Ichigo Inc. · TSE:2337
Ichigo — H1 FY2023/2 Earnings Presentation
94 slides from Ichigo's earnings presentation, Oct 13, 2022
Slide 1: FY23/2 H1 Corporate Presentation
FY23/2 H1 Corporate Presentation January 2021 October 13, 2022 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 global Covid pandemic and by the war and humanitarian crisis in Ukraine, along with our heartfelt wish for the immediate cessation of hostilities and the earliest and fullest possible recovery for all. Take care, be safe.
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 FY23/2 H1 Earnings Sustainable Growth as a Sustainable Infrastructure ‒ FY23/2 H1 Summary Company ‒ All-In Disclosure to Increase Earnings Transparency ‒ Sustainable Real Estate: Selective on Acquisitions & Sales ‒ All-In OP +46%, Cash EPS +24% (YOY) ‒ Ichigo Owners: Robust Demand Driving G
Slide 7: FY23/2 H1 Earnings
FY23/2 H1 Earnings © Ichigo Inc. All rights reserved. 7
Slide 8: FY23/2 H1 Summary
FY23/2 H1 Summary – Earnings On Track Despite Volatile Macro Environment of Increased Geopolitical Risk, Global Interest Rate Increases, & Yen Depreciation Real Estate Market Normalized to Pre-Covid Levels, Robust Sales Environment – Continued Recovery for Hotels, Asset Class Most Impacted by Covid
Slide 9: FY23/2 H1 Summary
FY23/2 H1 Summary Durable Earnings Model Robust Stock Earnings ■ FY22/2 H1 Stock Earnings/Fixed Expenses ■ FY23/2 H1 191% (JPY million) -3% Sustainable Asset Clean Flow Earnings Fixed Real Estate Management Energy JPY 4.4B Expenses (SRE) (AM) (CE) JPY 3.9B Cash Earnings -8% 7,750 JPY 12.0B 7,535 +6%
Slide 10: 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 11: All-In OP +46%, Cash EPS +24% (YOY)
All-In OP +46%, Cash EPS +24% (YOY) − Cash Earnings Significantly Exceed Accounting Earnings Due to Ichigo’s Focus on Maximizing Long-Term Cash Flows for Shareholders − Cash EPS = 1.7X EPS (JPY million) FY22/2 H1 FY23/2 H1 YOY FY23/2 Forecast Operating Profit 4,243 5,082 +19.8% 9,700 – 10,600 All-In
Slide 12: Segment Earnings Details
Segment Earnings Details − Asset Management: Continued Hotel Recovery, One-Off Decrease on Office Asset Sales − SRE Stock Earnings: Lower on Asset Sales & Odaiba Vacancies (Re-Tenanting Underway) − SRE Flow Earnings: Active Multi-Asset Sales, JPY 21B of Ichigo Owners Residential Asset Sales to be Bo
Slide 13: 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. 13
Slide 14: 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 T
Slide 15: Stable Stock Earnings
Stable Stock Earnings Stock Earnings by Segment ■ Asset Management ■ Sustainable Real Estate ■ Clean Energy (JPY million) 18,485 18,450 (Stock Earnings/Fixed Expenses, %) (261%) (234%) Asset Full-Year Management 2,057 2,062 Forecast 15,065 14,912 13,141 (195%) (191%) 57% Progress vs. 1,832 2,091 FY2
Slide 16: 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) 63.9 65.3 56.2 50.9 45.4 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Third-Party Appraisal Value-Based
Slide 17: 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 2.0X JPY 17.1B JPY 15.0B 1.9X JPY 9.4B 1.7X JPY 6.1B JPY 5.9B JPY 5.7B JPY 4.7B JPY 4.3B JPY 3.0B JPY 2.5B FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 H1 Real Estate Gains on Sales = Gross Profit
Slide 18: Robust Cash Generation
Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income (JPY billion) Net Income 3.6X Economic Operating Cash Flow 1.7X 1.2X 29.5 25.5 1.9X 2.1X 16.7 15.4 14.0 10.4 12.4 8.2 6.5 5.0 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Note: Economic Operating Cash Flow = Cash Flows from Operations excl
Slide 19: 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 10.3 years 10.2 years 10.0 years 10.0 years 10.1 years 10.0 years 9.6 years 2.0% 8.3 year
Slide 20: ESG Finance
ESG Finance Ichigo’s ESG Execution Driving Attractive ESG Financing Terms 2 New ESG Loans in H1 – Total Loan Amount: JPY 13.0B Sustainability Linked Loan JPY 9.1, Green Loan JPY 3.9B ESG Loans as % of Total Borrowings ESG Loans ■ ESG loans & green bonds ■ ESG loans & green bonds ■ Remaining ESG comm
