Ichigo Inc. · TSE:2337
Ichigo — Q3 FY2025/2 Earnings Presentation
104 slides from Ichigo's earnings presentation, Jan 9, 2025
Slide 1: FY25/2 Q3 Corporate Presentation
FY25/2 Q3 Corporate Presentation January January13, 2023 9, 2025 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en
Slide 2: Ichigo is a Japanese sustainable infrastructure company
Ichigo is a Japanese sustainable infrastructure company dedicated to making the world more sustainable © Ichigo Inc. All rights reserved.
Slide 3: © Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Slide 4: Ichigo – A Sustainable Infrastructure Company
Ichigo – A Sustainable Infrastructure Company Whether developing new technologies to allow buildings to last 100 years, powering communities with clean energy, or creating new possibilities for tenants and stakeholders, Ichigo is working to build a more prosperous and sustainable society for all. ©
Slide 5: Contents
Contents FY25/2 Q3 Summary Shareholder Returns FY25/2 Q3 Earnings ‒ Shareholder Returns: JPY 6B Buyback ‒ All-In OP -7%, Cash EPS -9% (YOY) ‒ Shareholder Returns: Raising Dividend – ‒ Segment Earnings Details FY25/2 JPY 10 ‒ Stock + Flow Earnings ‒ Shareholder Returns: Ichigo J.League ‒ Forecasting
Slide 6: FY25/2 Q3 Summary
FY25/2 Q3 Summary All-In Operating Profit -6.7%, Cash Net Income -12.0% YOY ̶ Stock Earnings: JPY16.8B, +13% YOY On-Track to Achieve Record Stock Earnings Supported by Strength in Hotels ̶ Flow Earnings: JPY 8.5B, -18% YOY, Asset Sales Accelerating in Q4 2 Hotel Sales (JPY 9.1B) to Ichigo Hotel (346
Slide 7: FY25/2 Q3 Summary
FY25/2 Q3 Summary Durable Earnings Model Robust Stock Earnings ■ FY24/2 Q3 ■ FY25/2 Q3 Stock Earnings/Fixed Expenses + 12.6% 210% (JPY million) Target: >200% Sustainable Asset Clean Fixed Real Estate Management Energy (SRE) (AM) (CE) Expenses JPY +15.9% Flow 8.0B Earnings JPY 8.5B Cash Earnings 16,8
Slide 8: FY25/2 Q3 Earnings
FY25/2 Q3 Earnings © Ichigo Inc. All rights reserved. 8
Slide 9: All-In OP -7%, Cash EPS -9% (YOY)
All-In OP -7%, Cash EPS -9% (YOY) On-Track vs. Full-Year Forecast – Significant Asset Sales in Q4 Cash Earnings 1.3X Accounting Earnings Due to Ichigo’s Focus on Maximizing Long-Term Cash Flows for Shareholders (JPY million) FY25/2 FY24/2 Q3 FY25/2 Q3 YOY Full-Year Forecast Operating Profit 7,927 10
Slide 10: Segment Earnings Details
Segment Earnings Details – AM: AM Flow Earnings Increase on Ichigo Office Performance Fees Hotel Stock Earnings Growth – SRE Stock Earnings: On-Track for Record Earnings – Strong Hotel Earnings – SRE Flow Earnings: Significant Contribution in Q4 – CE: Cash Earnings Up (Accounting Earnings2 Down on I
Slide 11: Stock + Flow Earnings
Stock + Flow Earnings Forecasting Record Cash Earnings on Stock Earnings Growth (JPY million) Cash Earnings ■ Flow Earnings Record ■ Stock Earnings Earnings 37,016 37,222 33,733 28,970 15,879 18,567 24,705 14,315 25,366 20,915 13,371 8,516 9,793 5,850 19,417 21,343 18,450 15,065 14,912 15,598 16,849
Slide 12: Forecasting 2nd Consecutive Year of Record Stock Earnings
