Ichigo Inc. · TSE:2337

Ichigo — FY2014 Earnings Presentation

43 slides from Ichigo's earnings presentation, Apr 23, 2014

Slide 1: Corporate Presentation February 2014 Fiscal Year
February 2014 Fiscal Year (March 2013 – February 2014) Corporate Presentation April 23, 2014 Ichigo Group Holdings Co Co., Ltd Ltd. (2337) © 2014 Ichigo Group Holdings Co., Ltd. All rights reserved. www.ichigo-holdings.co.jp/english
Slide 4: Creating peace of mind through honest and committed management
Creating peace of mind through honest and committed management. management © 2014 Ichigo Group Holdings Co., Ltd. All rights reserved.
Slide 5: Agenda
Full-Service Real Estate and Clean Energy ‒ February 2014 Full-Year Consolidated Financial Results ‒ More Detailed Disclosure via New Business Segments g ‒ New Business Segment Earnings Breakdown ‒ Structural Profitability ‒ Strong Financial Position ‒ J Japan’s’ Fi Firstt Double D bl P Public bli O
Slide 7: February 2014 Full-Year Consolidated Financial Results
February 2014 Full-Year Consolidated Financial Results ‒ Operating Profit 2.1X, Net Profit 2.8X, EPS 2.7X (Million yen) Feb 13 Feb 14 vs. FY 14 vs. (Actual) (Actual) Feb 13 Forecast Forecast Revenues 16,397 35,101 +114.1% 26,000 +35.0% Operating Profit 1,844 3,912 +112.1% 3,000 +30.4% Recurring Prof
Slide 8: More Detailed Disclosure via New Business Segments
More Detailed Disclosure via New Business Segments ‒ Asset Management, Real Estate, Value-Add, Clean Energy, Other Full-Service Real Estate Clean Other Asset Energy Real Estate Value-Add Management Ichigo Real Estate Investment Advisors Co., Ltd. (Subsidiary) ○ ○ ○ Ichigo Estate Co., Ltd. (Subsidiar
Slide 9: New Business Segment Earnings Breakdown
New Business Segment Earnings Breakdown ‒ Growth Investments Driving OP in Real Estate and Value-Add ‒ Clean Energy Up-Front Investments to Lock-In 20-Year Revenue Stream (Million yen) Revenues Segment Profit (Operating Profit) YoY Segment Feb 13 Feb 14 Change (YoY) Feb 13 Feb 14 Change (YoY) (OP) A
Slide 10: Structural Profitability
Structural Profitability ‒ Both Earnings and Expense Coverage Ratio Growth Fixed Revenues (“Locked-in” revenues; excludes one-off transactions, capital gains, etc.) Fixed Costs (SG&A + Interest Expense) Expense Coverage: 140.5% +11.1% Clean Energy 7 (Million yen) Rental income (Value-Add) (Value Add
Slide 11: Strong Financial Position
Strong Financial Position ‒ Increased Megabank Borrowings 9X YOY(from JPY 1.7 billion to JPY 15.4 billion) ‒ Extended Average Debt Maturities 1 1.4X 4X to 6 6.8 8 years YOY ■ Average Debt Maturities +2.1 years Feb 2013 4.7 years Feb 2014 5 9 years 5.9 Mar 2014 6.8 years (Latest) © 2014 Ichigo Group
Slide 12: Japan's First Double Public Offering
Japan’s First Double Public Offering ‒ In FY14 Accelerated Growth Investments to JPY 51 billion (+27.7 billion, +119% vs. FY13)  Real Estate: JPY 47 billion (including JPY 7 billion sold into Ichigo REIT)  Megasolar: g JPY4 billion ‒ Japan’s First Double Public Offering (PO)  Simultaneous POs by
Slide 13: Shift Up 2016 Mid-Term Business Plan
Shift Up 2016 Mid-Term Business Plan ‒ Key Performance Indicators (KPI) (Million yen) February 2013 February 2014 February 2015 February 2016 (Actual) (Forecast) (Plan) (Plan) Gross Profit 4,974 7,400 11,500 15,500 Operating p g Profit 1,844 , 3,900 , 7,700 , 11,400 , Net Profit 1,637 4,000 6,040 9,
Slide 15: Shift Up 2016 Current KPI Assessment
Shift Up 2016 Current KPI Assessment ‒ Achieved All Shift Up 2016 KPIs for Feb14 (Million yen) February 2013 February 2014 vs. February 2014 vs Feb 14 February 2015 February 2016 (Actual) (Actual) February 2013 (Forecast) Forecast (Plan) (Plan) G Gross Profit P fit 49 4 4,974 7,435 43 +49.5% 49 % -
Slide 16: Clean Energy Business Expansion
