Slide 1: FY23/2 Full-Year Corporate Presentation
FY23/2 Full-Year Corporate Presentation January 13, April 19, 2023 2023 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 FY23/2 Earnings ‒ Ichigo Owners’ Powerful Business Model ‒ FY23/2 Summary ‒ Asset Management: Growth Support for Ichigo ‒ All-In Disclosure to Increase Earnings Transparency REITs & Ichigo Green ‒ All-In OP +27%, Cash EPS +20% (YOY) ‒ Asset Management: Driving Growth in Ichigo Office (8975)
Slide 6: FY23/2 Earnings
FY23/2 Earnings © Ichigo Inc. All rights reserved. 6
Slide 7: FY23/2 Summary
FY23/2 Summary – +14% Dividend Increase on Earnings Exceeding Revised-Up Forecast, YOY Earnings Growth Across All Earnings Metrics All-In Operating Profit: JPY 16.9B (+27%), Cash Net Income: JPY 15.3B (+18%) EPS: JPY 20.45 (+48%), Cash EPS: JPY 33.36 (+20%) Dividend Increase Supported by Robus
Slide 8: FY23/2 Summary
FY23/2 Summary Durable Earnings Model Robust Stock Earnings ■ FY22/2 Stock Earnings/Fixed Expenses ■ FY23/2 193% +5% (JPY million) Fixed Sustainable Asset Clean Flow Earnings Real Estate Management Energy Expenses (SRE) (AM) (CE) JPY 13.4B JPY 8.1B +6% Cash Earnings 14,912 15,598 JPY 29.0B +5% 8,477
Slide 9: 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
Slide 10: All-In OP +27%, Cash EPS +20% (YOY)
All-In OP +27%, Cash EPS +20% (YOY) − Cash Earnings Significantly Exceed Accounting Earnings Due to Ichigo’s Focus on Maximizing Long-Term Cash Flows for Shareholders − Cash EPS = 1.6X EPS, Cash ROE 15.1% (JPY million) FY23/2 (Reference) FY22/2 FY23/2 YOY Revised FY23/2 Forecast Initial Forecast Ope
Slide 11: Segment Earnings Details
Segment Earnings Details − Asset Management: Value-Add Driving Value Creation for Ichigo Office (8975), Performance Fee on Asset Sale − SRE Stock Earnings: Strong Hotel Demand Recovery & Inbound Growth − SRE Flow Earnings: Retail Asset & Ichigo Owners Sales = Major Drivers − Clean Energy: Continuing
Slide 12: 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. 12
Slide 13: Stock + Flow Earnings
Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Power Generation Revenues, Base AM Fees, & Non-Cash Expenses (e.g., Depreciation)) Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) Fixed Expenses (Fixed SG&A + Interest Expenses) Cash Earnings (JPY million) 37,016 33,759
Slide 14: Stable Stock Earnings
Stable Stock Earnings Stock Earnings by Segment ■ Asset Management ■ Sustainable Real Estate ■ Clean Energy (JPY million) (Stock Earnings/ 18,485 18,450 Fixed Expenses, %) (261%) (234%) 2,057 2,062 15,065 14,912 15,598 (195%) (191%) (193%) 1,832 2,091 2,066 13,451 13,331 9,402 8,477 8,989 3,830 4,34
Slide 15: 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) 65.3 67.8 63.9 56.2 50.9 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Third-Party Appraisal Value-Based
Slide 16: Value-Add Drives Durable Value Growth
Value-Add Drives Durable Value Growth 2.8X Appraisal Value-Based Unrealized Gains 2.5X Real Estate Gains on Sales 1.8X 2.0X JPY 17.1B JPY 15.0B 1.9X JPY 11.6B JPY 9.4B JPY 6.1B JPY 5.9B JPY 5.7B JPY 6.3B JPY 4.7B JPY 3.0B FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Real Estate Gains on Sales = Gross Profit +
Slide 17: Robust Cash Generation
Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income (JPY billion) Net Income Economic Operating Cash Flow 3.6X 1.7X 1.9X 2.1X 1.1X 29.5 25.5 15.4 10.4 12.4 9.4 10.0 8.2 6.5 5.0 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Note: Economic Operating Cash Flow = Cash Flows from Operations exclu
Slide 18: Strong Financial Base
Strong Financial Base Weighted Average Loan Period Average Interest Rate & Loan Term 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 10.0 years 10.1 years 10.0 years 9.6 years 2.0% 8.3 year
