Slide 1: FY21/2 Full-Year Corporate Presentation
FY21/2 Full-Year Corporate Presentation January 13, April 19, 2021 2021 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en
Slide 2: Condolences message
We would like to express our deepest condolences to all those affected by the M7.3 earthquake off the coast of Fukushima in February and by the Covid pandemic globally, and our wishes for the earliest and fullest possible recovery. Take care, be safe. © Ichigo Inc. All rights reserved. 2
Slide 3: Make The World More Sustainable
Make The World More Sustainable © Ichigo Inc. All rights reserved.
Slide 4: © Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Slide 5: © Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Slide 6: Contents
Contents FY21/2 Earnings Sustainable Growth as a Sustainable Infrastructure ‒ FY21/2 Summary Company ‒ Operating Profit -65%, EPS -38% (YOY) ‒ Sustainable Real Estate: Selective on Acquisitions & Sales ‒ Segment Earnings Details ‒ Sustainable Real Estate: Ichigo Owners Growth Path ‒ Asset Management
Slide 7: FY21/2 Earnings
FY21/2 Earnings © Ichigo Inc. All rights reserved. 7
Slide 8: FY21/2 Summary
FY21/2 Summary – Severe Covid Impact on Hotel Earnings Decrease in Hotel Revenues Decrease in Ichigo Hotel (3463) AM fees – Severe Covid Impact on Gains on Sales As Held Off on Asset Sales for Post-Covid Exception: Residential sales & acquisitions continue to be active on back of durable NOI –
Slide 9: FY21/2 Summary
FY21/2 Summary Durable Earnings Model Robust Stock Earnings Stock Earnings/Fixed Expenses (JPY million) 195% −18% Sustainable Asset Management Clean Energy Real Estate Cash 316 −29% Earnings 18,450 JPY 20.9B 15,065 13,331 9,402 +25% −11% 2,479 3,136 3,830 3,057 2,062 1,832 Cash Earnings = Gross Prof
Slide 10: Operating Profit -65%, EPS -38% (YOY)
Operating Profit -65%, EPS -38% (YOY) − Significant Covid Impact: Stock Earnings -18%, Flow Earnings -68% − Cash EPS = 2X EPS; 9.7% Cash ROE Despite Covid Impact (JPY million) Full-Year FY20/2 FY21/2 YOY Forecast Operating Profit 27,721 9,668 -65.1% 9,500 Recurring Profit 24,395 7,179 -70.6% 6,800 N
Slide 11: Segment Earnings Details
Segment Earnings Details − Asset Management: Decrease in Ichigo Hotel (3463) base AM fees & performance fees − Sustainable Real Estate Stock Earnings: Significant decrease in hotel rental income Flow Earnings: Focused on residential asset sales − Clean Energy: Steady growth; 6 new plants online in F
Slide 12: Powerful Value-Add Business Model Underpins Growth
Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 12
Slide 13: Business Model (1) Stock + Flow Earnings
Business Model (1) Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Power Generation Revenues, Depreciation (Non-Cash), & Base AM Fees) Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) Fixed Expenses (Fixed SG&A + Interest Expenses) 37,016 Cash Earnings 33,759 (JPY milli
Slide 14: 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 Earnings Bank for Future Periods (JPY billion) 63.9 56.2 50.9 45.4 36.8 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Appraisal Value-Base
Slide 15: 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 Appraisal Value-Based Unrealized Gains 2.5X Gains on Sales (Gross Profit) 4.4X 1.6X JPY 17.1B JPY 15.0B JPY 12.0B 1.9X JPY 10.5B JPY 6.4B JPY 6.1B JPY 5.9B JPY 5.7B
Slide 16: Business Model (4) Robust Cash Generation
Business Model (4) Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income (JPY billion) Net Income 3.6X Economic Operating Cash Flow 1.7X 1.4X 1.2X 29.5 2.1X 25.5 21.5 16.7 14.9 15.4 14.0 10.4 8.2 5.0 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Note: Economic Operating Cash Flow = Cash Flows
Slide 17: Strong Financial Base
Strong Financial Base Average Interest Rate & 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 10.3 years 10.2 years 10.0 years 10.0 years 9.0 years 9.6 years 8.7 years 2.0% 8.3 years
Slide 18: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 18
Slide 19: Sustainable Real Estate: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales FY21/2 Net Sales: JPY 3.2B (JPY million) Acquisitions Sales Difference No. of No. of （A）-（B） Book Value (A) Sale Price (B) Assets Assets Office 1 1,664 1 701 +963 Hotel 3 8,718 – – +8,718 Retail 1 863 2 5,252 -4,389 Residential 29 25,479 43 3
