Loadstar Capital Kk · TSE:3482
Loadstar Capital Kk — FY2021 Earnings Presentation
59 slides from Loadstar Capital Kk's earnings presentation, February 2022
Slide 1: Fiscal Year Ended December 31, 2021 Earnings Briefing
Fiscal Year Ended December 31, 2021 Earnings Briefing Loadstar Capital K.K. Securities Code: 3482 February 2022 © Loadstar Capital ALL RIGHTS RESERVED
Slide 2: Index
Index １. Our Business P. 2 ２. Topics of the Fiscal Year Ended December 31, 2021 P. 4 ３. Overview of Financial Results for the Fiscal Year Ended P. 9 December 31, 2021 ４. Business Overview P. 15 Corporate Funding Business P. 17 Asset Management Business P. 20 Crowdfunding Business P. 22 ５. Forecast f
Slide 3: Our Business
１ Our Business © Loadstar Capital ALL RIGHTS RESERVED 2
Slide 4: Our Business
Our Business Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech BROKERAGE CORPORATE FUNDING ASSET MANAGEMENT / ADVISORY SERVICES CROWDFUNDING Investment in real Principal investment Japan’s first estate using internal into real estate. Asset crowdfunding funds, and p
Slide 5: Topics of the Fiscal Year Ended December 31, 2021
2 Topics of the Fiscal Year Ended December 31, 2021 © Loadstar Capital ALL RIGHTS RESERVED 4
Slide 6: High Light
High Light (¥ billions) % Y-o-Y Net Sales 17.9 +5.5％ (¥ billions) % Y-o-Y Profit before Tax 5.0 +28.5％ (¥ billions) % Y-o-Y Profit 3.4 +28.3％ © Loadstar Capital ALL RIGHTS RESERVED 5
Slide 7: Topics of the Fiscal Year (Business): Performance Exceeded Forecasts
Topics of the Fiscal Year Ended December 31, 2021（Business） ⚫ Performance Exceeded Forecasts We sold three of the eight properties, which were proactively acquired 2020 amid the COVID-19 pandemic in 2020. The properties sold were ones with smaller acquisition costs (about 20% of the total investment
Slide 8: Topics of the Fiscal Year (Business): AM and Crowdfunding
Topics of the Fiscal Year Ended December 31, 2021（Business） ⚫ AM Business Entrusted Kamata Prime Prime Higashi-Kanda with 2 Large Properties The Asset Management Business won a new contract (it’s largest ever) to manage two Tokyo office buildings, raising AUM to nearly 30 billion yen. We also obtain
Slide 9: Topics of the Fiscal Year (Others): Market Change, Share Buyback
Topics of the Fiscal year Ended December 31, 2021（Others） ⚫ Status of Market Change Application • We are making a companywide effort to change the stock market from Mothers to the First section of Tokyo Stock Exchange(TSE). • As of February 10, 2022, we have cleared the market capitalization and fre
Slide 10: Overview of Financial Results for the Fiscal Year Ended December 31, 2021
3 Overview of Financial Results for the Fiscal Year Ended December 31, 2021 © Loadstar Capital ALL RIGHTS RESERVED 9
Slide 11: Consolidated Financial Results
Consolidated Financial Results （¥ millions） FY2020 FY2021 % of Net % of Net Progress vs. Amount Amount % Y-o-Y sales sales initial target Net Sales 16,979 100.0% 17,920 100.0% 105.5% 96.6% Cost of Sales 11,346 66.8% 10,964 61.2% 96.6% 94.4% Gross Profit 5,632 33.2% 6,956 38.8% 123.5% 100.3% SG&A Exp
Slide 12: Consolidated Net Sales
Consolidated Net Sales • Net sales increased 5.5% YoY, supported by solid demand in the Tokyo office building market. • Steady performance by the Crowdfunding Business and the Asset Management Business’s receipt of a large new contract also contributed to sales growth. 1Q 17,920（¥ millions） 2Q 16,97
Slide 13: Consolidated Profit before Tax and Cost Controls
Consolidated Profit before Tax and Cost Controls • Consolidated profit before tax up 28.5% YoY. • Profit before tax ratio remains at high level after rising above 28%. Consolidated Profit before Income Taxes（￥millions） Cost Structure（￥millions） 28.1% 5,031 19.9% 19.9% 23.1% other 1Q 90.0% 12.8% Inte
Slide 14: Consolidated Financial Position
Consolidated Financial Position （¥ millions） 12/31/2021 % vs. • This shows the amount of loans Amount % of total 12/31/2020 outstanding in the Crowdfunding Current assets 56,744 99.6% 111.5% business Cash and deposits 7,926 13.9% 108.1% Operating loans 6,270 11.0% 111.1% • A considerable amount of R
Slide 15: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows （¥ millions） Amount FY2020 FY2021 Changed CF from operating activities △4,118 △450 3,667 • Cash flow from operating activities Profit before income taxes 3,914 5,031 1,117 will remain negative until we achieve our aim of building up real Decrease (increase) in e
