Ichigo Inc. · TSE:2337
Ichigo — Q3 FY2021/2 Earnings Presentation
78 slides from Ichigo's earnings presentation, Jan 13, 2021
Slide 1: FY21/2 Q3 Corporate Presentation
FY21/2 Q3 Corporate Presentation January 2021 January 13, 2021 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en
Slide 2: Condolences to those affected by Covid
We would like to express our deepest condolences to all those across the world affected by the Covid pandemic, along with our wishes for the earliest and fullest possible recovery. Take care, be safe. © Ichigo Inc. All rights reserved. 2
Slide 3: Make The World More Sustainable
Make The World More Sustainable © Ichigo Inc. All rights reserved.
Slide 4: © Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Slide 5: © Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Slide 6: Contents
Contents FY21/2 Q3 Earnings Sustainable Growth as a Sustainable Infrastructure ‒ FY21/2 Q3 Summary Company ‒ Covid Impacts ‒ Sustainable Real Estate: Selective on Acquisitions & Sales ‒ Covid Countermeasures ‒ Sustainable Real Estate Value-Add: Focus on Tenant ‒ Operating Profit -65.8%, EPS -71.5% (
Slide 7: FY21/2 Q3 Earnings
FY21/2 Q3 Earnings © Ichigo Inc. All rights reserved. 7
Slide 8: FY21/2 Q3 Summary
FY21/2 Q3 Summary Durable Earnings Model Robust Stock Earnings Stock Earnings/Fixed Expenses (JPY million) 197% Sustainable Asset Management Clean Energy Real Estate Cash 316 14,271 Earnings JPY 16.6B 11,495 10,192 7,015 2,479 3,136 1,599 1,343 FY20/2 FY21/2 FY20/2 FY21/2 FY20/2 FY21/2 Cash Earnings
Slide 9: Covid Impacts
Covid Impacts Asset Management − Decrease in Ichigo Hotel (3463) AM fees − No impact on Ichigo Office (8975) & Ichigo Green (9282) Sustainable Real Estate − Partial recovery in hotel rental income, but not to level to receive variable rent − Minimal impact on retail rental income, but outlook uncert
Slide 10: Covid Countermeasures
Covid Countermeasures Infection Control & Response, Communication with Tenants, Thorough Information Gathering, & Extensive Safety Measures for Tenants Covid Awareness & Prevention Promotion Poster Asset Type Covid Infection Countermeasures Provide hand sanitizers ubiquitously All Asset Types Cover
Slide 11: Operating Profit -65.8%, EPS -71.5% (YOY)
Operating Profit -65.8%, EPS -71.5% (YOY) Significant Covid Impact: Stock Earnings -19.5%, Flow Earnings -71.6% YOY (JPY million) Revised FY20/2 FY21/2 YOY Full-Year Q3 Q3 Forecast Operating Profit 25,032 8,551 -65.8% 9,500 Recurring Profit 22,665 6,535 -71.2% 6,800 Net Income 15,141 4,265 -71.8% 5,
Slide 12: Segment Earnings Details
Segment Earnings Details − Asset Management: Decrease in Ichigo Hotel (3463) AM fees − Sustainable Real Estate Stock Earnings: Significant decrease in hotel income; limited retail impact Flow Earnings: Little activity in sales & acquisitions other than residential − Clean Energy: Steady growth; 8 ne
Slide 13: FY21/2 Full-Year Forecast Revision
FY21/2 Full-Year Forecast Revision Revised Forecast: OP JPY 9.5B, EPS JPY 10.4 − Sustainable Real Estate Stock Earnings: Rental income above top-of-range of previous forecast Flow Earnings: Gains on sales in middle-of-range of previous forecast, with residential asset transaction market strong and o
Slide 14: Powerful Value-Add Business Model Underpins Growth
Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 14
Slide 15: Business Model (1) Stock + Flow Earnings
Business Model (1) Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Power Generation Revenues, Depreciation (Non-Cash), & Base AM Fees) Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) 37,016 Fixed Expenses (Fixed SG&A + Interest Expenses) 33,759 Cash Earnings (JPY milli
Slide 16: 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 “Earnings Bank” for Future Periods (JPY billion) 56.2 50.9 45.4 36.8 28.1 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2* Appraisal Value-B
