Ichigo Inc. · TSE:2337

Ichigo — Q1 FY2025/2 Earnings Presentation

105 slides from Ichigo's earnings presentation, Jul 11, 2024

1. Slide 1: FY25/2 Q1 Corporate Presentation

   FY25/2 Q1 Corporate Presentation January July 11,13, 2023 2024 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en

2. Slide 2: Make The World More Sustainable

   Make The World More Sustainable © Ichigo Inc. All rights reserved.

3. Slide 3: © Ichigo Inc. All rights reserved.

   © Ichigo Inc. All rights reserved.

4. Slide 4: © Ichigo Inc. All rights reserved.

   © Ichigo Inc. All rights reserved.

5. Slide 5: Contents

   Contents FY25/2 Q1 Summary ‒ DX x Community Revitalization: Generative AI Development – First Customer Launch FY25/2 Q1 Earnings ‒ SRE x Sports x Community Revitalization: Growing Sports ‒ All-In OP +119%, Cash EPS +34% (YOY) Business Rooted in Local Communities ‒ Segment Earnings Details Shareholde

6. Slide 6: FY25/2 Q1 Summary

   FY25/2 Q1 Summary All-In Operating Profit JPY 5.8B (+119% YOY), Cash Net Income JPY 4.4B (+30% YOY) ̶ Flow Earnings: Q1 Asset Sales JPY 22.1B ̶ Stock Earnings: JPY 5.4B (+7% YOY), Forecasting 2nd Consecutive Year of Record Stock Earnings Asset Management Business Growth: AUM + JPY25.6B ̶ Ichigo Offi

7. Slide 7: FY25/2 Q1 Summary

   FY25/2 Q1 Summary Durable Earnings Model Robust Stock Earnings Stock Earnings/Fixed Expenses ■ FY24/2 ■ FY25/2 Q1 216% + 7.2% (JPY million) Target: >200% Sustainable Asset Clean Fixed Real Estate Management Energy (SRE) (AM) (CE) Expenses JPY 2.5B +12.1% Flow Earnings JPY 3.7B Cash Earnings 5,489 5,

8. Slide 8: FY25/2 Q1 Earnings

   FY25/2 Q1 Earnings © Ichigo Inc. All rights reserved. 8

9. Slide 9: All-In OP +119%, Cash EPS +34% (YOY)

   All-In OP +119%, Cash EPS +34% (YOY) 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 Q1 FY25/2 Q1 YOY Full-Year Forecast Operating Profit 2,445 4,221 +72.7% 16,000 All-In Operating Profit 2,691 5,880 +118.5%

10. Slide 10: Segment Earnings Details

    Segment Earnings Details – AM: AM Fee Increase Driven by Hotel AUM & NOI Increase Ichigo Residence Token Launch & Performance Fee on Ichigo Office Asset Gains on Sales – SRE Stock Earnings: Office, Retail, & Hotel Stock Earnings Growth – SRE Flow Earnings: Sold Assets to Ichigo Office & Ichigo Resid

11. Slide 11: Stock + Flow Earnings

    Stock + Flow Earnings Record Cash Earnings Forecast 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 20,915 13,371 9,793 5,850 9,236 21,343 18,450 19,417 15,065 14,912 15,598 3,746 5,489 FY20

12. Slide 12: Durable Stock Earnings

    Durable Stock Earnings Forecasting 2nd Consecutive Year of Record Stock Earnings – Stable Non- SRE Earnings Growth Diversifying Earnings Base (JPY million) Stock Earnings by Segment ■ SRE (Primarily Rental Income) ■ Clean Energy Record ■ Asset Management Fees ■ Hotel Operator + PROPERA Revenues Earn

13. 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 9.4 years 8.9 years 2.0% 9 7.6 years 7.2 years 6.5 years

