Ichigo Inc. · TSE:2337

Ichigo — Q3 FY2024 Earnings Presentation

101 slides from Ichigo's earnings presentation, Jan 11, 2024

1. Slide 1: FY24/2 Q3 Corporate Presentation

   FY24/2 Q3 Corporate Presentation January 13, 2024 January 11, 2023 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en

2. Slide 2: Condolences for Ishikawa earthquake

   We would like to express our deepest condolences to all those impacted by the January 1, 2024 earthquake in Ishikawa Prefecture, and our wishes for the earliest and fullest possible recovery for all. © Ichigo Inc. All rights reserved. 2

3. Slide 3: Make The World More Sustainable

   Make The World More Sustainable © Ichigo Inc. All rights reserved.

4. Slide 4: © Ichigo Inc. All rights reserved.

   © Ichigo Inc. All rights reserved.

5. Slide 5: © Ichigo Inc. All rights reserved.

   © Ichigo Inc. All rights reserved.

6. Slide 6: Contents

   Contents FY24/2 Q3 Summary ‒ CE: Ichigo Ebino Suenaga ECO Power Plant Starts Operation FY24/2 Q3 Earnings ‒ Shareholder Returns: FY24/2 Share Buyback (JPY 3B) ‒ All-In Disclosure for Increased Earnings Transparency ‒ Shareholder Returns: Progressive Dividend Policy ‒ All-In OP +20%, Cash EPS +17% (Y

7. Slide 7: FY24/2 Q3 Summary

   FY24/2 Q3 Summary – All-In Operating Profit +20%, Cash EPS +17% YOY  Stock Earnings: Forecast to Hit Record High, Exceeding FY19/2 (JPY 18.4B) – Hotel Earnings Major Growth Driver – RevPAR +31% vs. Pre-Covid on Increased Rental Income & Hotel Operating Revenue  Flow Earnings : Diversifying Sales C

8. Slide 8: FY24/2 Q3 Summary

   FY24/2 Q3 Summary Durable Earnings Model Robust Stock Earnings ■ FY23/2 Q3 Stock Earnings/Fixed Expenses ■ FY24/2 Q3 225% +33% (JPY million) Fixed Sustainable Asset Clean Expenses Real Estate Management Energy JPY 6.6B (SRE) (AM) (CE) Flow +57% Earnings JPY 10.4B Cash Earnings 14,957 JPY 25.4B 11,26

9. Slide 9: FY24/2 Q3 Earnings

   FY24/2 Q3 Earnings © Ichigo Inc. All rights reserved. 9

10. Slide 10: All-In Disclosure for Increased Earnings Transparency

    All-In Disclosure for Increased Earnings Transparency – All-In disclosure allows for transparent tracking of full profitability contribution of Sustainable Real Estate (SRE) – SRE is a core business, and Ichigo executes value-add on SRE assets regardless of whether they are classified in accounting

11. Slide 11: All-In OP +20%, Cash EPS +17% (YOY)

    All-In OP +20%, Cash EPS +17% (YOY) Rental Income Increasing Across All Asset Types (JPY million) FY24/2 FY23/2 Q3 FY24/2 Q3 YOY Forecast Operating Profit 9,111 7,927 -13.0% 9,500 All-In Operating Profit 13,527 16,266 +20.3% 18,000 Recurring Profit 8,000 5,803 -27.5% 6,000 All-In Recurring Profit 12

12. Slide 12: Segment Earnings Details

    Segment Earnings Details − AM: Hotel Base AM Fee Increase on Back of Strong Travel Demand − SRE Stock Earnings: Forecast Record High on Surging Hotel Earnings − SRE Flow Earnings: Sales to Accelerate in Q4 − CE: Lower on One-Off Plant Maintenance (JPY million) All-In Operating Profit All-In Gross Pr

13. Slide 13: Stock + Flow Earnings

    Stock + Flow Earnings Forecast Record-High Stock Earnings (JPY 19B) Driven by Hotels Expect Further Earnings Growth Across All Segments in FY25/2 (JPY million) ■ Stock Earnings ■ Flow Earnings Q3 Actual 234% Stock Earnings/Fixed Expenses 225% Initial Forecast Cash Earnings 195% 188% 191% 193% 37,016