Slide 20: Ichigo Owners Growth Path
Sustainable Real Estate Ichigo Owners Growth Path Sourcing new central Tokyo residential assets located in prime locations near stations & tailored to diverse investment needs of clients − Expanded client base from individuals to domestic and overseas institutional investors Nerima Ward Shinjuku War
Slide 21: Ichigo Owners Growth Path
Sustainable Real Estate Ichigo Owners Growth Path Building Significant Capability & Track Record in Residential Assets (JPY billion) Ichigo Owners’ Residential Sales & Acquisitions 30.7 ■ Acquisitions 28.5 ■ Sales 24.4 13.7 29 Assets 11.7 32 Assets 27 Assets 8.1 5.5 14 Assets 12 Assets 2.4 10 Assets
Slide 22: Asset Management: Growth Support for Ichigo REITs & Ichigo Green
Asset Management Growth Support for Ichigo REITs & Ichigo Green 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 86 Assets JPY 206.1B 23 Hotels JPY 51.9B 15 Sol
Slide 23: Clean Energy: Scaling Rapidly
Clean Energy Scaling Rapidly (In-Pipeline Plants +33%) 198.9MW 6 New Plants (Total 13.7MW) Online in FY21/2 (+14%) Power Generation 173.9MW (+16%) 48.9 150.0MW Ichigo Total 169.5MW (Wind 18.3) (+10%) 23.9 Operating Plants: 127.9MW 136.2MW (Wind 7.3) In-Pipeline Plants: 41.4MW (+33%) (+21%) Solar Pla
Slide 24: Ichigo's First Wind Power Plant
Clean Energy Ichigo’s First Wind Power Plant Ichigo Yonezawa Itaya ECO Power Plant − Began operation on March 2, 2021 (total output 7.3MW, FIT JPY 22) − Powers 9,130 households (annual power generation: 27,391,000kWh) − Construction funded by Shinsei Bank Green Loan program, recognizing the plant’s
Slide 25: Green Biomass Entry
Clean Energy Green Biomass Entry Domestic Green Biomass as Third Renewable Energy Business − Diversify & stabilize power production − Procure biomass feedstock via Ichigo’s community relationships Weather Characteristics Impacts ・ Lots of potential plant site candidates, able to make effective use o
Slide 26: Joined RE100
ESG Joined RE100 Significant Focus on Lowering Energy Impacts − Promoting energy efficiency in Sustainable Real Estate business − Building assessments & improvements to reduce energy consumption − Renovations to reduce environmental impacts across-the-board − Third-party assessments of Ichigo greenh
Slide 27: Joined United Nations Global Compact
ESG Joined United Nations Global Compact Joined the UN Global Compact to Accelerate Social Contribution – Committed to Achieving the Ten Principles with Respect to Human Rights, Labor, Environment, & Anti-Corruption UN Global Compact A global sustainability initiative that calls for companies and or
Slide 28: Share Buybacks
Share Buybacks Ichigo 2030: Flexible Deployment of Share Buybacks Purpose: Grow Shareholder Value April 2021 Buyback Amount JPY 1.5 billion (maximum) Number of Shares 5,500,000 (maximum) (1.17% of shares outstanding, net of treasury shares) Buyback Period April 20, 2021 – July 13, 2021 Number of Sha
Slide 29: 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 (65,000 shareholders in t
Slide 30: FY22/2 Forecast
FY22/2 Forecast © Ichigo Inc. All rights reserved. 30
Slide 31: FY22/2 Forecast
FY22/2 Forecast − Given Covid uncertainty, forecasting with a range, taking a conservative view on the bottom of the range − Cash EPS forecast +12%~+44% YOY, Cash ROE forecast 10.6%~13.6% (JPY) FY21/2 Actual FY22/2 Forecast YOY Operating Profit 9,668 9,100～12,000 -5.9%～+24.1% Recurring Profit 7,179
Slide 32: FY22/2 Forecast Segment Details
FY22/2 Forecast Segment Details − AM: Ichigo Hotel REIT Recovery Expected to Take Time − SRE: Forecasting Gains on Sales in a Range with Cautious Outlook on Acquisitions & Sales − CE: Growth on Plan – First Wind Power Plant Online (JPY million) Operating Profit FY 21/2 FY22/2 YOY Actual Forecast Ass
Slide 33: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 33
Slide 34: 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 35: 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 36: Sustainability Report
Sustainability Report Promoting Awareness of Ichigo’s Sustainability Initiatives via Ichigo Sustainability Report Ichigo Sustainability Report (Japanese only – English version to be available this week) www.ichigo.gr.jp/pdf/esg/Ichigo_Sustainability_Report_JPN.pdf © Ichigo Inc. All rights reserved.