14. Slide 14: Driving Sustainable Growth

    Driving Sustainable Growth © Ichigo Inc. All rights reserved. 14

15. Slide 15: Selective on Acquisitions & Sales

    Sustainable Real Estate Selective on Acquisitions & Sales Acquisitions: JPY 13B (JPY 37.9B Including Executed Contracts) – Multi-Asset: 2 Offices JPY 8.5B (JPY 16.3B Including Executed Contracts) Expanding REIT Pipeline – Owners: JPY 4.4B (JPY 21.5B Including Executed Contracts) Sales: JPY 22.1B – S

16. Slide 16: Hotel Stock Earnings Driving Stock Earnings Growth

    Sustainable Real Estate: Hotels Hotel Stock Earnings Driving Stock Earnings Growth Ichigo’s Hotel Operator One Five Hotels Revenues +75% YOY Ichigo Hotel Base AM Fee +198% YOY on 5 Hotel Acquisitions in FY24/2 Hotel Stock Earnings (JPY million) ■ Ichigo Hotel Base AM Fees ■ Rental Income 13,359 ■ Op

17. Slide 17: Strong Ichigo Owners Growth via Meeting Clients' Diverse Needs

    Sustainable Real Estate: Ichigo Owners Strong Ichigo Owners Growth via Meeting Clients’ Diverse Needs Expanding Sales Channels via Ichigo Residence Tokens (FY24/2 forecast +JPY 40B AUM) – Driving Growth in Asset Management AUM & Stock Earnings (JPY B) Ichigo Owners Acquisitions & Sales 5.4 ■ Acquisi

18. Slide 18: 4th Ichigo Residence Token Sold Out Immediately

    Sustainable Real Estate: Ichigo Owners x Asset Management 4th Ichigo Residence Token Sold Out Immediately Meeting Individuals’ Investments Needs for Prime Tokyo Residential Assets 4th Ichigo Residence Token 7 Tokyo Prime Residential Assets (Nishi Azabu, Yoyogi, Hatchobori, Ueno, Monzen Nakacho, Asag

19. Slide 19: Significant Ichigo Residence Token Growth

    Sustainable Real Estate: Ichigo Owners x Asset Management Significant Ichigo Residence Token Growth AUM Forecast: FY25/2 JPY 60B, FY26/2 JPY 100B – Significant investor demand for high-quality real estate assets – Strong pipeline of high-quality assets built on Ichigo’s win-win relationships with de

20. Slide 20: Growth Support to Drive REIT Shareholder Value

    Asset Management Growth Support to Drive REIT Shareholder Value Supporting Ichigo Office (8975) via High-Quality Asset Pipeline ̶ Sold Ichigo Office 6 High-Quality Office Assets, 2 of which were supplied via a bespoke bridge fund for Ichigo Office in FY22/2 (+JPY 15.4B AUM) Assets Sold to Ichigo Off

21. Slide 21: Private REIT New Business Entry

    Sustainable Real Estate x Asset Management Private REIT New Business Entry Acquiring All Shares of Tosho Tokai REIT, a Private REIT, & its Asset Management Company, Tosho Asset Management – Will expand Sales & AM Channel for Ichigo’s Value-Add Assets Asset Management New Private Private Ichigo Ichig

22. Slide 22: Driving Stable Earnings Growth

    Clean Energy Driving Stable Earnings Growth – Earnings Growth on Bringing Ichigo Ebino Suenaga Plant Online – 45MW Pipeline, Diversifying Energy Mix Ichigo Clean Energy ■ Green Biomass (In-Pipeline/FIT JPY 40) ■ Non-FIT Solar Plants (In-Pipeline) ■ Operating Plants (Solar/Wind FIT) 4.9 (Forecast) Gr

23. Slide 23: Global Expansion: GIGA.GREEN Investment

    Clean Energy Global Expansion: GIGA.GREEN Investment Investing in Leading German Renewable Energy Solutions Provider GIGA.GREEN – Underscores Ichigo’s Commitment to Deploy its Sustainable Infrastructure Capabilities on a Global Scale – Total investment: EUR 25M (JPY 43.7B), Ichigo ownership: 24.39%