Slide 19: JPY 22B in Positive Impact Finance Loans
JPY 22B in Positive Impact Finance Loans Financial Institutions Positively Assessing Ichigo ESG & Providing New Commitment Lines to Support Ichigo’s Initiatives to Build a Sustainable Society SMBC & Kansai Mirai Bank Mizuho Bank Contract Date Feb 27, 2023 Contract Date Feb 28, 2023 Amount JPY 9.2B A
Slide 20: Sustainable/ESG Finance
Sustainable/ESG Finance Ichigo’s ESG Execution Driving Attractive Financing Terms ESG Loans as % of Total Borrowings ESG Loans (JPY billion) ■ ESG loans (including green bonds) ■ ESG loans (including green bonds) ■ Remaining ESG commitment line ■ Remaining ESG commitment line ■ Other corporate loans
Slide 21: Ichigo Climate Positive: CO2 Reduction > Emissions
Ichigo Climate Positive: CO2 Reduction > 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 Emiss
Slide 22: RE100 by 2025 On Track
RE100 by 2025 On Track Ichigo RE100 Progress FY25/2 Target 100% FY23/2 Renewable Energy Transition Impact FY24/2 Target CO2 Reduction 35,000 tons p.a. 85% FY23/2 CO2 Emissions of Cars Renewable Energy FY24/2 Renewable Ratio Target Energy × 15,200 cars p.a. 15% 70 % (+17% vs. FY22/2) Switch 57% 13% N
Slide 23: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 23
Slide 24: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales Acquisitions: JPY 50.7B (+63% YOY) − Multi-Asset: JPY 14.6B, 6 Office Assets, Strengthening Ichigo Office Acquisition Pipeline − Owners: JPY 36.0B, Expanding Sales Channels via Securitized Token Offerings (STOs) Supporting Ability to Grow Acq
Slide 25: Ichigo Owners: Robust Demand Driving Growth
Sustainable Real Estate Ichigo Owners: Robust Demand Driving Growth FY23/2 Sales: JPY 28B (+55% YOY) FY24/2 Target JPY 50B FY23/2 Acquisitions: JPY 36B (+34% YOY) FY24/2 Target JPY 40B 4.2 (JPY billion) Ichigo Owners Residential Acquisitions & Sales ■ Sales ■ Acquisitions 3.8 3.5 2.1 50.0 1.4 30.6 2
Slide 26: Ichigo Owners’ Powerful Business Model
Ichigo Owners’ Powerful Business Model Virtuous Cycle Created via Deep Understanding of Tenant Needs & Market Pricing Rooted in Extensive Experience in Leasing, Sales, & Acquisitions Realtime Feedback of Tenant Needs & Leasing Trends Acquisitions Leasing JPY 36B (33 Assets) Holding Period c. 1,500 l
Slide 27: Growth Support for Ichigo REITs & Ichigo Green
Asset Management Growth Support for Ichigo REITs & Ichigo Green Ichigo Office 8975 Ichigo Hotel 3463 Ichigo Green 9282 Portfolio JPY 212.1B (88 Assets) JPY 54.7B (25 Hotels) JPY 11.4B (15 Solar Plants) Dividend Yield (as of April 17, 2023) 6.1% 3.4% 5.5% ・ Entered FTSE Global REIT Index, ・ Geographi
Slide 28: Driving Growth in Ichigo Office (8975) Shareholder Value
Asset Management Driving Growth in Ichigo Office (8975) Shareholder Value − Growing Pipeline (6 Office Asset Acquisitions in FY23/2) − Providing Bridge Funds with Ichigo Office Preferred Negotiation Rights Ichigo Office Value-Add Also Driving Earnings Growth & Shareholder Value − Strengthening Ich
Slide 29: Clean Energy: Scaling Rapidly
Clean Energy Scaling Rapidly FY23/2: 3 New Plants (Total 5.1MW) Online, Growing Stable Earnings FY24/2: Maintenance Costs Up in FY 24/2 Due to Planned Maintenance FY25/2: Earnings Contribution From 1 New Plant (13.9MW) Online in FY24/2 Ichigo 4.9 4.5 4.3 Operating Plants: JPY 38.8B (144.8MW) (Actual
Slide 30: Share Buybacks – 6th Consecutive Year (FY23/2: JPY 4.5B)
Share Buybacks – 6th Consecutive Year (FY23/2: JPY 4.5B) Continued Flexible Deployment of Share Buybacks Share Buybacks Number of Shares Average Purchase Purchased Amount Price (% of Shares Outstanding) 9,448,400 FY23/2 Aug~Nov JPY 317 JPY 3 billion (1.9%) 5,103,800 FY23/2 Apr~Jun JPY 293 JPY 1.5 bi
