Ichigo Inc. · TSE:2337
Ichigo — H1 FY25/2 Earnings Presentation
103 slides from Ichigo's earnings presentation, Oct 10, 2024
Slide 1: FY25/2 H1 Corporate Presentation
FY25/2 H1 Corporate Presentation January October 13, 10, 2023 2024 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en
Slide 2: Make The World More Sustainable
Make The World More Sustainable © Ichigo Inc. All rights reserved.
Slide 3: Ichigo – A Sustainable Infrastructure Company
Ichigo – A Sustainable Infrastructure Company Whether developing new technologies to allow buildings to last 100 years, powering communities with clean energy, or creating new possibilities for tenants and stakeholders, Ichigo is working to build a more prosperous and sustainable society for all. ©
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 FY25/2 H1 Summary Shareholder Returns FY25/2 H1 Earnings ‒ Shareholder Returns: JPY 6B Buyback ‒ All-In OP -32%, Cash EPS -41% (YOY) ‒ Shareholder Returns: Raising Dividend – ‒ Segment Earnings Details FY25/2 JPY 10 ‒ Stock + Flow Earnings ‒ Shareholder Returns: Ichigo J.League Shareholder
Slide 7: FY25/2 H1 Summary
FY25/2 H1 Summary All-In Operating Profit JPY 9.4B (-32% YOY), Cash Net Income JPY 7.5B (-43% YOY) ̶ Stock Earnings: JPY 11.1B, +11% YOY On-Track to Achieve Record Stock Earnings Supported by Strength in Hotels ̶ Flow Earnings: JPY 4.8B, -50% YOY Asset Sales Accelerating in H2 5th Ichigo Residence T
Slide 8: FY25/2 H1 Summary
FY25/2 H1 Summary Durable Earnings Model Robust Stock Earnings ■ FY24/2 H1 ■ FY25/2 H1 Stock Earnings/Fixed Expenses + 10.9% 217% (JPY million) Target: >200% Sustainable Asset Clean Fixed Real Estate Management Energy Fixed (SRE) (AM) (CE) Expenses Expenses JPY 2.5B 5.2B +15.3% Flow Flow Earnings Ea
Slide 9: FY25/2 H1 Earnings
FY25/2 H1 Earnings © Ichigo Inc. All rights reserved. 9
Slide 10: All-In OP -32%, Cash EPS -41% (YOY)
All-In OP -32%, Cash EPS -41% (YOY) Earnings On-Track – Asset Sales Accelerating from H2 Cash Earnings 1.4X Accounting Earnings Due to Ichigo’s Focus on Maximizing Long-Term Cash Flows for Shareholders (JPY million) FY25/2 FY24/2 H1 FY25/2 H1 YOY Full-Year Forecast Operating Profit 5,483 6,855 +25.0
Slide 11: Segment Earnings Details
Segment Earnings Details – AM: Ichigo Hotel & Ichigo Residence Tokens Driving Growth Revenue Decrease on Ichigo Office Performance Fee Cut Full-Year Forecast in Line with FY24/2 – SRE Stock Earnings: Strong Hotel Earnings, On-Track for Record Earnings – SRE Flow Earnings: Accelerating in H2, 5th Tok
Slide 12: Stock + Flow Earnings
Stock + Flow Earnings Forecast Record Cash Earnings 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 16,081 4,886 19,417 21,343 18,450 15,065 14,912 15,598 11,194 FY
Slide 13: Durable Stock Earnings
Durable Stock Earnings Hotels Driving Stock Earnings Growth – Ichigo’s Hotel Operator One Five Hotels Already Exceeding FY24/2 Full-Year (JPY million) Stock Earnings by Segment ■ SRE (Primarily Rental Income) ■ Clean Energy Record ■ Asset Management Fees ■ Hotel Operator + PROPERA Revenues Earnings
Slide 14: 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
Slide 15: Driving Sustainable Growth
Driving Sustainable Growth © Ichigo Inc. All rights reserved. 15
Slide 16: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales Acquisitions: JPY 31.0B (JPY 55.4B Including Executed Contracts) – Multi-Asset: 3 Offices JPY 11.0B Expanding Ichigo Office (8975) REIT Pipeline – Owners: JPY 18.4B (JPY 34.2B Including Executed Contracts) Sales: JPY 27.8B, Including JPY 19.4
Slide 17: Ichigo Meguro Building: Asset Value +50% on Value-Add
Sustainable Real Estate Ichigo Meguro Building: Asset Value +50% on Value-Add Significant Rental Growth since FY23/2 Acquisition Driven by Ichigo- Designed Ready to Move In Offices – Flexible office layouts support tenant productivity & ability to grow – Rare Ready to Move In office offering in Megu
Slide 18: Hotels = Stock Earnings Growth Driver
