Ichigo Inc. · TSE:2337
Ichigo — Q1 FY2020/2 Earnings Presentation
75 slides from Ichigo's earnings presentation, Jul 11, 2019
Slide 1: FY20/2 Q1 Corporate Presentation
FY20/2 Q1 Corporate Presentation January July 11,11, 2019 2019 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 FY20/2 Q1 Earnings ‒ New Business Entry ‒ FY20/2 Q1 Summary Hotel Operator Market Entry: Hakata Hotels Ichigo Animation Establishment – Anime + Real Estate ‒ Operating Profit +43%, Net Income +34%, EPS +37% (YOY) Synergies ‒ Segment Earnings Details Real-World Augmented Reality (AR) G
Slide 6: FY20/2 Q1 Earnings
FY20/2 Q1 Earnings © Ichigo Inc. All rights reserved. 6
Slide 7: FY20/2 Q1 Summary
FY20/2 Q1 Summary Durable Earnings Model Stock Earnings Growth (Gross Profit: JPY M) Stock Earnings/Fixed Expenses +5% Asset Sustainable Clean Management (AM) Real Estate (SRE) Energy (CE) 214% +5% -3%* +9% 3,990 4,171 2,925 3,070 571 Gross Profit 546 555 504 JPY 10.3B FY19/2 Q1 FY20/2 Q1 FY19/2 Q1
Slide 8: Operating Profit +43%, Net Income +34%, EPS +37% (YOY)
Operating Profit +43%, Net Income +34%, EPS +37% (YOY) Significant Increases YOY – On Track to Achieve Full-Year Forecast (JPY million) Full-Year FY19/2 Q1 FY20/2 Q1 YOY Forecast Operating Profit 5,992 8,537 +42.5% 26,500 Recurring Profit 5,217 7,607 +45.8% 22,800 Net Income 3,547 4,768 +34.4% 15,00
Slide 9: Segment Earnings Details
Segment Earnings Details − Asset Management: Base AM Fees +9% YOY − Sustainable Real Estate: Rental Income +5% YOY Gains on Sale +66% YOY − Clean Energy: Power Generation Gross Profit -3% on Increased Tax Burden from Full-Year Operation of Showamura Power Plant (JPY million) Operating Profit Earning
Slide 10: Powerful Value-Add Business Model Underpins Growth
Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 10
Slide 11: Business Model (1) Stock + Flow Earnings
Business Model (1) Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Base AM Fees, and Power Generation Revenues) 33.8 Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) 32.1 Fixed Expenses (Fixed SG&A + Interest Expenses) Gross Profit 27.9 27.0 (JPY billion) 15.2 18.0 20.8
Slide 12: 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 an “Earnings Bank” for Future Periods (JPY billion) 50.9 45.4 36.8 28.1 19.6 12.3 FY14/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 App
Slide 13: Business Model (3) Value-Add Drives Durable Value Growth
Business Model (3) Value-Add Drives Durable Value Growth Gains on Sales Consistently Exceed 2.5X GPM Appraisal Value-Based Unrealized Gains 26% Appraisal Value-Based Unrealized Gains Gains on Sales (Gross Profit) 4.4X GPM 34% 1.6X GPM = Gross Profit Margin GPM 14% 2.2X GPM Unrealized 23% Gains vs. B
Slide 14: Business Model (4) Robust Cash Generation
Business Model (4) Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income Net Income (JPY billion) Economic Operating Cash Flow +66% +44% +32% +19% 25.5 21.5 17.1 16.7 14.9 15.4 12.9 14.0 FY16/2 FY17/2 FY18/2 FY19/2 Note: Economic Operating Cash Flow = Cash Flows from Operations excl
Slide 15: Strong Financial Base
Strong Financial Base Average Interest Rate and 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 10.2 years 10.3 years 9.8 years 1.96% 9.0 years 8.7 years 2.0% 9 9.6 years 8.3 years 7.