14. Slide 14: Strong Financial Base

    Strong Financial Base Weighted Average Loan Period Average Interest Rate & Loan Term Weighted Average Remaining Loan Maturity Weighted Average Interest Rate (Interest Rate) (Loan Term, Years) 2.5% 12 10.0 years 10.0 years 10.1 years 10.0 years 9.4 years 2.0% 9 7.6 years 7.2 years 6.5 years 6.1 years

15. Slide 15: Powerful Value-Add Business Model & Sustainability Focus Drives Sustainable Growth

    Powerful Value-Add Business Model & Sustainability Focus Drives Sustainable Growth © Ichigo Inc. All rights reserved. 15

16. Slide 16: On Track for Record Hotel Stock Earnings

    Sustainable Real Estate: Hotels On Track for Record Hotel Stock Earnings RevPAR +31% vs. Pre-Covid, Driven by Ichigo Brand Hotels  THE KNOT TOKYO Shinjuku +25%  The OneFive Villa Fukuoka & The OneFive Terrace Fukuoka +106% Hotel Il Palazzo +22% (JPY million) Hotel Stock Earnings JPY 11,256 Hotel

17. Slide 17: Selective on Acquisitions & Sales (1)

    Sustainable Real Estate Selective on Acquisitions & Sales (1) Acquisitions: JPY 74.1B (FY24/2 Full-Year Forecast) − Q3 Acquisitions: JPY 33.9B (Multi-Asset: JPY 3.8B, Ichigo Owners: JPY 30.0B)  Q4 Acquisitions (Contracted, Pre-Settlement): JPY 40.2B (Multi-Asset: JPY 25.1B, Ichigo Owners: JPY 15.0B

18. Slide 18: Selective on Acquisitions & Sales (2)

    Sustainable Real Estate Selective on Acquisitions & Sales (2) Forecasting Record Sales & Acquisitions, Driven by Ichigo Owners Growth − Sales: Increasing Sales to Ichigo REITs & Tokens – Drives AUM Growth  Sold 5 hotels to Ichigo Hotel & 7 residences to 3rd Ichigo Residence Token − Acquisitions: Mu

19. Slide 19: Serving Unmet Tenant Needs via Ichigo-Designed Offices

    Sustainable Real Estate: Offices Serving Unmet Tenant Needs via Ichigo-Designed Offices Ichigo Core Focus on Innovating to Serve Tenants − Significant Tenant Demand to Reduce Move-In Costs & All the Work in Contracting the Design & Build-Out of New Offices − Solution: Provide Attractive, “Ready to M

20. Slide 20: High Value-Add Business Model

    Sustainable Real Estate: Ichigo Owners High Value-Add Business Model Advantaged Ichigo Capabilities & Cost Competitiveness Built upon Ichigo’s Strong PASEO Residential Brand & Deep Developer Support & Synergies − Development, Marketing, & Branding Tailored to Diverse Buyer and Tenant Needs − Elimina

21. Slide 21: Strong Growth via Meeting Clients’ Diverse Needs

    Sustainable Real Estate: Ichigo Owners Strong Growth via Meeting Clients’ Diverse Needs Forecasting Record Sales & Acquisitions − Addressing Large B2C Market via Ichigo Residence Tokens − Sales Channel Expansion & Economies of Scale Driving Competitive Advantage Ichigo Owners Residential Acquisition

22. Slide 22: 3rd Ichigo Residence Token Sold Out Immediately

    Sustainable Real Estate: Ichigo Owners 3rd Ichigo Residence Token Sold Out Immediately Strong Returns Supported by Ichigo Real Estate AM Capabilities 1st, 2nd, & 3rd Ichigo Residence Tokens All Sold Out Immediately 3rd Ichigo Residence Token (Security Token) 7 Newly-Built, Central Tokyo Residential

23. Slide 23: Ichigo Residence Token First Token on New START Exchange

    Sustainable Real Estate: Ichigo Owners Ichigo Residence Token First Token on New START Exchange Leading Japan’s Development of Real Estate-Backed Digital Securities by Providing First Token Traded on New START Digital Exchange – Will Continue to Launch New Ichigo Tokens as Market Grows − Launch of s

24. Slide 24: Expanding Presence in Growing Real Estate Token Market

    Sustainable Real Estate: Ichigo Owners Expanding Presence in Growing Real Estate Token Market Provide High-Quality Ichigo Real Estate to Investors & Drive AM Fee Growth Ichigo Residence Token AUM Target AUM Increase: JPY 20B Annually JPY 41B JPY 21B JPY 5.1B FY23/2 FY24/2 FY25/2 FY30/2 Launch of Fir