Sustainable Real Estate: Hotels Hotels = Stock Earnings Growth Driver – Strong OneFive Hotels Operations – H1 Revenue Already Exceeds FY24/2 – Ichigo Hotel Base AM Fees +26% YOY (+5 Hotels vs. FY24/2) Hotel Stock Earnings (JPY million) ■ Ichigo Hotel (3463) Base AM Fees ■ Rental Income 12,902 ■ Oper
Slide 19: Strong Growth via Meeting Client's Diverse Needs (1)
Sustainable Real Estate: Ichigo Owners Strong Growth via Meeting Client’s Diverse Needs (1) High-Quality PASEO Brand Residential Assets in Prime Locations – Strong partnerships with developers (share know-how & client needs data) – Extensive transaction experience & significant market presence Ichig
Slide 20: Strong Growth via Meeting Client's Diverse Needs (2)
Sustainable Real Estate: Ichigo Owners Strong Growth via Meeting Client’s Diverse Needs (2) – Core Offer: Prime Residential Assets Tailored to Tenant & Investor Needs – Further Growth via Expanding Sales Channels, including Ichigo Residence Tokens Ichigo Owners Operating Profit (JPY B) 5.4 4.5 3.8 3
Slide 21: 5th Ichigo Residence Token (JPY 11.4B)
Sustainable Real Estate x Asset Management 5th Ichigo Residence Token (JPY 11.4B) Meeting Individuals’ Investments Needs for Prime Tokyo Residential Assets 5th Ichigo Residence Token Sale (JPY 11.4B – To Be Recorded in Q3) 5th Ichigo Residence Token 7 Tokyo Prime Residential Assets: Ichigaya Nakanoc
Slide 22: Significant Ichigo Residence Token Growth
Sustainable Real Estate x Asset Management Significant Ichigo Residence Token Growth FY26/2 AUM Forecast: JPY 100B – Robust investor demand for high-quality real estate assets – Strong pipeline of high-quality assets built on Ichigo’s win-win relationships with developers who benefit from secure dem
Slide 23: AUM Growth on Diverse Growth Drivers – Forecast +16% YOY
Asset Management AUM Growth on Diverse Growth Drivers – Forecast +16% YOY Driving Non-Asset Stock Earnings Growth AUM +16% YOY (JPY B) 398.7 372.2 11.2 New AUM Growth Drivers Private REIT 11.2 Ichigo Residence Tokens & 320.7 343.3 60.0 31.2 Ichigo Private REIT Ichigo Residence Tokens 5.1 20.9 22.6 2
Slide 24: Driving Stable Earnings Growth
Clean Energy Driving Stable Earnings Growth – Earnings Growth on Bringing New Ichigo Ebino Suenaga Plant Online – 36MW Green Biomass & Non-Fit Solar Pipeline to Diversify Energy Mix Ichigo Clean Energy ■ Green Biomass (In-Pipeline/FIT JPY 40) ■ Non-FIT Solar Plants (In-Pipeline) ■ Operating Plants (
Slide 25: Shareholder Returns
Shareholder Returns © Ichigo Inc. All rights reserved. 25
Slide 26: JPY 6B Buyback
Shareholder Returns JPY 6B Buyback Buyback Period: October 11, 2024 to April 30, 2025 Number of Shares: 17M shares – 3.9% of total shares outstanding Forecast FY25/2 Total Payout Ratio: 73% Share Buyback Amount JPY 6B JPY 6B JPY 4.5B JPY 3B JPY 3B JPY 3B JPY 3B JPY 1.5B FY18/2 FY19/2 FY20/2 FY21/2 F
Slide 27: 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
Slide 28: 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 (89,0
Slide 29: Working to Protect Our Global Environment
Working to Protect Our Global Environment © Ichigo Inc. All rights reserved. 29
Slide 30: RE100: Completed Renewable Energy Transition
RE100: Completed Renewable Energy Transition RE100 Progress (as of October 10, 2024) RE100達成率 Non-Fossil Certificate Tracking for Ichigo Power Plants 39% 100% 61% Renewable Energy Switch Ichigo 2030 RE100 KPI to work for a sustainable planet: 100% renewable electricity across all Ichigo operations b
Slide 31: Ichigo CO2 Reduction = 4.4X CO2 Emissions
Ichigo Climate Positive: CO2 Reduction vs. Emissions (1) Ichigo CO2 Reduction = 4.4X 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 G
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
Slide 33: Appendix: Powerful Value-Add Business Model & Sustainability Focus
Appendix: Powerful Value-Add Business Model & Sustainability Focus © Ichigo Inc. All rights reserved. 33
Slide 34: Selective on Acquisitions & Sales
Selective on Acquisitions & Sales SRE Sales & Acquisitions (JPY B) Left: Acquisitions, Right: Sales ■ Ichigo Owners 69.5 69.6 ■ Multi-Asset 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 F
