Loadstar Capital Kk · TSE:3482
Loadstar Capital Kk — FY2022 Earnings Presentation
56 slides from Loadstar Capital Kk's earnings presentation, 2023
Slide 1: Fiscal Year Ended December 31, 2022 Earnings Briefing
Fiscal Year Ended December 31, 2022 Earnings Briefing Loadstar Capital K.K. Securities code: 3482 2023 © Loadstar Capital ALL RIGHTS RESERVED
Slide 2: Real estate and technology opening up the future market
不動産とテクノロジーの融合が 未来のマーケットを切り開く 1
Slide 3: Our Business
１ Our Business © Loadstar Capital ALL RIGHTS RESERVED 2
Slide 4: Table of Contents
Table of Contents １．Our Business P. 3 ２．Topics of the Fiscal Year Ended December 31, 2022 P. 5 ３．Overview of Financial Results for the Fiscal Year Ended P. 8 December 31, 2022 ４．Business Overview by Segment P. 13 ５．Forecast for the FY2023 and Progress of Medium-Term P. 23 Management Plan ６．Our Stren
Slide 5: Our Business
Our Business Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech BROKERAGE CORPORATE FUNDING ASSET MANAGEMENT / ADVISORY SERVICES CROWDFUNDING Investment in real Asset management of Comprehensive Japan’s first estate using internal investment real estate support for a
Slide 6: Topics of the Fiscal Year Ended December 31, 2022
2 Topics of the Fiscal Year Ended December 31, 2022 © Loadstar Capital ALL RIGHTS RESERVED 5
Slide 7: Highlight
Highlight FY2022 Financial Results • The market remained strong, and in the real estate investment, the performance exceeded the forecast. • Aiming for mid-to long-term growth, we strengthened company-wide hiring and relocated the head office to an expanded floor space. • Along with shareholder retu
Slide 8: Topics of the Fiscal Year Ended December 31, 2022
Topics of the Fiscal Year Ended December 31, 2022 ・Listed on Tokyo Stock Exchange Prime Market We moved from Mothers to the First section of Tokyo Stock Exchange (TSE), and then completed transition to TSE Prime Market in April 2022. ・Built Up Property Inventory as Future Business Foundation Despite
Slide 9: Overview of Financial Results for the Fiscal Year
3 Overview of Financial Results for the Fiscal Year Ended December 31, 2022 © Loadstar Capital ALL RIGHTS RESERVED 8
Slide 10: Consolidated Sales and Profit before income taxes
Consolidated Sales and Profit before income taxes • The Tokyo office transaction market remained strong, and we achieved sales and profit growth for 10 consecutive fiscal years since the company's foundation. • Although the office leasing market was relatively softer, we successfully conducted leasi
Slide 11: Cost Controls and Human Capital Investment
Cost Controls and Human Capital Investment • Despite stepped-up investments in Human Capital (incl. recruiting and a head office relocation) for future business expansion, profit margins remain at high level. • In order to secure excellent personnel, which is the foundation of our business growth, w
Slide 12: Consolidated Statements of Income
Consolidated Statements of Income • Net sales and profit/loss at all levels exceeded the forecast, reaching record high. FY2022 FY2021 % of Net Progress vs. % of Net Amount % Y-o-Y Amount (¥ millions) sales original forecast sales Net sales 23,637 100.0% 131.9% 127.7% 17,920 100.0% Gross Profit 9,36
Slide 13: Consolidated Financial Position
Consolidated Financial Position • We steadily accumulated real estate as inventory, which will serve as our operating foundation. • The balance of operating loans in the Crowdfunding business reached record high. • The return on net assets ratio also increased to 22.5% due to the accumulation of pro
Slide 14: Business Overview by Segment
4 Business Overview by Segment © Loadstar Capital ALL RIGHTS RESERVED 13
Slide 15: Real Estate Investments
Real Estate Investments Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech BROKERAGE CORPORATE FUNDING ASSET MANAGEMENT / ADVISORY SERVICES CROWDFUNDING Investment in real Management of Comprehensive Japan’s first real estate using internal investment real estate sup
Slide 16: Corporate Funding Business Results: Real Estate Investment Sales
Corporate Funding Business Results 【Real Estate Investment Sales】 • In 1H, we sold properties mainly to real estate funds, and in 2H, mainly to institutional investors and operating companies. • In the 11 years since the company's foundation, the cumulative amount of property purchases has exceeded