Slide 21: Ichigo Climate Positive: CO2 Reduction > Emissions
Ichigo Climate Positive: CO2 Reduction > Emissions Ongoing Ichigo Clean Energy Growth (CO2 Reduction) & Renewable Energy Transition (Reduction of CO2 Emissions) CO2 Reduction vs. CO2 Emissions (tons p.a.) ■ Total Ichigo Power Plant CO2 Reduction ■ Total Ichigo CO2 Emissions (Scope1+2) 2.5X 137,848 1
Slide 22: RE100 by 2025 On Track
RE100 by 2025 On Track Ichigo RE100 Progress FY23/2 Renewable Energy Transition Impact CO2 Reduction 35,815 tons p.a. FY23/2 H1 Renewable Energy % Reduction 47.2% Ratio 60.4% CO2 Emissions of Cars (+7.2% vs. FY22/2 Q4) × 15,572 Note: % Reduction = Amount of CO2 reduction vs. 75,890 tons (FY20/2 actu
Slide 23: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 23
Slide 24: Sustainable Real Estate: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales Acquisitions: JPY 20.3B in H1, Forecast JPY 45.5B for FY23/2 − Multi-Asset: Strengthening Ichigo Office (8975) acquisition pipeline − Owners: JPY 13.0B in H1, Forecast JPY 31.5B for FY23/2 Sales: JPY 15.2B, Centered on High Value-Add Multi-As
Slide 25: Ichigo Owners: Robust Demand Driving Growth
Sustainable Real Estate Ichigo Owners: Robust Demand Driving Growth Sales: JPY 22.1B (+22% YOY), 98% Progress vs. FY23/2 Forecast Acquisitions: JPY 31.5B (+18% YOY), 90% Progress vs. FY23/2 Forecast (JPY billion) Ichigo Owners Residential Acquisitions & Sales 3.8 ■ Sales ■ Acquisitions 2.9 2.1 1.4 3
Slide 26: Ichigo Owners: Building Out Business & Earnings Model
Sustainable Real Estate Ichigo Owners: Building Out Business & Earnings Model − Growing Stock Earnings & Broadening Client Base − Ichigo Owners Co-Ownership Business Driving Market Growth – Channel Diversification via Brokerage Relationship with Aoyama Zaisan Networks (30+ years of experience, 97 lo
Slide 27: Public-Private Partnership (PPP) – Ichigo Yokosuka Port Market
Sustainable Real Estate x Retail x Agriculture Public-Private Partnership (PPP) – Ichigo Yokosuka Port Market Redeveloping Existing Retail Asset as a Tourist Destination Targeting 1 Million Visitors per Year (Opens this month on October 28) − Acquired preferential negotiation rights to renew a 30-ye
Slide 28: Public-Private Partnership (PPP) – Ichigo Yokosuka Port Market
Sustainable Real Estate x Retail x Agriculture Public-Private Partnership (PPP) – Ichigo Yokosuka Port Market Promoting Local Agriculture & Revitalizing Tourism − Destination to enjoy fresh local produce and seafood & experience local food culture Concept: Local Food & Agriculture of the Miura Penin
Slide 29: Asset Management: 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 209.2B (86 Assets) JPY 54.7B (25 Hotels) JPY 11.4B (15 Solar Plants) Dividend Yield (as of October 12, 2022) 4.8% 2.4% 5.8% ・ Entered FTSE Global REIT Index, ・ Geograp
Slide 30: Asset Management: Ichigo Office & Ichigo Hotel Acquisitions
Asset Management Ichigo Office & Ichigo Hotel Acquisitions FY23/2 Acquisitions: JPY 6.7B − Ichigo Office: Acquired 1 office with value-add upside (JPY 3,840M) − Ichigo Hotel: Acquired 2 fixed-rent hotels in anticipation of Covid re-opening demand recovery (JPY 2,870M) Ichigo Office (8975) Ichigo Hot
Slide 31: Clean Energy: Scaling Rapidly
Clean Energy Scaling Rapidly 3 New Plants (Total 5.1MW) Forecast for FY23/2 Full-Year (2 Already Online) Ichigo 4.6 46.9 Operating Plants: JPY 38.6B (143.6MW) (Forecast) (+21%) In-Pipeline Plants: JPY 8.2B (22.1MW) 4.3 Ichigo Green (9282) 38.8 8.2 Operating Plants: 29.4MW 3.8 (+2%) 0.1 3.0 2.9 Stock
Slide 32: Share Buybacks – 6th Consecutive Year (FY23/2: JPY 4.5B)
Share Buybacks – 6th Consecutive Year (FY23/2: JPY 4.5B) Announced 2nd FY23/2 Share Buyback in H1 (JPY 3B) − JPY 1.2B (4.1 million shares) completed as of Sep-end, JPY 1.8B remaining Share Buybacks Number of Shares Average Purchase Purchased Amount Price (% of Shares Outstanding) 5,103,800 FY23/2 Q1