Slide 35: 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
Slide 36: 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 1.7X 9.4 5.7 6.3 4.7 4.7 4.7 3.0 2.7 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 H1 Note: Self-storage assets sold in FY24/2 (36 assets, JPY3.9B gains on
Slide 37: 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
Slide 38: 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 Borrowings ESG Loans as % of Total Borrowings ESG Loans (JPY billion) ■ ESG loans (including green bonds) ■ ESG loans (including green
Slide 39: 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
Slide 40: 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
Slide 41: Appendix: Financial & Operational Data
Appendix: Financial & Operational Data © Ichigo Inc. All rights reserved. 41
Slide 42: 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
Slide 43: 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
Slide 44: 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 H1 FY25/2 H1 YOY FY24/2 H1 FY25/2 H1 YOY Forecast Asset Management (AM) 1,278 1,263 -1.2% 814 634 -22.1% 1,750 Base AM Fees 1,164 1,081 -7.1% – – – – Acquisition/Disposition Fees 113 1
Slide 45: 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
Slide 46: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Operational Operational Cash and Cash Real Estate Intangible Securities Other Segment Loan Securities Fixed Assets Total Assets Equivalents for Sale Assets Investments Assets Investments Investments Asset Management (AM) 55 – – – 2 463 – 1,
Slide 47: 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 Aug 31, 2024 (B) (B)/(A) (C) (C) – (A) (A) Tokyo 6.0% 85,317 5,145 122,576 +37,258 Outside Tokyo 111,350 6,824 6.1% 141,38
Slide 48: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 456.7B (Book Value JPY 385.5B + Unrealized Gains JPY 71.1B) Cash & Cash Equivalents JPY 30.3B Non-Recourse Loans & Related Liabilities Risk-Based Consolidated Balance Sheet: JPY 372.0B JPY 54.2B (Book Value JPY 84.7 300.9B + Unr
Slide 49: Appendix: Sustainable Real Estate Details
Appendix: Sustainable Real Estate Details © Ichigo Inc. All rights reserved. 49
Slide 50: 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 51: Ichigo Sustainable Real Estate Earnings Model Example
Ichigo Sustainable Real Estate Earnings Model Example 4.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.0% Interest Rate, JPY 50M Capex, 25% Increase in NOI, 5-Year Value-Add Period Value-Add Measures: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new
Slide 52: 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
Slide 53: 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
Slide 54: 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 H1 GPM 13.9% 20.6% 21.1% 14.6% 17.0% (vs. Revenue) GPM 16.2% 26.2% 27.1% 16.8% 20.2% (vs. Book Value) Revenue 41,430 45,830 55,166 69,693 27,810 (JPY M) Gross
Slide 55: 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 264.0B By Asset Type 1% Other (Including Ichigo-Managed AUM: JPY 636.3B) Logistics 0
Slide 56: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 133 Assets, JPY 264.0B, Annual NOI JPY 11.9B (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
Slide 57: 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 32 Retail Fixed Asset Fukuoka JPY 1B-2B 2014/04 18 years JPY 58M JPY 279M – – 35 O
Slide 58: 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 114 Hotel Fixed Asset Fukuoka >JPY 3B 2016/04 34 years JPY 182M JPY 550M – – 116 R
Slide 59: 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 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
Slide 60: 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 Price Date Age NOI/Year1 Investment Multiple2 IRR3 184 Hotel Real Estate for Sale Sendai, Miyagi JPY 2B-3B 2023/12 14 years JPY 165M JPY
Slide 61: Tradepia Odaiba Occupancy
