Ichigo Inc. · TSE:2337
Ichigo — H1 FY20/2 Earnings Presentation
75 slides from Ichigo's earnings presentation, Oct 10, 2019
Slide 1: FY20/2 H1 Corporate Presentation
FY20/2 H1 Corporate Presentation January 11, 2019 October 10, 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 H1 Earnings Appendices ‒ FY20/2 H1 Summary Ichigo’s Commitment to ESG ‒ Operating Profit +58%, Net Income +54%, EPS +56% (YOY) ‒ Ichigo Sustainability Policy ‒ Segment Earnings Details ‒ Ichigo ESG – Environmental ‒ JPX-Nikkei 400 Index Inclusion & Top 200 Ranking ‒ Ichigo ESG – Soci
Slide 6: FY20/2 H1 Earnings
FY20/2 H1 Earnings © Ichigo Inc. All rights reserved. 6
Slide 7: FY20/2 H1 Summary
FY20/2 H1 Summary Durable Earnings Model Stock Earnings Growth (Gross Profit: JPY M) Stock Earnings/Fixed Expenses Asset Sustainable Clean +5% 215% Management (AM) Real Estate (SRE) +7% Energy (CE) -6%* +4% 8,159 8,530 5,857 6,263 Gross Profit JPY 18.6B 1,078 1,263 1,188 1,039 FY19/2 H1 FY20/2 H1 FY
Slide 8: Operating Profit +58%, Net Income +54%, EPS +56% (YOY)
Operating Profit +58%, Net Income +54%, EPS +56% (YOY) (JPY million) FY19/2 H1 FY20/2 H1 Full-Year YOY (Actual) (Actual) Forecast Operating Profit 9,581 15,118 +57.8% 26,500 Recurring Profit 8,293 13,189 +59.0% 22,800 Net Income 5,608 8,612 +53.6% 15,000 EPS JPY 11.31 JPY 17.64 +56.0% JPY 30.39 © Ic
Slide 9: Segment Earnings Details
Segment Earnings Details − Asset Management: Base AM Fees +4% YOY − Sustainable Real Estate: Rental Income +7% YOY Gains on Sales +133% YOY − Clean Energy: Power Generation Revenue -6% YOY on Increased Tax Burden from Full-Year Operation of Showamura Plant & Adverse FY20/2 Weather (JPY million) Oper
Slide 10: JPX-Nikkei 400 Index Inclusion & Top 200 Ranking
JPX-Nikkei 400 Index Inclusion & Top 200 Ranking – Included in the JPX-Nikkei 400 for the fourth year in a row (2016, 2017, 2018, 2019) – Ranked within the Index’s Top 200 Companies in August 2019 rebalance Successfully achieved all targets set forth in Power Up 2019 MTP Ranking Calculation: While t
Slide 11: Powerful Value-Add Business Model Underpins Growth
Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 11
Slide 12: 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) 15.3 18.0 18.6
Slide 13: 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 14: 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 2.5X 14% GPM 29% 2.2X GPM Unrealized 23
Slide 15: 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 16: 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 9.9 years 1.96% 9.0 years 8.7 years 2.0% 9 9.6 years 8.3 years 7.
Slide 17: Green Bond Issuance
Green Bond Issuance Proceeds Used to Fund 6 Solar Power Plants − Issue Amount JPY 2.9B − Maturity 10 years − Lead Underwriter SMBC Syndicate Members: SMBC, Daishi Bank, Resona Bank, & Kiraboshi Bank Green Bond Solar Power Plants Panel Output FIT Solar Power Plant Location (MW) (JPY) Ichigo Tokushima
Slide 18: Share Buyback
Share Buyback Extending Buyback Period by 3 Months 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
Slide 19: Launch of Ichigo J.League Shareholder Program
Launch of Ichigo J.League Shareholder Program Represents Two Firsts for a Shareholder Program in Japan − Ichigo is the first Japanese company to include not just its own shareholders, but also the shareholders of the REITs and YieldCo that it manages, in its shareholder program − Ichigo is the first
Slide 20: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 20
Slide 21: Selective on Acquisitions and Sales
Sustainable Real Estate Selective on Acquisitions and Sales − Continuing Sellers’ Market – FY20/2 Q2 Gross Profit Margin: 29% − Ichigo Owners Continues High Level of Activity Acquisitions: JPY 12.41B (27% of total); Sales: JPY 377M (1% of total) (Sales Concentrated in H2 due to Seasonality of Client
Slide 22: Value-Add Case – 5 Hotel Assets Sold in Q2
Sustainable Real Estate Value-Add Case – 5 Hotel Assets Sold in Q2 Holding Period 2.5 years (average) Value-Add Increased earnings via introduction of revenue management system Upgraded hotel reservation system to increase operational efficiency Converted non-revenue generating space into guest room
Slide 23: 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 23 Hotels JPY 54.5B 15 Plants JPY
Slide 24: Private Fund Business Growth