Slide 37: Ichigo ESG – Environmental
Ichigo ESG – Environmental Sustainable Real Estate Contributing to a Low-Carbon World Preserve & Improve Real Estate to End Wasteful Clean Energy Demolition Ichigo RE100 Target: 100% Renewable Electricity ‒ Lengthen useful life of real estate (including Ichigo Office and Ichigo Hotel) by 2040 ‒ Shri
Slide 38: Ichigo ESG – Social
Ichigo ESG – Social Supporting Local Communities Working with Tenants − Ichigo’s Boutique Hotel THE KNOT − Conduct tenant surveys to understand needs to A place where visitors, communities, and the old implement effective value-add and the new can come together − Exclusive investor for Oshii Mamoru’
Slide 39: Ichigo ESG – Governance
Ichigo ESG – Governance Early Adopter of Global Best Practice Majority Independent Director Board Corporate Governance Structure Underpins Strong Governance − Adopted Independent Director-led, committee- − Of 9 members of Ichigo’s Board of Directors, 5 based governance system in 2006 to incorporate
Slide 40: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 40
Slide 41: Covid Countermeasures
Covid Countermeasures − Infection control & response, communication with tenants, thorough information gathering, & extensive safety measures for tenants Covid Awareness & Prevention Asset Type Covid Infection Countermeasures Promotion Poster Provide hand sanitizers ubiquitously All Asset Types Cove
Slide 42: 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, 2021 (A) (B) (B)/(A) (C) (C) - (A) Tokyo 93,270 5,330 5.7% 126,972 +33,702 Outside Tokyo 108,985 7,078 6.5% 1
Slide 43: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 411.0B (Book Value JPY 347.0B + Unrealized Gains JPY 63.9B) Cash & Cash Equivalents Non-Recourse Loans & JPY 43.5B Related Liabilities JPY 46.3B Consolidated Risk-Based Balance Sheet: JPY 321.1B Non-Recourse Loans & (Book Value
Slide 44: Cash Flow Maximization
Cash Flow Maximization Reclassification of Sustainable Real Estate Assets to Fixed Assets to Increase Cash Flow in FY20/2 Real Estate for Sale & Fixed Assets Fixed Assets (SRE) Fixed Asset Ratio Real Estate for Sale (SRE) 30.1% 84.4% 84.4% 15.2% (JPY billion) 12.8% 30.9 32.0 140.2 Maximal use of dep
Slide 45: 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. 200% (JPY mill
Slide 46: Post-GFC Shift in Earnings Base & Financial Position
Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY21/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 195% 2.6X Coverage Ratio 10.2 years Loan Maturity (Weighted avg., 5.6 years 3.6X corporate + non-recourse loans) 2.8 years 93% 28% 17% >3 years >3 years
Slide 47: Business Segments
Business Segments Asset Management (AM) generates fee income via management of Asset Management Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282), and private real estate funds. Sustainable Real Estate (SRE) preserves and improves real estate. Sustainable Ichigo receives rental inco
Slide 48: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash and Operational Operational Real Estate for Intangible Securities Segment Cash Loan Securities Fixed Assets Other Assets Total Assets Sale Assets Investments Equivalents Investments Investments Asset Management (AM) – – – – – 701 122 6
Slide 49: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) Gross Profit Operating Profit Segment FY21/2 YOY YOY FY20/2 FY21/2 FY20/2 FY21/2 Full-Year Change Change Forecast Asset Management (AM) 3,046 1,934 -36.5% 2,526 1,403 -44.5% 1,300 Base AM Fees 2,062 1,832 -11.2% – – – – Acquisition/Disposition Fees 9