Shift Up 2016 Clean Energy Business Expansion ‒ As of Apr 2014, 9 Megasolar Plants (11MW) Online  Total operating and in-development plants: 24 projects, 82MW ((Feed-in tariff 40 y yen: 20 projects, p j , 33MW;; 36yen: y 4 projects, p j , 49MW)) ■ Ichigo Motomombetsu ECO Power Plant (Hokkaido) went
Slide 17: Clean Energy Future NOI
Shift Up 2016 Clean Energy Future NOI ‒ NOI from 24 Projects (82MW) Will Grow to JPY 1.6B/Year by Feb 18 Long Term Stable Earnings Stream Long-Term (Billion yen) 1.61 1.58 1.31 1.07 0.97 20-Year NOI: JPY 32.5B 0.64 0.54 0.3 0 04 0.04 FY2014/2 15/2 16/2 17/2 18/2 19/2 20/2 21/2 22/2 23/2 24/2 25/2 26
Slide 18: Largest Megasolar Power Plant in Kanto Region (43 MW)
Shift Up 2016 Largest Megasolar Power Plant in Kanto Region (43 MW) ‒ Ichigo ECO Energy Chosen Megasolar Plant Operator in Showamura, Gunma Prefecture, Expected Operation Start in March 2017  Largest megasolar plant in the world’s world s largest electricity market  Reached final agreement on the
Slide 19: Accelerated Asset Acquisitions
Shift Up 2016 Accelerated Asset Acquisitions ‒ PO Funding Accelerated Asset Acquisitions  JPY 80 billion investment planned for FY Feb 2015  Real estate focus is office & prime location retail assets in Tokyo metro area as well as major regional cities Office building in Omori Omori, Development i
Slide 20: Ichigo REIT Accretive Growth
Shift Up 2016 Ichigo REIT Accretive Growth ‒ Ichigo REIT Completed 2 POs in 2013, Acquiring 7 Assets (JPY 17B) ‒ Expansion of Long-Term, Stable AM Fees for IGH Ichigo g REIT Acquisitions I 7 assets JPY 17B (including 5 assets acquired though IGH bridge funds) © 2014 Ichigo Group Holdings Co., Ltd. A
Slide 21: February 2015 Full-Year Consolidated Earnings Forecast
Shift Up 2016 February 2015 Full-Year Consolidated Earnings Forecast ‒ Operating Profit +97%, Net Profit +34%, EPS +24%, Dividend +18% ‒ Extraordinary Gains in FY14 Boosted Net Profit (Million yen) Feb 15 Feb 14 vs. Feb 14 (Forecast) (Actual) (Forecast) Revenues 42,000 35,101 +19.7% Operating Profit
Slide 22: February 2015 Full-Year Segment Earnings Forecast
Shift Up 2016 February 2015 Full-Year Segment Earnings Forecast (Million yen) Revenues Segment Profit (Operating Profit) Segment Feb 15 Feb 14 Change (YoY) Feb 15 Feb 14 Change (YoY) Asset Management 3,634 4,118 -11.8% 536 919 -41.7% Real Estate 15,591 7,853 +98.5% 98.5% 3,000 1,528 +96.3% 96.3% Val
Slide 24: Pro Forma Disclosures
Pro Forma Disclosures ‒ Under Japanese accounting rules, SPCs in which Ichigo Group Holdings (“IGH”) ( IGH ) is a greater than 50% investor or SPCs for which IGH is the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated lid t d onto t IGH’ IG
Slide 25: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) ‒ Real Estate Held for Sale, Fixed Assets, and Liabilities Increased due to Asset Acquisitions and Development of Megasolar Power Plants (Million yen) Feb 13 Feb 14 Change (YoY) Total Assets 38,565 84,721 46,156 Cash and Cash Equivalents 5 744 5,744 21 276 21,276 15 532 15,
Slide 26: P&L (Pro Forma)
P&L (Pro Forma) (Million yen) Feb 13 Feb 14 Change (YoY) Revenues 13,341 13,594 +1.9% C t off Revenues Cost R 8 486 8,486 6 143 6,143 － Gross Profit 4,855 7,451 +53.5% SG&A 3,130 3,522 － Operating Profit 1,724 3,927 +127.8% Non-Operating Gain (Loss), net -110 -315 － Recurring Profit 1 614 1,614 3 61
Slide 27: P&L (Pro Forma, Breakdown)
P&L (Pro Forma, Breakdown) (Million yen) Revenues Gross Profit YoY Segment Feb 13 Feb 14 Change Feb 13 Feb 14 Change （ Gross Profit） Asset Management 4,145 4,945 800 2,288 3,007 719 +31.4% Asset Management Fees 1,640 2,111 471 1,481 1,998 517 +34.9% PM / BM Fees 2,159 2,294 135 471 491 20 +4.2% Othe
Slide 28: Significant Unrealized Gains on Balance Sheet (Real Estate)
Significant Unrealized Gains on Balance Sheet (Real Estate) Unrealized gains in both client and IGH assets Real estate directly y held by y IGH ((on balance sheet,, IGH is a sole equity q y investor)) (Million yen) Book Value Cap rate (at Acquisition) Cap Rate (current) Appraisal Value Location Acqu
