Slide 1: FY20/2 Full-Year Corporate Presentation
FY20/2 Full-Year Corporate Presentation January 11, April 16, 2019 2020 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en
Slide 2: Condolences regarding Covid-19 pandemic
We would like to express our deepest condolences to all those across the world affected by the Covid-19 coronavirus pandemic and our wishes for the earliest possible recovery. © 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 FY20/2 Earnings FY21/2 Full-Year Forecast ‒ FY20/2 Summary ‒ FY21/2 Forecast ‒ Operating Profit +6%, Recurring Profit +6%, EPS -46% (YOY) ‒ FY21/2 Forecast Stock & Flow Earnings ‒ Segment Earnings Details ‒ FY21/2 Forecast Segment Details Powerful Value-Add Business Model Underpins Growth A
Slide 7: FY20/2 Earnings
FY20/2 Earnings © Ichigo Inc. All rights reserved. 7
Slide 8: FY20/2 Summary
FY20/2 Summary Durable Earnings Model Robust Stock Earnings Stock Earnings/Fixed Expenses Depreciation (Gross Profit: JPY M) 234% 1,632 2,507 SRE Asset Management Clean Energy 583 1,391 18,485 18,450 Gross Profit 13,451 13,331 JPY 37.02B 1,049 1,116 2,978 3,057 2,057 2,062 FY19/2 FY20/2 FY19/2 FY20/
Slide 9: Operating Profit +6%, Recurring Profit +6%, EPS -46% (YOY)
Operating Profit +6%, Recurring Profit +6%, EPS -46% (YOY) Record-High Operating Profit and Recurring Profit Extraordinary Loss on Covid-19 Writedown (JPY million) Full-Year FY19/2 FY20/2 YOY Forecast Operating Profit 26,279 27,721 +5.5% 26,500 Recurring Profit 23,076 24,395 +5.7% 22,800 Net Income
Slide 10: Segment Earnings Details
Segment Earnings Details − Asset Management: Base AM Fees +0.2% YOY − Sustainable Real Estate: Rental Income -1% YOY Gains on Sales +14% YOY − Clean Energy: Power Generation Revenue +3% YOY (JPY million) Operating Profit Gross Profit Earnings Drivers Segment Full-Year vs. Full-Year (Parentheses show
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 Robust Stock & Flow Earnings Growth Gross Profit + Depreciation 37,016 Stock Earnings (Primarily Rental Income, Base AM Fees, and Power Generation Revenues) Stock Earnings (Depreciation) 33,759 Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) F
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) 56.2 50.9 45.4 36.8 28.1 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2* Appraisal Valu
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 2.8X Appraisal Value-Based Unrealized Gains 2.5X Appraisal Value-Based Unrealized Gains Gains on Sales (Gross Profit) 4.4X 1.6X JPY 17.1B 2.2X JPY 15.0B JPY 12.0B JPY 10.5B JPY 7.2B JPY 6.4B JPY 6.1B JPY 5.9B
Slide 15: 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 16: 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 10.2 years 10.3 years 10.0 years 1.96% 9.0 years 8.7 years 2.0% 9 9.6 years 8.3 years 7.8
Slide 17: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 17
Slide 18: Sustainable Real Estate: Selective on Acquisitions and Sales
Sustainable Real Estate Selective on Acquisitions and Sales − FY20/2 Continuing Sellers’ Market – FY20/2 GPM: 28% (FY19/2 GPM 26%) − Ichigo Owners Continues High Level of Activity Acquisitions: JPY 28.52B (45% of total); Sales: JPY 9.31B (15% of total) FY20/2 Cumulative Net Acquisitions: JPY 2.4B (J
Slide 19: Asset Management: 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 86 Assets JPY 204.7B 23 Hotels JPY 51.9B 15 Plants JPY
Slide 20: Clean Energy: Scaling Rapidly (In-Development Plants +66%)
Clean Energy Scaling Rapidly (In-Development Plants +66%) 5 New Plants (Total 23.21MW) Began Operation in FY20/2 – Kanto area (12.02 MW), Chubu area (4.57MW) 176.9MW – Kansai area (6.61MW) (+22%) 145.3MW Power Generation Growth (+16%) 125.1MW Operating (+17%) In-Development 70.1 38.5 (Wind 25.9) Ich
Slide 21: New Plants Driving Growth
Clean Energy New Plants Driving Growth Total 5 New Plants (23.21MW) Online in FY20/2 (1.3X MW Growth YOY, 83.6MW 106.8MW) New FY20/2 Plants Will Drive FY21/2 Stock Earnings Growth Panel Total Panel FIT Operation Solar Power Plant Output Output (JPY) Start Date (MW) (MW) Ichigo Sera Aomizu 32 2.87
Slide 22: 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 23: Share Buybacks
Share Buybacks Purpose: Grow Value for Ichigo’s Shareholders FY20/2 Number of Shares 7,081,200 (1.4% of shares outstanding) Average Share Price JPY 424 Amount JPY 3B FY19/2 Number of Shares 7,869,700 (1.6% of shares outstanding) Average Share Price JPY 381 Amount JPY 3B FY18/2 Number of Shares 8,436
Slide 24: Progressive Dividend
Progressive Dividend Progressive Dividend Policy (Maintain or Raise) FY20/2 Dividend Maintained Despite Covid-19 Seven Consecutive Years of Dividend Growth to FY20/2 JPY 7 JPY 7 JPY 6 JPY 5 JPY 3 JPY 1* JPY 1.1 JPY 1.3 FY13/2 FY14/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 (Initiated Dividend) * Ad
