Ichigo Inc. · TSE:2337
Ichigo — Q1 FY23/2 Earnings Presentation
94 slides from Ichigo's earnings presentation, Jul 14, 2022
Slide 1: FY23/2 Q1 Corporate Presentation
FY23/2 Q1 Corporate Presentation January July 14,13, 2021 2022 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en
Slide 2: Condolences message
We would like to express our deepest condolences to all those affected by the global Covid pandemic and by the war and humanitarian crisis in Ukraine, along with our heartfelt wish for the immediate cessation of hostilities in Ukraine and the earliest and fullest possible recovery for all. Take care
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 FY23/2 Q1 Earnings Sustainable Growth as a Sustainable Infrastructure ‒ FY23/2 Q1 Summary Company ‒ Introduction of All-In Disclosure to Increase Earnings ‒ Sustainable Real Estate: Selective on Acquisitions & Sales Transparency ‒ Ichigo Owners: Robust Demand Driving Growth ‒ All-In OP -14%
Slide 7: FY23/2 Q1 Earnings
FY23/2 Q1 Earnings © Ichigo Inc. All rights reserved. 7
Slide 8: FY23/2 Q1 Summary
FY23/2 Q1 Summary – Accelerating Acquisition of Both Multi-Asset & Ichigo Owners Sustainable Real Estate (SRE) Assets – Hotel Recovery Underway RevPAR: +81% YOY, -43% vs. Pre-Covid – Robustly Climate Positive (CO2 Reductions > Emissions), with RE100 Transition Also On-Track – 6 Consecutive Years o
Slide 9: FY23/2 Q1 Summary
FY23/2 Q1 Summary Durable Earnings Model Robust Stock Earnings ■ FY22/2 Q1 Stock Earnings/Fixed Expenses ■ FY23/2 Q1 180% (JPY million) -12% Sustainable Asset Clean Flow Earnings Fixed Real Estate Management Energy JPY 2.1B Expenses (SRE) (AM) (CE) JPY 2.0B Cash Earnings 4,033 -20% JPY 5.6B 3,547 –
Slide 10: Introduction of All-In Disclosure to Increase Earnings Transparency
Introduction of All-In Disclosure to Increase 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
Slide 11: All-In OP -14%, Cash EPS -1% (YOY)
All-In OP -14%, Cash EPS -1% (YOY) Cash Earnings Significantly Exceed Accounting Earnings Due to Ichigo’s Focus on Maximizing Long-Term Cash Flows for Shareholders (JPY million) FY22/2 Q1 FY23/2 Q1 YOY FY23/2 Forecast Operating Profit 3,159 2,723 -13.8% 9,700 – 10,600 All-In Operating Profit 3,159 2
Slide 12: Segment Earnings Details
Segment Earnings Details − Asset Management: One-Off Decrease on Asset Sales; Q2 Acquisitions − SRE Stock Earnings: Lower on Asset Sales & Odaiba Vacancies (Re- Tenanting Underway) SRE Flow Earnings: Strong Investment Demand, Visible Earnings Growth − Clean Energy: Growth On-Track (Temporary Drop on
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, Base AM Fees, & Non-Cash Expenses (e.g., Depreciation) Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) Fixed Expenses (Fixed SG&A + Interest Expenses) Cash Earnings (JPY milli
Slide 15: Business Model (2) Stable Stock Earnings
Business Model (2) Stable Stock Earnings Stock Earnings by Segment (JPY million) (Stock Earnings/Fixed 18,485 18,450 Expenses) (%) (261%) (234%) Asset Management 2,057 2,062 15,065 14,912 (195%) (191%) 1,832 2,091 Sustainable Real Estate 13,451 13,331 9,402 8,477 3,547 (180%) 471 Clean Energy 3,830
Slide 16: Business Model (3) Embedded Forward Earnings
Business Model (3) Embedded Forward Earnings Full Economic Earnings From Value-Add Exceed Accounting Earnings – Value-Add Thus Generates Significant Unrealized Gains That Are an Earnings Bank for Future Periods (JPY billion) 63.9 65.3 56.2 50.9 45.4 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Third-Party App
Slide 17: Business Model (4) Value-Add Drives Durable Value Growth
Business Model (4) Value-Add Drives Durable Value Growth 2.8X Appraisal Value-Based Unrealized Gains 2.5X Real Estate Gains on Sales 2.0X JPY 17.1B JPY 15.0B 1.9X JPY 9.4B JPY 6.1B JPY 5.9B JPY 5.7B JPY 4.7B 1.0X JPY 3.0B JPY 2.0B JPY 2.0B FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Q1 Real Estate Gains on S