Sustainable Real Estate: Office Tradepia Odaiba Occupancy Occupancy at 76% – Forecasting 85% for FY25/2-end – Driving Tenant Diversification via Dividing Floors to Capture Tenant Needs for 50 to 100 Tsubo (165 to 330 m2) Spaces Tradepia Odaiba Occupancy 97% 76% 85% (Actual) 73% 54% Capturing office
Slide 62: Appendix: Asset Management Details
Appendix: Asset Management Details © Ichigo Inc. All rights reserved. 62
Slide 63: Ichigo REITs & Ichigo Green
Asset Management Ichigo REITs & Ichigo Green (as of October 4, 2024) 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 6.0% 8.8% 7.3% ・ Entered FTSE Global REIT ・ Geographically diversified ・ Solar
Slide 64: 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
Slide 65: Asset Management AUM Detail
Asset Management AUM Detail FY20/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 H1 (12M) (12M) (12M) (12M) (12M) (6M) Ichigo Office AUM JPY 203.2B JPY 206.1B JPY 205.4B JPY 212.1B JPY 212.1B JPY 225.8B (8975) Base AM Fee Gross Profit JPY 1,436M JPY 1,524M JPY 1,725M JPY 1,517M JPY 1,423M JPY 594M Ichigo Hotel
Slide 66: Appendix: Clean Energy Details
Appendix: Clean Energy Details © Ichigo Inc. All rights reserved. 66
Slide 67: 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
Slide 68: 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
Slide 69: 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
Slide 70: 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
Slide 71: 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
Slide 72: 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
Slide 73: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 73
Slide 74: 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
Slide 75: 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
Slide 76: ESG Initiatives: Social
ESG Initiatives: Social Contributing to Society Contributing to Regional Revitalization Ichigo University Sports Initiatives As a top partner of the J.League Ichigo works to revitalize local communities Ichigo established Ichigo University in May professional soccer league, we support the and promot
Slide 77: 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
Slide 78: Sustainability Initiatives
Sustainability Initiatives Joining Third-Party Initiatives to Accelerate Ichigo’s Sustainability Activities CDP 2023 Joined RE100 Supporting TCFD Recommendations Climate Change: A / Water Security: A⁻ Completed 100% renewable energy Disclosure on governance, strategy, risk Supplier Engagement Leader
Slide 79: 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
Slide 80: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 80
Slide 81: 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 82: Addressing Diverse Needs of Individuals & Communities
Addressing Diverse Needs of Individuals & Communities © Ichigo Inc. All rights reserved. 82
Slide 83: 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
Slide 84: Ichigo 2030 KPIs (1)
Ichigo 2030 KPIs (1) High Capital Efficiency & High Earnings Stability High Cash Flow Generation Stock Earnings/Fixed Expenses Cash ROE Target > 200% Target > 18% Fixed Expenses ROE Target > 15% Flow Earnings Cash Earnings Economic Operating Cash Flow Exceeds Net Income Stock Earnings Ratio Target >
Slide 85: 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
Slide 86: Ichigo 2030 KPIs (3)
Ichigo 2030 KPIs (3) Ichigo Climate Positive RE100 Ichigo CO2 reduction via clean energy Target: 100% renewable electricity power production exceeds CO2 emissions across all Ichigo operations by 2025 (Scope 1 & 2) Non-Fossil Reduction < 4X Emissions Certificate Tracking for Renewable Ichigo Power Pl
Slide 87: 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
Slide 88: Shareholder Returns Data
Shareholder Returns Data DOE (Dividend on Equity) >4%, Flexible Deployment of Share Buybacks, & Progressive Dividend Policy (JPY billion) 20 4.5% 17.8 ◆ DOE ■ Share Buybacks ● Cash Net Income ■ Total Dividend 15.3 16 DOE Target 4% 4.0% 3.8% 13.0 3.6% 12 3.4% 3.5% 3.3% 3.3% 10.7 9.9 8 3.0% 4.8 4.5 3.
