Slide 1: FY22/2 Full-Year Corporate Presentation
FY22/2 Full-Year Corporate Presentation January 13, April 19, 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 FY22/2 Earnings Sustainable Growth as a Sustainable Infrastructure ‒ FY22/2 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 +28%, Cash
Slide 7: FY22/2 Earnings
FY22/2 Earnings © Ichigo Inc. All rights reserved. 7
Slide 8: FY22/2 Summary
FY22/2 Summary – Flow Earnings +67% YOY on both Multi-Asset & Residential Sales Multi-Asset (e.g., Office, Hotel, Logistics) GPM 30% – Continued Ichigo Owners Growth Acquisitions JPY 26.7B (+10% YOY) Launch of Co-Ownership Business to Drive Long-Term Stock Earnings – Clean Energy Business Stoc
Slide 9: FY22/2 Summary
FY22/2 Summary Durable Earnings Model Robust Stock Earnings ■ FY21/2 Stock Earnings/Fixed Expenses ■ FY22/2 191% (JPY million) -1% Sustainable Asset Clean Fixed Real Estate Management Energy Expenses (SRE) (AM) (CE) Flow JPY 7.8B Earnings -10% Cash Earnings JPY 9.8B 24.7B 15,065 14,912 +13% 9,402 8,
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 +28%, Cash EPS +33% (YOY)
All-In OP +28%, Cash EPS +33% (YOY) Cash Earnings Significantly Exceed Accounting Earnings Due to Ichigo's Focus on Maximizing Long-Term Cash Flows for Shareholders (JPY million) FY21/2 FY22/2 YOY FY22/2 Forecast Operating Profit 9,668 10,018 +3.6% 9,100 – 12,000 All-In Operating Profit 10,388 13,26
Slide 12: Segment Earnings Details
Segment Earnings Details − Asset Management: +31% YOY Despite Covid Hotel Impact − Stock Earnings: Lower on Temporary Downtime on Re-Tenanting of Hotels and Large Office (Odaiba) Flow Earnings: Significant YOY Increase on Multi-Asset Sales − Clean Energy: +16% YOY, Continuing Strong Stock Earnings G
Slide 13: Covid Impacts
Covid Impacts Stock Earnings Earnings Impact Asset Type Q1 Q2 Q3 Q4 Weak demand for large offices in central Tokyo, but mid-size office demand Office Low Low Low Low continues to be strong Domestic travel demand recovering, but inadequate to trigger variable rent Hotel High High High High income Ret
Slide 14: Powerful Value-Add Business Model Underpins Growth
Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 14
Slide 15: Business Model (1) Stock + Flow Earnings
Business Model (1) Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Power Generation Revenues, Depreciation (Non-Cash), & Base AM Fees) Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) Fixed Expenses (Fixed SG&A + Interest Expenses) Cash Earnings 37,016 (JPY million) 33,
Slide 16: Business Model (2) Stable Stock Earnings
Business Model (2) Stable Stock Earnings Stock Earnings by Segment (JPY million) 18,485 18,450 (Stock Earnings/Fixed Expenses) (261%) (234%) (%) 2,057 2,062 14,939 15,065 14,912 (234%) (195%) (191%) Asset 1,956 1,832 Management 2,091 13,451 13,331 9,402 8,477 Sustainable 11,437 Real Estate 3,830 4,3
Slide 17: 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 18: Business Model (4) Value-Add Drives Durable Value Growth
Business Model (4) Value-Add Drives Durable Value Growth Gains on Sales Consistently Exceed Appraisal Value-Based Unrealized Gains Appraisal Value-Based Unrealized Gains 2.8X Real Estate Gains on Sales 2.5X 4.4X 2.0X JPY 17.1B JPY 15.0B JPY 12.0B 1.9X JPY 9.4B JPY 5.9B JPY 6.1B JPY 5.7B JPY 4.7B JPY
Slide 19: 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 12.4 10.4 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 20: Strong Financial Base
Strong Financial Base Average Interest Rate & Loan Term Weighted Average Loan Period Weighted Average Remaining Loan Maturity (Loan Term, Years) (Interest Rate) Weighted Average Interest Rate 2.5% 12 10.8 years 10.3 years 10.2 years 10.0 years 10.0 years 10.1 years 9.6 years 8.7 years 2.0% 8.3 years
Slide 21: Ichigo's Sustainability Execution
Ichigo’s Sustainability Execution © Ichigo Inc. All rights reserved. 21
Slide 22: Climate Positive: CO2 Reduction > Emissions