Slide 17: Corporate Funding Business Results: Real Estate Leasing Sales
Corporate Funding Business Results 【Real Estate Leasing Sales】 • Rental income decreased YoY due to investments mainly in properties with large upside potential, such as office buildings with high vacancy rates. • Chisun Hotel Yokohama Isezakicho opened in June after six months of preparation, and N
Slide 18: Corporate Funding Business Results
Corporate Funding Business Results • Amid the difficulty of acquiring hotels due to the weaker yen and expectations of an inbound recovery, we leveraged our strengths to acquire Nest Hotel Tokyo Hanzomon. • We will continue to focus on acquiring properties that will serve as our operating foundation
Slide 19: Asset Management Business
Asset Management Business • With the launch of real estate funds looking to post -COVID19 conditions, AUM increased to approximately 80 billion yen, capturing the domestic investors' demand ahead of that of overseas investors. • In 2023, we continue to strive to increase AUM and aim to reach AUM of
Slide 20: Real Estate Tech
Real Estate Tech Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech BROKERAGE CORPORATE FUNDING ASSET MANAGEMENT / ADVISORY SERVICES CROWDFUNDING Investment in real Management of Comprehensive Japan’s first real estate using internal investment real estate support fo
Slide 21: Crowdfunding Business Results
Crowdfunding Business Results • Although we experienced some difficulties in structuring deals due to the aggressive lending stance of financial institutions, we successfully structured deals (the largest ever) and raised a record amount of funds in 2H. • If the short-term interest rates rise as a r
Slide 22: Crowdfunding Business (KPI)
Crowdfunding Business（KPI） • The number of investor members has grown steadily. Furthermore, the number of shareholders and investor members has been increasing as a result of the shareholder benefits. • We seek to expand our business by prioritizing the avoidance of exposing our investor members to
Slide 23: Return to Shareholders
Return to Shareholders Basic Policy • We continue our efforts to improve corporate value and shareholder profit by expanding business performance Dividend Policy • We set a target dividend payout ratio of 15%, but considering the mid- to long- term enhancement of corporate value and shareholder retu
Slide 24: Forecast for FY2023 and Progress of Medium-Term Management Plan
5 Forecast for the FY2023 and Progress of Medium-Term Management Plan © Loadstar Capital ALL RIGHTS RESERVED 23
Slide 25: Forecasts for the fiscal year Ending December 31, 2023
Forecasts for the fiscal year Ending December 31, 2023 • We aim to increase sales and profits for the 11th consecutive fiscal year since the company's foundation. Looking further ahead, we seek to strategically develop our business in order to achieve our mid-term management plan (ending Dec. 31, 20
Slide 26: Real Estate Market Outlook
Real Estate Market Outlook ◆ In the office leasing market, the rise in vacancy rates and decline in rent levels have stabilized, and in the transaction market, both domestic and overseas investors are focusing on offices in Tokyo owing to inflation and the weaker yen. Although some overseas investor
Slide 27: Progress of Medium-Term Management Plan
Progress of Medium-Term Management Plan • In 2022, we achieved results far exceeding the original forecast, and we aim to increase sales and profits in 2023 as well. • Dividend payout ratio will be raised to 17%. • Although we set high targets for Real estate investment as inventory / AUM / OwnersBo
Slide 28: Mid-Term Management Plan Basic Policy
Mid-Term Management Plan Basic Policy With the Corporate Funding Business as our business Basic foundation, we aim to increase our corporate value Policy by expanding the scale of our Asset Management Business and Crowdfunding Business. 1．Increase Assets Held on the Balance Sheet 2．Expand AUM in the
Slide 29: Business Strategy: Increase Assets Held