Slide 89: Appendix: Financial Statements
Appendix: Financial Statements © Ichigo Inc. All rights reserved. 89
Slide 90: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 FY25/2 H1 vs. FY25/2 Q1 Assets Current Assets Cash and cash equivalents 50,832 46,458 40,536 46,917 59,961 38,726 -21,235 Trade notes and accounts receivable 1,382 1,819 3,866 2,448 2,981 2,877 -104 Operational lo
Slide 91: Consolidated Balance Sheet: Liabilities
Consolidated Balance Sheet: Liabilities (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 FY25/2 H1 vs. FY25/2 Q1 Liabilities Current Liabilities Short-term loans 4,879 2,382 962 16,726 9,226 8,563 -663 Bonds (due within one year) 274 274 364 3,162 3,232 3,232 – Long-term loans (due within one yea
Slide 92: Consolidated Balance Sheet: Net Assets
Consolidated Balance Sheet: Net Assets (JPY million) FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 Q1 FY25/2 H1 vs. FY25/2 Q1 Net Assets Shareholders’ Equity Capital 26,888 26,888 26,888 26,892 26,931 26,935 +4 Capital reserve 11,275 11,268 11,266 10,313 10,348 10,353 +5 Retained earnings 73,160 76,310 82,438
Slide 93: Consolidated P&L (1)
Consolidated P&L (1) (JPY million) FY25/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 H1 FY24/2 H1 Change vs. Full-Year (12M) (12M) (12M) (12M) (6M) (6M) (YOY) Forecast Forecast Revenue 61,368 56,934 68,093 82,747 36,295 26,496 +9,799 – – Cost of Goods Sold 45,776 40,757 48,674 61,875 25,068 17,302 +7,766 –
Slide 94: Consolidated P&L (2)
Consolidated P&L (2) (JPY million) FY25/2 FY21/2 FY22/2 FY23/2 FY24/2 FY25/2 H1 FY24/2 H1 Change vs. Full-Year (12M) (12M) (12M) (12M) (6M) (6M) (YOY) Forecast Forecast Extraordinary Losses Loss on disposal of fixed assets – 5 23 147 – – – – – Valuation losses on securities investments 114 43 261 –
Slide 95: Consolidated Cash Flows: Operations
Consolidated Cash Flows: Operations (JPY million) FY21/2 (12M) FY22/2 (12M) FY23/2 (12M) FY24/2 (12M) FY25/2 H1 (6M) Cash Flows from Operations Pre-tax income 7,610 9,595 14,234 17,962 8,086 Depreciation 4,797 5,644 5,339 4,859 2,388 Share-based compensation expenses 21 73 – – – Amortization of good
Slide 96: 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 H1 (6M) Cash Flows from Investments Payments into time deposits -7 -7 -2 -701 -15 Proceeds from withdrawal from time deposits – 30 23 – 800 Payments for securities investments -5
Slide 97: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 97
Slide 98: Top Partner of J.League, Japan's Professional Soccer League
Real Estate x Sports Top Partner of J.League, Japan’s Professional Soccer League Promoting Community Development, Revitalizing Local Economies, & Helping People Enjoy Fuller and Healthier Lives J.League’s 100-Year Vision: Ichigo’s Mission: Promote Sports Development Serve Important Social Needs J.Le
Slide 99: 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
Slide 100: 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 101: 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
Slide 102: OneFive Hotels: Hotel Operations
Real Estate x Tourism OneFive Hotels: Hotel Operations Non-Asset Business Growth Driver – Operations & 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 (generati
Slide 103: 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