Forecasting 2nd Consecutive Year of Record Stock Earnings Forecasting Record Stock Earnings Across All Segments (JPY million) Stock Earnings by Segment ■ SRE (Primarily Rental Income) ■ Clean Energy Record ■ Asset Management Fees ■ Hotel Operator + PROPERA Revenues Earnings 19,417 Record Earnings 18
Slide 13: 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 10.0 years 10.0 years 10.1 years 10.0 years 8.9 years 9.2 years 2.0% 9 7.6 years 7.2 years 6.5 years
Slide 14: Driving Sustainable Growth
Driving Sustainable Growth © Ichigo Inc. All rights reserved. 14
Slide 15: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales Acquisitions: JPY 40.6B (JPY 70.6B Including Q4 Contracted, Pre-Settlement) – Multi-Asset: JPY 13.7B (JPY 26.2B Including Q4 Contracted, Pre-Settlement) – Owners: JPY 26.9B (JPY 44.3B Including Q4 Contracted, Pre-Settlement) Sales: JPY 42.7B
Slide 16: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales SRE Acquisitions & Sales (JPY B) Left: Acquisitions Right: Sales ■ Multi-Asset & Ichigo Owners FY25/2 Q4 Contracted, Pre-Settlement ■ Ichigo Owners ■ Multi-Asset 70.6 69.5 69.6 63.0 60.6 8.0 55.1 29.9 53.5 50.7 28.5 45.8 43.2 10.7 41.4 50.3 3
Slide 17: Strong Growth via Meeting Clients’ Diverse Needs
Sustainable Real Estate: Ichigo Owners Strong Growth via Meeting Clients’ Diverse Needs Providing High-Quality PASEO Brand Residential Assets in Prime Locations – Strong Ichigo partnerships with developers (share know-how & client needs data) – Extensive Ichigo transaction experience & market presen
Slide 18: Strong Growth via Meeting Clients’ Diverse Needs
Sustainable Real Estate: Ichigo Owners Strong Growth via Meeting Clients’ Diverse Needs – Core Offer: Prime Residential Assets Tailored to Tenant & Investor Needs – Further Growth via Expanding Sales Channels, including Ichigo Residence Tokens (JPY B) Ichigo Owners Operating Profit Ichigo Residence
Slide 19: Ichigo Residence Tokens FY26/2 AUM Forecast: JPY 100B
Sustainable Real Estate x Asset Management Ichigo Residence Tokens FY26/2 AUM Forecast: JPY 100B FY25/2 AUM Forecast: JPY 42.6B FY26/2 AUM Forecast: JPY 100B Ichigo Residence Tokens (Security Tokens) Ichigo Residence Token AUM (JPY B) ・ Highly secure digital investments that are ■ Forecast Growth ■
Slide 20: Supporting Growth in REIT Shareholder Value
Sustainable Real Estate x Asset Management Supporting Growth in REIT Shareholder Value Sold 2 Hotels to Ichigo Hotel to Support Earnings Growth Amidst Robust Hotel Demand – Central Fukuoka (JPY 9.1B, settlement in Q4) – Includes Ichigo brand hotel The OneFive Marine Fukuoka Sold 4 Office Assets to I
Slide 21: AUM Growth on Diverse Growth Drivers – Forecast +14% YOY
Asset Management AUM Growth on Diverse Growth Drivers – Forecast +14% YOY Driving Non-Asset Stock Earnings & AUM Growth +14% YOY AUM (JPY B) 382.4 392.5 Ichigo Residence Tokens Private REIT 11.2 11.2 (+JPY 21.7B) 42.6 Drove FY25/2 AUM Growth 320.7 343.3 42.6 Ichigo Residence Tokens 5.1 20.9 27.3 22.
