Ichigo Inc. · TSE:2337

Ichigo — Q3 FY2022/2 Earnings Presentation

88 slides from Ichigo's earnings presentation, Jan 13, 2022

1. Slide 1: FY22/2 Q3 Corporate Presentation

   FY22/2 Q3 Corporate Presentation January 2021 January 13, 2022 Ichigo (2337) © Ichigo Inc. All rights reserved. www.ichigo.gr.jp/en

2. Slide 2: Condolences to those affected by Covid

   We would like to express our deepest condolences to all those affected by the Covid pandemic globally, and our wishes for the earliest and fullest possible recovery. Take care, be safe. © Ichigo Inc. All rights reserved. 2

3. Slide 3: Make The World More Sustainable

   Make The World More Sustainable © Ichigo Inc. All rights reserved.

4. Slide 4: © Ichigo Inc. All rights reserved.

   © Ichigo Inc. All rights reserved.

5. Slide 5: © Ichigo Inc. All rights reserved.

   © Ichigo Inc. All rights reserved.

6. Slide 6: Contents

   Contents FY22/2 Q3 Earnings Sustainable Growth as a Sustainable Infrastructure ‒ FY22/2 Q3 Summary Company ‒ Operating Profit -41%, Net Income -54%, Cash EPS -9% (YOY) ‒ Sustainable Real Estate: Selective on Acquisitions & Sales ‒ Segment Earnings Details ‒ Ichigo Owners: Driving Long-Term Growth ‒

7. Slide 7: FY22/2 Q3 Earnings

   FY22/2 Q3 Earnings © Ichigo Inc. All rights reserved. 7

8. Slide 8: FY22/2 Q3 Summary

   FY22/2 Q3 Summary – Real Estate Market & Prices of Many Assets Recovering to Pre-Covid Levels – Some Recovery in Domestic Travel Demand, but Full Recovery, Including Inbound, Expected to Take Time – Clean Energy Business: Stable Earnings Driver, Growth on Track  6 New Plants Online through Q3 – Pow

9. Slide 9: FY22/2 Q3 Summary

   FY22/2 Q3 Summary Durable Earnings Model Robust Stock Earnings ■ FY21/2 Q3 (Cumulative) Stock Earnings/Fixed Expenses ■ FY22/2 Q3 (Cumulative) 191% (JPY million) -2% Flow Sustainable Asset Clean Earnings Real Estate Management Energy JPY 2.34B (SRE) (AM) (CE) Fixed Cash Earnings Expenses -11% 13.60B

10. Slide 10: OP -41%, Net Income -54%, Cash EPS -9% (YOY)

    OP -41%, Net Income -54%, Cash EPS -9% (YOY) − Decreased Flow Earnings through Q3, but Q4 Expected to Be Strong On Track vs. FY22/2 Forecast − Cash Earnings Significantly Exceed Accounting Earnings Due to Focus on Cash Generation (JPY million) FY21/2 Q3 FY22/2 Q3 YOY Full-Year Forecast (9M) (9M) Ope

11. Slide 11: Segment Earnings Details

    Segment Earnings Details − Asset Management: Increase in Ichigo Office (8975) & Ichigo Hotel (3463) Base AM Fees − Sustainable Real Estate Stock Earnings: Lower on Temporary Downtime at Re-Tenanting Flow Earnings: Actively Marketing Assets – Expect Strong Q4 − Clean Energy: 6 New Plants Online Throu

12. Slide 12: Covid Impacts

    Covid Impacts Stock Earnings Earnings Impact Asset Type Q1 Q2 Q3 Decrease in demand for large offices in central Tokyo, but mid-size office demand Office Low Low Low continues to be strong Domestic travel demand recovering, but inadequate to trigger variable rent income Hotel High High High Upfront

13. Slide 13: Powerful Value-Add Business Model Underpins Growth

    Powerful Value-Add Business Model Underpins Growth © Ichigo Inc. All rights reserved. 13