Slide 18: Business Model (5) Robust Cash Generation
Business Model (5) Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income (JPY billion) Net Income 3.6X Economic Operating Cash Flow 1.7X 1.2X 29.5 25.5 1.9X 2.1X 16.7 15.4 14.0 10.4 12.4 8.2 6.5 5.0 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Note: Economic Operating Cash Flow = Cash Flows f
Slide 19: Strong Financial Base
Strong Financial Base Weighted Average Loan Period Average Interest Rate & Loan Term Weighted Average Remaining Loan Maturity (Interest Rate) (Loan Term, Years) Weighted Average Interest Rate 2.5% 12 10.8 years 10.3 years 10.1 years 10.2 years 10.0 years 10.0 years 10.1 years 9.6 years 2.0% 8.3 year
Slide 20: Ichigo's Sustainability Execution
Ichigo’s Sustainability Execution © Ichigo Inc. All rights reserved. 20
Slide 21: Climate Positive: CO2 Reductions > Emissions
Climate Positive: CO2 Reductions > Emissions Ichigo’s Clean Energy Growth Addressing Critical Environmental Issues CO2 Reduction vs. CO2 Emissions (tons) ■ Total Ichigo Power Plant CO2 Reduction ■ Total Ichigo CO2 Emissions (Scope1+2) 2.5X CO2 Reductions vs. CO2 Emissions 137,848 115,884 Further Red
Slide 22: RE100 by 2025 On Track
RE100 by 2025 On Track Ichigo RE100 Progress FY23/2 Forecast RE100 Transition Impact CO2 Reduction 35,815 tons Renewable Energy % Reduction 47.2% Ratio 60.4% CO2 Emissions of Cars (+7.2pts vs. FY22/2 Q4) × 15,572 Note: % Reduction = Amount of CO2 reduction vs. 75,890 tons (FY20/2 actual) Annual CO2
Slide 23: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 23
Slide 24: Sustainable Real Estate: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales SRE Multi-Asset Acquisitions Already 17% Higher than Full-Year FY22/2 − Acquisitions: JPY 11.7B In Addition to Robust Ichigo Owners Residential Sales, Market Conditions Favorable for Multi-Asset Sales − Sales: JPY 10.9B Global Investors Also
Slide 25: Ichigo Owners: Robust Demand Driving Growth
Sustainable Real Estate Ichigo Owners: Robust Demand Driving Growth JPY 26.3B Acquisitions (including Pre-Closure Executed Contracts) (75% Progress vs. Full-Year Forecast; 99% vs. Full-Year FY22/2) (JPY billion) Ichigo Owners Residential Acquisitions & Sales ■ Acquisitions ■ Sales 26.3 Pre-Closure E
Slide 26: Ichigo Subsidiary Cost Science Wins Japanese Government DX Award
Ichigo Subsidiary Cost Science Wins Japanese Government DX Award Cost Science (IT Consulting firm) https://costscience.com − Deep expertise in mining & analyzing data to help businesses increase productivity without downsizing (full consolidation as subsidiary in FY24/2) − Accelerating Ichigo’s DX S
Slide 27: Growth Support for Ichigo REITs & Ichigo Green
Asset Management Growth Support for Ichigo REITs & Ichigo Green Ichigo Office 8975 Ichigo Hotel 3463 Ichigo Green 9282 Portfolio JPY 209.2B (86 Assets) JPY 52.5B (24 Hotels) JPY 11.4B (15 Solar Plants) Dividend Yield (as of July 11, 2022) 4.9% 1.9% 5.8% ・ Entered FTSE Global REIT Index, ・ Geographic
Slide 28: Ichigo Office & Ichigo Hotel Acquisitions Driving Growth
Asset Management Ichigo Office & Ichigo Hotel Acquisitions Driving Growth Ichigo Office (8975) Ichigo Hotel (3463) Acquisition Acquisition Ichigo Higashi Ikebukuro 3 Chome Building Comfort Hotel Nagano Central Tokyo office with NOI growth potential Regional diversification & robust NOI ・ New redevel
Slide 29: Clean Energy: Scaling Rapidly
Clean Energy Scaling Rapidly 3 New Plants (Total 5.1MW) Forecast for FY23/2 Full-Year (2 Already Online) Ichigo 4.6 46.9 Operating Plants: JPY 38.6B (143.6MW) (Forecast) (+21%) In-Pipeline Plants: JPY 8.2B (22.1MW) 4.3 Ichigo Green (9282) 38.8 8.2 Operating Plants: 29.4MW 3.8 (+2%) 0.1 (as of July 1
Slide 30: Share Buybacks – 6th Consecutive Year