Slide 16: New Uncollateralized 10 Year Commitment Line
New Uncollateralized 10 Year Commitment Line New JPY 10B Mizuho Bank-Led 10 Year Commitment Line − Total JPY 20B, including JPY 10B Mizuho Bank line initiated last September − Ongoing, revolving credit line − Enables Ichigo to flexibly and repeatedly borrow within the commitment line amount Lenders
Slide 17: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 17
Slide 18: Growth Support for TSE REITs & YieldCo
Asset Management Growth Support for TSE REITs & YieldCo 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 85 Assets JPY 203.2B 22 Hotels JPY 52.9B 15 Plants JPY
Slide 19: Selective on Acquisitions and Sales
Sustainable Real Estate Selective on Acquisitions and Sales − Continuing Sellers’ Market – FY20/2 Q1 Gross Profit Margin: 29% − Ichigo Owners Acquisitions: JPY 8.91B (43% of total); Sales: JPY 377M (2%) (Sales Seasonality due to Client Acquisition Activity Concentrated in H2) FY20/2 Q1 Net Acquisiti
Slide 20: Retail Asset Sold in Q1
Sustainable Real Estate Retail Asset Sold in Q1 Holding Period 5 years Location Retail district near Harajuku Station Located along side street, resulting in lack of visibility Value-Add Acquired & fully leased up vacant building following departure of its sole tenant Executed fixed-term leases with
Slide 21: Hotel Asset Sold in Q1
Sustainable Real Estate Hotel Asset Sold in Q1 Holding Period c. 3.5 years Location Kumamoto CBD with both business & tourist demand Value-Add Improvements to increase quality of guest experience & drive higher ADR (higher quality & higher efficiency HVAC & water systems) Installed LED lighting to r
Slide 22: Incorporating Global Value-Add Best Practices
Sustainable Real Estate Incorporating Global Value-Add Best Practices US Hotel Investment (April 2018 – May 2019) Mezzanine finance to IPO bridge fund used to research US hotel value-add – Investment: JPY 529M – Return: JPY 373M (IRR 67.5%) Global Expansion of Self-Storage Business Acquired equity s
Slide 23: FY18/2 – FY20/2 New Plant Development
Clean Energy FY18/2 – FY20/2 New Plant Development Minimal FY20/2 Power Generation Growth due to FY20/2 Plants Primarily Coming Online in H2 – New Plants Will Drive FY21/2 Growth Panel Output Panel Output Operation Solar Power Plant FIT (MW) (MW) Start Date Ichigo Sera Aomizu JPY 32 2.87 Aug 11, 201
Slide 24: Scaling Rapidly (In-Development Plants +94%)
Clean Energy Scaling Rapidly (In-Development Plants +94%) 2 New Solar Plants Online (5.8MW) & 1 New Solar Plant in Development (14MW) since FY/19/2-end 173.8 148.3 (+17%) Power Generation (MW) Growth Timeline (+15%) 128.5 Operating (+17%) In-Development 109.8 (+31%) 84.4 Ichigo 58.9 (Wind 25.9) Oper
Slide 25: Hotel Operator Market Entry: Hakata Hotels
New Business Entry Hotel Operator Market Entry: Hakata Hotels Hotel Operator in Kyushu/Yamaguchi Region Seeing Inbound Tourism Growth – Started operations at 3 hotels on June 1; expect to be operating 7 hotels by August-end Deploying Propera, Ichigo’s AI-based Hotel Revenue Management System – Incre
Slide 26: Ichigo Animation – Anime + Real Estate Synergies
New Business Entry Ichigo Animation – Anime + Real Estate Synergies Production of New Anime Series VLADLOVE Written & Directed by Mamoru Oshii, with Co-Director Junji Nishimura – Established Ichigo Animation in April – Introducing tenant collaboration initiatives that go beyond typical owner/tenant,
Slide 27: Real-World Augmented Reality (AR) Game TSUBASA+
New Business Entry Real-World Augmented Reality (AR) Game TSUBASA+ Investing in TSUBASA+, an AR Game that Uses Smartphone GPS Japanese soccer manga, Captain Tsubasa ×avatars of world-class soccer players Integrates real-world stadiums around the world Game Features Users can play with professional s
Slide 28: Share Buyback
Share Buyback Purpose: Grow Value for Ichigo’s Shareholders Share Type Common shares Buyback Method In-market purchases via trust bank Maximum Amount JPY 3B Maximum No. of Shares 10,000,000 (2.05% of shares outstanding, excluding treasury shares) Buyback Period July 12, 2019 to October 11, 2019 Refe