24. Slide 24: Generative AI Development – First Customer Launch

    DX x Community Revitalization Generative AI Development – First Customer Launch – Developing & Providing DX Products/Services that Address Local Government & Corporate Needs – Expanding Generative AI Technology-Based Business Activity Built on Strong Relationships with Local Governments Yokosuka Cit

25. Slide 25: Growing Sports Business Rooted in Local Communities

    Sustainable Real Estate x Sports x Community Revitalization Growing Sports Business Rooted in Local Communities – Chosen by Matsue City to Renovate & Manage Professional Basketball Team’s Home Arena  Renovate & operate home arena of Shimane Susanoo Magic to meet new B1 league’s team criteria – Deep

26. Slide 26: Shareholder Returns

    Shareholder Returns © Ichigo Inc. All rights reserved. 26

27. Slide 27: Flexible Share Buybacks

    Shareholder Returns Flexible Share Buybacks FY25/2: JPY 1.2B (Completion of FY24/2 Share Buyback) Continue Policy of Flexible Share Buybacks Share Buyback Amount JPY 4.8B JPY 4.5B JPY 3B JPY 3B JPY 3B JPY 3B As of July 11, 2024 JPY 1.5B JPY 1.2B FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/

28. 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

29. 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 and listed solar power producer that it manages, in its shareholder program (83,0

30. Slide 30: Working to Protect Our Global Environment

    Working to Protect Our Global Environment © Ichigo Inc. All rights reserved. 30

31. Slide 31: Ichigo CO2 Reduction = 4X CO2 Emissions

    Ichigo Climate Positive: CO2 Reduction vs. Emissions (1) Ichigo CO2 Reduction = 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 Gre

32. Slide 32: 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

33. Slide 33: RE100: Continued Renewable Energy Transition

    RE100: Continued Renewable Energy Transition Targeting Full Group-Wide 100% Renewable Energy Transition in FY25/2 – Ichigo Office & Ichigo Hotel Have Completed Transition to 100% Renewable Energy RE100 Progress (as of May 31, 2024) RE100 Target: 2025 92% 59% Non-Fossil Certificate Tracking for 33% R

34. Slide 34: Ichigo SBT (Science Based Targets) Certification

    Ichigo SBT (Science Based Targets) Certification Ichigo’s Greenhouse Gas Reduction Targets Certified as SBT Aligned SBT Certified Ichigo’s Greenhouse Gas Reduction Targets Target Target Year Direct emissions owned or controlled by a Scope 1 company 70% Reduction Indirect emissions associated with th

35. Slide 35: Appendix: Powerful Value-Add Business Model & Sustainability Focus

    Appendix: Powerful Value-Add Business Model & Sustainability Focus © Ichigo Inc. All rights reserved. 35

36. Slide 36: Selective on Acquisitions & Sales

    Selective on Acquisitions & Sales SRE Sales & Acquisitions (JPY B) Left: Acquisitions, Right: Sales ■ Owners ■ Multi-Asset 69.5 69.6 63.0 60.6 8.0 55.1 50.7 28.5 45.8 43.2 41.4 50.3 38.2 28.0 18.1 31.0 36.0 52.5 24.3 30.6 34.5 26.7 27.6 27.0 26.2 19.0 13.8 14.6 10.7 4.3 FY20/2 FY21/2 FY22/2 FY23/2 F

37. Slide 37: 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

38. Slide 38: 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) 1.8X 2.1X 2.0X 1.9X 11.6 10.1 9.4 1.8X 5.7 6.3 4.7 4.7 3.0 3.5 2.0 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 Note: Self-storage assets sold in FY24/2 (36 assets, JPY3.9B gains on

39. Slide 39: 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 29.5 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

40. Slide 40: Cash Flow Maximization

    Cash Flow Maximization Maximal Use of Depreciation Allowances to Increase Cash Flow Real Estate for Sale & Fixed Assets Fixed Assets (SRE) Real Estate for Sale (SRE) 15.2% 30.1% 84.4% 84.4% 84.7% 84.3% 72.4% Fixed Asset Ratio (JPY billion) 32.0 30.9 29.5 29.7 56.3 Reclassification of Sustainable Rea