Slide 25: Durable & Adaptive Growth Strategy
Durable & Adaptive Growth Strategy © Ichigo Inc. All rights reserved. 25
Slide 26: High-Integrity Balance Sheet
High-Integrity Balance Sheet Systematic review of all assets’ current market values and writedown of assets impacted by current market conditions, particularly hotels & retail FY20/2 reclassification of Real Estate for Sale assets to Fixed Assets to increase tax efficiency & cash generation via taki
Slide 27: Cash Flow Maximization
Cash Flow Maximization Reclassification of Sustainable Real Estate Assets to Fixed Assets Real Estate for Sale & Fixed Assets Fixed Assets (Value-Add) Fixed Asset Ratio Real Estate for Sale (Value-Add) 30.1% 84.4% 15.2% (JPY billion) 12.8% 30.9 7.2% 140.2 Maximal use of 162.3 depreciation allowances
Slide 28: Conservative Financing
Conservative Financing Prudent management to minimize risks Actions Outcomes Lower Borrowing Costs 0.91% (weighted avg. interest rate) Lengthen Loan maturities 10.0 years (weighted avg. loan maturity) 25.6% (% of total loans uncollateralized) Increase Uncollateralized JPY 20B (current 10-year & 11-y
Slide 29: 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 30: FY21/2 Full-Year Forecast
FY21/2 Full-Year Forecast © Ichigo Inc. All rights reserved. 30
Slide 31: FY21/2 Forecast
FY21/2 Forecast Given Covid-19 uncertainty, forecasting with a range, taking a conservative view on the bottom of the range (JPY) FY21/2 FY20/2 (Forecast) (Actual) Operating Profit 6.2B – 12.9B 27.7B Recurring Profit 3.4B – 10.4B 24.4B Net Income 2.0B – 8.0B 8.2B EPS 4.15 – 16.60 16.89 Dividend TBD
Slide 32: FY21/2 Forecast Stock + Flow Earnings
FY21/2 Forecast Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Base AM Fees, and Power Generation Revenues) Gross Profit + 37,016 Stock Earnings (Depreciation) Depreciation Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) Fixed Expenses (Fixed SG&A + Interest Expenses)
Slide 33: FY21/2 Forecast Segment Details
FY21/2 Forecast Segment Details − AM: Conservatively Forecast Stock & Flow AM Fees − SRE: Gains on Sales range biggest swing factor − CE: Growth on plan, unaffected by Covid-19 (JPY) Operating Profit FY21/2 FY20/2 (Forecast) (Actual) Asset Management (AM) c. 1.1B 2.5B Sustainable Real Estate (SRE) 3
Slide 34: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 34
Slide 35: 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 36: 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 147,296,453 kWh 97,215,656 kg ‒ Lengthen useful life of existing real estate ‒ Shrink footpri
Slide 37: Ichigo ESG – Social
Ichigo ESG – Social Sports & Arts Children’s Cancer Treatment Support Outstanding, Support University of Miyazaki Faculty World-Class Athletes of Medicine’s Program for Children ‒ Weightlifting with Cancer ‒ Riflery ‒ Issued CSR bond & donated a portion of ‒ Track & Field underwriter commission to t
Slide 38: 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 39: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 39
Slide 40: Significant Unrealized Gains on Balance Sheet
Significant Unrealized Gains on Balance Sheet JPY 53B (Appraisal Value Basis), +6.8% vs. FY19/2-end Real Estate Directly Held by Ichigo (JPY million) Unrealized Book Value as of Appraisal NOI Cap Rate Appraisal Value Location Gains February 29, 2020 (A) (B) (A)/(B) (C) (C) - (A) Tokyo 94,372 5,374 5
Slide 41: Net Consolidated Risk-Based Balance Sheet
Net Consolidated Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 389.9B (Book Value JPY 333.7B + Unrealized Gains JPY 56.2B) Cash & Cash Equivalents Non-Recourse Loans & JPY 34.8B Related Liabilities Net Consolidated Risk-Based Balance Sheet: JPY 44.2B JPY 310.9B Non-Recourse
Slide 42: 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 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 Segment YOY YOY FY20/2 FY19/2 FY20/2 FY19/2 FY20/2 Change Change Forecast Asset Management (AM) 2,437 3,046 +25.0% 2,195 2,526 +15.1% 1,821 Base AM Fees 2,057 2,062 +0.2% – – – – Acquisition/Disposition Fees 379 984 +159
Slide 45: Asset Management AUM Detail
Asset Management AUM Detail FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 (12M) (12M) (12M) (12M) (12M) (12M) 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 1,426
Slide 46: 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 47: Sustainable Real Estate Social Significance
Sustainable Real Estate Social Significance Sustainable Real Estate Serving a Sustainable Society End Demolish and Rebuild and Embrace Sustainable Value-Add ‒ Preserve and enhance high-function real estate ‒ Lengthen useful life and improve quality of existing assets via Sustainable Value-Add Sustai
