Ichigo Inc. · TSE:2337
Ichigo — Q1 FY22/2 Earnings Presentation
81 slides from Ichigo's earnings presentation, Jul 14, 2021
Slide 1: FY22/2 Q1 Corporate Presentation
FY22/2 Q1 Corporate Presentation January July 14,13, 2021 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 affected by the Covid pandemic globally, and 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 FY22/2 Q1 Earnings Sustainable Growth as a Sustainable Infrastructure ‒ FY22/2 Q1 Summary Company ‒ Operating Profit -14%, Net Income -29%, EPS -27% (YOY) ‒ Sustainable Real Estate: Selective on Acquisitions & Sales ‒ Segment Earnings Details ‒ Ichigo Owners: Strong Foundation for Growth ‒
Slide 7: FY22/2 Q1 Earnings
FY22/2 Q1 Earnings © Ichigo Inc. All rights reserved. 7
Slide 8: FY22/2 Q1 Summary – Slow Hotel Earnings Recovery due to Prolonged Covid Impact
FY22/2 Q1 Summary – Slow Hotel Earnings Recovery due to Prolonged Covid Impact – Ichigo Owners Residential & Logistics Assets Sales 2 Logistics Assets (value-add completed, GPM 33.6%) – No Covid Impact on Clean Energy – Growth on Track Stock Earnings +18% YOY – Launching New Businesses in Line W
Slide 9: FY22/2 Q1 Summary
FY22/2 Q1 Summary Durable Earnings Model Robust Stock Earnings Stock Earnings/Fixed Expenses -0.2% (JPY million) 198% Sustainable Asset Management Clean Energy Real Estate Cash −11% Earnings 4,041 4,033 JPY 6.1B +18% 2,511 2,239 +14% 1,290 1,089 2,479 3,136 441 503 Cash Earnings = Gross Profit + Fix
Slide 10: Operating Profit -14%, Net Income -29%, EPS -27% (YOY)
Operating Profit -14%, Net Income -29%, EPS -27% (YOY) − Flat Stock Earnings, Flow Earnings -8% YOY − Cash EPS -6% YOY (JPY million) FY21/2 FY22/2 YOY Full-Year Forecast Q1 Q1 Operating Profit 3,650 3,159 -13.5% 9,100 – 12,000 Recurring Profit 3,303 2,384 -27.8% 6,000 – 8,900 Net Income 2,164 1,546
Slide 11: Segment Earnings Details
Segment Earnings Details − Asset Management: Decrease in Ichigo Hotel (3463) base AM fees & performance fees − Sustainable Real Estate Stock Earnings: Covid negative impact on hotel earnings Flow Earnings: Sold 2 logistics assets (value-add completed) − Clean Energy: Continued growth, full-year wind
Slide 12: Covid Impacts
Covid Impacts Stock Earnings Asset Type Earnings Impact Office Low Mid-size office demand continues to be strong Flat hotel demand due to new state of emergency, Hotel High expected recovery on vaccine rollout. Upfront costs on accelerating Hakata Hotels’ growth with new contracts Limited earnings i
Slide 13: Powerful Value-Add Business Model Underpins Growth
Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 13
Slide 14: 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 ) Fixed Expenses (Fixed SG&A + Interest Expenses) Cash Earnings 37,016 (JPY million) 33,
Slide 15: 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) 63.9 56.2 50.9 45.4 36.8 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Appraisal Value-Base
Slide 16: Business Model (3) Value-Add Drives Durable Value Growth
Business Model (3) Value-Add Drives Durable Value Growth Gains on Sales Consistently Exceed Appraisal Value-Based Unrealized Gains Appraisal Value-Based Unrealized Gains 2.8X Gains on Sales (Gross Profit) 2.5X 4.4X JPY 17.1B JPY 15.0B JPY 12.0B 1.9X JPY 5.9B JPY 6.1B JPY 5.7B 2.8X JPY 3.0B JPY 2.7B
Slide 17: 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 1.2X 29.5 2.1X 25.5 21.5 16.7 14.9 15.4 14.0 10.4 8.2 5.0 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Note: Economic Operating Cash Flow = Cash Flows
Slide 18: 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 10.0 years 9.9 years 9.6 years 8.7 years 2.0% 9 7.6 year
Slide 19: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 19
Slide 20: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales FY22/2 Q1 Net Acquisitions: JPY 1.8B (JPY million) Acquisitions Sales Difference No. Of No. Of (A) - (B) Book Value (A) Sale Price (B) Assets Assets Residential 9 8,307 4 538 +7,769 Logistics – – 2 6,011 -6,011 Other 2 41 1 29 +12 Office/Hote
Slide 21: Ichigo Owners: Strong Foundation for Growth
Ichigo Owners Strong Foundation for Growth Significant Track Record & Capability in Residential Assets (JPY billion) Ichigo Owners Residential Acquisitions & Sales Since Launch 30.7 ■ Acquisitions 28.5 ■ Sales 24.4 13.7 29 Assets 11.7 32 Assets 27 Assets 8.1 5.5 14 Assets 12 Assets 10 Assets 2.4 9 A