Slide 31: +14% Dividend Increase
+14% Dividend Increase +14% Dividend Increase, DOE (Dividend on Equity) Payout Ratio 3.6% on Back of Robust Cash Generation & Covid Recovery Ichigo Dividend Policy Progressive Dividend Shareholder return policy underscores our commitment to dividend Policy growth, transparency, and stability. Divide
Slide 32: Ichigo J.League Shareholder Program
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 (73,000 shareholders in t
Slide 33: FY24/2 Forecasts
FY24/2 Forecasts © Ichigo Inc. All rights reserved. 33
Slide 34: FY24/2 Forecast
FY24/2 Forecast All-In OP +7%, Cash EPS +3% − SRE Earnings Growth on Hotel Revenue Growth & Asset Sales − All-In Recurring Profit Decrease on Dropping Out of One-Off Interest Hedge Gains − Net Income +6% (Earnings Growth, Dropping Out of One-Off Extraordinary Losses) (JPY million) FY24/2 FY23/2 YOY
Slide 35: FY24/2 Forecast Details
FY24/2 Forecast Details − AM: Performance Fee Decline − SRE: Hotel & Operator Revenue Growth Increased SRE Multi-Asset Value-Add & Gains on Sale − Clean Energy: Cost Increase on Large-Scale Maintenance (JPY million) All-In Operating Profit Segment FY24/2 FY23/2 YOY Forecast Asset Management (AM) 3,0
Slide 36: FY24/2 Forecast Cash Earnings
FY24/2 Forecast Cash Earnings ■ Stock Earnings ■ Flow Earnings ■ Fixed Expenses (JPY million) Cash Earnings 37,016 30,467 28,970 18,567 24,705 13,482 20,915 13,371 9,793 5,850 18,450 15,598 16,985 15,065 14,912 7,877 7,723 7,819 8,087 9,020 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 Forecast © Ichigo Inc. A
Slide 37: Appendix: Ichigo’s Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 37
Slide 38: 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 39: 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
Slide 40: 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
Slide 41: 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 10 members of Ichigo’s
Slide 42: 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
Slide 43: 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
Slide 44: 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
Slide 45: Appendix: Financial & Operational Data
Appendix: Financial & Operational Data © Ichigo Inc. All rights reserved. 45
Slide 46: 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
Slide 47: 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 February 28, 2023 (A) (B) (B)/(A) (C) (C) - (A) Tokyo 89,163 5,353 6.0% 125,252 +36,089 Outside Tokyo 96,264 6,495 6.7% 12
Slide 48: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 406.4B (Book Value JPY 338.6B + Unrealized Gains JPY 67.8B) Cash & Cash Equivalents Non-Recourse Loans & Related Liabilities JPY 34.4B JPY 45.2B Risk-Based Consolidated Balance Sheet: JPY 326.8B Non-Recourse Loans & (Book Value
Slide 49: Cash Flow Maximization
Cash Flow Maximization Maximal Use of Depreciation 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% 15.2% 84.4% 84.7% 84.3% (JPY billion) 32.0 30.9 29.7 Reclassification of 29.5 Sustainable Real Estate Assets to Fix
Slide 50: 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 non-cash depreciation allowances − Majority of cash earnings are Stock Earnings − Stock Earnings/Fixed Expenses Ratio – even amidst Covid – is consistently c. 193% (JPY mill
Slide 51: 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
Slide 52: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Operational Operational Cash and Cash Real Estate Intangible Securities Other Segment Loan Securities Fixed Assets Total Assets Equivalents for Sale Assets Investments Assets Investments Investments Asset Management (AM) - - - - - 560 124 2
