Loadstar Capital Kk · TSE:3482

Loadstar Capital Kk — H1 2022 Earnings Presentation

54 slides from Loadstar Capital Kk's earnings presentation, August 2022

Slide 1: Six Months Ended June 30, 2022 Earnings Briefing
Six Months Ended June 30, 2022 Earnings Briefing Loadstar Capital K.K. Securities code: 3482 August 2022 © Loadstar Capital ALL RIGHTS RESERVED
Slide 2: Index
Index １．Our Business P. 2 ２．2 nd Quarter Topics P. 4 ３．Overview of Financial Results for the Six Months P. 7 Ended June 30, 2022 ４．Business Overview P. 13 Corporate Funding Business P. 15 Asset Management Business P. 18 Crowdfunding Business P. 20 ５．Forecast for the FY2022 and Future Growth Strategy
Slide 4: 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: High Light
High Light (¥ billions) % Y-o-Y % of Forecast Net sales 13.5 +36.1％ 73.2％ (¥ billions) % Ｙ-o-Y % of Forecast Profit before tax 5.0 ＋61.5％ 79.6％ (¥ billions) % Y-o-Y % of Forecast Profit 3.5 ＋61.8％ 79.8％ © Loadstar Capital ALL RIGHTS RESERVED 5
Slide 7: 2nd Quarter Topics
2 nd Quarter Topics ・Record Profit on Quarterly Basis Profit before income taxes in the second quarter of FY2022 was ¥3.8 billion yen. ・Listed on Tokyo Stock Exchange Prime Market Completed transition to Tokyo Stock Exchange Prime Market in April 2022. Market capitalization has been significantly ab
Slide 9: Consolidated Sales
Consolidated Sales • Demand for office buildings in the 23 Tokyo wards has been robust; properties sold at record prices. • Outlook for 2H remains upbeat. （¥ millions） 1Q 17,920 2Q 16,979 Y-o-y 3Q 15,116 +36% 4Q 13,545 9,670 9,955 % of Forecast 73% 2018 2019 2020 2021 2022 © Loadstar Capital ALL RIG
Slide 10: Consolidated Profit Before Income Taxes and Cost Controls
Consolidated Profit Before Income Taxes and Cost Controls • Consolidated profit before income taxes grew a sharp 62% YoY (profit margin: 37.6%), exceeding the total for the previous fiscal year in the first six months. Consolidated Profit before income taxes（¥ millions） Cost structure 28.1% 37.6% ot
Slide 11: Consolidated Statements of Income
Consolidated Statements of Income （¥ millions） FY2022 1Q-2Q Results FY2022 (Forecasts) % of % of Net % of Net Amount % Y-o-Y FY2021 Amount % Y-o-Y Sales sales Forecast Net sales 13,545 100.0% 136.1% 73.2% 18,517 100.0% 103.3% Cost of sales 7,388 54.5% 125.9% 74.6% 9,902 53.5% 90.3% Gross Profit 6,15
Slide 12: Consolidated Financial Position
Consolidated Financial Position （¥ millions） 2022Q2 % vs. • This shows the amount of loans Amount % of total outstanding in the Crowdfunding 12/31/2021 business Current assets 61,332 99.4% 108.1% Cash and deposits 9,988 16.2% 126.0% • A considerable amount of unrealized gains have accrued, as we hol
Slide 13: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows （¥ millions） Amount 2021Q2 2022Q2 Changed CF from operating activities 2,394 382 △2,011 Profit before income taxes 3,152 5,091 1,939 Decrease (increase) in operating loans receivable △644 △216 428 Decrease (increase) in Real estate as inventory △380 △2,918 △2,53
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 Asset management of Comprehensive Japan’s first real estate using internal investment real esta
Slide 16: Corporate Funding Business Results: Real Estate Investment Sales
Corporate Funding Business Results 【Real Estate Investment Sales】 • Completed property sales at record prices and secured generous profit margins. • Property sales are progressing well, with more sales confirmed in 2H. Net Sales（Real estate investment）（¥ millions） 1Q 14,571 14,806 2Q 3Q 12,919 12,0
Slide 17: Corporate Funding Business Results: Real Estate Leasing Sales
Corporate Funding Business Results 【 Real Estate Leasing Sales 】 • Real estate leasing revenue down YoY despite sales of large properties, because we invested aggressively in empty buildings, etc. focusing on future growth. • Chisun Hotel Yokohama Isezakicho opened in June 2022 and is expected to co
Slide 18: Corporate Funding Business Results
Corporate Funding Business Results 【 Shareholder Value Enhanced by Property Acquisitions 】 • Acquired a large building in Shibuya, making use of our strengths, under tough conditions for purchasing properties in an active office building market affected by macroeconomic factors such as inflation and
Slide 19: Asset Management Business
Asset Management Business • Assets under management (AUM) increased to approximately ¥76.0 billion, attracting investor demand, which remains robust. （New AUM in 2Q） • As in 1Q, we sold one property to an SPC and received a mandate to manage the asset. In addition to the profit from the property sal
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 Asset management of Comprehensive Japan’s first real estate using internal investment real estate supp
Slide 21: Crowdfunding Business Results
Crowdfunding Business Results • Although, it has been somewhat difficult for us to put together loan- type products due to e.g., other financial institutions' aggressive lending stances, inquiries have been steadily increasing. We expect these to become multiple transactions in the future. • Investo
Slide 22: Investor Members / Cumulative Investment Amount
Investor Members / Cumulative Investment Amount • Number of investor members increasing steadily; number of shareholders & investor members also growing. • Our priority is to avoid excessive risk burdens being placed on investor members. We aim to expand our business while carefully monitoring the m
Slide 23: OwnersBook Growth
OwnersBook Growth Projects are Products with Implementation of lottery becoming larger shareholder benefits Overseas Deal Formation projects Winning fans as Lottery ratio: Seeking new kinds of ¥1.1bn in offering shareholders & (more than 3,000investors) investor members Several times equity-type pro
Slide 25: Forecast