Slide 29: February 2015 Pro Forma Full-Year Segment Earnings Forecast
February 2015 Pro Forma Full-Year Segment Earnings Forecast (Million yen) Pro Forma Segment Revenues Gross Profit Asset Management 3,961 1,995 Asset Management Fees 1,562 1,512 PM / BM Fees 2,393 477 Other 6 6 Real Estate 15,213 4,017 Rental Income 4,929 3,527 Real Estate Sales 10,284 490 Other 0 0
Slide 31: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) ‒ Real Estate Held for Sale, Fixed Assets, and Liabilities Increased due to Asset Acquisitions and Megasolar Power Plant Development (Million yen) Feb 13 Feb 14 Change (YoY) Total Assets 80,428 114,944 34,516 Cash and Cash Equivalents 9,713 24,991 15,278 Operating Invest
Slide 32: P&L (Consolidated)
P&L (Consolidated) (Million yen) vs vs Feb 13 Feb 14 Forecast Feb 13 Forecast Revenues 16,397 35,101 +114.1% 26,000 +35.0% Cost of Revenues 11,422 27,666 －－－ Gross Profit 4,974 7,435 +49.5% －－ SG&A 3,130 3,522 －－－ Operating Profit 1 844 1,844 3 912 3,912 +112 1% +112.1% 3 000 3,000 +30 4% +30.4
Slide 33: P&L (Consolidated, Breakdown)
P&L (Consolidated, Breakdown) (Million yen) Revenues Gross Profit YoY Segment Feb 13 Feb 14 Change g (YoY) ( ) Feb 13 Feb 14 Change g (YoY) ( ) ((Gross Profit)) Asset Management 3,743 4,118 375 1,886 2,183 297 +15.7% Asset Management Fees 1,279 1,444 165 1,120 1,334 214 +19.1% PM / BM Fees 2,118 2,2
Slide 34: P&L (Consolidated, Breakdown)
P&L (Consolidated, Breakdown) (Million yen) Consolidated Segment Revenues Gross Profit Operating Profit Asset Management 3 634 3,634 1 667 1,667 536 Asset Management Fees 1,234 1,185 - PM / BM Fees 2,393 477 - Other 6 6 - Real Estate 15,591 4,064 3,000 Rental Income 5,307 3,574 - Real Estate Sales 1
Slide 36: IGH-Managed Real Estate Portfolio
IGH-Managed Real Estate Portfolio AUM by Type AUM by Location (As of February 2014) Land with Sendai (Billion yen) Ground Lease Other 3% 1% 6% Other Residential 3% Kanto 17% 9% Nagoya Office 8% Mixed 10% 51% 5 % Fukuoka Tokyo T k 5% 65% Osaka Retail 5% 17% Sendai Tokyo 6 156 Kanto AUM by Size 20 Nag
Slide 37: IGH-Owned Real Estate Portfolio
IGH-Owned Real Estate Portfolio AUM by Type AUM by Location (As of February 2014) (Billion yen) Other Sendai 11% 9% Land with Ground Lease Office Other 6% Tokyo 30% 11% 40% Residential 8% Kanto Mixed 20% 9% Retail Osaka 36% Fukuoka 3% 17% Sendai 6 Tokyo Kanto AUM by Size 27 13 Osaka 2 Others 5~10 bn
Slide 39: Full Service Real Estate & Clean Energy
Full Service Real Estate & Clean Energy IIchigo hi comes from f an ancient i t Japanese J proverb, b Ichigo Ichie, meaning “One lifetime, one encounter” As the core company of the Ichigo Group, Ichigo Group Holdings seeks to serve the needs of society by investing in Japanese real estate. estate We
Slide 40: Corporate History
Corporate History A Pioneer in the Real Estate Securitization and Fund Businesses in Japan 2000 March Establish PI Technology Co., Ltd. April Establish Asset Managers Co., Ltd. 2001 August Asset Managers arranges the securitization of assets from the Ikebukuro store of The Seibu Department Stores, L
Slide 41: Company Profile
Ichigo Group Holdings Co., Ltd. Company Profile Name Ichigo Group Holdings Co., Ltd. Address The Imperial Hotel Tower, 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011 Established Board and 10 Directors ( Including 7 Independent External Directors) March 17, 2000 Senior Executives 12 Executive Office
Slide 42: Group Structure
Group Structure ‒ Core C B Businesses: i F Full-Service ll S i R Reall E Estate t t and d Cl Clean E Energy ‒ Launched Clean Energy Business in November 2012 ‒ Activelyy Promoting g CSR throughg Environmental Activities and Sports p Sponsorship Hiromi Miyake Full-Service Real Estate and Clean Energy
Slide 43: 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 g y of the figures, g , information,, estimates or other statements included herein,, and

