Ichigo Inc. · TSE:2337

Ichigo — H1 FY2011 Earnings Presentation

26 slides from Ichigo's earnings presentation, Oct 21, 2010

Slide 1: Corporate Presentation: Feb. 2011 Fiscal Year H1
Feb. 2011 Fiscal Year H1 (March 2010 – August 2010) Corporate Presentation October 21, 2010 Ichigo Group Holdings Co., Ltd. (2337) ©2010 Ichigo Group Holdings Co., Ltd. All rights reserved. http://www.ichigo-holdings.co.jp/english/
Slide 3: Laying the Foundation for Stable, Long-term Growth
Laying the Foundation for Stable, Long-term Growth  Core Company of Ichigo Group  New Real Estate Fund  Business Development  Strengthened Capital Base  Continued Asset Dispositions  Optimizing Balance Sheet  Securing On-Going Profitability  Move to JASDAQ Appendices: Financial & Real Estate
Slide 5: Core Company of Ichigo Group
Core Company of Ichigo Group • Changed company name to Ichigo Group Holdings Co., Ltd. on September 1, 2010 • Ichigo is a high-commitment, long-term Japanese asset management group • “Ichigo” comes from an ancient Japanese proverb, Ichigo Ichie, literally meaning "One lifetime, one encounter.” The p
Slide 6: New Real Estate Fund
New Real Estate Fund • First fund launch post-name change  Asset Size: JPY 7.3 billion  Equity Investor: DLJ Real Estate Capital Partners (ex-Credit Suisse group)  Operating Period: 4 years  Fund Assets: About 80 office, commercial, and residential properties and land leaseholds • Builds upon Ic
Slide 7: Business Development
Business Development • Working towards other new fund launches  Matching investors’ needs and real estate assets  New classes of investors: Japanese operating companies, domestic pension funds, etc.  Offering custom-made solutions  Expanding opportunities via Ichigo’s strengthened relationships
Slide 8: Strengthened Capital Base
Strengthened Capital Base • Although Net Assets decreased due to negative FX movements, increased Equity Ratio via pay down of corporate debt  Decrease in Net Assets: ¥1.6 billion  Decrease in Corporate Debt: ¥2.1 billion Equity Ratio: 49.3% Equity Ratio: 56.2% Equity Ratio: 57.4% +5.4 Liabilities
Slide 9: Continued Asset Dispositions
Continued Asset Dispositions • Sold ¥1.3 billion in assets in Feb 11 Q2 • Expect to continue dispositions 1.31 5.10 3.79 Private Equity 0.29 Private Equity Private Equity Private Equity 3.33 Domestic: 3 3.04 Overseas: 3 Real Estate Domestic: 2 Real Estate Overseas: 2 1.01 Real Estate 1.76 Real Estat
Slide 10: Optimizing Balance Sheet
Optimizing Balance Sheet While continuing to pay down existing corporate debt, have begun improving the balance between short-term and long-term debt Corporate Debt JPY -2.3B Repayment: -0.7 New Borrowings: +0.3 CB Redemption: -0.1 CB Conversion: -0.2 Deconsolidation via Asset Sales: -1.6 Total Borr
Slide 11: Securing On-Going Profitability
Securing On-Going Profitability • Expect second consecutive year of profitability • Conservative full-year forecast Revenues (Cumulative) Net Profit / Loss (Cumulative) (Million yen) Progress towards Full-Year Forecast (Post-Upward Revision): Revenues: 51.5%, Net Profit: 101.7% 21,112 13,800 7,111 4
Slide 12: Move to JASDAQ
Move to JASDAQ • Ichigo Group Holdings became a JASDAQ-listed company on October 12, 2010, as the Osaka Securities Exchange newly established the JASDAQ market by merging together Hercules, JASDAQ and NEO • Selected as a member of the JASDAQ J-Stock index, which comprises the top 75 companies out of
Slide 14: 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 15: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 10 Feb 11 Q1 Feb 11 H1 Change (QoQ) Total Assets 42,804 48,252 44,704 -3,548 Cash and Cash Equivalents 5,268 7,791 7,888 97 Investment (Real Estate) 5,707 5,866 5,860 -6 Investment (Domestic companies) 2,046 1,887 1,606 -281 Investment (Overseas companies)
Slide 16: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) Feb 11 H1 Feb 11 H1 Feb 10 Feb 11 Q1 Feb 11 Q2 Cumulative Cumulative Revenues 14,127 2,691 1,473 4,165 Revenues 4,165 Real Estate Management Fees 562 Cost of Revenues 9,785 1,617 704 2,321 Advisory Fees 36 Gross Profit 4,342 1,074 769 1,844 Rental Income 880 S
Slide 18: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 10 Feb 11 Q1 Feb 11 H1 QoQ change Total Assets 100,268 107,315 104,107 -3,208 Cash and Cash Equivalents 10,728 13,389 12,842 -547 Operating Investments in Securities 9,404 9,411 8,501 -910 Real Estate Held for Sale 69,445 70,056 69,689 -367 Fixed Assets
Slide 19: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Million yen) Feb 10 Feb 11 Q1 Feb 11 H1 QoQ Change Outside The Outside The Outside The in the Amount Investors' Company's Amount Investors' Company's Amount Investors' Company's Com pany's Interests Interests Interests Interests Interests Interests Interests Cash
Slide 20: P&L (Consolidated)
P&L (Consolidated) (Million yen) Feb 11 H1 Full-Year Feb 11 H1 Feb 10 Feb 11 Q1 Feb 11 Q2 Progress Cumulative Forecast Cumulative Revenues 21,112 4,104 3,006 7,111 13,800 51.5% Revenues 7,111 Real Estate Management Fees 383 Cost of Revenues 16,991 3,017 2,107 5,124 －－ Advisory Fees 35 Gross Profit
Slide 22: Cumulative Assets Under Management
Cumulative Assets Under Management • Historic Cumulative AUM Exceeds ¥1 trillion • Strong Long-Term Track Record of Managing Real Estate for Clients (billion yen, # of funds in parenthesis) 1,164.5 1,175.1 1,181.1 1,128.4 (141) (141) (143) 1,200 (137) 64.0 64.0 REIT 64.0 64.0 (As of August 2010) Ope
Slide 23: Assets Under Management
Assets Under Management • Expertise across Full Spectrum from Development to Operating Assets • 97% of Current Portfolio is Comprised of Operating Assets (As of August 2010) Development 600 3% REIT 530.1 Operating 496.0 (billion yen) 500 62.0 Development 426.5 Operating 400 97% 330.6 335.9 257.0 335
Slide 24: Real Estate Portfolio
Real Estate Portfolio • Mainly Office, although Significant Track Record across a Wide Variety of Asset Types • Particular Experience in Managing Small & Mid-Size Assets from ¥1 - 5 billion in Tokyo AUM by Type # of Properties by Type (Unit: # of buildings) (As of August 2010) Other 3% Other 6 AUM b
Slide 25: IGH Real Estate Cap Rates
IGH Real Estate Cap Rates • Cap Rates Increased Due to Early Adoption of Lower of Cost or Market Rule • Continually Mark Assets In-line with Current Market Pricing and Eliminate Any Unrealized Losses from B/S (As of August 2010) Real Estate Investments held by Funds (SPCs) (Million yen, except for p
Slide 26: These materials were prepared to explain the Company’s businesses and are not for the
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