25. Slide 25: Growth & ESG Support for Ichigo REITs & Ichigo Green

    Asset Management Growth & ESG Support for Ichigo REITs & Ichigo Green − Supporting Ichigo Office Value-Add Capex by Subscribing to Ichigo Office Bond Allotment (JPY350M) − Executing Second Ichigo Office Share Purchase (JPY 3.5B) – Total FY24/2 Ichigo Office & Ichigo Hotel Share Purchases: JPY 15.5B

26. Slide 26: Environmental Contribution & Long-Term Growth

    Clean Energy Environmental Contribution & Long-Term Growth Ichigo Ebino Suenaga ECO Power Plant (13.9MW) Now Online – Full-Year Earnings Contribution in FY25/2 Green Biomass & Non-FIT Solar Power Plants in Pipeline (Total JPY 14.4B) Stock Earnings (JPY B) Growth Drivers Ichigo Clean Energy 4.9 Green

27. Slide 27: Ichigo Ebino Suenaga ECO Power Plant Starts Operation

    Clean Energy Ichigo Ebino Suenaga ECO Power Plant Starts Operation Second Largest Ichigo Plant – 20-Year, JPY 40 FIT Operation Start Date January 2, 2024 Location Ebino City, Miyazaki Prefecture Area 573,567m2 Panel Output 13.99MW Annual Power Generation 17,422,000kWh (provides power for 5,800 house

28. Slide 28: FY24/2 Share Buyback (JPY 3B)

    Shareholder Returns FY24/2 Share Buyback (JPY 3B) Share Buybacks – 7th Consecutive Year FY24/2 Total Payout Ratio Forecast: 65% (Dividends + Buybacks as % of Net Income) Share Buybacks JPY 4.5B JPY 3B JPY 3B JPY 3B JPY 3B JPY 3B JPY 1.5B FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 © Ichigo Inc.

29. Slide 29: Progressive Dividend Policy

    Shareholder Returns Progressive Dividend Policy Ichigo Dividend Policy: Growth, Certainty, & Stability  DOE (Dividend on Equity) Payout Ratio of >3% – Stable and growing dividend unaffected by short-term earnings volatility  Progressive Dividend Policy – Under Ichigo’s progressive dividend policy,

30. Slide 30: Ichigo J.League Shareholder Program

    Shareholder Returns Ichigo J.League Shareholder Program Represents Two Firsts for a Shareholder Program in Japan − First Japanese company to include not just its own shareholders, but also the shareholders of the REITs and listed solar power producer that it manages, in its shareholder program (82,0

31. Slide 31: Working to Protect Our Global Environment

    Working to Protect Our Global Environment © Ichigo Inc. All rights reserved. 31

32. Slide 32: Ichigo Climate Positive: CO2 Reduction vs. Emissions

    Ichigo Climate Positive: CO2 Reduction vs. Emissions Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) & Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction) CO2 Reduction vs. CO2 Emissions (tons) ■ Total Ichigo Power Plant CO2 Reduction1 ■ Total Ichigo CO2 Emi

33. Slide 33: Continued Renewable Energy Transition

    Continued Renewable Energy Transition Ichigo Ranked No. 1 in Nikkei GX 500 Ranking for Information Disclosure & Emissions Management & Reduction Ichigo RE100 Progress 100% RE100 Target: 2025 FY24/2 Renewable Energy Transition Impact 85% FY24/2 Renewable Target Energy Switch CO2 Reduction 35,000 tons

34. Slide 34: J.League Tegevajaro Miyazaki Acquisition

    Ichigo Sports J.League Tegevajaro Miyazaki Acquisition Working to Support Local Communities Across the Board − Acquired ownership of J.League Tegevajaro Miyazaki soccer club − Establishing community-based program to promote youth soccer development  Building strong prefecture-wide support network w

35. Slide 35: Appendix: Ichigo’s Sustainability Commitment (ESG)

    Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 35

36. Slide 36: Ichigo Sustainability Policy

    Ichigo Sustainability Policy Harmony With the Environment and Recycling Ichigo actively monitors and minimizes the environmental impact of its business operations via extending the useful life of its assets, reducing water and water consumption, and recycling. Addressing Climate Change and Shift to