41. Slide 41: 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

42. Slide 42: 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 Borrowing ESG Loans as % of Total Borrowings ESG Loans (JPY billion) ■ ESG loans (including green bonds) ■ ESG loans (including green

43. Slide 43: Appendix: Financial & Operational Data

    Appendix: Financial & Operational Data © Ichigo Inc. All rights reserved. 43

44. Slide 44: 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

45. Slide 45: 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

46. Slide 46: 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 May 31, 2024 (B) (B)/(A) (C) (C) – (A) (A) Tokyo 6.1% 83,730 5,104 121,064 +37,334 Outside Tokyo 113,325 6,993 6.2% 144,46

47. Slide 47: Risk-Based Balance Sheet

    Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 450.1B (Book Value JPY 378.4B + Unrealized Gains JPY 71.6B) Non-Recourse Loans & Cash & Cash Equivalents Related Liabilities JPY 51.8B JPY 50.8B Risk-Based Consolidated Balance Sheet: JPY 347.4B (Book Value JPY 275.7B + Unrealiz

48. Slide 48: 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

49. Slide 49: Consolidated Balance Sheet: Segment Breakdown

    Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash Operational Operational Real Estate Fixed Intangible Securities Other Total Segment and Cash Loan Securities for Sale Assets Assets Investments Assets Assets Equivalents Investments Investments Asset Management (AM) – – – – – 480 – 1,1

50. Slide 50: 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 Q1 FY25/2 Q1 YOY FY24/2 Q1 FY25/2 Q1 YOY Forecast Asset Management (AM) 618 722 +16.8% 386 404 +4.9% 1,750 Base AM Fees 573 547 -4.6% – – – – Acquisition/Disposition Fees 45 175 +290.2

51. Slide 51: Appendix: Sustainable Real Estate Details

    Appendix: Sustainable Real Estate Details © Ichigo Inc. All rights reserved. 51

52. Slide 52: Sustainable Infrastructure for a Sustainable Society

    Sustainable Real Estate Social Significance Sustainable Infrastructure for a Sustainable Society End Wasteful Demolishment and Embrace Sustainable Real Estate – Improve quality of assets via Sustainable Value-Add – Preserve and improve highly functional real estate to contribute to environmental con

53. Slide 53: 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

54. Slide 54: 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

55. Slide 55: 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 and Tenant Needs – Eliminate Dev

56. Slide 56: 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 Q1 GPM 13.9% 20.6% 21.1% 14.6% 16.2% (vs. Revenue) GPM 16.2% 26.2% 27.1% 16.8% 19.0% (vs. Book Value) Revenue 41,430 45,830 55,166 69,693 22,192 (JPY M) Gross

57. Slide 57: 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 250.7B By Asset Type 1% Logistics Other (Including Ichigo-Managed AUM: JPY 611.8B) 1

58. Slide 58: Sustainable Real Estate Asset Breakdown (1)

    Sustainable Real Estate Asset Breakdown (1) 125 Assets, JPY 249.6B, Annual NOI JPY 12.0B (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

59. Slide 59: 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 29 Ground Lease Fixed Asset Fujisawa, Kanagawa JPY 1B-2B 2014/03 – JPY 113M JPY 27

60. Slide 60: 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 110 Hotel Fixed Asset Fukuoka >JPY 3B 2016/03 38 years JPY 273M JPY 905M – – 112 H

61. Slide 61: 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 Price Date Age NOI/Year1 Investment Multiple2 IRR3 167 Hotel Fixed Asset Hiroshima >JPY 3B 2020/08 3 years JPY 306M – – – 171 Office Fix

62. Slide 62: 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 61 Retail Operational Loan Shinjuku-ku, Tokyo JPY 1B-2B 2014/12 61 years JPY 120M

63. Slide 63: Sustainable Real Estate Asset Breakdown (6)

    Sustainable Real Estate Asset Breakdown (6) 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

