Ichigo Inc. · TSE:2337

Ichigo — Q1 FY2014 Earnings Presentation

30 slides from Ichigo's earnings presentation, Jul 18, 2013

Slide 1: Ichigo Group Holdings Corporate Presentation
February 2014 Q1 (March – May 2013) Corporate p Presentation July 18, 2013 Ichigo g Group p Holdings g Co.,, Ltd. (2337) ( ) © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved. www.ichigo-holdings.co.jp/english
Slide 4: Creating peace of mind through honest and committed management
Creating peace of mind through honest and committed management. management © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved.
Slide 5: Transformational Growth
Transformational Growth - Shift Up Strategy Shift-Up - Operating Profit 2.3X, Net Profit 5.2X Year-on-Year - Significant Investment for Growth - Accelerating Asset Acquisitions - Profitable Asset Sales - Strengthened Lender Base - Improved Debt Terms - Successful Ichigo REIT (8975) Public Offering -
Slide 7: Shift-Up Strategy
Shift-Up Strategy Capitalizing on Changes in Market Environment to Radically Accelerate Growth Accellerated Growth Build Profitabiility P ding Strructural Stage Shift-Up p e Investing for Growth x Speed x Market Environment h 100% Expense Coverage Ratio Structural Profitability Feb 2012 Feb 2013 Feb
Slide 8: Operating Profit 2.3X, Net Profit 5.2X Year-on-Year
Operating Profit 2.3X, Net Profit 5.2X Year-on-Year Achieved 45% of Full-Year Net Income Forecast in First Quarter (Million yen) FY 14 Q1 vs. Feb 13 Q1 Feb 14 Q1 YoY Change Full-Year Full-Year Feb 13 Actual Forecast Forecast Revenues 2,362 11,023 467% 26,000 42.4% 16,397 Operating Profit 335 767 229
Slide 9: Significant Investment for Growth
Significant Investment for Growth Acquiring High-Return Assets with Low-Cost Debt Shareholder Equity Ratio 62.5% (Billion yen) Shareholder Equity Ratio Interest- B Bearing i Debt D bt 75% Liabilities 18.0 13.8 Liabilities +6.9B in Q1 9.7 Assets Assets 48.0 38.6 Net Assets Net Assets 30.0 28.9 Feb eb
Slide 10: Accelerating Asset Acquisitions
Accelerating Asset Acquisitions Acquired 9 Assets (JPY18B) in Q1  Ichigo REIT Bridge Assets — Osaka office (JPY 1 1.9B) 9B) — Osaka retail (JPY 1.2B)  Tokyo Minami Ikebukuro, Chofu, and Daikanyama Retail (Ichigo Estate)  Tokyo Azabu Juban Development (Ichigo Estate)  Other Retail (Yokohama) and
Slide 11: Profitable Asset Sales
Profitable Asset Sales Q1 Asset Sales  JPY 1.5B in profits from the sales of a central Tokyo office asset (Kyobashi) and Ichigo REIT bridge assets to support Ichigo REIT’s REIT s public offering Osaka Redevelopment (Asset Sold in May 2014)  Deploying Ichigo’s architectural, engineering, and leasin
Slide 12: Strengthened Lender Base
Strengthened Lender Base Focusing on Key Megabank Relationships – Increased Megabanks from 25% to 45% of Total Borrowings Megabank Loan Balance +4.9 billion yen JPY 6.6B JPY 1.7B Feb 2013 July 2013 * Pro Forma (definition on p. 17) © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved. 12
Slide 13: Improved Debt Terms
Improved Debt Terms Two Large-Scale Refinancings Totaling JPY 3.9 Billion in Q1 Decreased by 246bpt (Before Refinancing) Weighted- Average Interest Rate (After Refinancing) IGH annual profit Weighted- contribution of 89 Average million yen Interest e es Rate ae © 2013 Ichigo Group Holdings Co., Ltd.
Slide 14: Successful Ichigo REIT (8975) Public Offering
Successful Ichigo REIT (8975) Public Offering • Backed REIT Growth via Provision of Bridge Assets (JPY8.6 B) • Public Offering Outcomes  Improved portfolio quality  Increased profitability  Strengthened financial base Ichigo REIT Public Offering Acquisitions: Ichigo Akihabara North Building, Ichi
Slide 15: Ichigo ECO Energy Expansion
Ichigo ECO Energy Expansion • 17 Projects Underway (30.3MW Output) that Qualify for 20-year Fixed Feed-in Tariff of 42 yen/kWh  Largest is Okinawa (8MW) (8MW), due to start construction in August 2013 ■ Artist Rendering of finished Nago Futami Power Plant Chubu Kanto 1 Project 2.5MW 1 Project 12.0M
Slide 17: Pro Forma Disclosure to Improve Transparency
Pro Forma Disclosure to Improve Transparency • Under Japanese accounting rules, SPCs in which Ichigo Group Holdings (“IGH”) is a greater than 50% investor or SPCs for which IGH is the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated onto IG
Slide 18: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 13 Feb 14 Q1 Change (QoQ) Total Assets 38,565 47,964 9,399 Cash and Cash Equivalents 5,744 5,892 148 Investment (Real Estate) 10 256 10,256 12 444 12,444 2 188 2,188 Investment (Domestic companies) 696 499 -197 Investment (Overseas companies) 4,815 4,662 -
Slide 19: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) (Million yen) Feb 13 Feb 14 Q1 Feb 14 Q1 Revenues 13,341 2,636 Revenues 2,636 Real Estate Management Fees 714 C t off Revenues Cost R 8 486 8,486 1 035 1,035 Advisory Fees 10 Gross Profit 4,855 1,601 Rental Income 444 SG&A 3,130 870 Real Estate Sales / Dividen
Slide 20: Significant Unrealized Gains on Balance Sheet
Significant Unrealized Gains on Balance Sheet Real Estate (Million yen) Book Value Appraisal Value Acquisition Value Unrealized Gain (As of May 13) (As of Feb 13) Directly Owned on B/S 18 822 18,822 15 072 15,072 17 165 17,165 +2 093 +2,093 Investment in IGH Funds 17,757 11,313 16,936 +5,622 Total 3
Slide 22: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 13 Feb 14 Q1 QoQ change Total Assets 80,428 81,884 1,456 Cash and Cash Equivalents 9,713 9,391 -322 Operating Investments in Securities 4,271 5,476 1,205 Real Estate Held for Sale 46 176 46,176 41 598 41,598 -4 578 -4,578 Fixed Assets 10,047 14,296 4,24
Slide 23: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Million yen) Feb 13 Feb 14 Q1 QoQ Change Outside The Outside The in the Amount Investors' Company's Amount Investors' Company's Com pany's Interests Interests Interests Interests Interests Cash and Cash Equivalents 9,713 - - 9,391 - - - Operating Investments in Se
Slide 24: P&L (Consolidated)
P&L (Consolidated) Breakdown (Million yen) Full Year Full-Year vs. Feb 13 Feb 14 Q1 Forecast Forecast Feb 14 Q1 Revenues 16,397 11,023 26,000 42.4% Revenues 11,023 Cost of Revenues 11,422 9,385 －－ Real Estate Management Fees 627 Advisory Fees 10 Gross Profit 4,974 1,638 －－ Rental Income 1,371 SG&A
Slide 26: Historical Assets Under Management (AUM)
Historical Assets Under Management (AUM) (As of May 2013) (Billion yen) 600 530 1 530.1 Development Operating 496.0 500 62.0 REIT 426.5 REIT Operating 385.3 379.6 400 37% 63% 330.6 335.9 327.9 257.0 335.0 113.8 106.1 278.6 300 56.0 104.3 320.7 104.3 123.4 200 166.4 312.1 66.4 263.2 265.2 Breakdown o
Slide 27: Real Estate Portfolio
Real Estate Portfolio AUM b by Type T pe # of Properties by b Type T pe (As of May 2013) (Unit: # of buildings) (Unit: # of buildings) Land with AUM by Location Ground Lease Other 2% 9 Sendai Other 3% Other 2% Office % 6% Kanto Residential 64 7% 21% Land with Office Ground Lease Fukuoka 52% 55 7% Mi
Slide 28: Real Estate Cap Rates
Real Estate Cap Rates • Conservative assessment of cap rates vis-à-vis market cap rates • Continually mark assets to market • Unrealized gains in both client and IGH assets (As of May 2013) Real Estate Investments held by Ichigo Funds (SPCs) (Million yen) Book Value NOI Cap rate (at Acquisition) Cap
Slide 29: Stock Split to Promote Share Ownership & Liquidity
Stock Split to Promote Share Ownership & Liquidity Ichigo will conduct a stock split to increase liquidity and promote share ownership by reducing the minimum trading amount. • 1 share will become 200 shares • Minimum Trading Lot: 100 shares • Effective Date: September 1, 2013 • Total shares will ri
Slide 30: Disclaimer
These materials were prepared to explain the Company’s businesses and are not for the purpose of soliciting investment in marketable securities issued by the Company. The Company does not guarantee the accuracy g y of the figures, g , information,, estimates or other statements included herein,, and