37. Slide 37: ESG Initiatives: Environmental

    ESG Initiatives: Environmental Climate Positive & Sustainability-Driven Preserve & Improve Real Estate Community-Based, Productive Use of Pro-Active Environmental to End Wasteful Demolition Idle Land for Clean Energy Certifications Ichigo's Sustainable Real Estate business Ichigo will not build powe

38. Slide 38: ESG Initiatives: Social

    ESG Initiatives: Social Contributing to Society Contributing to Regional Revitalization Ichigo University Sports Initiatives Ichigo works to revitalize local communities Ichigo established Ichigo University in May As a top partner of the J.League and promote regional economic 2013 to support employe

39. Slide 39: ESG Initiatives: Governance

    ESG Initiatives: Governance Global Best Practice Governance Early Adopter of Global Best Practice Majority Independent Director Board Annual Board of Directors Corporate Governance Structure Underpins Strong Governance Evaluation All Directors on Ichigo’s Board of Directors Of 9 members of Ichigo’s

40. Slide 40: Sustainability Initiatives

    Sustainability Initiatives Joining Third-Party Initiatives to Accelerate Ichigo’s Sustainability Activities UN Global Compact UN Global Compact is a global sustainability initiative that calls for companies and organizations to take leadership and take actions as members of society to implement univ

41. Slide 41: Ichigo RE100 Initiative

    Ichigo RE100 Initiative Further Lowering Energy Impacts as a Sustainable Infrastructure Company Ichigo RE100 Target 100% Renewable Electricity by 2025 Ichigo is committed to sourcing 100% renewable electricity across its operations, including Ichigo Office (8975) and Ichigo Hotel (3463) RE100 A glob

42. Slide 42: Rich ESG Content

    Rich ESG Content ICHIGO Sustainable City Ichigo Sustainability Report Promoting Awareness of Ichigo’s Sustainability Introducing Ichigo’s Vision for Society’s Future Initiatives via Ichigo Sustainability Report Sustainable Infrastructure Sports Senior Management Message Sustainable Business Manageme

43. Slide 43: Appendix: Sustainable Growth as a Sustainable Infrastructure Company

    Appendix: Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 43

44. Slide 44: Stable Stock Earnings

    Stable Stock Earnings Stock Earnings by Segment ■ Asset Management ■ Sustainable Real Estate ■ Clean Energy (JPY million) 18,450 (Stock Earnings/ Full-Year (234%) Fixed Expenses, %) Forecast 16,985 2,062 15,598 (188%) 15,065 14,912 (193%) (195%) (191%) 1,832 2,066 1,694 2,091 13,331 Q3 9,402 8,477 8

45. Slide 45: Embedded Forward Earnings

    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) 65.2 67.8 63.9 56.2 FY20/2 FY21/2 FY22/2 FY23/2 Third-Party Appraisal Value-Based Unrealized G

46. Slide 46: Value-Add Drives Durable Value Growth

    Value-Add Drives Durable Value Growth Appraisal Value-Based Unrealized Gains Actual Gains on Sales 2.8X 1.8X 2.2X 2.0X JPY 17.1B 1.9X JPY 11.6B JPY JPY 9.4B 10.2B JPY 6.1B JPY 5.7B JPY 6.3B JPY JPY 4.7B JPY 3.0B 4.7B FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 Q3 Note: Self-storage assets sold in FY24/2 (36

47. Slide 47: Robust Cash Generation

    Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income Net Income Economic Operating Cash Flow 3.6X (JPY billion) 2.0X 2.4X 1.5X 29.5 2.2X 19.5 15.6 14.4 11.1 8.2 9.4 9.6 5.0 6.5 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 Q3 Note: Economic Operating Cash Flow = Cash Flows from Operations, ex

48. Slide 48: Sustainable/ESG Finance JPY 87.8B

    Sustainable/ESG Finance Ichigo’s ESG Execution Driving Attractive Financing Terms Strengthening Financial Base via Diversified Borrowing ESG Loans as % of Total Borrowings ESG Loans (JPY billion) ■ ESG loans (including green bonds) ■ ESG loans (including green bonds) ■ Remaining ESG commitment line

49. Slide 49: Appendix: Financial & Operational Data

    Appendix: Financial & Operational Data © Ichigo Inc. All rights reserved. 49

50. Slide 50: Business Segments

    Business Segments Asset Management (AM) generates fee income via management of Asset Management Ichigo Office (8975), Ichigo Hotel (3463), Ichigo Green (9282), and private real estate funds. Sustainable Real Estate (SRE) preserves and improves real estate. Sustainable Ichigo receives rental income d