Forecast （¥ millions） FY2022 1Q-2Q Results FY2022 (Forecasts) % of % of Net % of Net Amount % Y-o-Y FY2021 Amount % Y-o-Y Sales sales Forecast Net sales 13,545 100.0% 136.1% 73.2% 18,517 100.0% 103.3% Cost of sales 7,388 54.5% 125.9% 74.6% 9,902 53.5% 90.3% Gross profit 6,157 45.5% 150.6% 71.5% 8,61
Slide 26: 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 27: 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 28: 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 29: Business Strategy: Crowdfunding Business (Equity-Type)
Business Strategy: ③ 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 30: Business Strategy: Crowdfunding Business (STOs)
Business Strategy: ③ Crowdfunding Business (STOs) A framework based on new technologies for providing law/regulation-compliant services that meet demand for new fund procurement methods to replace What are STOs traditional equity and debt financing, as well as demand for new financial products (Secu
Slide 31: Business Strategy: ESG
Business Strategy: ④ESG 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 priorit
Slide 32: 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 have been targeting dividend payout ration of 15%. We are considering to increase the ratio step by step, as we increase medium- to l
Slide 33: Key Risk Information
Key Risk Information Related Degree of Recognized Risk Likelihood Countermeasures Business Impact We will strengthen our recruiting. Furter, to The risk of being unable to prevent the outflow of talent from the secure talented personnel to All Low Low organization, we will endeavor to foster an open
Slide 35: Loadstar Capital's Strength
Loadstar Capital’s Strength Barrier to entry due to Ability to respond to government approval market changes, and licenses supported by a Creation of a new stable financial base Innovation market by Financial and Crowdfunding Stability Entry Barriers High Expertise Fast investment decision-making by
Slide 36: 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 hurdles to overcome in manager based on the track record of High acquiring approvals and
Slide 37: Competitive Advantage of Corporate Funding Business
Competitive Advantage of Corporate Funding Business With our speedy real estate appraisal and decision-making, we are targeting to acquire medium-sized office buildings with high liquidity area, mainly Tokyo’s 23 wards, and work to enhance their value. Sell Information Appropriately judge acquisitio
Slide 38: Stable Financial Base
Stable Financial Base • Long-term borrowings to cover short-term Creditworthiness backed by appraisal track record real estate price fluctuations and secure our 150 stable financial base Tokyo Office Real Estate Price Index 100 200.0 50 150.0 0 Purchase amount Borrowed amount Appraisal value Indexed
Slide 40: 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 41: OwnersBook (Loan-Type / Equity-Type)
OwnersBook（Loan-Type / Equity-Type） Loan-Type : Lending for real estate-backed/loans Real Loan Lending (mortgage) estate ¥800~1,200 ¥1,000 million OwnersBook ~1,500 Investment Investors million Equity Interest / ¥200~300 million Principal Investment Dividend/ Loan Principal Real ¥600~900 estate mill
Slide 42: OwnersBook Features
OwnersBook Features Little time and effort is Small investment required to start investing amounts There is no price changes, unlike share and investment trust. Makes it easy to invest in real Basically, investors can receive estate through small investments dividends on a regular basis. Investor ba
Slide 43: Equity-Type: The World We Aim for
Equity-Type ～ The World We Aim for ～ Historically The Aim of OwnersBook Larger Investment Small Size Small Size Products Real Estate J-REIT Real Estate J-REIT mainly for investment investment professional investors Individual investors Individual investors Institutional investors Institutional inves
Slide 44: Crowdfunding: Profit Structure
Crowdfunding ～ Profit Structure ～ ⚫ Profit structure Asset Up-front fee Disposition fee Management fee Loan-type Loan amount × 2% －－ Equity Amount Real Estate Sales Price Equity-type AUM × 0.3-1％ × 1-2％ × 1％ * The above fee condition is a typical sample. ⚫ Risk and Return High Futures 【Target retur
Slide 46: Company Profile (as of June 30, 2022)
Company Profile（as of June 30, 2022） Company Name Loadstar Capital K.K. Address Ginza First Building 2F, 1-10-6 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 About 75 and
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 50: 2022 Our Outlook for the Real Estate Market
2022 Our Outlook for the Real Estate Market ⚫ Tokyo Real Estate Market The upward trend in vacancy rates and downward trend in rent have stabilized in the office leasing market. The office building trading market is quite robust, because domestic and overseas institutional investors are aggressively
Slide 51: COVID-19: Vacancy Rates
COVID-19: Vacancy Rates • The office vacancy rate in Tokyo’s business districts, which had been extremely low, has risen during the pandemic, but this rise has leveled off. • Tokyo vacancy rates remain well below those in the UK and US. （%） Overall vacancy rate for Tokyo’s 5 major wards （%） Vacancy
Slide 52: COVID-19: Real Estate Investment from Overseas
COVID-19: Real Estate Investment from Overseas • Investment by overseas property investors fell sharply in 1Q FY2022 versus 1Q FY2021, because there were no large. • However, with sales picking up in 2Q onward, investment by overseas property investors is expected to increase. Investment amounts （Bi
Slide 53: The World in 2025 (Urban Population & GDP)
The World in 2025（Urban Population ＆ GDP） The greater Tokyo area continues to have 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） Paris 30,000 Shanghai New York
Slide 54: 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