Slide 22: Hotels = Stock Earnings Growth Driver
Sustainable Real Estate: Hotels Hotels = Stock Earnings Growth Driver Significant OneFive Hotels Operator Earnings Growth: +90% YOY (JPY million) Hotel Stock Earnings ■ Ichigo Hotel (3463) Base AM Fees 14,050 ■ Rental Income +20% YOY ■ One Five Hotels Operator & PROPERA Income +64% vs. Pre-Covid 11,
Slide 23: Tokyo Monnaka Village: NOI +81% on Value-Add
Sustainable Real Estate: Office Tokyo Monnaka Village: NOI +81% on Value-Add Created Beautiful Office Tailored to Tenants & Local Community – Increased leasable area & improved aesthetics & functionality Repurposed & reconfigured 1F storage section, creating space for popular café Converted form
Slide 24: Tradepia Odaiba: Robust Occupancy Growth
Sustainable Real Estate: Office Tradepia Odaiba: Robust Occupancy Growth – Current Occupancy 80% – Occupancy Will Hit 88% in April 2025 – Introduced Ready to Move In Offices to Serve Tenant Needs Expanding offer on robust tenant demand – first deployment to large-scale office asset Tradepia Odaiba
Slide 25: Driving Stable Earnings Growth
Clean Energy Driving Stable Earnings Growth – Continued Stock Earnings Growth Despite Increased Days of EPCO Solar Power Purchase Restrictions – Green Biomass: Obtained Approval for First Plant (Tokushima Prefecture & Starting Test Operation Ichigo Clean Energy ■ Green Biomass (In-Pipeline/FIT JPY 4
Slide 26: Shareholder Returns
Shareholder Returns © Ichigo Inc. All rights reserved. 26
Slide 27: JPY 6B Buyback
Shareholder Returns JPY 6B Buyback Buyback Period: October 11, 2024 to April 30, 2025 Number of Shares: 17M shares – 3.9% of total shares outstanding Forecast FY25/2 Total Payout Ratio: 73% Share Buyback Amount JPY 6B ■ Buyback In Progress ■ Acquired Shares (as of December 31, 2024) JPY 3.4B JPY 6B
Slide 28: Raising Dividend – FY25/2 JPY 10
Shareholder Returns Raising Dividend – FY25/2 JPY 10 3 Consecutive Years of Dividend Increases on Back of Strong Cash Generation & Stock Earnings Growth Progressive Dividend is maintained or raised every year, Dividend underscoring Ichigo’s commitment to drive long- Policy term dividend growth for s
Slide 29: Ichigo J.League Shareholder Program
Shareholder Returns 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 & listed solar power producer that it manages, in its shareholder program (93,000
Slide 30: Working to Protect Our Global Environment
Working to Protect Our Global Environment © Ichigo Inc. All rights reserved. 30
Slide 31: RE100: Completed Renewable Energy Transition
RE100: Completed Renewable Energy Transition RE100 Progress (as of November 30, 2024) RE100達成率 Non-Fossil Certificate Tracking for Ichigo Power Plants 39% 100% 61% Renewable Energy Switch Ichigo 2030 RE100 KPI to work for a sustainable planet: 100% renewable electricity across all Ichigo operations
Slide 32: Ichigo CO2 Reduction = 4.4X CO2 Emissions
Ichigo Climate Positive: CO2 Reduction vs. Emissions (1) Ichigo CO2 Reduction = 4.4X CO2 Emissions CO2 Reduction CO2 Emissions 101,217 22,767 tons tons CO2 Reduction due to Ichigo & Ichigo Green Clean Energy Scope 1+2 Emissions Power Plant Production (Ichigo + Ichigo Office + Ichigo Hotel + Ichigo G
Slide 33: Ichigo Climate Positive: CO2 Reduction vs. Emissions (2)
Ichigo Climate Positive: CO2 Reduction vs. Emissions (2) Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) & Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction) CO2 Reduction/Reduction Impact/CO2 Emissions ■ Total Ichigo Power Plant CO2 Reduction ■ Total Ichig
Slide 34: Appendix: Powerful Value-Add Business Model & Sustainability Focus
Appendix: Powerful Value-Add Business Model & Sustainability Focus © Ichigo Inc. All rights reserved. 34
Slide 35: Embedded Forward Earnings
Embedded Forward Earnings Full Economic Earnings From Value-Add Exceed Accounting Earnings – Value-Add Thus Generates Significant Unrealized Gains That Are (JPY billion) an Earnings Bank for Future Periods 72.5 Record 67.8 63.9 65.2 High 56.2 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 Third-Party Appraisal
Slide 36: Value-Add Drives Durable Value Growth