Business Strategy: ① Increase Assets Held Strengthen Business Foundation with Continuous Real Estate Investment • Continue to invest approx. ¥20 billion a year in real estate that will form our future revenue base. • Increase assets held on the balance sheet to approx. ¥75 billion by the end of Dece
Slide 30: Business Strategy: Asset Management Business
Business Strategy: ② Asset Management Business Increase AUM and Boost Name Recognition • Amass AUM (assets under management) of several tens of billions of yen per year in response to ongoing high demand for Tokyo real estate not only from overseas investors but also domestic investors. • Accumulate
Slide 31: Business Strategy: Crowdfunding Business (Loan-Type)
Business Strategy: ③ Crowdfunding Business (Loan-Type) Increase Scale and Diversity of Investment Products • Provide products to meet investor demand, as individual investors are still highly motivated to invest. ➢ Larger scale transactions ➢ Enhancement and expansion of products with shareholder be
Slide 32: Business Strategy: Crowdfunding Business (Equity-Type)
Business Strategy: ④ Crowdfunding Business (Equity-Type) Aim to Create Funds Targeted at Individuals • Consider selling the Company’s investment properties to the fund alongside external acquisitions to generate recurring revenue. • Aim to create open-end funds*. • Proceed with consideration of fund
Slide 33: Business Strategy: Crowdfunding Business (STOs)
Business Strategy: ⑤ Crowdfunding Business (STOs) A framework based on new technologies for What are providing law/regulation-compliant services that meet demand for new fund procurement methods to STOs replace traditional equity and debt financing, as well (Security Token as demand for new financia
Slide 34: Business Strategy: ESG
Business Strategy: ⑥ ESG Environment Society Governance ✓ Consideration ✓ Increase workforce of donation-type ✓ Switch to electricity diversity Crowdfunding Business generated from renewable ✓ Strengthen compliance Initiatives ✓ Make employee health a energy sources system increase management priori
Slide 35: Our Strengths and Characteristics
６ Our Strengths and Characteristics © Loadstar Capital ALL RIGHTS RESERVED 34
Slide 36: Loadstar Capital's Strength
Loadstar Capital’s Strength Barrier to entry due Ability to respond to to government market changes, approval and licenses Innovation Creation of a new supported by a Financial market by stable financial base and Entry Crowdfunding Stability Barriers High Expertise Fast investment decision-making by
Slide 37: Value Creation in the Corporate Funding Business
Value Creation in the Corporate Funding Business ■Why are we targeting mid-sized offices in the Tokyo's 23 wards for investment? Office conditions for small and New supply of mid-sized Positioning medium-sized enterprises (SMEs) buildings • Mid-sized buildings are less likely to compete • 99% of the
Slide 38: Competitive Advantage of Corporate Funding Business
Competitive Advantage of Corporate Funding Business Building Establishing future a stable operating financial foundations base Information gathering Acquisition Increase value Solid track record • Track record of property • Over 20 years of real estate acquisitions totaling 100 • Construction work t
Slide 39: Competitive Advantage of Crowdfunding Business
Competitive Advantage of Crowdfunding Business Realizing access to individual investors, which has not been established in the real estate investment market Demand Supply Established credibility as an asset High High hurdles to overcome in manager based on the track record acquiring approvals and of
Slide 40: Stable Financial Base
Stable Financial Base Creditworthiness backed by ◼ Build a stable financial base through long-term appraisal track record borrowings to prepare for short-term real estate price 150 fluctuations. Tokyo Office Real Estate Price Index 100 200.0 50 150.0 0 Purchase amount Borrowed amount Appraisal value
Slide 41: Crowdfunding Market and OwnersBook
７ Crowdfunding Market and OwnersBook © Loadstar Capital ALL RIGHTS RESERVED 40
Slide 42: Crowdfunding Market and Growth Potential
