Ichigo Inc. · TSE:2337
Ichigo — Asset Managers Holdings — Q3 FY2010 Earnings Presentation
31 slides from Ichigo's earnings presentation, Jan 18, 2010
Slide 1: Asset Managers Holdings Corporate Presentation
Asset Managers Holdings February 2010 Fiscal Year Q3 (September-November 2009) Corporate Presentation January 18, 2010
Slide 2: February 2010 Fiscal Year Q3 Summary
February 2010 Fiscal Year Q3 Summary 9 Focus on Cashflow 9 Continued Asset Dispositions 9 Repayment of Corporate Debt 9 Strengthened Balance Sheet 9 Ongoing Profitability 9 Achievement relative to Full-Year Forecasts View on Current Market Environment 9 Real Estate 9 Investors and Lenders New
Slide 3: February 2010 Fiscal Year Q3 Summary
February 2010 Fiscal Year Q3 Summary 3
Slide 4: Focus on Cashflow
Focus on Cashflow C/F and B/S = Fundamental Operating Cashflow Strongly Positive for the Last Six Quarters at ¥7.7 billion Dramatically Decrease Risk Profile through Slimmed B/S Quarterly Consolidated Operating Cashflow (Billion yen) ＋0.1 Feb 2010 Q3 ＋4.2 -5.2 Cumulative Operating Cashflow ＋3.
Slide 5: Continued Asset Dispositions
Continued Asset Dispositions ¥8.0 billion Raised from Asset Sales, Focused on Private Equity (12 Domestic & 10 Overseas) (Billion yen) 1.9 8.0 Private Equity 3.3 1.1 Private Equity Private Equity 3.3 6.3 2.8 Private Equity 1.9 Real Estate 0.8 Real Estate Real Estate 1.7 0.9 Feb 10 Q1 Feb 10 Q2 Feb 1
Slide 6: Repayment of Corporate Debt
Repayment of Corporate Debt Decreased Corporate Debt by ¥11.6 billion through Q3 (Billion yen) Total borrowings - ¥3.2 billion 36.6 - 4.0 Total borrowings Repayment: - 3.1 32.6 - 4.4 Total borrowings Forex: -0.1 28.2 Total borrowings 25.0 Short-term Debt 15.5 Short-term Debt 15.2 Short-term Debt Sho
Slide 7: Strengthened Balance Sheet
Strengthened Balance Sheet Shrank B/S through Asset Sales (Assets decreased ¥7.2 billion YTD) Net Assets Increased by ¥5.6 billion YTD 9 CB Conversion: ¥2.9 billion 9 Higher Asset Values due to Market Rebound: ¥0.9 billion QoQ Net Assets decreased due to Equity Ratio 17.3％ forex impact: - 0.7 bi
Slide 8: Ongoing Profitability
Ongoing Profitability Three Consecutive Quarters of Profitability (Million yen) Revenues (Cumulative) Progress towards Full-Year Forecasts: Net Profit / Loss (Cumulative) Revenues: 90.6%, Net Profit: 117.0% 19,126 21,100 15,426 1,521 1,300 8,722 1,169 209 Feb 10 Q1 Feb 10 Q2 Feb 10 Q3 Feb 10 Q4 Fore
Slide 9: Achievement relative to Full-Year Forecasts
Achievement relative to Full-Year Forecasts (Million yen) Forecast Q3 Progress Revenues 21,100 19,126 90.6% Operating Profit 1,100 1,078 98.0% Recurring Profit 400 570 142.5% Net Profit 1,300 1,521 117.0% 9
Slide 10: View on Current Market Environment
View on Current Market Environment 10
Slide 11: Real Estate
Real Estate Cap Rates Appear to Have Peaked Out and Have Begun Declining for Some Properties Vacancy Rates of Offices in Tokyo Five Wards 9 Particularly Class A office and newly built residential 40% 9 Real estate values have declined due to falling rents, especially in office and 35% New Existing
Slide 12: Investors and Lenders
Investors and Lenders Emerging Appetite among Some Equity Investors 9 Primarily opportunistic 9 3-5 year investment horizon 9 Office buyers are looking at NCF after factoring in expected future rent declines 9 However, sellers are looking at current NCF, so there remains a gap between buyers and s
Slide 13: New Business Developments
New Business Developments 13
Slide 14: Expansion of Asset Management Business
Expansion of Asset Management Business Refinancing of Existing AUM 9 Key to maintaining participation in any market upturn for our investors, and maintains fee income stream for Asset Managers 9 YTD have successfully refinanced c. ¥ 60 billion 9 Hurdles to refinancing relatively low as compared to
Slide 15: New Fee Businesses
New Fee Businesses CRE (Corporate Real Estate) Strategic Advisory Services 9 CRE track record of c. 100 transactions with over 30 companies 9 Current focus on Toyota group companies via business and capital tie-up with Toyota D&C Co., Ltd. • Active real estate advisory engagements with four Toyota
Slide 16: Appendix: Pro Forma Financial Data
Appendix: Pro Forma Financial Data 16
Slide 17: Pro Forma Financials