51. Slide 51: Significant Unrealized Gains on Balance Sheet

    Significant Unrealized Gains on Balance Sheet Real Estate Directly Held by Ichigo (JPY million) Book Value as of Appraisal NOI Cap Rate Appraisal Value Unrealized Gains Location November 30, 2023 (B) (B)/(A) (C) (C) – (A) (A) Tokyo 88,112 5,308 6.0% 124,315 +36,203 Outside Tokyo 89,159 5,767 6.5% 11

52. Slide 52: Risk-Based Balance Sheet

    Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 430.6B (Book Value JPY 365.2B + Unrealized Gains JPY 65.3B) Cash & Cash Equivalents Non-Recourse Loans & Related Liabilities Risk-Based Consolidated Balance Sheet: JPY 341.9B JPY 43.2B JPY 45.4B (Book Value JPY 276.6B + Unrealiz

53. Slide 53: Cash Flow Maximization

    Cash Flow Maximization Maximal Use of Depreciation Allowances to Increase Cash Flow Real Estate for Sale & Fixed Assets Fixed Assets (SRE) Real Estate for Sale (SRE) Fixed Asset Ratio 30.1% 84.4% 84.4% 84.7% 84.3% 15.2% (JPY billion) 32.0 30.9 29.7 Reclassification of 29.5 Sustainable Real Estate As

54. Slide 54: Robust Cash Flow Generation & Strong Earnings Base

    Robust Cash Flow Generation & Strong Earnings Base Key Ichigo Strength: Robust Cash Generation to Fund Growth − Maximal use of depreciation allowances to lower accounting earnings & increase cash flow − Majority of cash earnings are Stock Earnings − Maintained high Stock Earnings/Fixed Expenses Rati

55. Slide 55: Post-GFC Shift in Earnings Base & Financial Position

    Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY23/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 193% 2.6X Coverage Ratio 10.0 years Loan Maturity (Weighted avg., 5.6 years 5.6 years 3.6X corporate + non-recourse loans) 2.8 years 2.8 years 2.8 years

56. Slide 56: Consolidated Balance Sheet: Segment Breakdown

    Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash Operational Operational Real Estate Fixed Intangible Securities Other Total Segment and Cash Loan Securities for Sale Assets Assets Investments Assets Assets Equivalents Investments Investments Asset Management (AM) – – – – – 508 118 1

57. Slide 57: Consolidated P&L: Segment Breakdown

    Consolidated P&L: Segment Breakdown (JPY million) All-In Gross Profit All-In Operating Profit Segment FY24/2 FY23/2 Q3 FY24/2 Q3 YOY FY23/2 Q3 FY24/2 Q3 YOY Forecast Asset Management (AM) 1,492 1,826 +22.4% 1,055 1,105 +4.7% 1,000 Base AM Fees 1,492 1,694 +13.5% － － － － Acquisition/Disposition Fees

58. Slide 58: Appendix: Sustainable Real Estate Details

    Appendix: Sustainable Real Estate Details © Ichigo Inc. All rights reserved. 58

59. Slide 59: Sustainable Infrastructure for a Sustainable Society

    Sustainable Real Estate Social Significance Sustainable Infrastructure for a Sustainable Society End Wasteful Demolishment and Embrace Sustainable Real Estate ‒ Improve quality of assets via Sustainable Value-Add ‒ Preserve and improve highly functional real estate to contribute to environmental con

60. Slide 60: Powerful Sustainable Real Estate Business Model

    Powerful Sustainable Real Estate Business Model Significant Synergies Between Ichigo’s Sustainable Real Estate & Asset Management Businesses Sustainable Real Estate Business Model Green Infrastructure Solar Plants Buy Ichigo Green (9282) Office Sell Real Third- Ichigo Office Sustainable Estate Party

61. Slide 61: 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 Measures: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new

62. Slide 62: Value-Add Robust to Changes in Market Environment

    Sustainable Real Estate Value-Add Robust to Changes in Market Environment Multi-Asset Ichigo Owners Build strong tenant relationship NOI GPM GPM Improve assets +25% 32% 11% Improve soft services Normal Avg. Hold: Avg. Hold: Market 3.2 Years 0.8 Years Sustainable Real Estate Complete Sell (or Buy Val