Value-Add Drives Durable Value Growth Third-Party Appraisal Value-Based Unrealized Gains Actual Gains on Sales (JPY billion) 2.8X 1.8X 2.1X 2.0X 17.1 1.8X 1.9X 11.6 10.1 9.4 7.4 6.1 5.7 6.3 4.7 4.7 4.1 3.0 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q3 Note: Self-storage assets sold in FY24/2 (36 asse
Slide 37: Robust Cash Generation
Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income Net Income Economic Operating Cash Flow 3.6X (JPY billion) 2.1X 2.4X 1.5X 29.4 2.2X 25.3 15.6 14.4 11.1 12.1 8.2 9.4 5.0 6.5 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 Note: Economic Operating Cash Flow = Cash Flows from Operations, excl
Slide 38: Maximizing Long-Term Cash Flows for Shareholders
Maximizing Long-Term Cash Flows for Shareholders Maximal Use of Depreciation Allowances – Reclassified Majority of SRE Assets to Fixed Assets at FY20/2-end Real Estate for Sale & Fixed Assets Fixed Assets (SRE) Real Estate for Sale (SRE) Fixed Asset 15% 30% 84% 84% 85% 84% 72% Ratio (JPY billion) 30
Slide 39: Significant Benefits from Sustainable/ESG Financing
Significant Benefits from Sustainable/ESG Financing Ichigo’s Sustainability Execution Driving Attractive Financing Terms Strengthening Financial Base via Diversified Borrowings ESG Loans as % of Total Borrowings ESG Loans (JPY billion) ■ ESG loans (including green bonds) ■ ESG loans (including green
Slide 40: Post-GFC Shift in Earnings Base & Financial Position
Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY24/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 214% 2.9X Coverage Ratio 8.9 years Loan Maturity (Weighted avg., 5.6 years 5.6 years 3.2X corporate + non-recourse loans) 2.8 years 2.8 years 2.8 years
Slide 41: Appendix: Financial & Operational Data
Appendix: Financial & Operational Data © Ichigo Inc. All rights reserved. 41
Slide 42: 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 43: 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 44: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) All-In Gross Profit All-In Operating Profit Segment FY25/2 FY24/2 Q3 FY25/2 Q3 YOY FY24/2 Q3 FY25/2 Q3 YOY Forecast Asset Management (AM) 1,826 2,446 +33.9% 1,105 1,445 +30.7% 1,750 Base AM Fees 1,694 1,889 +11.5% – – – – Acquisition/Disposition Fees
Slide 45: 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 depreciation allowances to lower accounting earnings & increase cash flow – Majority of cash earnings are Stock Earnings – Maintained high Stock Earnings/Fixed Expenses Rati
Slide 46: 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) 132 – – – – 451 – 1
Slide 47: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 463.9B (Book Value JPY 394.2B + Unrealized Gains JPY 69.6B) Non-Recourse Loans & Cash & Cash Equivalents Related Liabilities Risk-Based Consolidated Balance Sheet: JPY 365.7B JPY 43.9B JPY 54.2B (Book Value JPY 296.0B + Unrealiz
Slide 48: Appendix: Sustainable Real Estate Details
Appendix: Sustainable Real Estate Details © Ichigo Inc. All rights reserved. 48
Slide 49: Sustainable Value-Add
Powerful Sustainable Real Estate (SRE) 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
Slide 50: Ichigo Sustainable Real Estate Earnings Model Example
Ichigo Sustainable Real Estate Earnings Model Example 4.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.0% Interest Rate, JPY 50M Capex, 25% Increase in NOI, 5-Year Value-Add Period Value-Add Measures: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new
Slide 51: 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 52: Ichigo Owners Value-Add
Sustainable Real Estate: Ichigo Owners Ichigo Owners Value-Add Advantaged Ichigo Capabilities & Cost Competitiveness Build upon Ichigo’s Strong PASEO Residential Brand & Deep Developer Support & Synergies – Development, Marketing, & Branding Tailored to Diverse Buyer & Tenant Needs – Eliminate Devel
Slide 53: Growing Real Estate Security Token Market
Sustainable Real Estate: Ichigo Owners Growing Real Estate Security Token Market AUM Expected to Grow to 3rd Largest Market After J-REIT (JPY 20T) & Private Equity Fund (JPY 30T) – Driving liquidity & convenience via secondary market (START) launch Security Token Market Size (AUM) JPY 2.6T JPY 308.9