Climate Positive: CO2 Reduction > Emissions CO2 Reduction: +19% YOY (FY21/2 reduction: 115,884 tons) Total Ichigo Power Plant CO2 Reduction Total Ichigo CO2 Emissions ■ Ichigo (115,342 tons) ■ Ichigo (28,763 tons) ■ Ichigo Green (22,506 tons) ■ Ichigo Office (22,727 tons) ■ Ichigo Hotel (7,745 tons)
Slide 23: RE100 by 2025 On Track
RE100 by 2025 On Track Ichigo RE100 Progress RE100 Transition Impact CO2 Reduction 31,754 tons % Reduction 43.2% 53.2% CO2 Emissions of Cars × 13,802 Target: Source 100% renewable energy across all Ichigo, Ichigo A global initiative bringing together businesses committed to 100% renewable Office (89
Slide 24: ESG Finance Supporting Sustainable Growth
ESG Finance Supporting Sustainable Growth Ichigo's Clean Energy Business Recognized for Positive Environmental Impact Shinsei Bank Green Loan Ichigo Yonezawa Itaya ECO Power Plant Loan Amount: JPY 3B Loan Date: February 25, 2022 Finance Method: Project finance Lender: Shinsei Bank Use of Proceeds: R
Slide 25: 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 26: Ichigo ESG Indices, Assessments, & Certifications
Ichigo ESG Indices, Assessments, & Certifications ESG Indices Ichigo Included in 3 of 5 Indices Adopted by GPIF Included on March 30, 2022 Environmental Assessments & Certifications CDP Climate Change Assessment GRESB Real Estate Assessment Highest Score Category: “Leadership” Ichigo & Ichigo Office
Slide 27: Sustainable Growth as a Sustainable Infrastructure Company
Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 27
Slide 28: Sustainable Real Estate: Selective on Acquisitions & Sales
Sustainable Real Estate Selective on Acquisitions & Sales Stable Residential Sales – Market Conditions Also Increasingly Favorable for Multi-Asset Sales Acquisitions: JPY 31.0B − Ichigo Owners Acquisitions: 26 Residential Assets (JPY 26.7B, 86% of Total) Sales: JPY 45.8B − Ichigo Owners Sales: 17 Re
Slide 29: Ichigo Owners: Robust Demand Driving Growth
Sustainable Real Estate Ichigo Owners: Robust Demand Driving Growth − Significant Track Record, Leasing Capability, & Market Knowledge − Financing Strength & Ability to Close Quickly = Attractive Buyer for Sellers (JPY billion) Ichigo Owners Residential Acquisitions & Sales Since Launch ■ Acquisitio
Slide 30: Asset Management: 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 205.4B (85 Assets) JPY 51.9B (23 Hotels) JPY 11.4B (15 Solar Plants) Dividend Yield (as of April 15, 2022) 5.26% 1.93% 5.68% ・ Entered FTSE Global REIT Index, a ・ Geog
Slide 31: Clean Energy: Scaling Rapidly
Clean Energy Scaling Rapidly Total 9 New Plants (Total 19.1MW) Online in FY22/2 Including Ichigo’s First Wind Power Plant; 3 New Plants (5.1MW) in FY23/2 (2 Already Online) 4.6 46.9 (Forecast) (+21%) Ichigo 4.3 Operating Plants: JPY 38.6B (143.6MW) 38.8 8.2 In-Pipeline Plants: JPY 8.2B (22.1MW) 3.8
Slide 32: PROPERA: Ichigo's AI Hotel Revenue Management System
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 33: Share Buybacks – 6th Consecutive Year
Share Buybacks – 6th Consecutive Year Ichigo 2030: Flexible Deployment of Share Buybacks Share Buyback Results (JPY 13.5B, 7.4% of Shares) Number of Shares Average Purchase Purchased Amount Price (% of Shares Outstanding) 4,363,500 FY22/2 JPY 343 JPY 1.5 billion (0.9%) 9,645,800 FY21/2 JPY 311 JPY 3
Slide 34: 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 (67,000 shareholders in t
Slide 35: FY23/2 Forecast
FY23/2 Forecast © Ichigo Inc. All rights reserved. 35
Slide 36: FY23/2 Forecast
FY23/2 Forecast Given Covid Uncertainty, Forecasting With a Range, Taking a Conservative View of Sustainable Real Estate Gains on Sales at the Bottom of the Range (JPY million) FY22/2 FY23/2 Forecast YOY Operating Profit 10,018 9,700 – 10,600 -3.2% – +5.8% All-In Operating Profit 13,266 12,700 – 15,
Slide 37: FY23/2 Forecast Segment Details
FY23/2 Forecast Segment Details − AM: Decrease on Dropping Out of FY22/2 Office Sale Performance Fees; Assumes No Change in AUM & Conservative on Hotel Market Recovery − SRE: Cautious Outlook on Acquisitions & Sales, Forecasting Gains on Sales With a Range; Earnings Contribution From Odaiba Leasing