63. Slide 63: Sustainable Real Estate: Gross Profit Margin (GPM)

    Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 Q3 GPM 28.3% 13.9% 20.6% 21.1% 19.9% (vs. Revenue) GPM 39.5% 16.2% 26.2% 27.1% 24.9% (vs. Book Value) Revenue 60,601 41,430 45,830 55,166 31,841 (JPY M) Gross

64. Slide 64: Ichigo-Owned Real Estate Portfolio

    Ichigo-Owned Real Estate Portfolio Actively Acquiring Mid-Size Assets with Value-Add Potential, Including Retail Assets Near Stations, Offices, Retail, & Hotels in Tokyo & Major Cities Ground Lease By Asset Type Total Ichigo-Owned Assets: JPY 257.3B 1% Logistics Other (Including Ichigo-Managed AUM:

65. Slide 65: Sustainable Real Estate Asset Breakdown (1)

    Sustainable Real Estate Asset Breakdown (1) 148 Assets, JPY 254.9B, Annual NOI JPY 11B (6.2% Yield) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 1 Retail Fixed Asset Matsu

66. Slide 66: Sustainable Real Estate Asset Breakdown (2)

    Sustainable Real Estate Asset Breakdown (2) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Price Date Age NOI/Year1 Investment Multiple2 IRR3 29 Ground Lease Fixed Asset Fujisawa, Kanagawa JPY 1B-2B 2014/03 – JPY 113M JPY 273M

67. Slide 67: Sustainable Real Estate Asset Breakdown (3)

    Sustainable Real Estate Asset Breakdown (3) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Price Date Age NOI/Year1 Investment Multiple2 IRR3 71 Retail Fixed Asset Fujisawa, Kanagawa JPY 1B-2B 2015/07 8 years JPY 100M JPY 126M

68. Slide 68: Sustainable Real Estate Asset Breakdown (4)

    Sustainable Real Estate Asset Breakdown (4) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Price Date Age NOI/Year1 Investment Multiple2 IRR3 159 Retail Fixed Asset Shibuya-ku, Tokyo JPY 2B-3B 2019/05 44 years JPY 123M JPY 210M

69. Slide 69: Sustainable Real Estate Asset Breakdown (5)

    Sustainable Real Estate Asset Breakdown (5) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 61 Retail Operational Loan Shinjuku-ku, Tokyo JPY 1B-2B 2014/12 60 years JPY 120M

70. Slide 70: Sustainable Real Estate Asset Breakdown (6)

    Sustainable Real Estate Asset Breakdown (6) Acquisition Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type vs. FY23/2 Q4 Price NOI/Year1 Investment Multiple IRR A Ichigo Owners (Residential) 55 Assets JPY 64,068M +JPY 18,253M JPY 2,496M JPY 15,465M – – B Ichigo Owners (Other) 3 Assets JP

71. Slide 71: Appendix: Asset Management Details

    Appendix: Asset Management Details © Ichigo Inc. All rights reserved. 71

72. Slide 72: Ichigo REITs & Ichigo Green

    Asset Management Ichigo REITs & Ichigo Green Ichigo Office 8975 Ichigo Hotel 3463 Ichigo Green 9282 Portfolio JPY 212.1B (88 Assets) JPY 69.8B (30 Hotels) JPY 11.4B (15 Solar Plants) Dividend Yield (as of January 10, 2024) 4.9% 4.4% 5.6% ・ Entered FTSE Global REIT Index, ・ Geographically diversified

73. Slide 73: Growth & ESG Support for Ichigo REITs & Ichigo Green

    Asset Management Growth & ESG Support for Ichigo REITs & Ichigo Green Ichigo Office ・ Strengthening growth commitment via Ichigo Office share purchase (JPY 13B) (8975) ・ Created bridge fund (Ichigo Office acquired 2 assets of 4 assets in bridge fund) ・ Strengthening growth commitment via Ichigo Hote

74. Slide 74: Asset Management AUM Detail

    Asset Management AUM Detail FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 (12M) (12M) (12M) (12M) (12M)） (9M) Ichigo Office AUM (Fiscal Year End) JPY 203.0B JPY 203.2B JPY 206.1B JPY 205.4B JPY 212.1B JPY 212.1B (8975) Base AM Fee Gross Profit JPY 1,426M JPY 1,436M JPY 1,524M JPY 1,725M JPY 1,517M JPY 1