Slide 16: Business Overview
4 Business Overview © Loadstar Capital ALL RIGHTS RESERVED 15
Slide 17: Real Estate Investments
Real Estate Investments Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech BROKERAGE CORPORATE FUNDING ASSET MANAGEMENT / ADVISORY SERVICES CROWDFUNDING Investment in real Management of Comprehensive Japan’s first real estate using internal investment real estate sup
Slide 18: Corporate Funding Business Results: Real Estate Investment Sales
Corporate Funding Business Results 【Real Estate Investment Sales】 Given the positive outlook for large property prices, we have now secured an inventory pipeline for FY2022 and beyond and disposed smaller properties in FY2021. Net Sales（Real estate investment） （¥ millions） 1Q 14,571 14,806 2Q 3Q 12,
Slide 19: Corporate Funding Business Results: Real Estate Leasing Sales
Corporate Funding Business Results 【 Real Estate Leasing Sales 】 • Properties acquired in 2020 contributed significantly to leasing income and profit margin. Leasing sales increased 20% YoY. • In light of the composition of our property holdings portfolio, the impact of our commercial tenants and th
Slide 20: Corporate Funding Business Results
Corporate Funding Business Results 【Shareholder Value Enhanced by Property Acquisitions 】 • In addition to the acquisition of large office buildings in Meguro and Shin - Yokohama, we acquired midsize buildings in prime locations in Higashi Azabu, Kamata, and Azabu Juban. • In light of increased liqu
Slide 21: Asset Management Business
Asset Management Business • AM Business was entrusted with management of two Tokyo office buildings (it’s largest-ever contract), raising AUM to nearly 30 billion yen. • Properties in the pipeline for which we have priority negotiation rights have a value of tens of billions of yen. • In addition to
Slide 22: Real Estate Tech
Real Estate Tech Real Estate X Tech to Open Up a New Market Real Estate Investments Real Estate Tech BROKERAGE CORPORATE FUNDING ASSET MANAGEMENT / ADVISORY SERVICES CROWDFUNDING Investment in real Management of Comprehensive Japan’s first real estate using internal investment real estate support fo
Slide 23: Crowdfunding Business Results
Crowdfunding Business Results • Steady progress on executing transactions resulted in record high sales, up 36% YoY. • Equity-type products are expected to yield a dividend of around 20%, significantly higher than the initially expected internal rate of return (IRR). • The number of investors using
Slide 24: Investor Members / Cumulative Investment Amount
Investor Members / Cumulative Investment Amount • The number of investor members is steadily increasing (partly due to video advertisements placed in taxis) and demand for real estate investment remains strong. • Our priority is to avoid excessive risk burdens being placed on investor members. We ai
Slide 25: OwnersBook Growth
OwnersBook Growth Projects are Products with Implementation of lottery becoming larger shareholder benefits Overseas Deal Formation projects Winning fans as Lottery ratio: Seeking new kinds of ¥1.1bn in offering shareholders & (more than 3,000investors) investor members Several times equity-type pro
Slide 26: Forecast for the FY2022
5 Forecast for the FY2022 © Loadstar Capital ALL RIGHTS RESERVED 25
Slide 27: Forecast
Forecast （¥ millions） FY2021 FY2022 (Forecasts) % of Net % of Net Amount Amount % Y-o-Y Sales sales Net sales 17,920 100.0% 18,517 100.0% 103.3% Cost of sales 10,964 61.2% 9,902 53.5% 90.3% Gross profit 6,956 38.8% 8,614 46.5% 123.8% SG&A expenses 1,337 7.5% 1,460 7.9% 109.2% Operating profit 5,618
Slide 28: Significant Increase in Profit Margin
Significant Increase in Profit Margin Improving Office Market Conditions and Realizing Corporate Efforts • Profit for the fiscal year ending December 2022 is planned to increase by 27%. • New office investment funds are being formed one after another, and the office market is expected to be booming
Slide 29: Further Growth of Corporate Funding Business
Real Estate Investments Further Growth of Corporate Funding Business • Shifting portfolio to medium and large properties. • Based on the rising office market conditions and recovery of liquidity, we have been able to acquire large -scale projects since the latter half of 2021 by taking advantage of
Slide 30: Rapid Expansion of the Asset Management Business