Ichigo Group Holdings — FY2014 Earnings Presentation on 6ix

Ichigo — FY2014 Earnings Presentation

Slide 1: Corporate Presentation February 2014 Fiscal Year

Slide 2: © 2014 Ichigo Group Holdings Co., Ltd. All rights reserved.

Slide 3: © 2014 Ichigo Group Holdings Co., Ltd. All rights reserved.

Slide 4: Creating peace of mind through honest and committed management

Slide 5: Agenda

Slide 6: Full-Service Real Estate and Clean Energy

Slide 7: February 2014 Full-Year Consolidated Financial Results

Slide 8: More Detailed Disclosure via New Business Segments

Slide 9: New Business Segment Earnings Breakdown

Slide 10: Structural Profitability

Slide 11: Strong Financial Position

Slide 12: Japan's First Double Public Offering

Slide 13: Shift Up 2016 Mid-Term Business Plan

Slide 14: Shift Up 2016 Execution Driving Growth

Slide 15: Shift Up 2016 Current KPI Assessment

Slide 16: Clean Energy Business Expansion

Slide 17: Clean Energy Future NOI

Slide 18: Largest Megasolar Power Plant in Kanto Region (43 MW)

Slide 19: Accelerated Asset Acquisitions

Slide 20: Ichigo REIT Accretive Growth

Slide 21: February 2015 Full-Year Consolidated Earnings Forecast

Slide 22: February 2015 Full-Year Segment Earnings Forecast

Slide 23: Appendix: Pro Forma Financial Data

Slide 24: Pro Forma Disclosures

Slide 25: Balance Sheet (Pro Forma)

Slide 26: P&L (Pro Forma)

Slide 27: P&L (Pro Forma, Breakdown)

Slide 28: Significant Unrealized Gains on Balance Sheet (Real Estate)

Slide 29: February 2015 Pro Forma Full-Year Segment Earnings Forecast

Slide 30: Appendix: Consolidated Financial Data

Slide 31: Balance Sheet (Consolidated)

Slide 32: P&L (Consolidated)

Slide 33: P&L (Consolidated, Breakdown)

Slide 34: P&L (Consolidated, Breakdown)

Slide 35: Appendix: Real Estate Data

Slide 36: IGH-Managed Real Estate Portfolio

Slide 37: IGH-Owned Real Estate Portfolio

Slide 38: Appendix: About Ichigo Group

Slide 39: Full Service Real Estate & Clean Energy

Slide 40: Corporate History

Slide 41: Company Profile

Slide 42: Group Structure

Slide 43: Disclaimer