75. Slide 75: Appendix: Clean Energy Details

    Appendix: Clean Energy Details © Ichigo Inc. All rights reserved. 75

76. Slide 76: Ichigo Solar Power Plant Portfolio

    Ichigo Solar Power Plant Portfolio Total Operating and In-Pipeline Ichigo-Owned Solar Power Plants: 48 Plants (151.4MW) By Customer (Electric Power Utility Co) By Feed-In Tariff By Years in Operation Hokkaido 3% Shikoku 2% JPY 14 Tohoku 2% 3% JPY 18 <1 year 11% JPY 40 9% Kansai Kyushu 19% JPY 21 1-3

77. Slide 77: Ichigo Solar Power Plant Portfolio

    Ichigo Solar Power Plant Portfolio Operating Panel Output FIT Operation No. Solar Power Plant Area (MW) (Pre-tax) Start Date 1 Ichigo Tokushima Higashi-Okinosu Shikoku 2.52 JPY 40 2013/08 2 Ichigo Fuchu Jogecho Yano Chugoku 0.99 JPY 40 2014/03 3 Ichigo Yubetsu Barou Hokkaido 0.80 JPY 40 2014/04 4 Ic

78. Slide 78: Ichigo Solar Power Plant Portfolio

    Ichigo Solar Power Plant Portfolio Operating Panel Output FIT Operation No. Solar Power Plant Area (MW) (Pre-tax) Start Date 31 Ichigo Hitachiomiya Kanto 2.99 JPY 24 2020/03 32 Ichigo Hokota Aoyagi Kanto 2.48 JPY 27 2020/04 33 Ichigo Kasaoka Osakaike Chugoku 2.66 JPY 21 2020/04 34 Ichigo Minokamo Ha

79. Slide 79: Ichigo Wind Power Plant Portfolio

    Ichigo Wind Power Plant Portfolio Operating Panel Output FIT Operation No. Wind Power Plant Area (MW) (Pre-tax) Start Date 1 Ichigo Yonezawa Itaya Tohoku 7.39 JPY 22 2021/03 Total (Operating) 1 Plant 7.3MW Ichigo Solar & Wind Power Plant (Operating/In-Pipeline) Total: 49 Plants 158.8MW Reference: Ja

80. Slide 80: Ichigo Green (9282) Solar Plant Portfolio

    Ichigo Green (9282) Solar Plant Portfolio Operating Panel Output FIT Operation No. Solar Power Plant Area (MW) (Pre-tax) Start Date 1 Ichigo Kiryu Okuzawa Kanto 1.33 JPY 40 2013/09 2 Ichigo Motomombetsu Hokkaido 1.40 JPY 40 2014/02 3 Ichigo Muroran Hatchodaira Hokkaido 1.24 JPY 40 2014/03 4 Ichigo E

81. Slide 81: Green Biomass Entry

    Green Biomass Entry Fully Local Green Biomass as Ichigo’s 3rd Renewable Energy Business − 5 Plants In Development (4.9MW, JPY 6.2B in Total Business Expenses) − Diversify & stabilize power production − Procure biomass feedstock via Ichigo’s relationships with local government Weather Characteristics

82. Slide 82: Appendix: Financial Statements

    Appendix: Financial Statements © Ichigo Inc. All rights reserved. 82

83. Slide 83: Consolidated Balance Sheet: Assets

    Consolidated Balance Sheet: Assets (JPY million) FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 H1 FY24/2 Q3 vs. FY24/2 H1 Assets Current Assets Cash and cash equivalents 41,067 50,832 46,458 40,536 47,759 50,488 +2,729 Trade notes and accounts receivable 2,308 1,382 1,819 3,866 2,434 2,941 +507 Operational loa

84. Slide 84: Consolidated Balance Sheet: Liabilities & Net Assets

    Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 H1 FY24/2 Q3 vs. FY24/2 H1 Liabilities Current Liabilities Short-term loans 3,086 4,879 2,382 962 5,526 4,626 -900 Bonds (due within one year) 274 274 274 364 292 3,222 +2,930 Long-term loans (due w

85. Slide 85: Consolidated P&L

    Consolidated P&L (JPY million) FY24/2 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 Q3 FY23/2 Q3 Change vs. Full-Year (12M) (12M) (12M) (12M) (9M) (9M) (YOY) Forecast Forecast Revenue 87,360 61,368 56,934 68,093 38,419 52,797 -14,378 – – Cost of Goods Sold 52,851 45,776 40,757 48,674 24,874 38,847 -13,973 – –