Slide 50: Asset Management AUM Detail
Asset Management AUM Detail FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 (12M) (12M) (12M) (12M) (12M) (12M) AUM (Fiscal Year End) JPY 165.1B JPY 194.5B JPY 196.9B JPY 203.0B JPY 203.2B JPY 206.1B Ichigo Office (8975) Base AM Fee Gross Profit (Actual) JPY 1,016M JPY 1,291M JPY 1,373M JPY 1,426M JPY 1,4
Slide 51: 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 52: 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 53: 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 54: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 GPM (vs. Revenue) 13.6% 33.7% 25.5% 28.3% 13.9% GPM (vs. Book Value) 15.8% 50.9% 34.3% 39.5% 16.2% Revenue (JPY M) 77,502 35,733 58,693 60,601 41,430 Gross Pro
Slide 55: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease 1% Other 4% Sendai 2% Logistics Residence 2% Osaka 3% Hokkaido 14% Hokkaido 3% 7.1 Other 7% Nagoya 3% Retail 28% Tokyo Metro* Tokyo Tokyo 11% 51% 125.3 Office 25% Fukuoka Hotel 20% Sendai 26% 5.9 *Ex-Tokyo Nagoya
Slide 56: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 177 Assets, JPY 245.1 B, Forecast NOI JPY 14.9B (6.1% Yield) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 1 Wholesale Market Fi
Slide 57: Sustainable Real Estate Asset Breakdown (2)
Sustainable Real Estate Asset Breakdown (2) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 27 Retail Fixed Asset Tokorozawa, Saitama JPY 1B-2B 2013/11 13 years JPY 76M JPY 9
Slide 58: Sustainable Real Estate Asset Breakdown (3)
Sustainable Real Estate Asset Breakdown (3) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 64 Retail Fixed Asset Shinagawa-ku, Tokyo <JPY 1B 2015/01 – JPY 26M – – – 66 Retai
Slide 59: Sustainable Real Estate Asset Breakdown (4)
Sustainable Real Estate Asset Breakdown (4) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 121 Office Fixed Asset Minato-ku, Tokyo >JPY 3B 2016/10 20 years JPY 1,540M JPY 3,
Slide 60: Sustainable Real Estate Asset Breakdown (5)
Sustainable Real Estate Asset Breakdown (5) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 155 Office Fixed Asset Shinagawa-ku, Tokyo JPY 2B-3B 2019/03 35 years JPY 169M JPY
Slide 61: Sustainable Real Estate Asset Breakdown (6)
Sustainable Real Estate Asset Breakdown (6) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 61 Retail Operational Loan Shinjuku-ku, Tokyo JPY 1B-2B 2014/12 57 years JPY 120M
Slide 62: Sustainable Real Estate Asset Breakdown (7)
Sustainable Real Estate Asset Breakdown (7) Expected Forecast Acquisition Ichigo Equity Forecast No. Asset Type vs. FY20/2 Q4 1 Equity Price NOI/Year Investment IRR Multiple A Ichigo Owners (Residential) 24 Assets JPY 21,958M -JPY 1,986M JPY 989M JPY 6,906M – – B Ichigo Owners (Other) 18 Assets JPY
Slide 63: Ichigo Solar Power Plant Portfolio
Ichigo Solar Power Plant Portfolio Ichigo Solar Power Plants (Operating) Ichigo Solar Power Plants (In Pipeline) 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 Sh
Slide 64: Ichigo Green (9282) Solar Power Plant Portfolio
Ichigo Green (9282) Solar Power Plant Portfolio Ichigo Green Solar Power Plants (Operating) Panel FIT Operation Solar Power Plant Area Output (Pre-tax) Start Date (MW) Ichigo Kiryu Okuzawa Kanto 1.33 JPY 40 Sep 2013 Ichigo Motomombetsu Hokkaido 1.40 JPY 40 Feb 2014 Ichigo Total: 198.9MW Ichigo Muror
Slide 65: Ichigo-Owned Solar Power Plant Details
Ichigo-Owned Solar Power Plant Details Total Operating and In-Pipeline Ichigo-Owned Solar Power Plants: 48 Plants (151.1MW) By Customer By Feed-In Tariff By Years in Operation (Electric Power Utility Co) Hokkaido Shikoku JPY 14 3% 2% 2% Tohoku 3% JPY 18 >5 years 10% JPY 40 Kyushu JPY 21 19% In Devel