Slide 17: Business Model (3) Value-Add Drives Durable Value Growth
Business Model (3) Value-Add Drives Durable Value Growth Gains on Sales Consistently Exceed 2.8X Appraisal Value-Based Unrealized Gains Appraisal Value-Based Unrealized Gains 2.5X Gains on Sales (Gross Profit) 4.4X 1.6X JPY 17.1B JPY 15.0B JPY 12.0B 1.7X JPY 10.5B JPY 6.4B JPY 6.1B JPY 5.9B JPY 4.9B
Slide 18: Business Model (4) Robust Cash Generation
Business Model (4) Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income (JPY billion) Net Income 3.6X Economic Operating Cash Flow 1.7X 1.4X 1.3X 1.2X 29.5 25.5 21.5 17.1 16.7 14.9 15.4 12.9 14.0 8.2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Note: Economic Operating Cash Flow = Cash Flows
Slide 19: Strong Financial Base
Strong Financial Base Average Interest Rate & 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 10.3 years 10.2 years 10.0 years 10.1 years 9.6 years 9.0 years 8.7 years 2.0% 9 7.6 year
Slide 20: UN ESG/SDGs Financing
UN ESG/SDGs Financing First Japanese Real Estate Company to Borrow via ESG/SDGs Syndicated Loan Program Based on UN Principles for Positive Impact (Amount: JPY 10.6B) − Unrestricted funds available for broad use across Ichigo’s businesses − Ichigo recognized for: Contribution to clean energy produ
Slide 21: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 21
Slide 22: Selective on Acquisitions and Sales
Sustainable Real Estate Selective on Acquisitions and Sales FY21/2 Acquisitions: JPY 28.8B − Ichigo Owners acquired 18 assets (JPY 15.6B, 54% of total) − Ichigo Owners continuing to execute on acquisitions (current inventory: JPY 17.7B) FY21/2 Sales: JPY 37.9B − Ichigo Owners sold 31 assets (JPY 33.
Slide 23: SRE Value-Add: Focus on Tenant Needs (1)
Sustainable Real Estate SRE Value-Add: Focus on Tenant Needs (1) Ichigo Layout Office: Driving Higher Tenant Satisfaction & Asset Value − Reduces tenant costs & accelerates tenant move-ins − Strong design aesthetics − Flexible layout to accommodate changes in tenant staff numbers & working styles CT
Slide 24: SRE Value-Add: Focus on Tenant Needs (2)
Sustainable Real Estate SRE Value-Add: Focus on Tenant Needs (2) New Restaurant Tenant at the Plaza Hotel Premier (Fukuoka) − Leased first floor to well-known restaurant despite difficult Covid environment − Build relationships of trust with tenants & customers without relying on property management
Slide 25: SRE Value-Add: The OneFive Hotels
Sustainable Real Estate SRE Value-Add: The OneFive Hotels Redesigned, refurbished, & rebranded 35-year old hotel in central Hakata (Fukuoka) deploying Ichigo’s value-add capabilities and know-how − The OneFive is a new Ichigo hotel brand with hotels focused on serving local communities & providing h
Slide 26: SRE Value-Add: Anime & Real Estate
Sustainable Real Estate SRE Value-Add: Anime & Real Estate Driving Synergies Between AKIBA CULTURES ZONE Retail Asset & Ichigo anime series VLADLOVE − Sales of VLADLOVE premium goods at Ichigo Animation’s official shop, CulZone − Live performance of VLADLOVE Ambassadors at AKIBA CULTURES Theater − D
Slide 27: Growth Support for Ichigo REITs & Ichigo Green Solar Power
Asset Management Growth Support for Ichigo REITs & Ichigo Green Solar Power 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 86 Assets JPY 206.1B 23 Hotels JPY
Slide 28: Clean Energy: Scaling Rapidly
Clean Energy Scaling Rapidly (In-Development Plants +41%) 3 New Plants (Total 5.6MW) Online in Q3 198.9MW (+14%) 7 New Plants (Total 21.1MW) Forecast for FY21/2 (full-year) (Solar 13.7MW, Wind 7.3MW) 173.9MW 157.4MW (+10%) 48.9 Power Generation (Wind 18.3) (+16%) 23.9 136.3MW (Wind 7.3) Ichigo Total
Slide 29: Share Buybacks