14. Slide 14: 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,

15. Slide 15: Business Model (2) Stable Stock Earnings

    Business Model (2) Stable Stock Earnings Stock Earnings by Segment (JPY million) 18,485 18,450 Stock Earnings (261%) (234%) (Stock Earnings/Fixed Expenses) 2,057 2,062 14,939 15,065 (234%) (195%) 14,405 Asset (182%) 1,956 1,832 Management 1,948 13,451 13,331 9,402 7,998 Sustainable 11,437 Real Estat

16. 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 56.2 50.9 45.4 36.8 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Appraisal Value-B

17. Slide 17: 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 Gains on Sales (Gross Profit) 2.5X 4.4X JPY 17.1B JPY 15.0B JPY 12.0B 1.9X JPY 5.9B JPY 6.1B JPY 5.7B 1.5X JPY 3.0B JPY 2.7B

18. 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 1.4X 1.2X 29.5 2.1X 25.5 21.5 16.7 14.9 15.4 14.0 10.4 8.2 5.0 FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 Note: Economic Operating Cash Flow = Cash Flows

19. Slide 19: 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 10.0 years 9.6 years 8.7 years 2.0% 8.3 years

20. Slide 20: Ichigo's Sustainability Execution

    Ichigo’s Sustainability Execution © Ichigo Inc. All rights reserved. 20

21. Slide 21: 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

22. Slide 22: Ichigo Office RE100 Achievement by April 2022

    Ichigo Office RE100 Achievement by April 2022 Ichigo Office Will Complete Transition to Using Electricity Sourced From Renewable Energy Across All of its Assets by April 2022 − Renewable Energy Ratio: 92% (65 of 73 Assets) − Also Transitioning Ichigo and Ichigo Hotel (3463) Assets to Renewable Energ

23. Slide 23: 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

24. Slide 24: ESG Finance Supporting Sustainable Growth (1)

    ESG Finance Supporting Sustainable Growth (1) JPY 20B ESG Financing (Uncollateralized Portion: JPY 13B) in Recognition of Ichigo’s Outstanding ESG Execution ESG/SDGs Finance Sustainability-Linked Loan Lenders: SMBC-led syndicate Lenders: Mizuho, Asahi Shinkin Bank, Shiga Bank, Loan Amount： JPY 6.9B

25. Slide 25: ESG Finance Supporting Sustainable Growth (2)

    ESG Finance Supporting Sustainable Growth (2) 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 loan

26. Slide 26: Sustainable Growth as a Sustainable Infrastructure Company

    Sustainable Growth as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 26

27. Slide 27: Selective on Acquisitions & Sales

    Sustainable Real Estate Selective on Acquisitions & Sales Q3 Acquisitions: JPY 25.6B − 2 Office Assets (JPY 2.8B, 11% of Total) − Ichigo Owners Acquisitions: 20 Residential Assets (JPY 22.2B, 87% of Total) Q3 Sales: JPY 12.4B − Also, JPY 17.7B Sale to Domestic Institutional Investor to Close in Q4 F

28. Slide 28: Ichigo Owners: Driving Long-Term Growth

    Sustainable Real Estate Ichigo Owners: Driving Long-Term Growth On Track to Meet JPY 30B FY22/2 Acquisition Target – 88% of Full-Year Target Contracted through Q3-End Ichigo Owners Residential Acquisitions & Sales Since Launch (JPY billion) ■ Acquisitions ■ Sales 26.4 Executed Contract 4.2 28.5 30.6

29. Slide 29: Ichigo Owners: New Co-Ownership Business

    Sustainable Real Estate Ichigo Owners: New Co-Ownership Business New Business with Diverse Earnings Streams & Generating Both Flow Earnings & Stock Earnings − Expand Client Base: Grow individual investor client base − Broaden Sales Channel: Working with accountants & financial institutions − Drive S

30. Slide 30: 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

31. Slide 31: Growth Support for Ichigo REITs & Ichigo Green

    Asset Management Growth Support for Ichigo REITs & Ichigo Green Office Hotel Green Infrastructure Ichigo Office Ichigo Hotel Ichigo Green (8975) (3463) (9282) Portfolio Portfolio Portfolio 86 Assets JPY 206.1B 23 Hotels JPY 51.9B 15 Solar Power Plants JPY 11.4B Dividend Yield (as of 2022/1/7) Divide

