Ichigo Inc. · TSE:2337
Ichigo — FY2012 Earnings Presentation
31 slides from Ichigo's earnings presentation, Apr 26, 2012
Slide 1: Corporate Presentation FY Feb. 2012
Feb. 2012 Fiscal Year (March 2011 – February 2012) Corporate p Presentation April 26, 2012 Ichigo g Group p Holdings g Co., Ltd. (2337) ( ) © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. www.ichigo-holdings.co.jp/english
Slide 2: © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.
© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.
Slide 3: Creating peace of mind through honest and committed management
Creating peace of mind through honest and committed management © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.
Slide 4: Agenda
• Secure Foundation for Growth - Feb. 2012 Full-Year Consolidated Financial Results - Feb 2012 Assets under Management (AUM) Feb. - Structural Profitability - Solid Balance Sheet - Assets Marked Marked-to-Market to Market • Execution of Forward Growth Strategy - Acceleration of Growth - Corporate Re
Slide 5: Secure Foundation for Growth
Secure Foundation for Growth © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 5
Slide 6: Feb. 2012 Full-Year Consolidated Financial Results
Feb. 2012 Full-Year Consolidated Financial Results Steady Growth that Outperformed Forecast (Million yen) Feb. 2012 Financial Results Actual vs Forecast (Million yen) Revenues +16％, Net Profit +36％ Feb 12 Feb 12 vs. Feb 11 Actual Forecast Forecast Revenues 12,760 18,952 16,300 +16% Operating 1,351 1
Slide 7: Feb. 2012 Assets under Management (AUM)
Feb. 2012 Assets under Management (AUM) • T t l AUM Flat, Total Fl t but b t Profitability P fit bilit IImproved d - Net AUM increase from new private equity RE AM mandates - AM fees from private equity RE funds increased by 250 million yen • I Increased d AM Fees F from f J-REIT J REIT M&A - J-REIT
Slide 8: Structural Profitability
Structural Profitability Fixed Revenues Now Exceed Fixed Costs - J-REIT and BM growth and new AM mandates have expanded fixed revenues - Target further improvement to120% Coverage Ratio this FY Fixed Revenues (“locked-in” revenues, excludes transaction fees, capital gains, etc.) (Million yen) Fixed
Slide 9: Solid Balance Sheet
Solid Balance Sheet Balance Sheet Equity Ratio 64.4％ Equity Ratio 68.9％ (Billion yen) Liabilities Assets Liabilities 14.2 -1.9 11.8 Assets Assets 39 9 39.9 38.0 Net Assets Net Assets 25.7 26.1 Feb 11 Feb 12 Interest-Bearing Debt Total Borrowings 10.8 -1.5 T t l Borrowings Total B i 9.3 93 (Billion y
Slide 10: Assets Marked-to-Market
Assets Marked-to-Market Continual Mark-to-Market of Assets in Conservative Balance Sheet Mark to Market as of Feb Mark-to-Market Feb. 2012 - Real Estate (Million yen) Book Value Appraisal Value Acquisition Value Unrealized Gain (As of Feb 12) (As of Feb 12) Directly Owned on B/S 15,274 10,801 13,045
Slide 11: Execution of Forward Growth Strategy
Execution of Forward Growth Strategy © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 11
Slide 12: Acceleration of Growth
Acceleration of Growth Having Achieved Structural Profitability, Entering Accelerated Growth Stage Target: Building Structural Profitability Accelerated Growth Stage Tokyo Stock Exchange First Section Significant Expansion of Structural Stable Financial Base Profitability ・Optimizing balance sheet ・
Slide 13: Corporate Reorganization
Corporate Reorganization Enhance Capability as Full-Service Real Estate Asset Manager - Strengthen mainstay AM business - Expansion of small-sized small sized asset and ground lease businesses - Warehousing capability to support J-REIT growth Full-Service Real Estate Asset Manager g Reorganization H
Slide 14: J-REIT Business Development
J-REIT Business Development • Significant Expansion of J-REIT Business - Merged g two J-REITs November 1, 2011 - Ichigo Real Estate Investment Corporation (8975) - Comprehensive J-REIT with stable profitability and steady growth - Deploy negative goodwill to support growth of portfolio • Portfolio I