Asset Management Private Fund Business Growth 2019 Sales of High-Quality SRE Assets to Domestic and International Institutional Investors – February 2019 – 10 residential assets (JPY 8.3B) Ichigo Owners sale to domestic institutional investor – October 2019 – 9 residential assets (JPY 16.2B) (Q3 tra
Slide 25: 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 Total Panel FIT Operation Solar Power Plant Output Output (JPY) Start Date (MW) (MW) Ichigo Sera Aomizu 32 2.87 Aug
Slide 26: Scaling Rapidly (In-Development Plants +95%)
Clean Energy Scaling Rapidly (In-Development Plants +95%) FY20/2 Growth: 2 New Solar Plants Online (5.8MW) & 1 New Solar Plant in Development (14MW) 174.0MW 148.5MW (+17%) Power Generation Growth (+18%) 126.2MW Operating (+15%) In-Development 109.8 MW (+31%) 84.6 Ichigo 59.1 (Wind 25.9) Operating Pl
Slide 27: Cost Science Acquisition
Cost Science Acquisition 100% Acquisition of Cost Science, a Business-Development Consulting Firm – Acquired 30% shares on September 27, 2019 – 100% acquisition to be completed in stages by May 31, 2023 ・ Very large real estate database & platform ・ Increase the productivity of an existing business
Slide 28: Appendix: Ichigo's Commitment to ESG
Appendix: Ichigo’s Commitment to ESG © Ichigo Inc. All rights reserved. 28
Slide 29: 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 30: 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 31: 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 32: 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 33: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 33
Slide 34: Significant Unrealized Gains on Balance Sheet
Significant Unrealized Gains on Balance Sheet JPY 49.3B (Appraisal Value Basis), -0.89% vs. FY19/2-end Real Estate Directly Held by Ichigo (JPY million) Book Value as of Cap Rate Appraisal Value as of Unrealized Location Expected NOI August 31, 2019 NOI/Book Value after Write-Down August 31, 2019 Ga
Slide 35: Net Consolidated Risk-Based Balance Sheet
Net Consolidated Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 393.6B (Book Value JPY 342.3B + Unrealized Gains JPY 51.3B) Cash & Cash Equivalents Non-Recourse Loans & JPY 33.6B Related Liabilities JPY 53.9B Net Consolidated Risk-Based Balance Sheet: Non-Recourse Loans & JP
Slide 36: 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 37: 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 38: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) Gross Profit Operating Profit Segment FY20/2 FY19/2 H1 FY20/2 H1 YOY Change FY19/2 H1 FY20/2 H1 YOY Change Full-Year Forecast Asset Management 1,201 1,163 -3.2% 1,012 908 -10.3% 1,821 Stock Earnings (Asset Management Fees) 1,039 1,078 +3.8% – – – – F
Slide 39: Asset Management AUM Detail
Asset Management AUM Detail FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 H1 (12M) (12M) (12M) (12M) (12M) (6M) 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 40: Powerful Sustainable Real Estate Business Model
Powerful Sustainable Real Estate Business Model Significant Synergies Between Ichigo’s Sustainable Real Estate and Asset Management Businesses Sustainable Real Estate Business Model Green Infrastructure Solar Plants Buy Ichigo Green (9282) Office Sell Real Third- Estate Party Ichigo Office (8975) Va
Slide 41: Sustainable Real Estate Social Significance
Sustainable Real Estate 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 ・
Slide 42: 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 Steps: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new ten
Slide 43: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease 1% Hokkaido 1% Other 4% Logistics Sendai 2% 2% Osaka 3% Hokkaido Other 3.5 Nagoya 3% 5% Mixed Office 8% 25% Tokyo Metro* Residential 11% * Tokyo 16% 54% Tokyo 131.1 Hotel Fukuoka Retail 22% 21% 22% Sendai 5.9 *Ex
Slide 44: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 180 Assets, JPY 245B, Forecast NOI JPY 15B (6.1% 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 Market Fixed Asse
Slide 45: 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 32 Retail Fixed Asset Fukuoka JPY 1B-2B 2014/04 13 years JPY 60M JPY 279M – – 37 Reta
Slide 46: 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 2 Retail Real Estate for Sale Minato-ku, Tokyo JPY 2B-3B 2005/10 50 years JPY 144M JP
Slide 47: 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 56 Residential Real Estate for Sale Shibuya-ku, Tokyo JPY 1B-2B 2014/12 13 years JPY