Slide 54: 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 Nov 30, 2024 (B) (B)/(A) (C) (C) – (A) (A) Tokyo 6.0% 85,430 5,145 122,576 +37,145 Outside Tokyo 111,520 6,775 6.1% 140,49
Slide 55: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q3 GPM 13.9% 20.6% 21.1% 14.6% 17.4% (vs. Revenue) GPM 16.2% 26.2% 27.1% 16.8% 20.7% (vs. Book Value) Revenue 41,430 45,830 55,166 69,693 42,732 (JPY M) Gross
Slide 56: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio Actively Acquiring Mid-Size Assets with Value-Add Potential, Focused on Prime Location Offices, Retail, & Hotels in Tokyo & Major Cities Ground Lease Total Ichigo-Owned Assets: JPY 260.6B By Asset Type 1% Other (Including Ichigo-Managed AUM: JPY 642.5B) Logistics 0
Slide 57: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 130 Assets, JPY 260.6B, Annual NOI JPY 11.9B (6.1% Yield) Acquisition Acquisition Building Forecast 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 Mat
Slide 58: Sustainable Real Estate Asset Breakdown (2)
Sustainable Real Estate Asset Breakdown (2) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 35 Office Fixed Asset Minato-ku, Tokyo JPY 2B-3B 2014/05 15 years JPY 144M JPY 434
Slide 59: Sustainable Real Estate Asset Breakdown (3)
Sustainable Real Estate Asset Breakdown (3) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 119 Retail Fixed Asset Shibuya-ku, Tokyo <JPY 1B 2016/06 37 years JPY 42M JPY 136M
Slide 60: Sustainable Real Estate Asset Breakdown (4)
Sustainable Real Estate Asset Breakdown (4) Acquisition Acquisition Building Forecast 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 61 years JPY 120M
Slide 61: Sustainable Real Estate Asset Breakdown (5)
Sustainable Real Estate Asset Breakdown (5) Acquisition Acquisition Building Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 184 Hotel Real Estate for Sale Sendai, Miyagi JPY 2B-3B 2023/12 14 years JPY 165M
Slide 62: Sustainable Real Estate Asset Breakdown (6)
Sustainable Real Estate Asset Breakdown (6) Acquisition Forecast Ichigo Equity Forecast Equity Forecast No. Asset Type vs. FY24/2 Price NOI/Year1 Investment Multiple2 IRR3 A Ichigo Owners (Residential) 39 Assets JPY 48,008M -JPY 2,269M JPY 1,862M JPY 10,631M – – B Ichigo Owners (Other) 2 Assets JPY
Slide 63: Appendix: Asset Management Details
Appendix: Asset Management Details © Ichigo Inc. All rights reserved. 63
Slide 64: Ichigo REITs & Ichigo Green
Asset Management Ichigo REITs & Ichigo Green (as of December 30, 2024) Ichigo Office 8975 Ichigo Hotel 3463 Ichigo Green 9282 Portfolio JPY 224.5B (91 Assets) JPY 66.2B (28 Hotels) JPY 11.4B (15 Solar Plants) Dividend Yield 5.6% 8.6% 8.9% ・ Entered FTSE Global REIT ・ Geographically diversified ・ Sol
Slide 65: Growth & ESG Support for Ichigo REITs & Ichigo Green
Asset Management Growth & ESG Support for Ichigo REITs & Ichigo Green ・ Asset pipeline, bridge fund creation, and financial support for asset acquisitions Ichigo Office ・ Providing financial support for value-add capex (8975) ・ Owning Ichigo Office shares to strengthen growth commitment ・ Providing
Slide 66: Asset Management AUM Detail
Asset Management AUM Detail FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q3 (12M) (12M) (12M) (12M) (12M) (9M) Ichigo Office AUM JPY 203.2B JPY 206.1B JPY 205.4B JPY 212.1B JPY 212.1B JPY 224.5B (8975) Base AM Fee Gross Profit JPY 1,436M JPY 1,524M JPY 1,725M JPY 1,517M JPY 1,423M JPY 1,040M Ichigo Hot
Slide 67: Appendix: Clean Energy Details
Appendix: Clean Energy Details © Ichigo Inc. All rights reserved. 67
Slide 68: Ichigo Solar Power Plant Portfolio
Ichigo Solar Power Plant Portfolio Total Operating & 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 Hokkaido 3% Shikoku 2% JPY 14 Tohoku 2% 3% <1 year JPY 18 11% JPY 40 9% Kansai Kyushu 19% 1-3 years JP
Slide 69: 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 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 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 71: 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 7.39MW Ichigo Solar & Wind Power Plant (Operating/In-Pipeline) Total: 49 Plants 158.8MW Reference: J