Pro Forma Financials Under Japanese accounting rules, SPCs in which AMH is a greater than 50% investor or SPCs for which AMH is the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated onto AMH’s balance sheet. In order to more accurately r
Slide 18: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 09 Feb 10 Q1 Feb 10 Q2 Feb 10 Q3 Change (QoQ) Total Assets 46,780 43,533 42,079 38,663 -3,416 Cash and Cash Equivalents 5,395 4,543 6,598 5,352 -1,246 Investment (Real Estate) 10,144 10,056 10,470 10,073 -397 Investment (Domestic companies) 7,215 6,503 5,5
Slide 19: P&L (Pro Forma)
P&L (Pro Forma) (Million yen) Feb 10 Q3 Feb 09 Feb 10 Q1 Feb 10 Q2 Feb 10 Q3 Cumulative Revenues 10,593 2,984 3,918 1,880 8,782 Cost of Revenues 28,047 2,312 2,803 1,155 6,270 Gross Profit -17,454 672 1,115 725 2,512 SG&A 11,513 627 528 473 1,628 Operating Profit (Loss) -28,967 45 587 252 884 Non-Op
Slide 20: P&L Breakdown (Pro Forma)
P&L Breakdown (Pro Forma) (Million yen) Feb 10 Q3 Feb 09 Feb 10 Q1 Feb 10 Q2 Feb 10 Q3 Cumulative Revenues 10,593 2,984 3,918 1,880 8,782 Fees 3,181 534 428 392 1,354 Equity Dividends 241 194 88 76 357 Rents 730 185 194 189 569 Sales of Real Estate 5,631 935 931 376 2,243 Sales of Equity 117 1,088 2
Slide 21: Appendix: Consolidated Financial Data
Appendix: Consolidated Financial Data 21
Slide 22: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 09 Feb 10 Q1 Feb 10 Q2 Feb 10 Q3 Change (QoQ) Total Assets 140,875 122,038 118,229 117,850 -379 Cash and Cash Equivalents 18,449 15,169 16,267 14,102 -2,165 Operating Investments in Securities 11,779 11,219 10,215 9,725 -490 Real Estate Held for Sale 97
Slide 23: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Million yen) Feb 09 Feb 10 Q2 Feb 10 Q3 Change in the Outside The Outside The Outside The Company's Amount Investors' Company's Amount Investors' Company's Amount Investors' Company's Interests (B-A) Interests Interests Interests Interests (A) Interests Interests
Slide 24: P&L (Consolidated)
P&L (Consolidated) (Million yen) Feb 10 Q3 Full-Year Feb 09 Feb 10 Q1 Feb 10 Q2 Feb 10 Q3 Progress Cumulative Forecasts Revenues 50,444 8,722 6,704 3,699 19,126 21,100 90.6% Cost of Revenues 80,408 7,547 5,794 2,351 15,693 － － Gross Profit -29,963 1,174 909 1,348 3,432 － － SG&A 16,207 872 728 752 2,
Slide 25: P&L Breakdown (Consolidated)
P&L Breakdown (Consolidated) (Million yen) Feb 10 Q3 Feb 09 Feb 10 Q1 Feb 10 Q2 Feb 10 Q3 Cumulative Revenues 50,444 8,722 6,704 3,699 19,126 Fees 1,623 287 240 227 760 Equity Dividends 143 254 111 53 418 Rents 9,178 1,835 1,773 1,848 5,457 Sales of Real Estate 30,500 3,621 1,170 628 5,421 Sales of
Slide 26: Appendix: Real Estate
Asset » \ Managers Solutions For The Future. Appendix: Real Estate 26
Slide 27: Cumulative Assets Under Management
Cumulative Assets Under Management Historic Cumulative AUM Exceeds ¥1 trillion Strong Long-Term Track Record of Managing Real Estate for Clients (billion yen) 14,000 R EIT Ope rating 1,164.5 1,174.7 D evelopme nt 1,128.4 （141 funds） （141 funds） 12,000 （137 funds） 640 640 640 (As of November 2009
Slide 28: Assets Under Management
Assets Under Management Expertise across Full Spectrum from Development to Operating Assets (As of November 2009) 90% of Current Portfolio is Comprised of Operating Assets (billion yen) Development 600 10% R EIT Ope rating 530.1 Developme nt 496.0 500 62.0 426.5 Operating 400 90% 352.7 330.6 257
Slide 29: Real Estate Portfolio
Real Estate Portfolio Mainly Office, although Significant Track Record across a Wide Variety of Asset Types Particular Experience in Managing Small & Mid-Size Assets from ¥1 – 5 billion in Tokyo AUM by Type # of Properties by Type (As of November 2009) Other (Unit: # of buildings) # of Propertie
Slide 30: AMH Real Estate Cap Rates
AMH Real Estate Cap Rates Early Adoption of Lower of Cost or Market Rule Continually Mark Assets In-line with Current Market Pricing and Eliminate Any Unrealized Losses from B/S (As of November 2009) Real Estate Investments held by Funds (SPCs) (Million yen, except for percentage data) Book valu
Slide 31: Disclaimer
These materials were prepared to explain the Company’s businesses and are not for the purpose of soliciting investment in marketable securities issued by the Company. The Company does not guarantee the accuracy of the figures, information, estimates or other statements included herein, and accepts n
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