Slide 66: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 vs. FY20/2 Assets Current Assets Cash and cash equivalents 47,678 45,510 50,225 41,067 50,832 +9,765 Trade notes and accounts receivable 913 1,097 1,344 2,308 1,382 -926 Operational loan investments 1,324 1,324 1,324
Slide 67: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 vs. FY20/2 Liabilities Current Liabilities Trade notes and accounts payable 110 – – – – – Short-term loans 805 1,042 3,275 3,086 4,879 +1,793 Short-term non-recourse loans 611 – – – – – Bonds (due w
Slide 68: Consolidated P&L
Consolidated P&L (JPY million) FY21/2 Change vs. FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Full-Year (YOY) Forecast Forecast Revenue 109,253 57,846 83,540 87,360 61,368 -25,992 – – Cost of Goods Sold 81,327 30,860 51,413 52,851 45,776 -7,075 – – Gross Profit 27,925 26,986 32,126 34,509 15,591 -18,918 – – S
Slide 69: Consolidated Cash Flows: Operations
Consolidated Cash Flows: Operations (JPY million) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) Cash Flows from Operations Pre-tax income 20,630 20,109 23,079 16,545 7,610 Depreciation 778 1,015 1,696 2,630 4,797 Share-based compensation expenses 223 215 213 194 21 Amortization of
Slide 70: Consolidated Cash Flows: Investments & Financing
Consolidated Cash Flows: Investments & Financing (JPY million) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) Cash Flows from Investments Payments into time deposits -6,100 -6 -118 -113 -7 Proceeds from withdrawal from time deposits 201 – 1,060 5,033 – Payments for securities inves
Slide 71: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 71
Slide 72: 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 73: Addressing Needs of Diverse Individuals & Communities
Addressing Needs of Diverse Individuals & Communities © Ichigo Inc. All rights reserved. 73
Slide 74: 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 75: 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 76: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 76
Slide 77: 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 78: 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 and Increases Labor Productivity − Solves Issues Faced by Hotels and Supports Competitiveness − Developed PROPERA-Lite* Tailored to Hotels’ Needs * Provides limited information on pricing level
Slide 79: Hakata Hotels: Hotel Operations
Real Estate x Tourism Hakata Hotels: Hotel Operations Hotel Operator in Kyushu/Yamaguchi Region Seeing Inbound Tourism Growth – Started operations at 3 hotels on June 1, 2019 & will operate 14 hotels as of July 1, 2021 PROPERA Deployment – Generating 10 to 40% revenue increases p.a. – Sales of PROPE
Slide 80: 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 81: TSUBASA+: Real-World Augmented Reality (AR) Game
Real Estate x IT x Entertainment x Sports x Tourism TSUBASA+: Real-World Augmented Reality (AR) Game Investing in TSUBASA+, an AR Game that Uses Smartphone GPS Japanese soccer manga, Captain Tsubasa, with avatars of world- class soccer players Integrates real-world stadiums around the world Game Fea
Slide 82: Website Renewal
Website Renewal Website Overhaul to Improve Usability & Site Content Smartphone Version Added New Sustainable Value-Add Examples & ESG Initiatives www.ichigo.gr.jp/en © Ichigo Inc. All rights reserved. 82
Slide 83: 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