Slide 38: FY23/2 Forecast Cash Earnings Details
FY23/2 Forecast Cash Earnings Details − Flow Earnings Top of Range: Stronger Hotel & Retail Recovery Bottom of Range: Current Market Conditions Continue − Stock Earnings: Current Year Earnings Decrease on Continued Covid Impacts & Odaiba Vacancies (JPY million) Cash Earnings 37,016 Stock Earnings (P
Slide 39: Appendix: Ichigo's Sustainability Commitment (ESG)
Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 39
Slide 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: 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 48: Appendix: Financial & Real Estate Data
Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 48
Slide 49: 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 50: 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 February 28, 2022 (A) (B) (B) / (A) (C) (C) - (A) Tokyo 91,908 5,432 5.9% 126,572 +34,664 Outside Tokyo 98,113 6,532 6.7%
Slide 51: Risk-Based Balance Sheet
Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 403.1B (Book Value JPY 337.8B + Unrealized Gains JPY 65.2B) Cash & Cash Equivalents Non-Recourse Loans & Related Liabilities JPY 39.9B JPY 43.9B Consolidated Risk-Based Balance Sheet: JPY 319.2B Non-Recourse Loans & (Book Value
Slide 52: 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 53: 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. 200% (JPY mill
Slide 54: 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 55: 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) - - - - - 631 116 1
Slide 56: Consolidated P&L: Segment Breakdown
Consolidated P&L: Segment Breakdown (JPY million) All-In Gross Profit All-In Operating Profit Segment YOY YOY FY21/2 FY22/2 FY21/2 FY22/2 FY22/2 Forecast Change Change Asset Management (AM) 1,934 2,368 +22.5% 1,403 1,839 +31.0% 1,300 Base AM Fees 1,832 2,091 +14.2% – – – – Acquisition/Disposition Fe
Slide 57: Asset Management AUM Detail
Asset Management AUM Detail FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 (12M) (12M) (12M) (12M) (12M) (12M) AUM (Fiscal Year End) JPY 194.5B JPY 196.9B JPY 203.0B JPY 203.2B JPY 206.1B JPY 205.4B Ichigo Office (8975) Base AM Fee Gross Profit (Actual) JPY 1,291M JPY 1,373M JPY 1,426M JPY 1,436M JPY 1,5
Slide 58: Appendix: Sustainable Real Estate
Appendix: Sustainable Real Estate © Ichigo Inc. All rights reserved. 58
Slide 59: 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 60: Sustainable Value-Add
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 61: 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 62: 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 63: 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 64: Sustainable Real Estate: Gross Profit Margin (GPM)
Sustainable Real Estate: Gross Profit Margin (GPM) Ichigo Sustainable Value-Add Supports Ongoing High GPM FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 GPM (vs. Revenue) 33.7% 25.5% 28.3% 13.9% 20.6% GPM (vs. Book Value) 50.9% 34.3% 39.5% 16.2% 26.2% Revenue (JPY M) 35,733 58,693 60,601 41,430 45,830 Gross Pro
Slide 65: Ichigo-Owned Real Estate Portfolio
Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease Other Hokkaido 2％ 1％ Sendai 2% 3% Logistics 1% Osaka 3％11％ Hokkaido Nagoya 3% Other 5.7 5% Retail Residential 28% Tokyo 17% Metro* Tokyo Tokyo 133.8 12% 54% Office 25% Hotel Fukuoka Sendai 5.7 25％ 19% *Ex-Tokyo B
Slide 66: Sustainable Real Estate Asset Breakdown (1)
Sustainable Real Estate Asset Breakdown (1) 169 Assets, JPY 241.1B, Annual NOI JPY 11.9B (6.3% 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 67: 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 68: 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 52M – – – 66 Retai
Slide 69: 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 70: 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 71: 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 72: 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 Price NOI/Year1 Investment Multiple IRR A Ichigo Owners (Residential) 33 Assets JPY 34,424M +JPY 12,466M JPY 1,431M JPY 10,830M – – B Ichigo Owners (Other) 4 Assets JP
