Loadstar Capital Kk · TSE:3482

Loadstar Capital Kk — FY2019 Earnings Presentation

52 slides from Loadstar Capital Kk's earnings presentation, February 2020

Slide 1: Fiscal Year Ended December 31, 2019 Earnings Briefing
Fiscal year ended December 31, 2019 Earnings Briefing Loadstar Capital K.K. Securities code: 3482 February 2019 © Loadstar Capital ALL RIGHTS RESERVED
Slide 4: Highlights
Highlights Consolidated • Net sales +56% y-o-y Financial • Ordinary profit +55% y-o-y Results • Profit +53% y-o-y Corporate • Net sales +52% y-o-y Funding • Solid progress on building up properties and adding value Crowdfunding • Net sales +71% y-o-y • investor members and the amount of loans grew r
Slide 5: Consolidated Sales / Ordinary Profit
Consolidated Sales/ Ordinary Profit Both consolidated sales and ordinary profit grew significantly year on year, driven by strong demand for property in Tokyo’s 23 wards and the steady progress made in the Crowdfunding Business. （¥ millions） Net sales 15,116 +56% Net sales 9,670 8,794 Ordinary profi
Slide 6: Consolidated Profit / Dividends per share
Consolidated Profit/Dividends per share Both net profit and cash dividends per share increased thanks to steady business growth. Profit Dividends per share （¥ millions）（¥ millions） 2,400 16.0 当期純利益 Profit 14.5 1株当たり配当金額 Dividends per share 1,800 12.0 9.5 1,200 8.0 2,077 5.5 1,359 600 4.0 794 442 46
Slide 8: Real Estate Investments
Real Estate Investments Mission Real Estate X Tech to Open Up a New Market CROWDFUNDING （Equity Investment-type / Loan-Type） Real Estate Tech Real Estate CORPORATE FUNDING BROKERAGE Investments ASSET MANAGEMENT (Real Estate Principal Investment) / ADVISORY © Loadstar Capital ALL RIGHTS RESERVED 7
Slide 9: Corporate Funding Business Results
Corporate Funding Business Results • Realized earnings by adding value to properties and with speedy decision-making • Despite a temporary slowdown in leasing income due to the acquisition of an extremely rare vacant building in central Tokyo, contributions will be reflected in earnings from FY2020
Slide 10: Corporate Funding Business Results: Real estate as inventory
Corporate Funding Business Results ・Despite the tough environment for acquiring properties, we were able to accumulate excellent properties through our strength in sourcing. This means that we have secured a revenue source for the next year onwards. ・We have maintained good relationships with our ba
Slide 11: Asset Management Business – Harumi Triton
Asset Management Business – Harumi Triton ⚫ We have been entrusted asset management business*, as the main investor, for a fund launched by global asset management firm CBRE Global Investors* *Asset management business here means the business of professionally managing properties, from strategy form
Slide 12: Real Estate Tech
Real Estate Tech Corporate Philosophy Real Estate X Tech to Open Up a New Market CROWDFUNDING （Equity Investment-type / Loan-Type） Real Estate Tech Real Estate CORPORATE FUNDING Investments (Real Estate Principal Investment) ASSET MANAGEMENT BROKERAGE / ADVISORY © Loadstar Capital ALL RIGHTS RESERVE
Slide 13: Crowdfunding Business Results
Crowdfunding Business Results • The Crowdfunding Business has rapidly expanded along with the large-scale project composition and expansion of investor members who can recruit large-scale projects. • We also started offering overseas equity investment-type products in the fourth quarter. Net Sales （
Slide 14: Investor Members / Cumulative Investment Amount
Investor Members / Cumulative Investment Amount Investor members (people)：22,895 Cumulative Investment Amount （¥ millions）：15,734 （¥ millions）（People） 16,000 24,000 累積投資金額 Cumulative Investment 22,895 Amount （¥ millions）投資家会員 Investor members (people) 16,812 12,000 18,000 8,000 15,73412,000 7,635
Slide 15: OwnersBook Features
OwnersBook Features Small investment amounts Makes it easy to invest in real estate through small investments Online platform allows for Can invest according to risk lower investor costs tolerance level Free-of-charge member registration, Product lineup based on investors’ no investment fees, risk t
Slide 16: OwnersBook Features
OwnersBook Features Properties are becoming larger due to an increase in number of investor members. →¥1.1bn in offering (more than 3,000 investors) Implementation of lottery properties →Ratio: More than 4x Remarkable growth in funding power with projects worth several hundred million yen completely
Slide 17: Overseas Business: First Project Product Overview
Overseas Business – 海外型クラウドファンディング事業 ⚫ Investment in first project completed on October 31 First Project – Product Overview Our first overseas project saw funds accumulated through crowdfunding in Japan invested in Income eREIT, an unlisted eREIT in the US offered by project partner Fundrise. Retail
Slide 19: Forecast