Slide 72: 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 73: Green Biomass Entry
Green Biomass Entry Fully Local Green Biomass as Ichigo’s 3rd Renewable Energy Business – 5 Plants In Development (4.0MW, JPY 4.5B in Total Business Expenses), Obtained Approval for 1 Plant (Tokushima Prefecture) – Diversify & stabilize power production – Procure biomass feedstock via Ichigo’s relat
Slide 74: Appendix: Ichigo’s Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 74
Slide 75: Ichigo Sustainability Policy
Ichigo Sustainability Policy Harmony With the Environment and Recycling Ichigo actively monitors and minimizes the environmental impact of its business operations via extending the useful life of its assets, reducing water and water consumption, and recycling. Addressing Climate Change and Shift to
Slide 76: 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 77: ESG Initiatives: Social
ESG Initiatives: Social Contributing to Society Contributing to Regional Revitalization Ichigo University Sports Initiatives As a top partner of the J.League Ichigo works to revitalize local communities Ichigo established Ichigo University in May professional soccer league, we support the and promot
Slide 78: 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 9 members of Ichigo’s
Slide 79: Sustainability Initiatives
Sustainability Initiatives Joining Third-Party Initiatives to Accelerate Ichigo’s Sustainability Activities CDP 2023 Joined RE100 Supporting TCFD Recommendations Climate Change: A / Water Security: A⁻ Completed 100% renewable energy Disclosure on governance, strategy, risk Supplier Engagement Leader
Slide 80: 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 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: 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 & 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 Diverse Needs of Individuals & Communities
Addressing Diverse Needs of Individuals & Communities © Ichigo Inc. All rights reserved. 83
Slide 84: Ichigo 2030 KPIs
Ichigo 2030 KPIs Strengthening Commitment to Ichigo 2030 Vision & Drive Sustainable Growth in Shareholder Value High Capital Productivity New KPIs Grow Shareholder Value High Cash Flow Generation High Earnings Stability New KPIs Shareholder Return Policy Raise DOE from 3% to 4% Work for a Sustainabl
Slide 85: Ichigo 2030 KPIs (1)
Ichigo 2030 KPIs (1) High Capital Efficiency & High Earnings Stability High Cash Flow Generation Stock Earnings/Fixed Expenses Cash ROE Target > 200% Target > 18% Fixed Expenses ROE Target > 15% Flow Earnings Cash Earnings Economic Operating Cash Flow Exceeds Net Income Stock Earnings Ratio Target >
Slide 86: Ichigo 2030 KPIs (2)
Ichigo 2030 KPIs (2) Ichigo Shareholder Distribution Policy: Growth, Durability, & Certainty – Progressive Dividend Policy • Ichigo’s progressive dividend policy underscores our commitment to driving ongoing earnings & dividend growth for shareholders. Under this policy, the dividend is maintained o
Slide 87: Ichigo 2030 KPIs (3)
Ichigo 2030 KPIs (3) Ichigo Climate Positive RE100 Ichigo CO2 reduction via clean energy Target: 100% renewable electricity power production exceeds CO2 emissions across all Ichigo operations by 2025 (Scope 1 & 2) Non-Fossil Reduction < 4X Emissions Certificate Tracking for Renewable Ichigo Power Pl
Slide 88: Capital Efficiency, CF Generation, Earnings Stability Data
Capital Efficiency, CF Generation, Earnings Stability Data ROE >15%, Cash ROE >18% Economic Operating Cash Flow > Net Income ■ EPS ■ Cash EPS ● ROE ● Cash ROE (JPY) ■ Net Income ■ Economic Operating Cash Flow (JPY million) 60 29,492 17.2% 30,000 15.1% 50 13.0% 25,317 10.8% 11.7% 10.0% 9.2% 39.70 40
Slide 89: Shareholder Returns Data
Shareholder Returns Data DOE (Dividend on Equity) >4%, Flexible Deployment of Share Buybacks, & Progressive Dividend Policy (JPY billion) 20 4.5% 17.8 ◆ DOE ■ Share Buybacks ● Cash Net Income ■ Total Dividend 15.3 16 DOE Target 4% 4.0% 3.8% 13.0 3.6% 12 3.4% 3.5% 3.3% 3.3% 10.7 9.9 8 3.0% 4.8 4.5 3.