64. Slide 64: Appendix: Asset Management Details

    Appendix: Asset Management Details © Ichigo Inc. All rights reserved. 64

65. Slide 65: Ichigo REITs & Ichigo Green

    Asset Management Ichigo REITs & Ichigo Green Ichigo Office 8975 Ichigo Hotel 3463 Ichigo Green 9282 Portfolio JPY 225.8B (93 Assets) JPY 69.8B (30 Hotels) JPY 11.4B (15 Solar Plants) Dividend Yield (as of July 8, 2024) 5.9% 5.0% 6.8% ・ Entered FTSE Global REIT ・ Geographically diversified ・ Solar po

66. Slide 66: 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

67. Slide 67: Asset Management AUM Detail

    Asset Management AUM Detail FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 (12M) (12M) (12M) (12M) (12M)） (3M) Ichigo Office AUM (Fiscal Year End) JPY 203.0B JPY 203.2B JPY 206.1B JPY 205.4B JPY 212.1B JPY 225.8B (8975) Base AM Fee Gross Profit JPY 1,426M JPY 1,436M JPY 1,524M JPY 1,725M JPY 1,517M JP

68. Slide 68: Appendix: Clean Energy Details

    Appendix: Clean Energy Details © Ichigo Inc. All rights reserved. 68

69. Slide 69: Ichigo Solar Power Plant Portfolio

    Ichigo Solar Power Plant Portfolio Total Operating and 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

70. 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 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

71. Slide 71: 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

72. Slide 72: 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

73. Slide 73: 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

74. Slide 74: 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) – Diversify & stabilize power production – Procure biomass feedstock via Ichigo’s relationships with local government Weather Characteristics

75. Slide 75: Appendix: Ichigo's Sustainability Commitment (ESG)

    Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 75

76. Slide 76: 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

77. Slide 77: 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

78. Slide 78: ESG Initiatives: Social

    ESG Initiatives: Social Contributing to Society Contributing to Regional Revitalization Ichigo University Sports Initiatives Ichigo works to revitalize local communities Ichigo established Ichigo University in May As a top partner of the J.League and promote regional economic 2013 to support employe

79. Slide 79: 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

80. Slide 80: Sustainability Initiatives

    Sustainability Initiatives Joining Third-Party Initiatives to Accelerate Ichigo’s Sustainability Activities UN Global Compact UN Global Compact is a global sustainability initiative that calls for companies and organizations to take leadership and take actions as members of society to implement univ

81. Slide 81: 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

82. Slide 82: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company

    Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 82

83. Slide 83: 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

84. Slide 84: Addressing Diverse Needs of Individuals & Communities

    Addressing Diverse Needs of Individuals & Communities © Ichigo Inc. All rights reserved. 84

85. Slide 85: Ichigo 2030 KPIs: Grow Shareholder Value

    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

86. Slide 86: Ichigo 2030 KPIs (1)

    Ichigo 2030 KPIs (1) High Capital Efficiency & High Cash Flow Generation – Cash ROE >18% (New) – ROE >15% – Economic Operating Cash Flow > Net Income High Earnings Stability – FY30/2 Stock Earnings Ratio >60% – Stock Earnings/Fixed Expenses Ratio >200% (New) © Ichigo Inc. All rights reserved. 86

87. Slide 87: 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 and dividend growth for shareholders. Under this policy, the dividend is maintained

88. Slide 88: Ichigo 2030 KPIs (3)

    Ichigo 2030 KPIs (3) Work for a Sustainable Planet (New) Ichigo Climate Positive Ichigo CO2 reduction via clean energy power production exceeds CO2 emissions RE100 100% renewable electricity across all Ichigo operations by 2025 CDP Leadership Climate Change: A Water Security: A (Currently A-) © Ichi