Forecast Corporate Funding Business: Building up properties and strengthen the earnings platform Crowdfunding Business: Diversification of projects Asset Management Business: Expansion of AUM （¥ millions） FY2019 FY2020 (Forecasts) % of Net % of Net Amount Amount % Y-o-Y Sales Sales Net sales 15,116
Slide 20: Forecast: Property Market and Corporate Funding Business
Forecast ⚫ Property Market We have heard for a long time that the real estate market will crumble after the Tokyo Olympic Games have finished, but we think there will be no such major upheaval given that real estate firms are hedging their risks, market interest rates are expected to remain low, and
Slide 21: Forecast: Crowdfunding and Asset Management Business
Forecast ⚫ Crowdfunding Business Investor demand for loan-type products remains strong and the number of large-scale projects is also growing. Accordingly, we will continue to focus on acquiring new projects. For equity investment-type products, we aim to further diversify and brush-up such projects
Slide 22: Share Buyback
Share Buyback ⚫ Share Buyback from Major Shareholder As already announced in a press release on February 14, 2020, subject to a resolution being passed at the 8 th annual general meeting of shareholders to be held on March 19, 2020, we plan to acquire 5,100,000 shares of the company from major share
Slide 24: Sustainable growth of Corporate Funding business
Corporate Funding business Sustainable growth of Corporate Funding business ⚫ We aim to build up property holdings by harnessing our strengths in property appraisal and speedy decision-making and ensure that leasing income is high enough to cover fixed costs. ⚫ We continue to expand our workforce in
Slide 25: Expanding the Asset Management Business
Corporate Funding business Expanding the Asset Management Business ⚫ We aim to ramp up operations in the Asset Management Business and accumulate properties in order to expand our stable revenue base. ⚫ By drawing on the experience and networks of employees who previously worked as asset managers, w
Slide 26: Crowdfunding Business Development
Crowdfunding Business Development We will continue to strengthen cooperation with financial institutions Acquire investor members Matsui Securities Project (Equity-investment type) Fundrise Project (Lending type) THE SEIBU SHINKIN BANK ORIX Bank Corporation SAISON FUNDEX CORPORATION Shinsei Investme
Slide 27: Return to shareholders
Return to shareholders 《Basic dividend policy》 ⚫ We strive to improve corporate value and shareholder profit by expanding business performance ⚫ Perform stable and continuous profit reduction with a payout ratio of 15% as a guide Surplus Growth Dividends to Acquisition of investment Shareholders Tre
Slide 29: Company Profile
Company Profile（as of December 31, 2019） Company Name Loadstar Capital K.K. Address Ginza First Building 2F, 1-10-6 Ginza, Chuo-ku, Tokyo, Japan Founded March 14, 2012 Representative President & CEO Tatsushi Iwano Share Capital ¥1,402 million Number of Officers 66 and Employees - Main Shareholders R
Slide 30: History
History March 2012 Established Loadstar Capital K.K. in Ebisu, Shibuya-ku, Tokyo March 2014 Accepted capital increase through third-party allocation by Renren Lianhe Holdings (see chart below) May 2014 Established Loadstar Funding K.K. (wholly owned subsidiary) September 2014 Launched crowdfunding s
Slide 31: Consolidated Financial Results
Consolidated Financial Results （¥ millions） FY2018 FY2019 % of Net % of Net Amount Amount % Y-o-Y Sales Sales Net Sales 9,670 100.0% 15,116 100.0% 156.3% Cost of sales 6,401 66.2% 10,378 68.7% 162.1% Gross Profit 3,269 33.8% 4,738 31.3% 144.9% SG&A expenses 876 9.1% 1,084 7.2% 123.7% Operating Profi
Slide 32: Consolidated Financial Position
Consolidated Financial Position （¥ millions） 12/31/2018 12/31/2019 % vs. Amount % of total Amount % of total 12/31/2018 Current assets 32,785 99.3% 44,048 99.3% 134.4% Cash and deposits 5,871 17.8% 7,766 17.5% 132.3% Operating loans 3,340 10.1% 6,128 13.8% 183.5% Real estate as inventory 23,194 70.2
Slide 33: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows （¥ millions） FY2018 FY2019 Amt. Changed CF from operating activities △4,398 △3,986 411 Profit before income taxes 1,928 3,004 1,076 Decrease (increase) in operating loans receivable △2,172 △2,788 △615 Decrease (increase) in real estate as inventory △7,556 △7,272
Slide 35: Loadstar Capital's Strength
Loadstar capital’s Strength Barrier to entry due to Ability to respond to government approval market changes, and licenses Supported by a Innovation First-mover advantage stable financial base as we entered the and crowdfunding market stability at an early stage Entry barriers Professionals Fast inv
Slide 36: High Expertise
High Expertise With a high level of expertise in both real estate and IT, we are able to accurately grasp the market’s needs and quickly provide services. Real Estate Pros IT Pros ■Many of our members have more than 20 ■Experts with more than 15 years in the IT years of experience in the real estate