Slide 15: Feb. 2013 Earnings Outlook
Feb. 2013 Earnings Outlook • Mainstay AM Business to Generate Stable Revenues - Less reliance on disposition of assets and capital gains - Significant organic growth in profitability • Resumption of Dividend and Target Continuous Increases Going Forward (Million yen) Forecast for Feb 13 Actual Feb 1
Slide 16: Building the Ichigo Brand
Building the Ichigo Brand • Strengthening Ichigo Brand - Consistent Ichigo signage for tenant directories and buildings Ichigo Tenant and Building Signage - Ichigo I hi llogo billb billboards d on IIchigo hi b buildings ildi - Ichigo-branded promotional gifts • Corporate Social Responsibility (CSR)
Slide 17: Appendix: Pro Forma Financial Data
Appendix: Pro Forma Financial Data © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 17
Slide 18: 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 19: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 11 Feb 12 Change (YoY) Total Assets 39,915 37,980 -1,935 Cash and Cash Equivalents q 7,093 5,713 -1,380 1,380 Investment (Real Estate) 6,419 8,151 1,732 Investment (Domestic companies) 984 600 -384 Investment ((Overseas companies) p ) 7,198 4,598 -2,600 2,
Slide 20: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) Feb 11 Feb 12 Feb 12 Revenues 7,842 7,927 Revenues 7,927 Real Estate Management Fees 2,276 Cost of Revenues 4,102 4,101 Advisory Fees 10 Gross Profit 3,740 3,826 Rental Income 1,764 SG&A 2,603 2,871 Real Estate Sales / Dividends 1,691 Securities Sales / Divide
Slide 21: Appendix: Consolidated Financial Data
Appendix： Consolidated Financial Data © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 21
Slide 22: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 11 Feb 12 YoY change Total Assets 98,653 82,170 -16,483 Cash and Cash Equivalents 12,343 9,791 -2,552 Operating Investments in Securities 8 035 8,035 4 226 4,226 -3 809 -3,809 Reclassified Real Estate Held for Sale 68,823 49,674 -19,149 assets worth Fix
Slide 23: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) Feb 11 Feb 12 YoY Change in the Amount Outside Investors' The Company's Amount Outside Investors' The Company's Com pany's (Million yen) Interests Interests Interests Interests Interests Cash and Cash Equivalents 12,343 - - 9,791 - - - Operating Investments in Secu
Slide 24: P&L (Consolidated)
P&L (Consolidated) Breakdown (Million yen) Full Year Full-Year vs. vs Feb 11 Feb 12 Feb 12 Forecast Forecast Revenues 12,760 18,952 16,300 +16% Revenues 18,952 Real Estate Management Fees 1,989 Cost of Revenues 8,805 15,030 － － Advisory Fees 10 Gross Profit 3,954 3,921 － － Rental Income 5,558 Real E
Slide 25: Appendix: Real Estate Data
Appendix： Real Estate Data © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 25
Slide 26: Assets Under Management (AUM)
Assets Under Management (AUM) • Private equity RE funds – Slight increase YoY due to new AM mandates • J-REIT – Slight decrease YoY due to mark-to-market revaluation (As of February 2012) (billion yen) Development 2% 600 REIT 530.1 Development 28% Operating 496.0 500 62 0 62.0 REIT 426.5 Operating 7
Slide 27: Real Estate Portfolio
Real Estate Portfolio • Mainly office, although significant track record across a wide variety of asset types • Strong in mid-sized assets in Tokyo, which are highly liquid and have stable cashflows AUM by Type # of Properties by Type (Unit: # of buildings) Land with Ground Leases 1% Other (As of Fe
Slide 28: Real Estate Cap Rates
Real Estate Cap Rates • Conservative assessment of cap rates, generally more conservative than market • Continually mark assets to market • Unrealized gains in both client and IGH assets (As of February 2012) Real Estate Investments held by Funds (SPCs) (Million yen, except for percentage data) Book
Slide 29: MEMO
MEMO © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 29
Slide 30: MEMO
MEMO © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 30
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