Share Buybacks – 6th Consecutive Year (JPY 15B, 8.4%) Ichigo 2030: Flexible Deployment of Share Buybacks Completed Q1 JPY 1.5B Share Buyback & Expect to Continue to Be Active Share Buybacks Number of Shares Average Purchase Purchased Amount Price (% of Shares Outstanding) 5,105,800 FY23/2 Q1 JPY 293
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 (70,000 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: 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 35: ESG Initiatives: Social
ESG Initiatives: Social Contributing to Society Contributing to Regional Revitalization Ichigo University Sports Initiatives Ichigo works to revitalize local communities Ichigo established Ichigo University in May As a top partner of the J.League and promote regional economic 2013 to support employe
Slide 36: 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 10 members of Ichigo’s
Slide 37: 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 38: Accelerated RE100 Target From 2040 to 2025
Accelerated RE100 Target 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 Ichi
Slide 39: CDP Climate Change Assessment: Ichigo Highest Leadership Level
CDP Climate Change Assessment: Ichigo Highest Leadership Level Ichigo Recognized for Global Best-Practice Climate Change Initiatives − Further Accelerating Ichigo Environmental Initiatives via Launch of ReGeneration Group − Ichigo Score: A- (Achieved A Score in 8 of 11 Categories) Global Scores of C
Slide 40: ESG Finance Supporting Sustainable Growth
ESG Finance Supporting Sustainable Growth Ichigo’s ESG Execution Underpinning Attractive ESG Financing Terms ESG Loans ESG Loans as % of Total Borrowings ■ ESG loans and green bonds ■ ESG loans and green bonds ■ Remaining ESG commitment line ■ Remaining ESG commitment line ■ Other corporate loans &
Slide 41: 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 42: Appendix: Financial & Operational Data
Appendix: Financial & Operational Data © Ichigo Inc. All rights reserved. 42
Slide 43: 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 44: 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, 2022 (A) (B) (B)/(A) (C) (C) - (A) Tokyo 86,002 5,263 6.1% 119,532 +33,530 Outside Tokyo 98,035 6,532 6.7% 124,734
Slide 45: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 400.7B (Book Value JPY 336.6B + Unrealized Gains JPY 64.0B) Cash & Cash Equivalents Non-Recourse Loans & Related Liabilities JPY 35.7B JPY 47.0B Risk-Based Consolidated Balance Sheet: JPY 317.9B Non-Recourse Loans & (Book Value
Slide 46: 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% 84.7% (JPY billion) 12.8% 32.0 30.9 Reclassification of 29.5 Sustainable Real Estate Assets to Fixed As
Slide 47: 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. 180% (JPY mill
Slide 48: Post-GFC Shift in Earnings Base & Financial Position
Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY22/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 191% 2.5X Coverage Ratio 10.1 years Loan Maturity (Weighted avg., 5.6 years 3.6X corporate + non-recourse loans) 2.8 years 93% 28% 25% >3 years <3 years
Slide 49: Consolidated Balance Sheet: Segment Breakdown
Consolidated Balance Sheet: Segment Breakdown (JPY million) Cash and Operational Operational Real Estate Intangible Securities Other Segment Cash Loan Securities Fixed Assets Total Assets for Sale Assets Investments Assets Equivalents Investments Investments Asset Management (AM) – – – – – 613 120 1
Slide 50: Expense Allocation Adjustment
Expense Allocation Adjustment New segment forecasts reflect adjusted allocation of corporate expenses to subsidiaries to more accurately reflect their use of corporate resources (JPY million) All-In Operating Profit Segment FY23/2 Forecast FY23/2 Forecast FY22/2 YOY After Adjustment Before Adjustmen
