) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year1 Investment Multiple 2 IRR3 2 Retail Real Estate for Sale Minato-ku, Tokyo JPY 2B-3B 2005/10 50 years JPY 136M J
Slide 47: Sustainable Real Estate Asset Breakdown (4)
Sustainable Real Estate Asset Breakdown (4) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year1 Investment Multiple 2 IRR3 89 Office Real Estate for Sale Musashino, Tokyo >JPY 3B 2015/07 30 years JPY 131M JP
Slide 48: Sustainable Real Estate Asset Breakdown (5)
Sustainable Real Estate Asset Breakdown (5) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year1 Investment Multiple 2 IRR3 135 Logistics Real Estate for Sale Narashino, Chiba JPY 1B-2B 2017/04 28 years JPY 1
Slide 49: Sustainable Real Estate Asset Breakdown (6)
Sustainable Real Estate Asset Breakdown (6) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Price Date Age NOI/Year1 Investment Multiple 2 IRR3 160 Office Real Estate for Sale Fukuoka JPY 2B-3B 2019/06 22 years JPY 129M JPY 248M
Slide 50: Sustainable Real Estate Asset Breakdown (7)
Sustainable Real Estate Asset Breakdown (7) Acquisition Expected Ichigo Equity Forecast Equity Forecast No. Asset Type vs. FY20/2 H1 Price NOI/Year1 Investment Multiple IRR A Ichigo Owners (Office & Residential) 43 Assets JPY 30,315M +JPY 12,605M JPY 1,441M JPY 6,479M – – B Centro (Primarily Office
Slide 51: Ichigo Solar Power Plant Portfolio
Ichigo Solar Power Plant Portfolio Ichigo (Operating) Ichigo (In-Development) Panel Panel FIT Operation FIT Operation Solar Power Plant Area Output Solar Power Plant Area Output (Pre-tax) Start Date (Pre-tax) Start Date (MW) (MW) Ichigo Tokushima Higashi-Okinosu Shikoku 2.52 JPY 40 Aug 2013 Ichigo T
Slide 52: Ichigo Solar & Wind Power Plant Portfolio
Ichigo Solar & Wind Power Plant Portfolio Serving Local Communities and the Environment Hokkaido Ichigo Yubetsu Barou 0.80MW Chugoku Ichigo Betsukai Kawakamicho 0.88MW Total Operating and In-Development Ichigo Yonago Izumi 2.61MW Ichigo Akkeshi Shirahama 0.80MW Ichigo Power Plants Ichigo Kasaoka Tak
Slide 53: Ichigo-Owned Solar Power Plant Details
Ichigo-Owned Solar Power Plant Details Total Operating and In-Development Ichigo-Owned Solar Power Plants: 43 Plants (148MW) By Customer By Feed-In Tariff By Operating Timeline (Electric Power Utility Co) Hokkaido Shikoku 3% 2% Tohoku 3% JPY 18 11% JPY 40 Starting JPY 21 operation after Kyushu 20% 7
Slide 54: Reference: Japan's Feed-In Tariff (FIT)
Reference: Japan’s Feed-In Tariff (FIT) What is a FIT? ‒ A policy mechanism to encourage investment in renewable energies by guaranteeing a fixed price for electricity over a 20-year contract period ‒ The fixed price for new contracts is adjusted every year, but locked in for the duration of the con
Slide 55: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 H1 FY20/2 Q3 vs. FY20/2 H1 Assets Current Assets Cash and cash equivalents 28,779 47,678 45,510 50,225 40,448 40,453 +5 Trade notes and accounts receivable 691 913 1,097 1,344 1,582 1,924 +342 Operational loan invest
Slide 56: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 H1 FY20/2 Q3 vs. FY20/2 H1 Liabilities Current Liabilities Trade notes and accounts payable 80 110 – – – – – Short-term loans 2,188 805 1,042 3,275 5,115 4,244 -871 Short-term non-recourse loans 79
Slide 57: Consolidated P&L
Consolidated P&L (JPY million) FY20/2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Q3 FY19/2 Q3 Change vs. Full-Year (12M) (12M) (12M) (12M) (9M) (9M) (YOY) Forecast Forecast Revenue 49,699 109,253 57,846 83,540 78,153 58,282 +19,871 – – Cost of Goods Sold 28,865 81,327 30,860 51,413 47,823 33,332 +14,491 – –
Slide 58: Consolidated Cash Flows from Operations
Consolidated Cash Flows from Operations (JPY million) FY16/2 (12M) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 Q3 (9M) Cash Flows from Operations Pre-tax net income 14,022 20,630 20,109 23,079 22,853 Depreciation 792 778 1,015 1,696 1,888 Share-based compensation expenses 174 223 215 213 187 Amort
Slide 59: Consolidated Cash Flows from Investments & Financing
Consolidated Cash Flows from Investments & Financing (JPY million) FY16/2 (12M) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 Q3 (9M) Cash Flows from Investments Payments into time deposits – -6,100 -6 -118 -111 Proceeds from withdrawal from time deposits – 201 – 1,060 5,033 Payments for securities
Slide 60: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 60
Slide 61: Go for Growth
