Ichigo Inc. · TSE:2337
Ichigo — Asset Managers Holdings — Investor Presentation (April 2009)
28 slides from Ichigo's investor presentation, Apr 17, 2009
Slide 1: Asset Managers Holdings Corporate Presentation
Asset Managers Holdings Corporate Presentation April 17, 2009
Slide 2: 2008 Full Year Summary / Forward Strategy / Appendices
2008 Full Year Summary 9 Focus on Cashflow 9 Successful Asset Dispositions 9 Repayment of Corporate Debt 9 Highly Secure Balance Sheet 9 CB Restructuring 9 Gains in Operating Efficiency 9 Earnings Projections for Fiscal Year 2009 Forward Strategy 9 Match Actions to Market Fundamentals 9 Expansio
Slide 3: FY2008 Full Year Summary
Asset » \ Managers Solutions For The Future. FY 2008 Full Year Summary
Slide 4: Focus on Cashflow
Focus on Cashflow C/F and B/S Far More Important than P/L Operating Cashflow Strongly Positive Maximize Cash Position and Liquidity Fully Write-Down All Assets in 2009, Return to Profitability in 2010 Dramatically Decrease Risk Profile through Slimmed B/S (Billion yen) ＋5.2 ＋23.0 ＋17.8 Con
Slide 5: Successful Asset Dispositions
Successful Asset Dispositions JPY20.1B in Asset Sales in FY2008 (Billion yen) 20.1 17.7 Private Breakdown Equity Domestic：24 Private ＋0.3 4.7 Overseas:3 Equity （2 Overseas） Overseas） 4.4 Breakdown Office：4 ＋2.1 Residential:13 （3 Offices、 Offices、2 Others） Others） Commercial：3 Development：1 Real Esta
Slide 6: Repayment of Corporate Debt
Repayment of Corporate Debt △ 38.6 (Billion yen) Total Repayment △57.6 Borrowings New Borrowings & Refinance +25.5 Redemption of Asset Investors CB △4.0 75.2 subsidiaries： Deconsolidation of former subsidiaries： - Asset Investors △1.5 - Asset Operators △1.4 Short-term Total Debt Borrowings 44.0 32.9
Slide 7: Highly Secure Balance Sheet
Highly Secure Balance Sheet Early Adoption of Lower of Cost or Market Accounting for Real Estate. Write- Down Assets to the Smaller of Appraisal Value or Market Price as of Feb. 2009 Full Elimination of Unrealized B/S Losses, Conservative Marks Mean Low Possibility for Further Loss (Billion yen)
Slide 8: CB Restructuring
CB Restructuring Restructured CB Terms with Noteholders and Shareholders Approval 9 Reduction of principal payable upon exercise of Noteholders’ accelerated redemption put in March 2009 to 50% 9 Extension of CB maturity by one year to 2012/3/17 9 Reduction of principal at maturity to 90% 9 Elimina
Slide 9: Gains in Operating Efficiency
Gains in Operating Efficiency Consolidated Tax Accounting from FY2010 to Use Tax Loss Carry- Forwards Creates Highly Efficient Tax Structure Corporate Cost Structure Cut Nearly in Half Disposition of Non-Core Operations and Reduction of Subsidiaries 9 Asset Investors 9 Overseas subsidiaries
Slide 10: Earnings Projections for Fiscal Year 2009
Earnings Projections for Fiscal Year 2009 【Pro Forma】 2008 (Billion 2009 yen) Sales 10.2 12.7 Gross Profit △ 17.8 3.9 SGA 10.6 2.3 Operating Profit/Loss △ 28.3 1.6 Ordinary Income/Loss △ 28.3 1.0 Net Income/Loss △ 47.9 1.2 【Consolidated】 2008 2009 Sales 50.4 18.2 Gross Profit △ 30.0 5.6 SGA 16.2 3.4
Slide 11: Forward Strategy
Asset » \ Managers Solutions For The Future. Forward Strategy 11
Slide 12: Match Actions to Market Fundamentals: Post-Lehman Failure
Match Actions to Market Fundamentals Post-Lehman Failure Buyers Sellers 【Equity Investors】 Desired Cap Rate 【Real Estate Market Activity】 ・Holding off new investments while monitoring market ・Leverage difficult due to absence of lending ・Sellers not wanting to take losses, few sales 【Lenders】 Huge s
Slide 13: Expansion of Asset Management Business
Expansion of Asset Management Business New Fund Development 9 With debt markets beginning to recover, opportunistic investment possibilities emerging 9 In discussions with several potential partners for new residential fund 9 Working with Ichigo Asset Management to source new clients 9 Signed real
Slide 14: New Fee Businesses