Slide 53: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) All-In Gross Profit All-In Operating Profit Segment YOY YOY FY23/2 FY22/2 FY23/2 FY22/2 FY23/2 Change Change Revised Forecast Asset Management (AM) 2,368 3,753 +58.5% 1,839 3,026 64.5% 2,900 Base AM Fees 2,091 2,066 -1.2% – – – – Acquisition/Disposit
Slide 54: Asset Management AUM Detail
Asset Management AUM Detail FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 (12M) (12M) (12M) (12M) (12M) (12M) Ichigo Office AUM (Fiscal Year End) JPY 196.9B JPY 203.0B JPY 203.2B JPY 206.1B JPY 205.4B JPY 212.1B (8975) Base AM Fee Gross Profit (Actual) JPY 1,373M JPY 1,426M JPY 1,436M JPY 1,524M JPY 1,7
Slide 55: Appendix: Sustainable Real Estate Details
Appendix: Sustainable Real Estate Details © Ichigo Inc. All rights reserved. 55
Slide 56: 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
Slide 57: 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
Slide 58: 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
Slide 59: 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
Slide 60: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 GPM 25.5% 28.3% 13.9% 20.6% 21.1% (vs. Revenue) GPM 34.3% 39.5% 16.2% 26.2% 27.1% (vs. Book Value) Revenue 58,693 60,601 41,430 45,830 55,166 (JPY M) Gross Pro
Slide 61: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Sendai Other Lease Other 2% 2% Nagoya 3% 5% 1％ Logistics Osaka 3% Hokkaido 9.1 1% Hokkaido 4% Residential Office 29% Tokyo 20% Tokyo Tokyo Metro 134.1 11% 53% Hotel 23% Retail Fukuoka Sendai 24％ 19% 5.7 *Ex-Tokyo By As
Slide 62: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 177 Assets, JPY 247.1B, Annual NOI JPY 11.8B (6.4% Yield) Acquisition Acquisition Building Expected 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 Mat
Slide 63: Sustainable Real Estate Asset Breakdown (2)
Sustainable Real Estate Asset Breakdown (2) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 29 Ground Lease Fixed Asset Fujisawa, Kanagawa JPY 1B-2B 2014/03 – JPY 113M JPY 27
Slide 64: Sustainable Real Estate Asset Breakdown (3)
Sustainable Real Estate Asset Breakdown (3) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 68 Retail Fixed Asset Shibuya-ku, Tokyo <JPY 1B 2015/04 21 years JPY 48M JPY 79M –
Slide 65: Sustainable Real Estate Asset Breakdown (4)
Sustainable Real Estate Asset Breakdown (4) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 145 Hotel Fixed Asset Fukuoka >JPY 3B 2018/03 5 years JPY 194M JPY 301M – – 147 Ho
Slide 66: Sustainable Real Estate Asset Breakdown (5)
Sustainable Real Estate Asset Breakdown (5) Acquisition Acquisition Building Expected 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 59 years JPY 120M
Slide 67: Sustainable Real Estate Asset Breakdown (6)
Sustainable Real Estate Asset Breakdown (6) Acquisition Expected Ichigo Equity Forecast Equity Forecast No. Asset Type vs. FY22/2 Q4 1 Price NOI/Year Investment Multiple IRR A Ichigo Owners (Residential) 43 Assets JPY 45,815M +JPY 11,390M JPY 1,813M JPY 16,814M – – B Ichigo Owners (Other) 4 Assets J
Slide 68: Appendix: Clean Energy Details
Appendix: Clean Energy Details © Ichigo Inc. All rights reserved. 68
Slide 69: 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 JPY 14 Hokkaido 3% Shikoku 2% 2% Tohoku <1 year In 3% 1% JPY 18 Pipeline Kyushu 11% JPY 40 9% 13% JP
Slide 70: 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
Slide 71: 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
Slide 72: 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
Slide 73: 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
Slide 74: Green Biomass Entry