Slide 90: Appendix: Financial Statements
Appendix: Financial Statements © Ichigo Inc. All rights reserved. 90
Slide 91: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 H1 FY25/2 Q3 vs. FY25/2 H1 Assets Current Assets Cash and cash equivalents 50,832 46,458 40,536 46,917 38,726 53,243 +14,517 Trade notes and accounts receivable 1,382 1,819 3,866 2,448 2,877 3,402 +525 Operational lo
Slide 92: Consolidated Balance Sheet: Liabilities
Consolidated Balance Sheet: Liabilities (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 H1 FY25/2 Q3 vs. FY25/2 H1 Liabilities Current Liabilities Short-term loans 4,879 2,382 962 16,726 8,563 7,537 -1,026 Bonds (due within one year) 274 274 364 3,162 3,232 232 -3,000 Long-term loans (due within on
Slide 93: Consolidated Balance Sheet: Net Assets
Consolidated Balance Sheet: Net Assets (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 H1 FY25/2 Q3 vs. FY25/2 H1 Net Assets Shareholders’ Equity Capital 26,888 26,888 26,888 26,892 26,935 26,937 +2 Capital reserve 11,275 11,268 11,266 10,313 10,353 10,355 +2 Retained earnings 73,160 76,310 82,438
Slide 94: Consolidated P&L (1)
Consolidated P&L (1) (JPY million) FY25/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q3 FY24/2 Q3 Change vs. Full-Year (12M) (12M) (12M) (12M) (9M) (9M) (YOY) Forecast Forecast Revenue 61,368 56,934 68,093 82,747 57,227 38,419 +18,808 – – Cost of Goods Sold 45,776 40,757 48,674 61,875 40,111 24,874 +15,237
Slide 95: Consolidated P&L (2)
Consolidated P&L (2) (JPY million) FY25/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q3 FY24/2 Q3 Change vs. Full-Year (12M) (12M) (12M) (12M) (9M) (9M) (YOY) Forecast Forecast Extraordinary Losses Loss on disposal of fixed assets – 5 23 147 87 – +87 – – Valuation losses on securities investments 114 43 261
Slide 96: Consolidated Cash Flows: Operations
Consolidated Cash Flows: Operations (JPY million) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) FY24/2 (12M) FY25/2 Q3 (9M) Cash Flows from Operations Pre-tax income 7,610 9,595 14,234 17,962 13,368 Depreciation 4,797 5,644 5,339 4,859 3,589 Share-based compensation expenses 21 73 – – – Amortization of goo
Slide 97: Consolidated Cash Flows: Investments & Financing
Consolidated Cash Flows: Investments & Financing (JPY million) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) FY24/2 (12M) FY25/2 Q3 (9M) Cash Flows from Investments Payments into time deposits -7 -7 -2 -701 -96 Proceeds from withdrawal from time deposits – 30 23 – 800 Payments for securities investments -5
Slide 98: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 98
Slide 99: Top Partner of J.League, Japan’s Professional Soccer League
Real Estate x Sports Top Partner of J.League, Japan’s Professional Soccer League Promoting Community Development, Revitalizing Local Economies, & Helping People Enjoy Fuller and Healthier Lives J.League’s 100-Year Vision: Ichigo’s Mission: Promote Sports Development Serve Important Social Needs J.Le
Slide 100: J.League Tegevajaro Miyazaki: Revitalizing Local Communities
Real Estate x Sports J.League Tegevajaro Miyazaki: Revitalizing Local Communities – Growing From Consulting Business to Professional Soccer Club & Stadium Management – Acquired Ownership and Stadium Management Rights of J3 Club Tegevajaro Miyazaki Based in Miyazaki Prefecture, a Key Ichigo Area – Es
Slide 101: 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 102: PROPERA: Driving Stock Earnings Growth
Real Estate x IT x Tourism PROPERA: Driving Stock Earnings Growth Launch of Drive Non-Asset Stock Third-Party Increase Market Share Sales Earnings Earnings Upside From Participation in Long-Term Earnings Growth Hotel Earnings Growth PROPERA Business Market Turnaround ・ Strong domestic & inbound hote
Slide 103: OneFive Hotels: Hotel Operations
Real Estate x Tourism OneFive Hotels: Hotel Operations Non-Asset Business Growth Driver – Operations & Master Leases of Third-Party Hotels – Growth Exceeding Pre-Covid Levels Without Dedicated Sales & Marketing Teams – Driving Earnings & Cost Reductions via PROPERA deployment at hotels (generating 1
Slide 104: 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