Crowdfunding Market and Growth Potential • Market scale is expected to expand up ahead because the number of lending-type crowdfunding business operators is increasing year after year. • Crowdfunding may become an investment source for private equity real estate market in the future. Japan’s crowdfu
Slide 43: OwnersBook Features 1
OwnersBook Features 1 Loan-Type Loan-Type Loans secured by real estate Loan Real Lending (Mortgage) estate ¥800~1,200 ¥1,000 million ~1,500 OwnersBook million Equity Interest/ Investment Investors ¥200~300 million Principal Equity-Type Dividend/ Non- recource Principal Investment Real loan estate ¥6
Slide 44: OwnersBook Features 2
OwnersBook Features 2 Borrowers’ Investors’ demand demand OwnersBook Lending Investment Interest/ Dividend/ Principal Principal Quick Financing collateral Small investment Little time & effort is origination capacity amounts required Faster No price changes originations than We can provide loans Eas
Slide 45: Company Profile
8 Company Profile © Loadstar Capital ALL RIGHTS RESERVED 44
Slide 46: Company Profile (as of Dec 31, 2022)
Company Profile（as of Dec 31, 2022） Company Name Loadstar Capital K.K. Address Ginza First Building, 1-9-13 Ginza, Chuo-ku, Tokyo, Japan Founded March 14, 2012 Representative President & CEO Tatsushi Iwano Number of Directors 7 (including three outside directors) Number of Officers Approx. 80 and Em
Slide 47: Our Team
Our Team Naoyuki Kubo Yo Narita Takuya Kawabata Naoyuki Kubo was named Yo Narita was named Executive Takuya Kawabata has been our Executive Director in March 2019. Director in March 2019. Chief Financial Officer since January Since Joining Loadstar Capital in Since Joining Loadstar Capital in 2019,
Slide 48: History
History Mar 2012 Established Loadstar Capital K.K. in Ebisu, Shibuya-ku, Tokyo May 2014 Established Loadstar Funding K.K. (wholly owned subsidiary) Sep 2014 Launched crowdfunding service on the internet under the brand name “OwnersBook” Apr 2015 Relocated head office to Ginza, Chuo-ku, Tokyo Sep 201
Slide 49: Status of Shareholders
Status of Shareholders • Changes in Total Shareholders 2017 2018 2019 2020 2021 2022 2,800 2,730 2,566 4,348 6,934 7,745 • Major Shareholders Shareholders name FY2022Q4 （1,000 share /% of total shares） Tatsushi Iwano （President） 3,366 (20.9%) Capital Generation KK 1,100 (6.8％) Renren Lianhe Holdings
Slide 50: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows • As a result of the solid business performance, CF from operating activities showed a large cash outflow due to growth in the balances of operating loans and real estate for sale, but this was offset by profit before taxes. • We maintain good relationships with
Slide 51: Key Risk Information
Key Risk Information Related Degree of Recognized Risk Likelihood Countermeasures Business Impact The risk of being unable We will strengthen our recruiting. Furter, to to secure talented prevent the outflow of talent from the personnel to support the All Low Low organization, we will endeavor to fo
Slide 52: Real Estate Market Analysis
9 Real Estate Market Analysis © Loadstar Capital ALL RIGHTS RESERVED 51
Slide 53: Vacancy Rates
Vacancy Rates • Vacancy rates in the Tokyo business district, which had been very low, increased once, but have settled down. • Tokyo vacancy rates remain below those in the UK and US. Vacancy rates in Japan, UK, and US Overall vacancy rate for Tokyo’s 5 major wards （%） （%） Q4 2020 20 20 Q4 2021 Q3
Slide 54: Real Estate Investment from Overseas
Real Estate Investment from Overseas • Compared to FY2021, there were no large transactions or sales of company - owned buildings, and Asia-Pacific was on a downward trend, resulting in a significant decrease in the investment volume by overseas investors. • Meanwhile, given external factors such as
Slide 55: The World in 2025 (Urban Population & GDP)
The World in 2025（Urban Population ＆ GDP） The greater Tokyo area has higher concentrations of large enterprises, the largest urban population, and GDP in the world. Fortune Global 500 2019 40,000 Number of Global Corporate HQ’s by City Tokyo Beijing 53 35,000 Delhi Tokyo 38 20 Population（thousands）
Slide 56: Disclaimers
Disclaimers ⚫ The contents of this document are being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose without our prior permission. This document is being