Ichigo Group Holdings — Q1 FY2014 Earnings Presentation on 6ix

Ichigo — Q1 FY2014 Earnings Presentation

Slide 1: Ichigo Group Holdings Corporate Presentation

Slide 2: © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved.

Slide 3: © 2013 Ichigo Group Holdings Co., Ltd. All rights reserved.

Slide 4: Creating peace of mind through honest and committed management

Slide 5: Transformational Growth

Slide 6: Transformational Growth

Slide 7: Shift-Up Strategy

Slide 8: Operating Profit 2.3X, Net Profit 5.2X Year-on-Year

Slide 9: Significant Investment for Growth

Slide 10: Accelerating Asset Acquisitions

Slide 11: Profitable Asset Sales

Slide 12: Strengthened Lender Base

Slide 13: Improved Debt Terms

Slide 14: Successful Ichigo REIT (8975) Public Offering

Slide 15: Ichigo ECO Energy Expansion

Slide 16: Appendix: Pro Forma Financial Data

Slide 17: Pro Forma Disclosure to Improve Transparency

Slide 18: Balance Sheet (Pro Forma)

Slide 19: P&L (Pro Forma)

Slide 20: Significant Unrealized Gains on Balance Sheet

Slide 21: Appendix: Consolidated Financial Data

Slide 22: Balance Sheet (Consolidated)

Slide 23: Breakdown of Assets (Consolidated)

Slide 24: P&L (Consolidated)

Slide 25: Appendix: Real Estate Data

Slide 26: Historical Assets Under Management (AUM)

Slide 27: Real Estate Portfolio

Slide 28: Real Estate Cap Rates

Slide 29: Stock Split to Promote Share Ownership & Liquidity

Slide 30: Disclaimer