Slide 33: 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 (70,000 shareholders in t
Slide 34: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 34
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: Accelerated RE100 Target From 2040 to 2025
Accelerated RE100 Target 15 Years From 2040 to 2025 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 Ichi
Slide 41: CDP Climate Change Assessment: Ichigo Highest Leadership Level
CDP Climate Change Assessment: Ichigo Highest Leadership Level Ichigo Recognized for Global Best-Practice Climate Change Initiatives − Further Accelerating Ichigo Environmental Initiatives via Launch of ReGeneration Group − Ichigo Score: A- (Achieved A Score in 8 of 11 Categories) Global Scores of C
Slide 42: 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 43: Appendix: Financial & Operational Data
Appendix: Financial & Operational Data © Ichigo Inc. All rights reserved. 43
Slide 44: 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 45: 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 August 31, 2022 (A) (B) (B)/(A) (C) (C) - (A) Tokyo 87,382 5,323 6.1% 120,752 +33,370 Outside Tokyo 97,700 6,532 6.7% 124,
Slide 46: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 405.7B (Book Value JPY 341.4B + Unrealized Gains JPY 64.3B) Cash & Cash Equivalents Non-Recourse Loans & Related Liabilities JPY 34.9B JPY 46.3B Risk-Based Consolidated Balance Sheet: JPY 324.4B Non-Recourse Loans & (Book Value
Slide 47: Cash Flow Maximization
Cash Flow Maximization Maximal Use of Depreciation to Increase Cash Flow 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% 84.7% (JPY billion) 12.8% 32.0 30.9 Reclassification of 29.5 Sustainable Real Estate Assets to Fixed As
Slide 48: 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. 191% (JPY mill
Slide 49: Post-GFC Shift in Earnings Base & Financial Position
Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY22/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 191% 2.5X Coverage Ratio 10.1 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 50: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash and Operational Operational Real Estate Intangible Securities Other Segment Cash Loan Securities Fixed Assets Total Assets for Sale Assets Investments Assets Equivalents Investments Investments Asset Management (AM) – – – – – 596 120 7
Slide 51: Expense Allocation Adjustment
Expense Allocation Adjustment New segment forecasts from FY22/3 Q1 reflect adjusted allocation of corporate expenses to subsidiaries to more accurately reflect their use of corporate resources (JPY million) All-In Operating Profit Segment FY23/2 Forecast FY23/2 Forecast FY22/2 YOY After Adjustment B
Slide 52: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) All-In Gross Profit All-In Operating Profit Segment YOY YOY FY22/2 H1 FY23/2 H1 FY22/2 H1 FY23/2 H1 FY23/2 Forecast Change Change Asset Management (AM) 1,040 997 -4.1% 771 681 -11.7% 1,300 Base AM Fees 1,040 997 -4.1% – – – – Acquisition/Disposition
Slide 53: Asset Management AUM Detail
Asset Management AUM Detail FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 H1 (12M) (12M) (12M) (12M) (12M) (6M) Ichigo Office AUM (Fiscal Year End) JPY 196.9B JPY 203.0B JPY 203.2B JPY 206.1B JPY 205.4B JPY 209.2B (8975) Base AM Fee Gross Profit (Actual) JPY 1,373M JPY 1,426M JPY 1,436M JPY 1,524M JPY 1
Slide 54: Appendix: Sustainable Real Estate Details
Appendix: Sustainable Real Estate Details © Ichigo Inc. All rights reserved. 54
Slide 55: 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 56: 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 57: 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 58: 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 59: 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 H1 GPM (vs. Revenue) 25.5% 28.3% 13.9% 20.6% 28.8% GPM (vs. Book Value) 34.3% 39.5% 16.2% 26.2% 41.0% Revenue (JPY M) 58,693 60,601 41,430 45,830 15,216 Gross