Slide 29: Ichigo's Commitment to ESG
Ichigo’s Commitment to ESG © Ichigo Inc. All rights reserved. 29
Slide 30: 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 31: Ichigo ESG – Environmental
Ichigo ESG – Environmental Sustainable Real Estate Solar and Wind Energy: Safe and Clean Preserve & Enhance Existing Buildings Annual Power Generation Annual CO2 Reduction to End Wasteful Demolish & Rebuild 140,167,036 kWh 92,510,242 kg ‒ Lengthen useful life of existing real estate ‒ Shrink footpri
Slide 32: Ichigo ESG – Social
Ichigo ESG – Social Sports & Arts Children’s Cancer Treatment Support Outstanding, Support University of Miyazaki World-Class Athletes Faculty of Medicine’s Program for ‒ Weightlifting Children with Cancer ‒ Riflery ‒ Issued CSR bond & donated a portion of ‒ Track & Field underwriter commission to t
Slide 33: Ichigo ESG – Governance
Ichigo ESG – Governance Early Adopter of Independent Three Committee (Nominating, Audit, & Compensation) Corporate Governance Structure – Adopted in 2006 to incorporate global best practice – Exceeded legal requirements by establishing Compliance Committee in addition to Nominating, Audit, and Compe
Slide 34: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 34
Slide 35: Significant Unrealized Gains on Balance Sheet
Significant Unrealized Gains on Balance Sheet JPY 52B (Appraisal Value Basis), +2.2% vs. FY19/2-end Real Estate Directly Held by Ichigo (JPY million) Book Value as of Cap Rate Appraisal Value Unrealized Location Expected NOI May 31, 2019 NOI/Book Value after Write-Down as of May 31, 2019 Gains Tokyo
Slide 36: Net Consolidated Risk-Based Balance Sheet
Net Consolidated Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 370.2B (Book Value JPY 318.2B + Unrealized Gains JPY 52B) Cash & Cash Equivalents Non-Recourse Loans & JPY 30.5B Related Liabilities JPY 55.4B Net Consolidated Risk-Based Balance Sheet: Non-Recourse Loans & JPY
Slide 37: Business Segments
Business Segments Asset Management (AM) generates fee income via management of Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282), Asset Management and real estate services related to real estate acquisition, operations, and disposition. Sustainable Real Estate (SRE) preserves and im
Slide 38: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash and Operational Operational Power Real Estate Fixed Intangible Securities Other Segment Cash Loan Securities Plants for Total Assets for Sale Assets Assets Investments Assets Equivalents Investments Investments Sale Asset Management –
Slide 39: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) Gross Profit Operating Profit Segment FY20/2 FY19/2 Q1 FY20/2 Q1 YOY Change FY19/2 Q1 FY20/2 Q1 YOY Change Full-Year Forecast Asset Management 548 626 +14.2% 454 519 +14.4% 1,821 Stock Earnings (Asset Management Fees) 504 546 +8.3% – – – – Flow Earni
Slide 40: Asset Management AUM Detail
Asset Management AUM Detail FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Q1 (12M) (12M) (12M) (12M) (12M) (3M) Ichigo Office AUM (Fiscal Year End) JPY 123.8B JPY 165.1B JPY 194.5B JPY 196.9B JPY 203.0B JPY 203.2B (8975) Base AM Fee Gross Profit (Actual) JPY 759M JPY 1,016M JPY 1,291M JPY 1,373M JPY 1,4
Slide 41: Powerful Value-Add Business Model
Powerful Value-Add Business Model Significant Synergies Between Ichigo’s Value-Add and Asset Management Businesses Value-Add Business Model Green Infrastructure Solar Plants Buy Ichigo Green (9282) Office Sell Real Third- Estate Party Ichigo Office (8975) Value-Add Investors Real 不動産 Hotel Estate Pr
Slide 42: Value-Add Social Significance
Value-Add Social Significance Sustainable Real Estate Serving a Sustainable Society End Demolish and Rebuild and Embrace Value-Add ‒ Preserve and enhance high-function real estate ‒ Lengthen useful life and improve quality of existing assets via Value-Add Preserve & Improve Value-Add ・ Higher-Qualit