New Fee Businesses Real Estate Advisory Contracts Signed in Partnership with Toyoda D&C Co. Ltd. 9 Dec. 2008 K.T. Store Management Co. Ltd. (Kanagawa Toyota Group) 9 Jan. 2009 Aiichi Rikuun Co. Ltd. 9 Apr. 2009 Netz Toyota Tokyo Higashi Saitama Corporation Toyoda D&C is a company founded by Mr. Hi
Slide 15: Further Actions to Drive Corporate Value
Further Actions to Drive Corporate Value Synergistic M&A to Drive Profitability 9 Targets include private real estate fund management companies, real-estate fee businesses (property management, building management), REIT management companies, etc. Value-Up Strategies to Grow Asset Value on Exist
Slide 16: Corporate Restructuring and Cost Reduction
Corporate Restructuring and Cost Reduction Significant cost reductions and streamlined operating structure Forward Group Operating Structure ■ Continuing wind down of principal AMH * Will absorb Asset Managers International Co., Ltd. investment businesses （Real Estate, M&A, etc.) and Asset Managers
Slide 17: Appendix (Pro Forma Financial Data)
Appendix （Pro Forma Financial Data） 17
Slide 18: Pro Forma Corporate Balance Sheet
Pro Forma Corporate Balance Sheet Shrank B/S via Asset Sales and Repayment of Borrowings （million yen） Change to Feb-08 Feb-09 Feb 2009 Assets 111,158 45,986 △ 65,172 Cash 10,868 4,453 △ 6,415 Investment (Real Estate) 39,908 9,621 △ 30,287 Investment (Domestic PE) 21,888 9,316 △ 12,572 Investment (O
Slide 19: Pro Forma Corporate P&L
Pro Forma Corporate P&L Primary FY2008 Earnings Driver was Write-Down of Assets to Eliminate Unrealized Losses and Allow Return to Profitability in FY2009 (million yen) Feb-09 Sales 10,210 【Cost of Sales】 Cost of sales 27,994 ・Write-Down of Real Estate 20.8bn ・Write-Down of Operating Investments 2.5
Slide 20: Appendix (Consolidated Financial Data)
Appendix （Consolidated Financial Data） 20
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Shrank B/S via Asset Sales and Repayment of Borrowings （million yen） Change to Feb-08 Feb-09 Feb 2009 Assets 264,681 140,875 △ 123,806 Cash 33,113 18,449 △ 14,664 Securities investments 37,923 11,779 △ 26,144 Inventories 156,531 97,184 △ 59,347 Property and equipment 6,530
Slide 22: Consolidated Assets
Consolidated Assets Continuing to Sell Assets in FY2009 （million yen） Feb-08 Feb-09 The Outs ide The Outside The Company’s Amount investors’ Company’s Amount inv estors’ Company’s interests interests interests (A) interests interests(B) Change(B-A) Cash 33,113 - - 18,449 - - - Securities investments
Slide 23: Consolidated P&L
Consolidated P&L Primary FY2008 Earnings Driver was Write-Down of Assets to Eliminate Unrealized Losses and Allow Return to Profitability in FY2009 （million yen） Feb-08 Feb-09 【Cost of Sales】 Sales 70,833 50,444 ・Write-Down of Real Estate 32.2bn Cost of sales 41,292 80,408 ・Write-Down of Operating I
Slide 24: Appendix (Real Estate)
Asset » \ Managers Solutions For The Future. Appendix (Real Estate) 24
Slide 25: Assets Under Management (Domestic Real Estate)
Assets Under Management (Domestic Real Estate) Assets Under Management (billion yen) Feb 2004 Feb 2005 Feb 2006 Feb 2007 Feb 2008 Feb 2009 Development 64.6 111.7 151.3 211.1 161.0 105.8 Completed 32.6 66.3 123.3 257.0 335.0 320.7 Total 97.2 178.0 274.6 468.1 496.0 426.5 (billion yen) 500.0 450.0 400
Slide 26: Domestic Real Estate Funds by Property Type
Domestic Real Estate Funds by Property Type by Value by Number of Buildings Other, 2.8% #of Bldgs. Nursing Homes, 1.5% Residential, 9.9% Office Nursing Homes, 8 Development Other, 6 Mixed, 12.4% Office, 31.7% Office, 42 Commercial Residential, 33 Commercial Development, 28.1% Mixed 13.6% Residential
Slide 27: Domestic Real Estate Funds by Location
Domestic Real Estate Funds by Location by Value by Number of Buildings #of Bldgs. Sendai, 2.0% Kanto, 1.9% Other, 5.9% Tokyo Nagoya, 1.6% Osaka Fukuoka, 5.4% Fukuoka Osaka, 8.2% Tokyo, 75.0% Nagoya Kanto Sendai Other Sendai 3 Tokyo63 Kanto 8 Nagoya 4 Osaka 9 Fukuoka 15 Other 17 27
Slide 28: 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 of the figures, information, estimates or other statements included herein, and accepts n
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