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 Steps: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new ten
Slide 49: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Value-Add Supports Ongoing High GPM FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 GPM 23.0% 13.6% 33.7% 25.5% 28.3% (vs. Revenue) GPM 29.9% 15.8% 50.9% 34.3% 39.5% (Vs. Book value) Revenue 31,674 77,502 35,733 58,693 60,601 (JPY M) Gross Profit 7,283 10
Slide 50: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease Other 3% Hokkaido 1% 1% Sendai 2% Logistics 2% Osaka 3% Hokkaido Other 3.4 Nagoya 3% 5% Residence Retail 16% 29% Tokyo Metro* 11% Tokyo 54% Tokyo Hotel 129.7 23% Fukuoka Office 21% 26% Sendai 5.9 *Ex-Tokyo Nagoya
Slide 51: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 177 Assets, JPY 242B, Forecast NOI JPY 12B (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 Fixed A
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 12 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 34 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 56 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. FY19/2 Q4 1 Equity Price NOI/Year Investment IRR Multiple A Ichigo Owners (Office & Residential) 49 Assets JPY 36,634M +JPY 18,925M JPY 1,722M JPY 13,386M – – B Centro (Primarily Offic
Slide 58: 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 H
Slide 59: Ichigo Solar & Wind Power Plant Portfolio
Ichigo Solar & Wind Power Plant Portfolio Hokkaido Serving Local Communities and the Environment Ichigo Yubetsu Barou Ichigo Betsukai Kawakamicho 0.80MW 0.88MW Total Operating and In-Development Chugoku Ichigo Akkeshi Shirahama 0.80MW Ichigo Yonago Izumi 2.61MW Ichigo Power Plants Ichigo Toyokoro Sa
Slide 60: Ichigo-Owned Solar Power Plant Details
Ichigo-Owned Solar Power Plant Details Total Operating and In-Development Ichigo-Owned Solar Power Plants: 48 Plants (151.01MW) By Customer By Feed-In Tariff By Operating Timeline (Electric Power Utility Co) Hokkaido Shikoku JPY 14 Tohoku 3% 2% 2% 3% JPY 18 10% JPY 40 Kyushu 19% JPY 21 13% 7% Kansai
Slide 61: 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 62: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 vs. FY19/2 Assets Current Assets Cash and cash equivalents 28,779 47,678 45,510 50,225 41,067 -9,158 Trade notes and accounts receivable 691 913 1,097 1,344 2,308 +964 Operational loan investments 1,324 1,324 1,324 1
Slide 63: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 vs. FY19/2 Liabilities Current Liabilities Trade notes and accounts payable 80 110 – – – – Short-term loans 2,188 805 1,042 3,275 3,086 -189 Short-term non-recourse loans 79 611 – – – – Bonds (due w
Slide 64: Consolidated P&L
Consolidated P&L (JPY million) FY20/2 Change vs. FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Full-Year (YOY) Forecast Forecast Revenue 49,699 109,253 57,846 83,540 87,360 +3,820 – – Cost of Goods Sold 28,865 81,327 30,860 51,413 52,851 +1,438 – – Gross Profit 20,833 27,925 26,986 32,126 34,509 +2,383 – – SG&
Slide 65: Consolidated Cash Flows from Operations
Consolidated Cash Flows from Operations (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Cash Flows from Operations Pre-tax net income 14,022 20,630 20,109 23,079 16,545 Depreciation 792 778 1,015 1,696 2,630 Share-based compensation expenses 174 223 215 213 194 Amortization of goodwill 139 141 111
Slide 66: Consolidated Cash Flows from Investments & Financing
Consolidated Cash Flows from Investments & Financing (JPY million) FY16/2 FY17/2 FY18/2 FY19/2 FY20/2 Cash Flows from Investments Payments into time deposits – -6,100 -6 -118 -113 Proceeds from withdrawal from time deposits – 201 – 1,060 5,033 Payments for securities investments -671 -300 -140 -539
Slide 67: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 67
Slide 68: 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 69: 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 70: 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 71: 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 72: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 72
Slide 73: 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 74: Hotel Operator Market Entry: Hakata Hotels
Real Estate x Tourism Hotel Operator Market Entry: Hakata Hotels Hotel Operator in Kyushu/Yamaguchi Region Seeing Inbound Tourism Growth – Started operations at 3 hotels on June 1, 2019 and 7 hotels in August Deploying Propera, Ichigo’s AI-based Hotel Revenue Management System – Increasing employee
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: Real-World Augmented Reality (AR) Game TSUBASA+
Real Estate x Entertainment x Sports x Tourism 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
Slide 77: 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