Slide 60: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease Other Nagoya 3% 1% 2% Sendai 2% Logistics Osaka 3%1％ 1% Hokkaido Hokkaido Other 9.1 4% 5% Office Residential 26% 21% Tokyo Tokyo Tokyo Metro* 54% 137.4 11% Retail 24% Hotel Fukuoka Sendai 25% 18% 5.7 *Ex-Tokyo By
Slide 61: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 180 Assets, JPY 250B, 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 Matsu
Slide 62: 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 63: 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 66 Retail Fixed Asset Sendai <JPY 1B 2015/02 18 years JPY 65M JPY 8M – – 68 Retail
Slide 64: 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 133 Hotel Fixed Asset Minato-ku, Tokyo <JPY 1B 2017/04 20 years JPY 46M JPY 152M –
Slide 65: 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 165 Hotel Fixed Asset Sapporo >JPY 3B 2020/03 2 year JPY 268M JPY 700M – – 167 Hot
Slide 66: 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 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 (7)
Sustainable Real Estate Asset Breakdown (7) 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) 45 Assets JPY 46,580M +JPY 12,155M JPY 1,909M JPY 14,864M – – 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 3% In JPY 18 Pipeline Kyushu 11% JPY 40 <1 year 10% 13% JPY
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 In-Pipeline Panel Output FIT Operation No. Wind Power Plant Area (MW) (Pre-tax) Start Date 2 I
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 community relationships Weather Characteristics Impacts ・ Lots of potential plant site candidates, able to make effective use of
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 Q1 FY23/2 H1 vs. FY23/2 Q1 Assets Current Assets Cash and cash equivalents 50,225 41,067 50,832 46,458 42,862 41,780 -1,082 Trade notes and accounts receivable 1,344 2,308 1,382 1,819 2,464 1,659 -805 Operational loa
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 Q1 FY23/2 H1 vs. FY23/2 Q1 Liabilities Current Liabilities Short-term loans 3,275 3,086 4,879 2,382 4,800 2,887 -1,913 Bonds (due within one year) 112 274 274 274 274 290 +16 Long-term loans (due wi
Slide 78: Consolidated P&L
Consolidated P&L (JPY million) FY23/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 H1 FY22/2 H1 Change vs. Full-Year (12M) (12M) (12M) (12M) (6M) (6M) (YOY) Forecast Forecast Revenue 83,540 87,360 61,368 56,934 25,475 23,303 +2,172 – – Cost of Goods Sold 51,413 52,851 45,776 40,757 17,176 15,934 +1,242 – – Gr
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 H1 (6M) Cash Flows from Operations Pre-tax income 23,079 16,545 7,610 9,595 5,261 Depreciation 1,696 2,630 4,797 5,644 2,650 Share-based compensation expenses 213 194 21 73 – Amortization of
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 H1 (6M) Cash Flows from Investments Payments into time deposits -118 -113 -7 -7 -1 Proceeds from withdrawal from time deposits 1,060 5,033 – 30 20 Payments for securities investm
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: Go for Growth: 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 Consecutive i
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 or
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: 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 90: 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 5-Yea
Slide 91: PROPERA: Increasing Share to Drive Non-Asset Stock Earnings
PROPERA: Ichigo's AI Hotel Revenue Management System Increasing Share to Drive Non-Asset Stock Earnings Launch of Third-Party Sales Increase Market Share Drive Non-Asset Stock Earnings Earnings Upside from Participation Customer Acquisition in Hotel Earnings Growth Long-Term Earnings Growth Product
Slide 92: 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 & currently operating 14 hotels PROPERA Deployment – Generating 10 to 40% revenue increases p.a. – Sales of PROPERA to non-Ic
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