Ichigo Group Holdings — H1 FY2011 Earnings Presentation on 6ix

Ichigo — H1 FY2011 Earnings Presentation

Slide 1: Corporate Presentation: Feb. 2011 Fiscal Year H1

Slide 2: Creating peace of mind through honest and committed management

Slide 3: Laying the Foundation for Stable, Long-term Growth

Slide 4: Laying the Foundation for Stable, Long-term Growth

Slide 5: Core Company of Ichigo Group

Slide 6: New Real Estate Fund

Slide 7: Business Development

Slide 8: Strengthened Capital Base

Slide 9: Continued Asset Dispositions

Slide 10: Optimizing Balance Sheet

Slide 11: Securing On-Going Profitability

Slide 12: Move to JASDAQ

Slide 13: Appendix: Pro Forma Financial Data

Slide 14: Pro Forma Disclosure to Improve Transparency

Slide 15: Balance Sheet (Pro Forma)

Slide 16: P&L (Pro Forma)

Slide 17: Appendix: Consolidated Financial Data

Slide 18: Balance Sheet (Consolidated)

Slide 19: Breakdown of Assets (Consolidated)

Slide 20: P&L (Consolidated)

Slide 21: Appendix: Real Estate Data

Slide 22: Cumulative Assets Under Management

Slide 23: Assets Under Management

Slide 24: Real Estate Portfolio

Slide 25: IGH Real Estate Cap Rates

Slide 26: These materials were prepared to explain the Company’s businesses and are not for the