Slide 43: Ichigo Value-Add Earnings Model Example
Ichigo Value-Add 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 Steps: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new tenant leasing; e
Slide 44: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease Nagoya 1% Other 1% Okinawa 1% 3% Logistics 3% Hokkaido 2% Sendai 3% Hokkaido Other 4.3 Osaka 3% 5% Mixed 8% Office 26% Tokyo Metro* * Residence 12% Tokyo 16% 57% Tokyo Hotel 131.4 Fukuoka Retail 22% 16% 21% Senda
Slide 45: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 174 Assets, JPY 229B, Forecast NOI JPY 14.3B (6.0% Book Value Yield) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year Investment Multiple 1 IRR2 1 Wholesale Mark
Slide 46: Sustainable Real Estate Asset Breakdown (2)
Sustainable Real Estate Asset Breakdown (2) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year Investment Multiple 1 IRR2 27 Retail Fixed Asset Tokorozawa, Saitama JPY 1B-2B 2013/11 11 years JPY 63M JPY 92M
Slide 47: Sustainable Real Estate Asset Breakdown (3)
Sustainable Real Estate Asset Breakdown (3) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year Investment Multiple 1 IRR2 51 Residence Real Estate for Sale Ota-ku, Tokyo <JPY 1B 2014/12 17 years JPY 54M JPY
Slide 48: Sustainable Real Estate Asset Breakdown (4)
Sustainable Real Estate Asset Breakdown (4) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year Investment Multiple 1 IRR2 89 Office Real Estate for Sale Musashino, Tokyo ≧JPY 3B 2015/07 30 years JPY 147M JPY
Slide 49: Sustainable Real Estate Asset Breakdown (5)
Sustainable Real Estate Asset Breakdown (5) Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Acquisition Price Date Age NOI/Year Investment Multiple 1 IRR2 124 Hotel Real Estate for Sale Asahikawa, Hokkaido <JPY 1B 2016/12 29 years JPY 78M J
Slide 50: Sustainable Real Estate Asset Breakdown (6)
Sustainable Real Estate Asset Breakdown (6) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Price Date Age NOI/Year Investment Multiple 1 IRR2 146 Retail Fixed Asset Chuo-ku, Tokyo JPY 1B-2B 2018/08 28 years JPY 31M – – – 147 Ho
Slide 51: Sustainable Real Estate Asset Breakdown (7)
Sustainable Real Estate Asset Breakdown (7) Acquisition Expected Ichigo Equity Forecast Equity Forecast No. Asset Type vs. FY19/2 Q4 Price NOI/Year Investment Multiple IRR A Ichigo Owners (Office & Residence) 41 Assets JPY 25,033M +JPY 7,903M JPY 1,221M JPY 9,300M – – B Centro (Primarily Office & Re
Slide 52: Ichigo Solar Power Plant Portfolio
Ichigo Solar Power Plant Portfolio Ichigo (Operating) Ichigo (In-Development) 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 Shikoku 2.52 JPY 40 Aug 2013 Ichigo T
Slide 53: Ichigo Solar & Wind Power Plant Portfolio
Ichigo Solar & Wind Power Plant Portfolio Hokkaido Serving Local Communities and the Environment Ichigo Yubetsu Barou Ichigo Betsukai Kawakamicho 0.80MW 0.88MW Chugoku Total Operating and In-Development Ichigo Akkeshi Shirahama 0.80MW Ichigo Yonago Izumi 2.61MW Ichigo Toyokoro Sasadamachi 0.60MW Ich
Slide 54: Ichigo-Owned Solar Power Plant Details
Ichigo-Owned Solar Power Plant Details Total Operating and In-Development Ichigo-Owned Solar Power Plants: 43 Plants (147.9MW) By Customer By Feed-In Tariff By Operating Timeline (Electric Power Utility Co) Hokkaido Shikoku 3% 2% Tohoku 3% JPY 18 11% JPY 40 Starting JPY 21 20% operation after Kyushu
Slide 55: Reference: Japan's Feed-In Tariff (FIT)
Reference: Japan’s Feed-In Tariff (FIT) What is a FIT? ‒ A policy mechanism to encourage investment in renewable energies by guaranteeing a fixed price for electricity over a 20-year contract period ‒ The fixed price for new contracts is adjusted every year, but locked in for the duration of the con
Slide 56: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Q1 vs. FY19/2 Assets Current Assets Cash and cash equivalents 28,779 47,678 45,510 50,225 38,711 -11,514 Trade notes and accounts receivable 691 913 1,097 1,344 1,671 +327 Operational loan investments 1,324 1,324 1,3