Slide 73: Appendix: Clean Energy
Appendix: Clean Energy © Ichigo Inc. All rights reserved. 73
Slide 74: Ichigo Solar & Wind Power Plant Portfolio
Ichigo Solar & Wind Power Plant Portfolio Ichigo Solar Power Plants (Operating) Ichigo Solar Power Plants (In-Pipeline) Panel Panel FIT Operation FIT Operation Solar Power Plant Area Output Solar Power Plant Area Output (Pre-tax) Start Date (Pre-tax) Start Date (MW) (MW) Ichigo Tokushima Higashi-Oki
Slide 75: Ichigo Green (9282) Solar Power Plant Portfolio
Ichigo Green (9282) Solar Power Plant Portfolio Ichigo Green Solar Power Plants (Operating) Panel FIT Operation Solar Power Plant Area Output (Pre-tax) Start Date (MW) Ichigo Kiryu Okuzawa Kanto 1.33 JPY 40 Sep 2013 Ichigo Motomombetsu Hokkaido 1.40 JPY 40 Feb 2014 Ichigo Total: 195.2MW (Operating/I
Slide 76: Ichigo-Owned Solar Power Plant Portfolio
Ichigo-Owned 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 JPY14 Hokkaido 3% Shikoku 2% 2% Tohoku 3% In Kyushu JPY 18 JPY 40 Pipeline >5 13% JPY 2111% 19
Slide 77: 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 78: Appendix: Financial Statements
Appendix: Financial Statements © Ichigo Inc. All rights reserved. 78
Slide 79: Consolidated Balance Sheet: Assets
Consolidated Balance Sheet: Assets (JPY million) FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 vs. FY21/2 Assets Current Assets Cash and cash equivalents 45,510 50,225 41,067 50,832 46,458 -4,374 Trade notes and accounts receivable 1,097 1,344 2,308 1,382 1,819 +437 Operational loan investments 1,324 1,324 1,3
Slide 80: Consolidated Balance Sheet: Liabilities & Net Assets
Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 vs. FY21/2 Liabilities Current Liabilities Short-term loans 1,042 3,275 3,086 4,879 2,382 -2,497 Bonds (due within one year) 112 112 274 274 274 – Long-term loans (due within one year) 4,449 7,881 1
Slide 81: Consolidated P&L
Consolidated P&L (JPY million) FY22/2 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Change vs. Full-Year (12M) (12M) (12M) (12M) (12M) (YOY) Forecast Forecast Revenue 57,846 83,540 87,360 61,368 56,934 -4,434 – – Cost of Goods Sold 30,860 51,413 52,851 45,776 40,757 -5,019 – – Gross Profit 26,986 32,126 34,509
Slide 82: Consolidated Cash Flows: Operations
Consolidated Cash Flows: Operations (JPY million) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) Cash Flows from Operations Pre-tax income 20,109 23,079 16,545 7,610 9,595 Depreciation 1,015 1,696 2,630 4,797 5,644 Share-based compensation expenses 215 213 194 21 73 Amortization of
Slide 83: Consolidated Cash Flows: Investments & Financing
Consolidated Cash Flows: Investments & Financing (JPY million) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 (12M) Cash Flows from Investments Payments into time deposits -6 -118 -113 -7 -7 Proceeds from withdrawal from time deposits – 1,060 5,033 – 30 Payments for securities investment
Slide 84: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 84
Slide 85: 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 86: Addressing Needs of Diverse Individuals & Communities
Addressing Needs of Diverse Individuals & Communities © Ichigo Inc. All rights reserved. 86
Slide 87: 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 88: 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 89: Ichigo 2030: New Initiatives
Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 89
Slide 90: 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 91: 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 92: 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 93: 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 94: 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 15 hotels PROPERA Deployment – Generating 10 to 40% revenue increases p.a. – Sales of PROPERA to non-Ic
Slide 95: 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 96: 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