Go for Growth Grow & Expand Ichigo’s Core Businesses into New Areas, Creating New Earnings Streams and Increasing Both Earnings and Earnings Stability Sustainability Infrastructure Sustainability is integral to the health and Ichigo has a direct and critically important role in development of people
Slide 62: Go Beyond Real Estate to Address Broad Needs
Go Beyond Real Estate to Address Broad Needs Responding Assets Needs to Diverse Child Care Nursing Care Residential Live Needs Education Senior Business Office Work Tourism Medical Care Retail Buy, Dine Agriculture Entertainment Hotel Stay, Travel Public Works Solar Power Power Lives & Sports Plant
Slide 63: KPI Targets
KPI Targets 1. High Capital Efficiency − FY20/2~FY30/2 Average ROE >15% Increase long-term ROE by driving higher capital efficiency and earnings stability Via high ROE, grow long-term EPS as a key driver of shareholder value − FY20/2~FY30/2 Continuous JPX-Nikkei 400 Index Inclusion Target 11 c
Slide 64: Shareholder Return Policy
Shareholder Return Policy Ichigo Dividend Policy: Growth, Certainty, and Stability − Progressive Dividend Policy Ichigo’s progressive dividend policy underscores our commitment to driving continued organic earnings and dividend growth for shareholders. Under this policy, the dividend is maintained
Slide 65: FY20/2 Initiatives
FY20/2 Initiatives Deepen Capabilities in Sustainable Real Estate − Expand into new asset types (e.g., dormitories, sports facilities) − Seek to be “Best Partner” to tenants via continually improving tenant services and solutions − Strengthen group operating structure to deliver best-in-class outcom
Slide 66: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 66
Slide 67: Top Partner of J.League, Japan's Professional Soccer League
Real Estate x Sports Top Partner of J.League, Japan’s Professional Soccer League Partner with J.League to Promote Community Development, Revitalize Local Economies, and Help People Enjoy Fuller and Healthier Lives J.League’s 100-Year Vision: Ichigo’s Mission: Promote Sports Development Serve Importa
Slide 68: Hotel Operator Market Entry: Hakata Hotels
Real Estate x Tourism Hotel Operator Market Entry: Hakata Hotels Hotel Operator in Kyushu/Yamaguchi Region Seeing Inbound Tourism Growth – Started operations at 3 hotels on June 1, 2019 and 7 hotels in August Deploying Propera, Ichigo’s AI-based Hotel Revenue Management System – Increasing employee
Slide 69: Ichigo Animation: Anime + Real Estate Synergies
Real Estate x Entertainment x Culture X Tourism Ichigo Animation: Anime + Real Estate Synergies Production of New Anime Series VLADLOVE Written & Directed by Mamoru Oshii, with Co-Director Junji Nishimura – Established Ichigo Animation in April 2019 – Introducing tenant collaboration initiatives tha
Slide 70: Real-World Augmented Reality (AR) Game TSUBASA+
Real Estate x Entertainment x Sports x Tourism Real-World Augmented Reality (AR) Game TSUBASA+ Investing in TSUBASA+, an AR Game that Uses Smartphone GPS Japanese soccer manga, Captain Tsubasa ×avatars of world-class soccer players Integrates real-world stadiums around the world Game Features Users
Slide 71: Power Up 2019 Mid-Term Plan Achievement
Power Up 2019 Mid-Term Plan Achievement © Ichigo Inc. All rights reserved. 71
Slide 72: Power Up 2019 Achievement Details (1)
Power Up 2019 Achievement Details (1) Beat All KPI Targets 3-Year Growth: OP +60%, RP +66%, NI +19%* * Ichigo’s effective tax rate normalized from FY16/2’s 6.9% to FY19/2’s 31.8%, so NI grew less than OP. (JPY million) FY16/2 (Actual) FY19/2 (Actual) FY19/2 (Plan) (B) - (A) vs. Plan (Shift Up 2016)
Slide 73: Power Up 2019 Achievement Details (2)
Power Up 2019 Achievement Details (2) • List Ichigo’s solar assets on the TSE’s new Infrastructure Market • Listing of Ichigo Green (9282) on Dec 1, 2016 • Support the ongoing growth of Ichigo Office • Asset sales to Ichigo Office (8975) and Ichigo Hotel (8975) and Ichigo Hotel (3463) (3463) Core Bu
Slide 74: Power Up 2019 Achievement Details (3) JPX-Nikkei 400 Index
Power Up 2019 Achievement Details (3) JPX-Nikkei 400 Index – Included in the JPX-Nikkei 400 All Three Years of Power Up 2019 (2016, 2017, 2018) – Ranked within the Index’s Top 200 Companies in August 2019 Ranking Calculation: While the JPX-Nikkei 400 does not provide an official ranking of its 400 c
Slide 75: Make The World More Sustainable
These materials were prepared to explain Ichigo’s businesses and are not for the purpose of soliciting investment in marketable securities issued by Ichigo. Ichigo does not guarantee the accuracy of the figures, information, estimates, or other statements included herein, and accepts no responsibili