86. Slide 86: Consolidated Cash Flows: Operations

    Consolidated Cash Flows: Operations (JPY million) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) FY24/2 Q3 (9M) Cash Flows from Operations Pre-tax income 16,545 7,610 9,595 14,234 14,208 Depreciation 2,630 4,797 5,644 5,339 3,661 Share-based compensation expenses 194 21 73 – – Amortization of g

87. Slide 87: Consolidated Cash Flows: Investments & Financing

    Consolidated Cash Flows: Investments & Financing (JPY million) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) FY24/2 Q3 (9M) Cash Flows from Investments Payments into time deposits -113 -7 -7 -2 – Proceeds from withdrawal from time deposits 5,033 – 30 23 – Payments for securities investments -2

88. Slide 88: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company

    Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 88

89. Slide 89: Ichigo as a Sustainable Infrastructure Company

    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

90. Slide 90: Addressing Diverse Needs of Individuals & Communities

    Addressing Diverse Needs of Individuals & Communities © Ichigo Inc. All rights reserved. 90

91. Slide 91: KPI Targets

    KPI Targets 1. High Capital Efficiency − FY20/2~FY30/2 Average ROE >15%  Increase long-term ROE by driving higher capital efficiency & earnings stability  Via high ROE, grow long-term EPS as a key driver of shareholder value − Target 11 consecutive years of JPX-Nikkei 400 Index inclusion  Consecu

92. Slide 92: Shareholder Return Policy

    Shareholder Return Policy Ichigo Dividend Policy: Growth, Certainty, & 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 o

93. Slide 93: Ichigo 2030: New Initiatives

    Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 93

94. Slide 94: 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, & Help People Enjoy Fuller and Healthier Lives J.League’s 100-Year Vision: Ichigo’s Mission: Promote Sports Development Serve Important

95. Slide 95: PROPERA: Ichigo's AI Hotel Revenue Management System

    Real Estate x IT x Tourism PROPERA: Ichigo's AI Hotel Revenue Management System − Maximizes Hotel Revenues & Increases Labor Productivity − Solves Issues Faced by Hotels and Supports Competitiveness − Developed PROPERA-Lite* Tailored to Hotels’ Needs * Provides limited information on pricing levels

96. Slide 96: PROPERA: Market Size & Customer Acquisition Target

    Real Estate x IT x Tourism PROPERA: Market Size & Customer Acquisition Target Customer Acquisition Target: 2,000 Hotels c. 50,000 No. Of Japanese Hotels No. Of Japanese Hotels With c. 33,000 Online Booking Systems No. Of Japanese Hotels c. 20,000 Deploying Site Controllers 2,000 FY26/2 Hotels Target

97. Slide 97: PROPERA: Accelerating External Sales

    Real Estate x IT x Tourism PROPERA: Accelerating External Sales Two Key Initiatives to Increase Market Share 1. Drive Customer Growth via 2. Tightly Integrate With Site Controllers PROPERA Lite PROPERA Site Controller Integration PROPERA Lite Will Give Access to c. 18,000 Hotels ・ Price trend visual

98. Slide 98: PROPERA: Ichigo's AI Hotel Revenue Management System

    PROPERA: Ichigo's AI Hotel Revenue Management System Launch of Drive Non-Asset Stock Third-Party Increase Market Share Sales Earnings Earnings Upside From Participation in Long-Term Earnings Growth Hotel Earnings Growth PROPERA Business Market Turnaround ・ Strong domestic & inbound hotel demand reco

99. Slide 99: OneFive Hotels: Hotel Operations

    Real Estate x Tourism OneFive Hotels: Hotel Operations Non-Asset Business Growth Driver − Operations and Master Leases of Third-Party Hotels − Growth Exceeding Pre-Covid Levels Without Dedicated Sales and Marketing Teams − Driving Earnings and Cost Reductions via PROPERA deployment at hotels (genera

100. Slide 100: Ichigo Animation: Anime + Real Estate Synergies

     Real Estate x Entertainment x Culture x Tourism Ichigo Animation: Anime + Real Estate Synergies Released the Complete Series of New Anime VLADLOVE Written & Directed by Mamoru Oshii, with Co-Director Junji Nishimura – Established Ichigo Animation in April 2019 – Introducing tenant collaboration init

101. Slide 101: 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

Ichigo — Q3 FY2024 Earnings Presentation on 6ix