Slide 57: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Q1 vs. FY19/2 Liabilities Current Liabilities Trade notes and accounts payable 80 110 – – – – Short-term loans 2,188 805 1,042 3,275 6,467 +3,192 Short-term non-recourse loans 79 611 – – – – Bonds (
Slide 58: Consolidated P&L
Consolidated P&L (JPY million) FY20/2 FY16/2 FY17/2 FY18/2 FY19/2 FY 20/2 Q1 FY19/2 Q1 Change vs. Full-Year (12M) (12M) (12M) (12M) (3M) (3M) (YOY) Forecast Forecast Revenue 49,699 109,253 57,846 83,540 26,290 16,108 +10,182 – – Cost of Goods Sold 28,865 81,327 30,860 51,413 15,994 8,653 +7,341 – –
Slide 59: Consolidated Cash Flows from Operations
Consolidated Cash Flows from Operations (JPY million) FY16/2 (12M) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 Q1 (3M) Cash Flows from Operations Pre-tax net income 14,022 20,630 20,109 23,079 7,796 Depreciation 792 778 1,015 1,696 610 Share-based compensation expenses 174 223 215 213 62 Goodwill
Slide 60: Consolidated Cash Flows from Investments & Financing
Consolidated Cash Flows from Investments & Financing (JPY million) FY16/2 (12M) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 Q1 (3M) Cash Flows from Investments Payments into time deposits – -6,100 -6 -118 -3 Redemptions of time deposits – 201 – 1,060 2,009 Payments for securities investments -671
Slide 61: Top Partner of J.League, Japan's Professional Soccer League
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 Richer and Healthier Lives J.League’s 100-Year Vision: Ichigo’s Mission: Promote Sports Development Serve Important Social Needs J.Lea
Slide 62: Power Up 2019 Mid-Term Plan Achievement
Power Up 2019 Mid-Term Plan Achievement © Ichigo Inc. All rights reserved. 62
Slide 63: Power Up 2019 Achievement Details (1)
Power Up 2019 Achievement Details (1) Beat All KPI Targets 3-Year Growth: OP +60%, RP +66%, NI +19%* * Ichigo’s effective tax rate normalized from FY16/2’s 6.9% to FY19/2’s 31.8%, so NI grew less than OP. (JPY million) FY16/2 (Actual) FY19/2 (Actual) FY19/2 (Plan) (B) - (A) vs. Plan (Shift Up 2016)
Slide 64: Power Up 2019 Achievement Details (2)
Power Up 2019 Achievement Details (2) • List Ichigo’s solar assets on the TSE’s new Infrastructure Market • Listing of Ichigo Green (9282) on Dec 1, 2016 • Support the ongoing growth of Ichigo Office • Asset sales to Ichigo Office (8975) and Ichigo Hotel (8975) and Ichigo Hotel (3463) (3463) Core Bu
Slide 65: Power Up 2019 Achievement Details (3) JPX-Nikkei 400 Index
Power Up 2019 Achievement Details (3) JPX-Nikkei 400 Index – Selected for inclusion in the JPX-Nikkei 400 three years in a row (2016, 2017, 2018) – Targeting Ranking within the Index’s Top 200 Companies in August 2019 Ranking Calculation: While the JPX-Nikkei 400 does not provide an official ranking
Slide 66: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 66
Slide 67: 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 68: Go Beyond Real Estate to Address Broad Needs
Go Beyond Real Estate to Address Broad Needs Responding Assets Needs to Diverse Child Care Nursing Care Residence Live Needs Education Senior Business Office Work Tourism Medical Care Retail Buy, Dine Agriculture Entertainment Hotel Stay, Travel Public Works Solar Power Power Lives & Sports Plant Bu
Slide 69: 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 70: 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 previous year’s divide
Slide 71: FY20/2 Initiatives
FY20/2 Initiatives Deepen Capabilities in Sustainable Real Estate − Expand into new asset types (e.g., dormitories, sports facilities) − Seek to be “Best Partner” to tenants via continually improving tenant services and solutions − Strengthen group operating structure to deliver best-in-class outcom
Slide 72: MEMO
MEMO © Ichigo Inc. All rights reserved. 72
Slide 73: MEMO
MEMO © Ichigo Inc. All rights reserved. 73
Slide 74: MEMO
MEMO © Ichigo Inc. All rights reserved. 74
Slide 75: 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