Real Estate Investments Rapid Expansion of the Asset Management Business • Not only overseas investors but also domestic investors continue to have high demand for real estate in Tokyo. We also obtained priority negotiation rights and are preparing to close on properties worth several tens of billio
Slide 31: Development of Crowdfunding Business
Real Estate Tech Development of Crowdfunding Business The inclination of individual investors to invest in our Crowdfunding Business (OwnersBook) remains strong and we completed offering in a matter of minutes for a number of deals with hundreds of millions of yen. For loan-type transactions, we int
Slide 32: Return to Shareholders
Return to Shareholders Basic Policy • We continue our efforts to improve corporate value and shareholder profit by expanding business performance Dividend Policy • Provide stable and continuous profit returns aiming for a 15% payout ratio (while listed on TSE Mothers). Surplus Dividends to For Futur
Slide 33: Return to Shareholders: Share Buybacks and Benefits
Return to Shareholders Share Buybacks • 2020: Acquired 5.1 million shares from major shareholder (23.8% of outstanding shares) • 2022: Currently carrying out buyback as outlined below 1.5 million (9.1% of issued shares, excluding No. of shares (max): treasury shares) Buyback amount 1.5 billion yen (
Slide 34: Status of Shareholders
Status of Shareholders Changes in Total Shareholders 2020Q4 2021Q2 2021Q4 2021Q4 4,348 6,171 6,934 Ratio of Tradable Shares: More than35% Major Shareholders 2021Q2 2021Q4 Shareholders name （1,000 share/% （1,000 share/% Note of total shares of total shares 岩野 達志 3,360(20.5%) 3,360(20.4%) President Re
Slide 35: Appendix 1. Sources of our Competitive Strength
Appendix 1. Sources of our Competitive Strength © Loadstar Capital ALL RIGHTS RESERVED 34
Slide 36: 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 Creation of a new stable financial base Innovation market by Financial and Crowdfunding Stability Entry Barriers High Expertise Fast investment decision-making by
Slide 37: Competitive Advantage of Corporate Funding Business
Competitive Advantage of Corporate Funding Business With our speedy real estate appraisal and decision-making, we are targeting to acquire medium-sized office buildings with high liquidity area, mainly Tokyo’s 23 wards, and work to enhance their value. Sell Information Appropriately judge acquisitio
Slide 38: Competitive Advantage of Crowdfunding Business
Competitive Advantage of Crowdfunding Business Realizing access to individual investors, which has not been established in the real estate investment market Demand Supply Established credibility as an asset High hurdles to overcome in manager based on the track record of High acquiring approvals and
Slide 39: 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 years of experience in the real ■Experts with more than 15 years in the estate bu
Slide 40: Stable Financial Base
Stable Financial Base • Long-term borrowings to cover short-term Creditworthiness backed by appraisal track record real estate price fluctuations and secure our stable financial base 150 100 Tokyo Office Real Estate Price Index 200.0 50 0 Purchase amount Borrowed amount Appraisal value 150.0 Indexed
Slide 41: Appendix 2. Crowdfunding Market and OwnersBook
Appendix 2. Crowdfunding Market and “OwnersBook” © Loadstar Capital ALL RIGHTS RESERVED 40
Slide 42: Crowdfunding Market and Growth Potential
Crowdfunding Market and Growth Potential • Market scale is expected to expand up ahead because the number of lending-type crowdfunding business operators is increasing year after year. • Crowdfunding may become an investment source for private equity real estate market in the future. Japan’s crowdfu
Slide 43: Growth Potential in Japan
Growth Potential in Japan • Aim to have professional investors also participate in the future by expanding the platform • Further, an increased number of members will open up the opportunity of individual investors investing in A-class and S-class properties 投資家会員数推移 Investor members 2016 2017 2018
Slide 44: OwnersBook (Loan-Type / Equity-Type)
OwnersBook（Loan-Type / Equity-Type） Loan-Type : Lending for real estate-backed/loans Senior Loan ¥600~900 Real Lending million estate ¥1,000 Mezzanine Loan OwnersBook ~1,500 ¥200~300 million Investment Investors million Equity Interest / ¥200~300 million Principal Investment Dividend/ Loan Principal