Slide 51: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) All-In Gross Profit All-In Operating Profit Segment YOY YOY FY22/2 Q1 FY23/2 Q1 FY22/2 Q1 FY23/2 Q1 FY23/2 Forecast Change Change Asset Management (AM) 503 471 -6.3% 353 322 -8.7% 1,300 Base AM Fees 503 471 -6.3% – – – – Acquisition/Disposition Fees
Slide 52: Asset Management AUM Detail
Asset Management AUM Detail FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Q1 (12M) (12M) (12M) (12M) (12M) (3M) AUM (Fiscal Year End) JPY 196.9B JPY 203.0B JPY 203.2B JPY 206.1B JPY 205.4B JPY 205.4B Ichigo Office (8975) Base AM Fee Gross Profit (Actual) JPY 1,373M JPY 1,426M JPY 1,436M JPY 1,524M JPY 1
Slide 53: Appendix: Sustainable Real Estate Details
Appendix: Sustainable Real Estate Details © Ichigo Inc. All rights reserved. 53
Slide 54: 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 55: 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 56: 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 57: 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 58: Ichigo Owners: Building Out Business & Earnings Model
Sustainable Real Estate Ichigo Owners: Building Out Business & Earnings Model Growing Stock Earnings via Ichigo Owners Core Capabilities & Client Base Expansion Business Model Clients Needs Earnings Contribution Individual Start AM Period End Investors Direct Ownership ・ Increased transactions Resid
Slide 59: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Q1 GPM 25.5% 28.3% 13.9% 20.6% 18.7% (vs. Revenue) GPM 34.3% 39.5% 16.2% 26.2% 23.2% (vs. Book Value) Revenue 58,693 60,601 41,430 45,830 10,852 (JPY M) Gross
Slide 60: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Other Logistics Lease 2% Nagoya Sendai 2% 1% Osaka 3% Other 1% 3% 5% Hokkaido 9.1 Hokkaido 4% Residential Office 20% 26% Tokyo Tokyo Tokyo Metro* 52% 130.7 12% Retail Hotel Fukuoka Sendai 25% 5.7 25% 19% *Ex-Tokyo By A
Slide 61: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 176 Assets, JPY 243.7B, Annual NOI JPY 11.7B (6.4% Yield) Acquisition Acquisition Building Expected 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 62: Sustainable Real Estate Asset Breakdown (2)
Sustainable Real Estate Asset Breakdown (2) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 27 Retail Fixed Asset Tokorozawa, Saitama JPY 1B-2B 2013/11 14 years JPY 74M JPY 9
Slide 63: Sustainable Real Estate Asset Breakdown (3)
Sustainable Real Estate Asset Breakdown (3) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 64 Retail Fixed Asset Shinagawa-ku, Tokyo <JPY 1B 2015/01 – JPY 356M – – – 66 Reta
Slide 64: Sustainable Real Estate Asset Breakdown (4)
Sustainable Real Estate Asset Breakdown (4) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 122 Hotel Fixed Asset Shima, Mie <JPY 1B 2017/01 24 years JPY 78M JPY 73M – – 133
Slide 65: Sustainable Real Estate Asset Breakdown (5)
Sustainable Real Estate Asset Breakdown (5) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location 1 2 3 Price Date Age NOI/Year Investment Multiple IRR 164 Hotel Fixed Asset Chiyoda-ku, Tokyo <JPY 1B 2020/03 13 years JPY 61M JPY 62M –
Slide 66: Sustainable Real Estate Asset Breakdown (6)
Sustainable Real Estate Asset Breakdown (6) Acquisition Acquisition Building Expected 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 58 years JPY 120M
Slide 67: Sustainable Real Estate Asset Breakdown (7)
Sustainable Real Estate Asset Breakdown (7) Acquisition Expected Ichigo Equity Forecast Equity Forecast No. Asset Type vs. FY21/2 Q4 1 Price NOI/Year Investment Multiple IRR A Ichigo Owners (Residential) 39 Assets JPY 40,498M +JPY 6,069M JPY 1,676M JPY 12,362M – – B Ichigo Owners (Other) 4 Assets JP
Slide 68: Appendix: Clean Energy Details
Appendix: Clean Energy Details © Ichigo Inc. All rights reserved. 68
Slide 69: 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 JPY 14 Hokkaido 3% Shikoku 2% 2% Tohoku 3% In JPY 18 Pipeline >5 Kyushu 11% JPY 40 JPY 21 19% 10% ye