Slide 37: Corporate Funding Business Overview
Corporate Funding Business Overview Acquire mainly medium-sized office buildings within Tokyo’s 23 wards, and value up Sell Information Appropriately judge acquisition Increase value gathering market conditions ✓ Over 20 years of ✓ Quick decision-making ✓ Construction work to add experience and ✓ In
Slide 38: High barriers to entry
クラウドファンディング事業の競争優位 Realizing access to personal money not establish in the property investment market Demand Supply Established credibility as an asset High hurdles to overcome in manager owing to track record of High acquiring approvals and licenses* more than five years and barriers to required fo
Slide 39: Stable Financial Base
Stable Financial Base ⚫ Long-term borrowings based on high level of creditworthiness from financial institutions Our financial base allows us to flexibly respond to changes in the market. ⚫ The increase in value of properties themselves due to the decline in vacancy rates and other factors is viewed
Slide 41: Background to Expansion of Social Lending and Scale of Market
Background to Expansion of Social Lending and Scale of Market ⚫ Social lending = Loan-type crowdfunding ⚫ Revolutionary for investors and persons seeking funds, market is expanding rapidly Reasons Supported Japan’s crowdfunding market （¥100 millions） High return on investment 2,100 2,044 (Banks: 0.0
Slide 42: OwnersBook (Loan-Type / Equity Investment-type)
OwnersBook（Loan-Type / Equity Investment-type） Loan-type : Lending for real estate-backed/loans Senior Loan Real ¥600~900 Lending estate million * In some cases, we deal with senior loans. ¥1,000 Mezzanine Loan ~1,500 ¥200~300 OwnersBook Investors million million Investment Equity ¥200~300 million I
Slide 43: Equity Investment-type: The world we aim for
Equity Investment-type ～ The world we aim for ～ Historically The Aim of OwnersBook Larger Investment Small Size Small Size Products Real Estate J-REIT mainly for Real Estate J-REIT investment professional investment investors Individual investors Individual investors Institutional investors Institut
Slide 44: Factors of Growth Potential in Japan
Factors of Growth Potential in Japan Going forward, there is a chance that professional investors will start to get involved due to the growth of the platform. Other Investment Real Estate Investment Product Domains Domains Publicly Offered Private-Placement Listed REITs Private-Placement REITs/Fund
Slide 45: Crowdfunding: Profit structure
Crowdfunding ～ Profit structure ～ ⚫ Profit structure Model Up-front fee Asset Management fee Disposition fee Loan amount Loan-type －－ × 2％ Equity Equity Amount Real Estate Price Real Estate Sales Price Investment-type × 1-2％ × 0.3-1％ × 1％ * The above fee condition is a typical sample. ⚫ Risk and Re
Slide 47: Japan's Investment Real Estate Market
Japan’s Investment Real Estate Market Japan’s investment real estate market has a lot of room to grow further. 2,606 Still very small. A lot of rooms to grow. 1,045 986 672 91 JGB Stock株式時価総額 Market Capitalization 不動産総額 Total Real Estate Value 投資用不動産 Investment Real Estate 家計現預金総額 Total Cash and Dep
Slide 48: Japanese People's Wealth
Japanese People’s Wealth More than half of Japan’s household financial assets are waiting on the sidelines, not being invested. Cash and deposits total ¥977 trillion. Composition of Japan’s Household Financial Assets Composition of U.S. Household Financial Assets Other, 3.0% Other, 2.7% Insureance/a
Slide 49: Population Growth in Tokyo
Population Growth in Tokyo Tokyo with sufficient infrastructure to compete with major overseas cities. About 61% of investable assets stay in the greater Tokyo area. Tokyo’s Population will Increase Going Forward Ratio of office floor space in Japanese cities (Thousands) Sendai, 1.74% Hiroshima, 14,
Slide 50: The World in 2025 (Urban Population & GDP)
The World in 2025（Urban Population ＆ GDP） Invest with an eye to the future. The Tokyo economic area continues to have the largest urban population and GDP in the world. 40,000 Tokyo 35,000 Delhi 2025 Population (thousands) 30,000 Shanghai 25,000 Beijing 20,000 New York 15,000 Paris 10,000 London 5,0
Slide 51: Concentration of Large Companies in Tokyo
Concentration of Large Companies in Tokyo Tokyo has the second highest concentration of large companies in the world. Fortune 500 Companies by City (Ranking) 60 50 40 30 20 10 0 Beijing Tokyo Paris New York London Seoul Shanghai Osaka Hong Kong Source: Loadstar Capital K.K., based on data from Fortu
Slide 52: Global Comparison of Investment Real Estate Performance
Global Comparison of Investment Real Estate Performance Tokyo has a favorable environment. Prime Office Yield to Gov’t Bond Historical Yield Spread by Major Cities (unit: bps) Yield Spread 350 6.00% 300 5.00% 250 4.00% 200 3.00% 150 2.00% 100 1.00% 50 0 0.00% 2014 2015 2016 2017 2018 Hong London New