Slide 45: OwnersBook Features
OwnersBook Features Little time and effort is Small investment required to start investing amounts There is no price changes, unlike share and investment trust. Makes it easy to invest in real Basically, investors can receive estate through small investments dividends on a regular basis. Investor ba
Slide 46: Equity-Type: The World We Aim for
Equity-Type ～ The World We Aim for ～ Historically The Aim of OwnersBook Larger Investment Small Size Small Size Products Real Estate J-REIT Real Estate J-REIT mainly for investment investment professional investors Individual investors Individual investors Institutional investors Institutional inves
Slide 47: Crowdfunding: Profit Structure
Crowdfunding ～ Profit Structure ～ ⚫ Profit structure Asset Up-front fee Disposition fee Management fee Loan-type Loan amount × 2% － － Equity Amount Real Estate Sales Price Equity-type AUM × 0.3-1％ × 1-2％ × 1％ * The above fee condition is a typical sample. ⚫ Risk and Return High Futures 【Target retur
Slide 48: Appendix 3. Real Estate Market Analysis
Appendix 3. Real Estate Market Analysis © Loadstar Capital ALL RIGHTS RESERVED 47
Slide 49: COVID-19: Vacancy Rates
COVID-19: Vacancy Rates • The office vacancy rate in Tokyo’s business districts, which had been extremely low, has risen during the pandemic, but this rise has leveled off. • Tokyo vacancy rates remain well below those in the UK and US. （%） Overall vacancy rate for Tokyo’s 5 major wards （%） Vacancy
Slide 50: COVID-19: Real Estate Investment from Overseas
COVID-19: Real Estate Investment from Overseas • In the third quarter of 2021, Tokyo ranked 4th in investment by overseas property investors (Los Angeles was 1st). • Overseas property investors are considered to have a very strong appetite for investment. Investment amounts （Billion ¥） 40% 2,000 30%
Slide 51: COVID-19: Job-Offers-to-Seekers Ratio and Bankruptcies
COVID-19: Job-Offers-to-Seekers Ratio and Bankruptcies ⚫ Recruitment was subdued Job-Offers-to-Seekers owing to the clouded economic outlook, but some Ratio and Bankruptcies news says that companies （%） start or strength recruitment 200 4 nowadays. ⚫ The number of bankruptcies 150 3 have been limite
Slide 52: The World in 2025 (Urban Population & GDP)
The World in 2025（Urban Population ＆ GDP） The greater Tokyo area continues to have the largest urban population and GDP in the world. Fortune Global 500 2019 40,000 Number of Global Corporate HQ’s by City Tokyo Beijing 53 35,000 Delhi Tokyo 38 20 Population（thousands） Paris 30,000 Shanghai New York
Slide 53: Appendix 4. Company Profile
Appendix 4. Company Profile © Loadstar Capital ALL RIGHTS RESERVED 52
Slide 54: Company Profile (as of December 31, 2021)
Company Profile（as of December 31, 2021） 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 Number of Directors 7 (including three outside directors) Number of Officers About 70
Slide 55: Our Team
Our Team Naoyuki Kubo Yo Narita Takuya Kawabata Naoyuki Kubo was named Yo Narita was named Executive Takuya Kawabata has been our Executive Director in March 2019. Director in March 2019. Chief Financial Officer since January Since Joining Loadstar Capital in Since Joining Loadstar Capital in 2019,
Slide 56: History
History Mar 2012 Established Loadstar Capital K.K. in Ebisu, Shibuya-ku, Tokyo May 2014 Established Loadstar Funding K.K. (wholly owned subsidiary) Sep 2014 Launched crowdfunding service on the internet under the brand name “OwnersBook” Apr 2015 Relocated head office to Ginza, Chuo-ku, Tokyo Sep 201
Slide 57: ESG
ESG Bolstering efforts to contribute to Formed business alliance with aim of helping achievement of SDGs with shift toward carbon-free society Strengthened governance by establishing Strengthened governance by establishing Nomination and Remuneration Committee Nomination and Remuneration Committee ©
Slide 58: Key Risk Information
Key Risk Information Related Degree of Recognized Risk Likelihood Countermeasures Business Impact We will strengthen our recruiting. Furter, to The risk of being unable to prevent the outflow of talent from the secure talented personnel to All Low Low organization, we will endeavor to foster an open
Slide 59: Disclaimers
Disclaimers ⚫ The contents of this document are being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose without our prior permission. This document is being