Loadstar Capital K.K. — H1 2022 Earnings Presentation on 6ix

Loadstar Capital Kk — H1 2022 Earnings Presentation

Slide 1: Six Months Ended June 30, 2022 Earnings Briefing

Slide 2: Index

Slide 3: Our Business

Slide 4: Our Business

Slide 5: 2nd Quarter Topics

Slide 6: High Light

Slide 7: 2nd Quarter Topics

Slide 8: Overview of Financial Results for the Six Months Ended June 30, 2022

Slide 9: Consolidated Sales

Slide 10: Consolidated Profit Before Income Taxes and Cost Controls

Slide 11: Consolidated Statements of Income

Slide 12: Consolidated Financial Position

Slide 13: Consolidated Statements of Cash Flows

Slide 14: Business Overview

Slide 15: Real Estate Investments

Slide 16: Corporate Funding Business Results: Real Estate Investment Sales

Slide 17: Corporate Funding Business Results: Real Estate Leasing Sales

Slide 18: Corporate Funding Business Results

Slide 19: Asset Management Business

Slide 20: Real Estate Tech

Slide 21: Crowdfunding Business Results

Slide 22: Investor Members / Cumulative Investment Amount

Slide 23: OwnersBook Growth

Slide 24: Forecast for the FY2022 and Future Growth Strategy

Slide 25: Forecast

Slide 26: Business Strategy: Increase Assets Held

Slide 27: Business Strategy: Asset Management Business

Slide 28: Business Strategy: Crowdfunding Business (Loan-Type)

Slide 29: Business Strategy: Crowdfunding Business (Equity-Type)

Slide 30: Business Strategy: Crowdfunding Business (STOs)

Slide 31: Business Strategy: ESG

Slide 32: Return to Shareholders

Slide 33: Key Risk Information

Slide 34: Appendix: Sources of our Competitive Strength

Slide 35: Loadstar Capital's Strength

Slide 36: Competitive Advantage of Crowdfunding Business

Slide 37: Competitive Advantage of Corporate Funding Business

Slide 38: Stable Financial Base

Slide 39: Appendix: Crowdfunding Market and OwnersBook

Slide 40: Crowdfunding Market and Growth Potential

Slide 41: OwnersBook (Loan-Type / Equity-Type)

Slide 42: OwnersBook Features

Slide 43: Equity-Type: The World We Aim for

Slide 44: Crowdfunding: Profit Structure

Slide 45: Appendix: Company Profile

Slide 46: Company Profile (as of June 30, 2022)

Slide 47: Our Team

Slide 48: History

Slide 49: Appendix: Real Estate Market Analysis

Slide 50: 2022 Our Outlook for the Real Estate Market

Slide 51: COVID-19: Vacancy Rates

Slide 52: COVID-19: Real Estate Investment from Overseas

Slide 53: The World in 2025 (Urban Population & GDP)

Slide 54: Disclaimers