Slide 22: Ichigo Owners: Driving Stable Long-Term Earnings
Ichigo Owners Driving Stable Long-Term Earnings − Launch of Co-Ownership Business − Driving Stable Long-Term Earnings & Expanding Customer Base Existing Ichigo Owners Business Residential Asset Flow Earnings Individual & Gains on Sale Institutional Investors Sell Flow + Stock Earnings Private Funds
Slide 23: Asset Management: Growth Support for Ichigo REITs & Ichigo Green
Asset Management Growth Support for Ichigo REITs & Ichigo Green Office Hotel Green Infrastructure Ichigo Office Ichigo Hotel Ichigo Green (8975) (3463) (9282) Portfolio Portfolio Portfolio 86 Assets JPY 206.1B 23 Hotels JPY 51.9B 15 Solar Power Plants JPY 11.4B Dividend Yield (as of 2021/7/9) Divide
Slide 24: Clean Energy: Scaling Rapidly
Clean Energy Scaling Rapidly Ichigo’s First Wind Power Plant Online This Quarter 12 New Plants (Total 23.9MW) Online in FY22/2 4.4 (Forecast) 48.6 3.8 (+26%) Ichigo Operating Plants: JPY 36.1B (127.9MW) 3.0 2.9 In-Pipeline Plants: JPY 12.4B (41.5MW) 38.7 12.4 Reference: Ichigo Green (9282) (+19%) Op
Slide 25: Japanese Energy Policy Creating New Growth Opportunities
Clean Energy Japanese Energy Policy Creating New Growth Opportunities Significant Increase in Japan’s Renewable Energy Target Creating New Growth Opportunities Japan Renewable Energy Contribution ■ Renewable Energy ■ Non-Renewable Energy Revised Act on Promotion of Global Warming Countermeasures (Ma
Slide 26: PROPERA: Market Size & Customer Acquisition Target
PROPERA Market Size & Customer Acquisition Target Customer Acquisition Target: 2,000 Hotels Within 5 Years c. 50,000 No. Of Japanese Hotels No. Of Japanese Hotels With c. 33,000 Online Booking Systems No. Of Japanese Hotels c. 20,000 Deploying Site Controllers 2,000 5-Year Target Hotels Site control
Slide 27: PROPERA: Accelerating External Sales
PROPERA Accelerating External Sales Two Key Initiatives to Increase Market Share 1. Drive Customer Growth via 2. Tightly Integrate With Site Controllers PROPERA Lite Hotel Benefits of Tight Integration ・High operational efficiency PROPERA Lite ・Standardized interface allows for fast, low-cost ・ Pric
Slide 28: Accelerating RE100 Target by 15 Years From 2040 to 2025
Accelerating RE100 Target by 15 Years From 2040 to 2025 Further Lowering Energy Impacts as a Sustainable Infrastructure Company Ichigo RE100 Target 100% Renewable Electricity by 2025 Ichigo is committed to sourcing 100% renewable electricity across its operations, including Ichigo Office (8975) and
Slide 29: Delivering on Sustainability
Delivering on Sustainability Clean Energy Business Growth Addressing Critical Environmental Issues Ichigo is Net Zero Carbon Today Total Ichigo Power Plant CO2 Reductions Total Ichigo CO2 Emissions ■ Ichigo (93,526 tons) ■ Ichigo (28,763 tons) ■ Ichigo Green (22,357 tons) ■ Ichigo Office (22,727 ton
Slide 30: Share Buybacks
Share Buybacks Ichigo 2030: Flexible Deployment of Share Buybacks 5th Consecutive Year of Share Buybacks (JPY 13.5B, 7.4% of Shares) April 2021 Buyback Amount JPY 1.5B Number of Shares 4,363,500 (0.9% of shares outstanding, net of treasury shares) Buyback Period April 20, 2021 – June 4, 2021 Number
Slide 31: 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 (65,000 shareholders in t
Slide 32: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 32
Slide 33: 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 34: 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
Slide 35: Sustainability Report
Sustainability Report Promoting Awareness of Ichigo’s Sustainability Initiatives via Ichigo Sustainability Report Table of Contents – Senior Management Message – Chairman Scott Callon 4 – Ichigo ESG – Environmental 19 – Senior Management Message – President Takuma Hasegawa 5 • Producing Safe & Clean
Slide 36: Ichigo ESG – Environmental
Ichigo ESG – Environmental Sustainable Real Estate Contributing to a Low-Carbon World Preserve & Improve Real Estate to End Wasteful Clean Energy Demolition Ichigo RE100 Target: 100% Renewable Electricity ‒ Lengthen useful life of real estate (including Ichigo Office & Ichigo Hotel) by 2025 ‒ Shrink