Share Buybacks Ichigo 2030: Flexible Deployment of Share Buybacks Purpose: Grow Shareholder Value January 2021 Buyback Share Type Common shares Buyback Method In-market purchases via securities firm Amount JPY 1.5 billion (maximum) Number of Shares 5,500,000 (maximum) (1.15% of shares outstanding, n
Slide 30: Ichigo J.League Shareholder Program
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 and listed solar power producer that it manages, in its shareholder program (67,000 shareholders in t
Slide 31: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 31
Slide 32: 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 33: Ichigo ESG – Environmental
Ichigo ESG – Environmental Sustainable Real Estate Contributing to a Low-Carbon World Preserve & Improve Real Estate to End Wasteful Annual Power Generation 147,296,453 kWh Demolition ‒ Lengthen useful life of real estate Equivalent to annual energy consumption of ‒ Shrink environmental footprint by
Slide 34: Ichigo ESG – Social
Ichigo ESG – Social Supporting Local Communities Working with Tenants − Ichigo’s Boutique Hotel THE KNOT − Conduct tenant surveys to understand needs to Creating a place for visitors, communities, and implement effective value-add the old and the new to come together − Became sole investor for Oshii
Slide 35: Ichigo ESG – Governance
Ichigo ESG – Governance Early Adopter of Global Best Practice Majority Independent Director Board Corporate Governance Structure Underpins Strong Governance − Adopted Independent Director-led, committee- − Of 9 members of Ichigo’s Board of Directors, 5 based governance system in 2006 to incorporate
Slide 36: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 36
Slide 37: Significant Unrealized Gains on Balance Sheet
Significant Unrealized Gains on Balance Sheet JPY 54.4B (Appraisal Value Basis), +0.4% vs. FY21/2 H1-end Real Estate Directly Held by Ichigo (JPY million) Book Value as of Appraisal NOI Cap Rate Appraisal Value Unrealized Gains Location November 30, 2020 (A) (B) (B)/(A) (C) (C) - (A) Tokyo 95,540 5,
Slide 38: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 395.3B (Book Value JPY 338.5B + Unrealized Gains JPY 56.7B) Cash & Cash Equivalents Non-Recourse Loans & JPY 42.6B Related Liabilities Net Consolidated Risk-Based Balance Sheet: JPY 47B JPY 305.7B Non-Recourse Loans & (Book Valu
Slide 39: Cash Flow Maximization
Cash Flow Maximization Reclassification of Sustainable Real Estate Assets to Fixed Assets to Increase Cash Flow Real Estate for Sale & Fixed Assets Fixed Assets (SRE) Fixed Asset Ratio Real Estate for Sale (SRE) 30.1% 84.4% 15.2% (JPY billion) 12.8% 30.9 7.2% 140.2 Maximal use of 162.3 depreciation
Slide 40: 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 non-cash depreciation allowances − Majority of cash earnings are Stock Earnings − Stock Earnings/Fixed Expenses Ratio – even amidst Covid – is consistently c. 200% (JPY mill
Slide 41: Post-GFC Shift in Earnings Base & Financial Position
Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY20/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 234% 3.1X Coverage Ratio 10.3 years Loan Maturity (Weighted avg., 5.6 years 3.7X corporate + non-recourse loans) 2.8 years 93% 28% 14% >3 years <3 years
Slide 42: Business Segments
Business Segments Asset Management (AM) generates fee income via management of Asset Management Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282), and private real estate funds. Sustainable Real Estate (SRE) preserves and improves real estate. Sustainable Ichigo receives rental inco
Slide 43: 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 (A
Slide 44: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) Gross Profit Operating Profit Revised Segment YOY YOY FY21/2 FY20/2 Q3 FY21/2 Q3 FY20/2 Q3 FY21/2 Q3 Change Change Full-Year Forecast Asset Management (AM) 2,109 1,445 -31.5% 1,696 944 -44.3% 1,300 Base AM Fees 1,599 1,343 -16.0% – – – – Acquisition/
Slide 45: Asset Management AUM Detail