89. Slide 89: 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 6.5% 20,

90. Slide 90: Shareholder Return Data

    Shareholder Return Data Progressive Dividend Policy, DOE (Dividend on Equity) , Flexible Deployment of Share Buybacks (JPY billion) 20.0 ● Cash Net Income 17.8 ■ Share Buybacks ■ Total Dividend 16.0 15.3 13.0 12.0 10.7 9.9 8.0 4.5 4.8 3.0 3.0 4.0 1.5 3.3 3.3 3.2 3.6 3.9 0.0 FY20/2 FY21/1 FY22/2 FY23

91. Slide 91: Appendix: Financial Statements

    Appendix: Financial Statements © Ichigo Inc. All rights reserved. 91

92. Slide 92: Consolidated Balance Sheet: Assets

    Consolidated Balance Sheet: Assets (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 vs. FY24/2 Assets Current Assets Cash and cash equivalents 50,832 46,458 40,536 46,917 59,961 +13,044 Trade notes and accounts receivable 1,382 1,819 3,866 2,448 2,981 +533 Operational loan investments 1,324 1,324

93. Slide 93: Consolidated Balance Sheet: Liabilities

    Consolidated Balance Sheet: Liabilities (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 vs. FY24/2 Liabilities Current Liabilities Short-term loans 4,879 2,382 962 16,726 9,226 -7,500 Bonds (due within one year) 274 274 364 3,162 3,232 +70 Long-term loans (due within one year) 9,751 9,888 8,539

94. Slide 94: Consolidated Balance Sheet: Net Assets

    Consolidated Balance Sheet: Net Assets (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 vs. FY24/2 Net Assets Shareholders’ Equity Capital 26,888 26,888 26,888 26,892 26,931 +39 Capital reserve 11,275 11,268 11,266 10,313 10,348 +35 Retained earnings 73,160 76,310 82,438 90,967 69,800 -21,167 Tre

95. Slide 95: Consolidated P&L (1)

    Consolidated P&L (1) (JPY million) FY25/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 FY24/2 Q1 Change vs. Full-Year (12M) (12M) (12M) (12M) (3M) (3M) (YOY) Forecast Forecast Revenue 61,368 56,934 68,093 82,747 25,096 10,152 +14,944 – – Cost of Goods Sold 45,776 40,757 48,674 61,875 18,660 5,915 +12,745 –

96. Slide 96: Consolidated P&L (2)

    Consolidated P&L (2) (JPY million) FY25/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 FY24/2 Q1 Change vs. Full-Year (12M) (12M) (12M) (12M) (3M) (3M) (YOY) Forecast Forecast Extraordinary Losses Loss on disposal of fixed assets – 5 23 147 4 – +4 – – Valuation losses on securities investments 114 43 261 –

97. Slide 97: Consolidated Cash Flows: Operations

    Consolidated Cash Flows: Operations (JPY million) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) FY24/2 (12M) FY25/2 Q1 (3M) Cash Flows from Operations Pre-tax income 7,610 9,595 14,234 17,962 5,386 Depreciation 4,797 5,644 5,339 4,859 1,199 Share-based compensation expenses 21 73 – – – Amortization of good

98. Slide 98: 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 Q1 (3M) Cash Flows from Investments Payments into time deposits -7 -7 -2 -701 – Proceeds from withdrawal from time deposits – 30 23 – 700 Payments for securities investments -547

99. Slide 99: Ichigo 2030: New Initiatives

    Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 99

100. Slide 100: 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, & Help People Enjoy Fuller and Healthier Lives J.League’s 100-Year Vision: Ichigo’s Mission: Promote Sports Development Serve Important

101. Slide 101: 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

102. Slide 102: 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

103. Slide 103: 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

104. Slide 104: OneFive Hotels: Hotel Operations

     Real Estate x Tourism OneFive Hotels: Hotel Operations Non-Asset Business Growth Driver – Operations and Master Leases of Third-Party Hotels – Growth Exceeding Pre-Covid Levels Without Dedicated Sales and Marketing Teams – Driving Earnings and Cost Reductions via PROPERA deployment at hotels (genera

105. Slide 105: 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

Ichigo — Q1 FY2025/2 Earnings Presentation on 6ix