Slide 37: 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 A place where visitors, communities, and the old implement effective value-add and the new can come together − Exclusive investor for Oshii Mamoru’
Slide 38: 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 39: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 39
Slide 40: Covid Countermeasures
Covid Countermeasures − Infection control & response, communication with tenants, thorough information gathering, & extensive safety measures for tenants General Covid Infection Countermeasures Covid Awareness & Prevention Promotion Poster Provide touchless hand sanitizers ubiquitously Cover touch s
Slide 41: 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, 2021 (A) (B) (B)/(A) (C) (C) - (A) Tokyo 93,036 5,330 5.7% 126,972 +33,936 Outside Tokyo 104,709 6,843 6.5% 130,84
Slide 42: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 415.7B (Book Value JPY 351.4B + Unrealized Gains JPY 64.3B) Cash & Cash Equivalents Non-Recourse Loans & JPY 43.8B Related Liabilities JPY 46.1B Consolidated Risk-Based Balance Sheet: JPY 325.7B Non-Recourse Loans & (Book Value
Slide 43: Cash Flow Maximization
Cash Flow Maximization Maximal Use of Depreciation 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% 84.4% 15.2% (JPY billion) 12.8% 32.0 30.9 Reclassification of Sustainable Real Estate Assets to Fixed Assets in 140
Slide 44: 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 45: Post-GFC Shift in Earnings Base & Financial Position
Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY21/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 195% 2.6X Coverage Ratio 10.2 years Loan Maturity (Weighted avg., 5.6 years 3.6X corporate + non-recourse loans) 2.8 years 93% 28% 17% >3 years <3 years
Slide 46: 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 47: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash and Operational Operational Real Estate for Power Plants Intangible Securities Segment Cash Loan Securities Fixed Assets Other Assets Total Assets Sale for Sale Assets Investments Equivalents Investments Investments Asset Management (A
Slide 48: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) Gross Profit Operating Profit Segment YOY YOY FY21/2 Q1 FY22/2 Q1 FY21/2 Q1 FY22/2 Q1 FY22/2 Forecast Change Change Asset Management (AM) 501 503 +0.4% 334 353 +5.8% 1,300 Base AM Fees 441 503 +14.1% – – – – Acquisition/Disposition Fees 60 – – – – –
Slide 49: Asset Management AUM Detail
Asset Management AUM Detail FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Q1 (12M) (12M) (12M) (12M) (12M) (3M) AUM (Fiscal Year End) JPY 194.5B JPY 196.9B JPY 203.0B JPY 203.2B JPY 206.1B JPY 206.1B Ichigo Office (8975) Base AM Fee Gross Profit (Actual) JPY 1,291M JPY 1,373M JPY 1,426M JPY 1,436M JPY 1
Slide 50: 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 51: 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
Slide 52: 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 53: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Q1 GPM (vs. Revenue) 33.7% 25.5% 28.3% 13.9% 31.1% GPM (vs. Book Value) 50.9% 34.3% 39.5% 16.2% 45.1% Revenue (JPY M) 35,733 58,693 60,601 41,430 6,578 Gross P
Slide 54: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease 1% Other Logistics 4% Sendai 2% 1% Osaka 3% Hokkaido Hokkaido 3% 7.1 Nagoya 3% Other 5% Residential Retail 17% 27% Tokyo Metro* 10% Tokyo 54% Tokyo 133.2 Office Fukuoka 25% Hotel 20% 25% Sendai 5.8 *Ex-Tokyo Nago
Slide 55: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 183 Assets, JPY 248.9 B, Appraisal NOI JPY 12.1B (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 F
Slide 56: 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 57: 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 58: 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 20 years JPY 1,540M JPY 3,
Slide 59: 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 158 Other Fixed Asset Chuo-ku, Tokyo JPY 1B-2B 2019/05 – JPY 12M – – – 159 Retail
Slide 60: 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 58 years JPY 120M
Slide 61: Sustainable Real Estate Asset Breakdown (7)
Sustainable Real Estate Asset Breakdown (7) Expected Forecast Acquisition Ichigo Equity Forecast No. Asset Type vs. FY20/2 Q4 1 Equity Price NOI/Year Investment IRR Multiple A Ichigo Owners (Residential) 32 Assets JPY 29,775M +JPY 7,817M JPY 1,337M JPY 9,026M – – B Ichigo Owners (Other) 16 Assets JP