Slide 70: 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 71: 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 72: 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 7.3MW In-Pipeline Panel Output FIT Operation No. Wind Power Plant Area (MW) (Pre-tax) Start Date 2 I
Slide 73: 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 74: Green Biomass Entry
Green Biomass Entry Fully Local Green Biomass as Ichigo's 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
Slide 75: Appendix: Financial Statements
Appendix: Financial Statements © Ichigo Inc. All rights reserved. 75
Slide 76: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Q1 vs. FY22/2 Assets Current Assets Cash and cash equivalents 50,225 41,067 50,832 46,458 42,862 -3,596 Trade notes and accounts receivable 1,344 2,308 1,382 1,819 2,464 +645 Operational loan investments 1,324 1,324
Slide 77: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Q1 vs. FY22/2 Liabilities Current Liabilities Short-term loans 3,275 3,086 4,879 2,382 4,800 +2,418 Bonds (due within one year) 112 274 274 274 274 – Long-term loans (due within one year) 7,881 12,2
Slide 78: Consolidated P&L
Consolidated P&L (JPY million) FY23/2 FY19/2 FY20/2 FY21/2 FY22/2 FY23/2 Q1 FY22/2 Q1 Change vs. Full-Year (12M) (12M) (12M) (12M) (3M) (3M) (YOY) Forecast Forecast Revenue 83,540 87,360 61,368 56,934 16,638 12,674 +3,964 – – Cost of Goods Sold 51,413 52,851 45,776 40,757 12,320 7,931 +4,389 – – Gro
Slide 79: Consolidated Cash Flows: Operations
Consolidated Cash Flows: Operations (JPY million) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) FY23/2 Q1 (3M) Cash Flows from Operations Pre-tax income 23,079 16,545 7,610 9,595 2,367 Depreciation 1,696 2,630 4,797 5,644 1,334 Share-based compensation expenses 213 194 21 73 – Amortization of
Slide 80: Consolidated Cash Flows: Investments & Financing
Consolidated Cash Flows: Investments & Financing (JPY million) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) FY23/2 Q1 (3M) Cash Flows from Investments Payments into time deposits -118 -113 -7 -7 – Proceeds from withdrawal from time deposits 1,060 5,033 – 30 20 Payments for securities investme
Slide 81: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 81
Slide 82: 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 83: Addressing Needs of Diverse Individuals & Communities
Addressing Needs of Diverse Individuals & Communities © Ichigo Inc. All rights reserved. 83
Slide 84: 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 85: 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 86: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 86
Slide 87: 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 88: 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 89: PROPERA: Accelerating External Sales
Real Estate x IT x Tourism PROPERA: Accelerating External Sales Two Key Initiatives to Increase Market Share 1. Drive Customer Growth via 2. Tightly Integrate With Site Controllers PROPERA Lite PROPERA Site Controller Integration PROPERA Lite Will Give Access to c. 18,000 Hotels ・ Price trend visual
Slide 90: PROPERA: Market Size & Customer Acquisition Target
Real Estate x IT x Tourism 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-Yea
Slide 91: PROPERA: Increasing Share to Drive Non-Asset Stock Earnings
PROPERA: Ichigo's AI Hotel Revenue Management System Increasing Share to Drive Non-Asset Stock Earnings Launch of Third-Party Sales Increase Market Share Drive Non-Asset Stock Earnings Earnings Upside from Participation Customer Acquisition in Hotel Earnings Growth Long-Term Earnings Growth Product
Slide 92: 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 & currently operating 16 hotels PROPERA Deployment – Generating 10 to 40% revenue increases p.a. – Sales of PROPERA to non-Ic
Slide 93: 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 94: 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