Asset Management AUM Detail FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Q3 (12M) (12M) (12M) (12M) (12M) (9M) Ichigo Office AUM (Fiscal Year End) JPY 165.1B JPY 194.5B JPY 196.9B JPY 203.0B JPY 203.2B JPY 202.3B (8975) Base AM Fee Gross Profit (Actual) JPY 1,016M JPY 1,291M JPY 1,373M JPY 1,426M JPY 1
Slide 46: Powerful Sustainable Real Estate Business Model
Powerful Sustainable Real Estate 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 Party
Slide 47: Sustainable Real Estate Social Significance
Sustainable Real Estate Social Significance Sustainable Real Estate Serving a Sustainable Society End Wasteful Demolition and Embrace Sustainable Value-Add ‒ Preserve and improve highly functional real estate ‒ Lengthen useful life and improve quality of assets via Sustainable Value-Add Sustainable
Slide 48: 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 Measures: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new
Slide 49: Sustainable Real Estate: Gross Profit Margin
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Q3 GPM 13.6% 33.7% 25.5% 28.3% 13.2% (vs. Revenue) GPM 15.8% 50.9% 34.3% 39.5% 15.2% (vs. Book Value) Revenue 77,502 35,733 58,693 60,601 37,904 (JPY M) Gross
Slide 50: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease 1% Other Sendai 2% 5% Osaka 3% Logistics 2% Nagoya 3% Other Hokkaido 7.1 7% Hokkaido 3% Residence 12% Retail 28% Tokyo Metro* Tokyo 50% 11% Tokyo Office 118.7 26% Fukuoka Hotel 21% 26% Sendai 5.9 *Ex-Tokyo Nagoya
Slide 51: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 170 Assets, JPY 238.6 B, Forecast NOI JPY 12.6B (6.2% Yield) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 1 Wholesale Market Fi
Slide 52: Sustainable Real Estate Asset Breakdown (2)
Sustainable Real Estate Asset Breakdown (2) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 27 Retail Fixed Asset Tokorozawa, Saitama JPY 1B-2B 2013/11 13 years JPY 76M JPY 9
Slide 53: Sustainable Real Estate Asset Breakdown (3)
Sustainable Real Estate Asset Breakdown (3) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 64 Retail Fixed Asset Shinagawa-ku, Tokyo <JPY 1B 2015/01 – JPY 26M – – – 66 Retai
Slide 54: Sustainable Real Estate Asset Breakdown (4)
Sustainable Real Estate Asset Breakdown (4) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 121 Office Fixed Asset Minato-ku, Tokyo >JPY 3B 2016/10 19 years JPY 1,540M JPY 3,
Slide 55: Sustainable Real Estate Asset Breakdown (5)
Sustainable Real Estate Asset Breakdown (5) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 155 Office Fixed Asset Shinagawa-ku, Tokyo JPY 2B-3B 2019/03 35 years JPY 169M JPY
Slide 56: Sustainable Real Estate Asset Breakdown (6)
Sustainable Real Estate Asset Breakdown (6) Forecast Acquisition Acquisition Building Expected Ichigo Equity Forecast No. Asset Type Classification Location 1 Equity 3 Price Date Age NOI/Year Investment 2 IRR Multiple 61 Retail Operational Loan Shinjuku-ku, Tokyo JPY 1B-2B 2014/12 57 years JPY 120M
Slide 57: Sustainable Real Estate Asset Breakdown (7)
Sustainable Real Estate Asset Breakdown (7) Expected Forecast Acquisition Ichigo Equity Forecast No. Asset Type vs. FY21/2 Q1 1 Equity Price NOI/Year Investment IRR Multiple A Ichigo Owners (Office & Residential) 34 Assets JPY 22,619M -JPY 14,015M JPY 1,163M JPY 7,730M – – B Centro (Primarily Office
Slide 58: Ichigo Solar Power Plant Portfolio, Total 198.9MW
Ichigo Solar Power Plant Portfolio, Total 198.9MW Ichigo Solar Power Plants (Operating) Ichigo Solar Power Plants (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
Slide 59: Ichigo-Owned Solar Power Plant Details
Ichigo-Owned Solar Power Plant Details Total Operating and In-Development Ichigo-Owned Solar Power Plants: 48 Plants (151.1MW) By Customer By Feed-In Tariff By Years in Operation (Electric Power Utility Co) Hokkaido Shikoku JPY 14 3% 2% 2% Tohoku 3% JPY 18 >5 years JPY 40 10% In Development 10% JPY