Green Biomass Entry Fully Local Green Biomass as Ichigo's Third Renewable Energy Business − Diversify & stabilize power production − Procure biomass feedstock via Ichigo’s relationships with local government Weather Characteristics Impacts ・ Lots of potential plant site candidates, able to make effe
Slide 75: Appendix: Financial Statements
Appendix: Financial Statements © Ichigo Inc. All rights reserved. 75
Slide 76: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 vs. FY22/2 Assets Current Assets Cash and cash equivalents 50,225 41,067 50,832 46,458 40,536 -5,922 Trade notes and accounts receivable 1,344 2,308 1,382 1,819 3,866 +2,047 Operational loan investments 1,324 1,324 1
Slide 77: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 vs. FY22/2 Liabilities Current Liabilities Short-term loans 3,275 3,086 4,879 2,382 962 -1,420 Bonds (due within one year) 112 274 274 274 364 +90 Long-term loans (due within one year) 7,881 12,277
Slide 78: Consolidated P&L
Consolidated P&L (JPY million) FY23/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Change vs. Full-Year (12M) (12M) (12M) (12M) (12M) (YOY) Forecast Forecast Revenue 83,540 87,360 61,368 56,934 68,093 +11,159 – – Cost of Goods Sold 51,413 52,851 45,776 40,757 48,674 +7,917 – – Gross Profit 32,126 34,509 15,59
Slide 79: Consolidated Cash Flows: Operations
Consolidated Cash Flows: Operations (JPY million) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) Cash Flows from Operations Pre-tax income 23,079 16,545 7,610 9,595 14,234 Depreciation 1,696 2,630 4,797 5,644 5,339 Share-based compensation expenses 213 194 21 73 – Amortization of g
Slide 80: Consolidated Cash Flows: Investments & Financing
Consolidated Cash Flows: Investments & Financing (JPY million) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) Cash Flows from Investments Payments into time deposits -118 -113 -7 -7 -2 Proceeds from withdrawal from time deposits 1,060 5,033 – 30 23 Payments for securities investmen
Slide 81: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 81
Slide 82: 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
Slide 83: Addressing Needs of Diverse Individuals & Communities
Addressing Needs of Diverse Individuals & Communities © Ichigo Inc. All rights reserved. 83
Slide 84: 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
Slide 85: 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
Slide 86: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 86
Slide 87: 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
Slide 88: 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
Slide 89: PROPERA: Market Size & Customer Acquisition Target
Real Estate x IT x Tourism PROPERA: Market Size & Customer Acquisition Target Customer Acquisition Target: 2,000 Hotels Within 5 Years 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/
Slide 90: 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
Slide 91: PROPERA: Ichigo's AI Hotel Revenue Management System
PROPERA: Ichigo's AI Hotel Revenue Management System Launch of Increase Market Share Drive Non-Asset Stock Earnings Third-Party Earnings Upside From Participation in Sales Long-Term Earnings Growth Hotel Earnings Growth PROPERA Business Market Turnaround ・ Strong domestic & inbound hotel demand reco
Slide 92: Hakata Hotels: Hotel Operations
Real Estate x Tourism Hakata Hotels: Hotel Operations − Began Operations in Fukuoka City, Currently Operating 14 Hotels in Major Cities − Expanding Ichigo’s Non-Asset Businesses, Including Operations and Master Leases of Third-Party Hotels PROPERA deployment at hotels (generating 10 to 40% revenue
Slide 93: 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
Slide 94: 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