Slide 48: 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 115 Hotel Real Estate for Sale Osaka JPY 2B-3B 2016/04 12 years JPY 111M JPY 274M 2.9
Slide 49: 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 145 Hotel Real Estate for Sale Fukuoka JPY 2B-3B 2018/03 1 year JPY 194M JPY 301M 3.3
Slide 50: Sustainable Real Estate Asset Breakdown (7)
Sustainable Real Estate Asset Breakdown (7) Acquisition Expected Ichigo Equity Forecast Equity Forecast No. Asset Type vs. FY20/2 Q1 Price NOI/Year Investment Multiple IRR A Ichigo Owners (Office & Residential) 44 Assets JPY 28,113M +JPY 11,004M JPY 1,362M JPY 8,241M – – B Centro (Primarily Office &
Slide 51: 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 52: Ichigo Solar & Wind Power Plant Portfolio
Ichigo Solar & Wind Power Plant Portfolio Serving Local Communities and the Environment Hokkaido Ichigo Yubetsu Barou 0.80MW Chugoku Ichigo Betsukai Kawakamicho 0.88MW Total Operating and In-Development Ichigo Yonago Izumi 2.61MW Ichigo Akkeshi Shirahama 0.80MW Ichigo Power Plants Ichigo Kasaoka Tak
Slide 53: Ichigo-Owned Solar Power Plant Details
Ichigo-Owned Solar Power Plant Details Total Operating and In-Development Ichigo-Owned Solar Power Plants: 43 Plants (148MW) 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 Kyushu 20% operation after 7
Slide 54: 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 55: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Q1 FY20/2 H1 vs. FY20/2 Q1 Assets Current Assets Cash and cash equivalents 28,779 47,678 45,510 50,225 38,711 40,448 +1,737 Trade notes and accounts receivable 691 913 1,097 1,344 1,671 1,582 -89 Operational loan inv
Slide 56: 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 FY20/2 H1 vs. FY20/2 Q1 Liabilities Current Liabilities Trade notes and accounts payable 80 110 – – – – – Short-term loans 2,188 805 1,042 3,275 6,467 5,115 -1,352 Short-term non-recourse loans 7
Slide 57: Consolidated P&L
Consolidated P&L (JPY million) FY20/2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 H1 FY19/2 H1 Change vs. Full-Year (12M) (12M) (12M) (12M) (6M) (6M) (YOY) Forecast Forecast Revenue 49,699 109,253 57,846 83,540 46,185 26,084 +20,101 – – Cost of Goods Sold 28,865 81,327 30,860 51,413 27,560 13,629 +13,931 – –
Slide 58: 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 H1 (6M) Cash Flows from Operations Pre-tax net income 14,022 20,630 20,109 23,079 13,378 Depreciation 792 778 1,015 1,696 1,241 Share-based compensation expenses 174 223 215 213 124 Amort
Slide 59: 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 H1 (6M) Cash Flows from Investments Payments into time deposits – -6,100 -6 -118 -108 Proceeds from withdrawal of time deposits – 201 – 1,060 2,062 Payments for securities in
Slide 60: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 60
Slide 61: Go for Growth
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 62: 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 Residential 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
Slide 63: 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 64: 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 dividend is maintained
Slide 65: 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 66: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 66
Slide 67: 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 Fuller and Healthier Lives J.League’s 100-Year Vision: Ichigo’s Mission: Promote Sports Development Serve Important Social Needs J.Lea
Slide 68: 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 69: 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 2019 – Introducing tenant collaboration initiatives that go beyond typical owner/ten
Slide 70: 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 on-line with profes
Slide 71: Power Up 2019 Mid-Term Plan Achievement
Power Up 2019 Mid-Term Plan Achievement © Ichigo Inc. All rights reserved. 71
Slide 72: 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 73: 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 74: Power Up 2019 Achievement Details (3) JPX-Nikkei Index
Power Up 2019 Achievement Details (3) JPX-Nikkei 400 Index – Included in the JPX-Nikkei 400 all three years of Power Up 2019 (2016, 2017, 2018) – Ranked within the Index’s Top 200 Companies in August 2019 Ranking Calculation: While the JPX-Nikkei 400 does not provide an official ranking of its 400 c
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