Slide 60: 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 purchase 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 o
Slide 61: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 H1 FY21/2 Q3 vs. FY21/2 H1 Assets Current Assets Cash and cash equivalents 47,678 45,510 50,225 41,067 46,083 50,059 +3,976 Trade notes and accounts receivable 913 1,097 1,344 2,308 1,366 1,508 +142 Operational loan
Slide 62: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 H1 FY21/2 Q3 vs. FY21/2 H1 Liabilities Current Liabilities Trade notes and accounts payable 110 – – – – – – Short-term loans 805 1,042 3,275 3,086 5,713 5,472 -241 Short-term non-recourse loans 611
Slide 63: Consolidated P&L
Consolidated P&L (JPY million) FY21/2 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Q3 FY20/2 Q3 Change Full-Year vs. (12M) (12M) (12M) (12M) (9M) (9M) (YOY) Forecast Forecast (Revised) Revenue 109,253 57,846 83,540 87,360 55,188 78,153 -22,965 – – Cost of Goods Sold 81,327 30,860 51,413 52,851 41,915 47,823 -
Slide 64: Consolidated Cash Flows from Operations
Consolidated Cash Flows from Operations (JPY million) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 Q3 (9M) Cash Flows from Operations Pre-tax income 20,630 20,109 23,079 16,545 6,418 Depreciation 778 1,015 1,696 2,630 3,432 Share-based compensation expenses 223 215 213 194 41 Amortizat
Slide 65: Consolidated Cash Flows from Investments & Financing
Consolidated Cash Flows from Investments & Financing (JPY million) FY17/2 (12M) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 Q3 (9M) Cash Flows from Investments Payments into time deposits -6,100 -6 -118 -113 -7 Proceeds from withdrawal from time deposits 201 – 1,060 5,033 – Payments for securities
Slide 66: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 66
Slide 67: 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 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 68: Go Beyond Real Estate to Address Significant Needs
Go Beyond Real Estate to Address Significant 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
Slide 69: 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 70: 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 71: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 71
Slide 72: Top Partner of J.League, Japan's Professional Soccer League
Real Estate x Sports 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 Importa
Slide 73: 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 and Increases Labor Productivity − Solves Issues Faced by Hotels and Supports Competitiveness − Developed PROPERA-Lite* Tailored to Hotels’ Needs * Provides limited information on pricing level
Slide 74: Hakata Hotels: Hotel Operations
Real Estate x Tourism Hakata Hotels: Hotel Operations Hotel Operator in Kyushu/Yamaguchi Region Seeing Inbound Tourism Growth – Started operations at 3 hotels on June 1, 2019 and currently operates 13 hotels PROPERA Deployment – Generating 10 to 40% revenue increases p.a. – Sales of PROPERA to non-I
Slide 75: Ichigo Animation: Anime + Real Estate Synergies
Real Estate x Entertainment x Culture x Tourism 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 tha
Slide 76: TSUBASA+: Real-World Augmented Reality (AR) Game
Real Estate x IT x Entertainment x Sports x Tourism TSUBASA+: Real-World Augmented Reality (AR) Game Investing in TSUBASA+, an AR Game that Uses Smartphone GPS Japanese soccer manga, Captain Tsubasa, with avatars of world- class soccer players Integrates real-world stadiums around the world Game Fea
Slide 77: Website Renewal
Website Renewal Website Overhaul to Improve Usability & Site Content Smartphone Version Added New Sustainable Value-Add Examples & ESG Initiatives www.ichigo.gr.jp/en © Ichigo Inc. All rights reserved. 77
Slide 78: 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