Loadstar Capital K.K. — FY2019 Earnings Presentation on 6ix

Loadstar Capital Kk — FY2019 Earnings Presentation

Slide 1: Fiscal Year Ended December 31, 2019 Earnings Briefing

Slide 2: Contents

Slide 3: Overview of Financial Results for FY Ended December 31, 2019

Slide 4: Highlights

Slide 5: Consolidated Sales / Ordinary Profit

Slide 6: Consolidated Profit / Dividends per share

Slide 7: Business Overview

Slide 8: Real Estate Investments

Slide 9: Corporate Funding Business Results

Slide 10: Corporate Funding Business Results: Real estate as inventory

Slide 11: Asset Management Business – Harumi Triton

Slide 12: Real Estate Tech

Slide 13: Crowdfunding Business Results

Slide 14: Investor Members / Cumulative Investment Amount

Slide 15: OwnersBook Features

Slide 16: OwnersBook Features

Slide 17: Overseas Business: First Project Product Overview

Slide 18: Forecast for the FY2020

Slide 19: Forecast

Slide 20: Forecast: Property Market and Corporate Funding Business

Slide 21: Forecast: Crowdfunding and Asset Management Business

Slide 22: Share Buyback

Slide 23: Future Growth Strategy

Slide 24: Sustainable growth of Corporate Funding business

Slide 25: Expanding the Asset Management Business

Slide 26: Crowdfunding Business Development

Slide 27: Return to shareholders

Slide 28: Appendix

Slide 29: Company Profile

Slide 30: History

Slide 31: Consolidated Financial Results

Slide 32: Consolidated Financial Position

Slide 33: Consolidated Statements of Cash Flows

Slide 34: Our strengths and characteristics

Slide 35: Loadstar Capital's Strength

Slide 36: High Expertise

Slide 37: Corporate Funding Business Overview

Slide 38: High barriers to entry

Slide 39: Stable Financial Base

Slide 40: Social lending industry and OwnersBook

Slide 41: Background to Expansion of Social Lending and Scale of Market

Slide 42: OwnersBook (Loan-Type / Equity Investment-type)

Slide 43: Equity Investment-type: The world we aim for

Slide 44: Factors of Growth Potential in Japan

Slide 45: Crowdfunding: Profit structure

Slide 46: Real Estate Market Analysis

Slide 47: Japan's Investment Real Estate Market

Slide 48: Japanese People's Wealth

Slide 49: Population Growth in Tokyo

Slide 50: The World in 2025 (Urban Population & GDP)

Slide 51: Concentration of Large Companies in Tokyo

Slide 52: Global Comparison of Investment Real Estate Performance