Slide 62: Ichigo Solar & Wind Power Plant Portfolio
Ichigo Solar & Wind Power Plant Portfolio Ichigo Solar Power Plants (Operating) Ichigo Solar Power Plants (In Pipeline) 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-Oki
Slide 63: Ichigo Green (9282) Solar Power Plant Portfolio
Ichigo Green (9282) Solar Power Plant Portfolio Ichigo Green Solar Power Plants (Operating) Panel FIT Operation Solar Power Plant Area Output (Pre-tax) Start Date (MW) Ichigo Kiryu Okuzawa Kanto 1.33 JPY 40 Sep 2013 Ichigo Motomombetsu Hokkaido 1.40 JPY 40 Feb 2014 Ichigo Total: 198.9MW (Operating/I
Slide 64: Ichigo-Owned Solar Power Plant Portfolio
Ichigo-Owned Solar Power Plant Portfolio Total Operating and In-Pipeline 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 10% JPY 40 In Development 13% Kyush
Slide 65: Green Biomass Entry
Green Biomass Entry Fully Local Green Biomass as Third Renewable Energy Business − Diversify & stabilize power production − Procure biomass feedstock via Ichigo’s community relationships Weather Characteristics Impacts ・ Lots of potential plant site candidates, able to make effective use of Solar Po
Slide 66: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Q1 vs. FY21/2 Assets Current Assets Cash and cash equivalents 45,510 50,225 41,067 50,832 51,477 +645 Trade notes and accounts receivable 1,097 1,344 2,308 1,382 2,116 +734 Operational loan investments 1,324 1,324 1,
Slide 67: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Q1 vs. FY21/2 Liabilities Current Liabilities Short-term loans 1,042 3,275 3,086 4,879 7,989 +3,110 Bonds (due within one year) 112 112 274 274 274 – Long-term loans (due within one year) 4,449 7,88
Slide 68: Consolidated P&L
Consolidated P&L (JPY million) FY22/2 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Q1 FY21/2 Q1 Change vs. Full-Year (12M) (12M) (12M) (12M) (3M) (3M) (YOY) Forecast Forecast Revenue 57,846 83,540 87,360 61,368 12,674 22,730 -10,056 – – Cost of Goods Sold 30,860 51,413 52,851 45,776 7,931 17,440 -9,509 – – Gr
Slide 69: Consolidated Cash Flows: Operations
Consolidated Cash Flows: Operations (JPY million) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 Q1 (3M) Cash Flows from Operations Pre-tax income 20,109 23,079 16,545 7,610 2,384 Depreciation 1,015 1,696 2,630 4,797 1,413 Share-based compensation expenses 215 213 194 21 19 Amortization
Slide 70: Consolidated Cash Flows: Investments & Financing
Consolidated Cash Flows: Investments & Financing (JPY million) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 Q1 (3M) Cash Flows from Investments Payments into time deposits -6 -118 -113 -7 -2 Proceeds from withdrawal from time deposits – 1,060 5,033 – – Payments for securities investmen
Slide 71: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 71
Slide 72: 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 73: Addressing Needs of Diverse Individuals & Communities
Addressing Needs of Diverse Individuals & Communities © Ichigo Inc. All rights reserved. 73
Slide 74: KPI Targets
KPI Targets 1. High Capital Efficiency − FY20/2~FY30/2 Average ROE >15% Increase long-term ROE by driving higher capital efficiency & 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 con
Slide 75: Shareholder Return Policy
Shareholder Return Policy Ichigo Dividend Policy: Growth, Certainty, & 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 o
Slide 76: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 76
Slide 77: 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
Slide 78: 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 79: 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 & will operate 14 hotels as of September 1, 2021 PROPERA Deployment – Generating 10 to 40% revenue increases p.a. – Sales of
Slide 80: Ichigo Animation: Anime + Real Estate Synergies
Real Estate x Entertainment x Culture x Tourism Ichigo Animation: Anime + Real Estate Synergies Released the Complete Series of New Anime VLADLOVE Written & Directed by Mamoru Oshii, with Co-Director Junji Nishimura – Established Ichigo Animation in April 2019 – Introducing tenant collaboration init
Slide 81: 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