32. Slide 32: Clean Energy: Scaling Rapidly

    Clean Energy Scaling Rapidly Ichigo’s First Wind Power Plant (7.3MW) Online in H1 4.4 Total 9 New Plants (Total 19.1MW) Online FY22/2 (+3 in Q4) (Forecast) 48.5 Ichigo 3.8 (+28%) Operating Plants: JPY 38.0B (139.7MW) In-Pipeline Plants: JPY 10.5B (30.0MW) 2.9 3.0 10.5 Reference: Ichigo Green (9282)

33. Slide 33: Share Buybacks

    Share Buybacks Ichigo 2030: Flexible Deployment of Share Buybacks 5th Consecutive Year of Share Buybacks (JPY 13.5B, 7.4% of Shares) April 2021 Buyback Amount JPY 1.5B (Average share price: JPY 343) Number of Shares 4,363,500 (0.9% of shares outstanding, net of treasury shares) Buyback Period April

34. 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 (65,000 shareholders in t

35. Slide 35: Appendix: Ichigo's Sustainability Commitment (ESG)

    Appendix: Ichigo’s Sustainability Commitment (ESG) © Ichigo Inc. All rights reserved. 35

36. Slide 36: 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

37. 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

38. Slide 38: Delivering on Sustainability

    Delivering on Sustainability Clean Energy Business Growth Addressing Critical Environmental Issues Ichigo is Net Zero Carbon Today Total Ichigo Power Plant CO2 Reductions Total Ichigo CO2 Emissions ■ Ichigo (93,526 tons) ■ Ichigo (28,763 tons) ■ Ichigo Green (22,357 tons) ■ Ichigo Office (22,727 ton

39. Slide 39: 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

40. Slide 40: 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

41. Slide 41: 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

42. Slide 42: 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

43. Slide 43: Appendix: Financial & Real Estate Data

    Appendix: Financial & Real Estate Data © Ichigo Inc. All rights reserved. 43

44. Slide 44: Covid Countermeasures

    Covid Countermeasures − Infection control & response, communication with tenants, thorough information gathering, & extensive safety measures for tenants General Covid Infection Countermeasures Covid Awareness & Prevention Promotion Poster Provide touchless hand sanitizers ubiquitously Cover touch s

45. Slide 45: 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 November 30, 2021 (A) (B) (B)/(A) (C) (C) - (A) Tokyo 92,932 5,330 5.7% 126,972 +34,040 Outside Tokyo 106,790 6,981 6.5% 1

46. Slide 46: Risk-Based Balance Sheet

    Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 413.5B (Book Value JPY 348.1B + Unrealized Gains JPY 65.4B) Cash & Cash Equivalents Non-Recourse Loans & Consolidated Risk-Based Balance Sheet: JPY 339.5B Related Liabilities JPY 29.2B JPY 44.6B (Book Value JPY 274.1B + Unrealiz

47. Slide 47: 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% (JPY billion) 12.8% 32.0 30.9 Reclassification of Sustainable Real Estate Assets to Fixed Assets in 140

48. Slide 48: 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

49. Slide 49: Post-GFC Shift in Earnings Base & Financial Position

    Post-GFC Shift in Earnings Base & Financial Position FY09/2 FY14/2 FY21/2 vs. GFC GFC Start of Shift Up MTP Stock Earnings/ Fixed Expenses 75% 140% 195% 2.6X Coverage Ratio 10.2 years Loan Maturity (Weighted avg., 5.6 years 3.6X corporate + non-recourse loans) 2.8 years 93% 28% 17% >3 years >3 years

50. Slide 50: 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

51. Slide 51: 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) - - - - - 648 119 1

52. Slide 52: Consolidated P&L: Segment Breakdown

    Consolidated P&L: Segment Breakdown (JPY million) Gross Profit Operating Profit Segment YOY YOY FY21/2 Q3 FY22/2 Q3 FY21/2 Q3 FY22/2 Q3 FY22/2 Forecast Change Change Asset Management (AM) 1,445 1,547 +7.1% 944 1,124 +19.1% 1,300 Base AM Fees 1,343 1,547 +15.2% – – – – Acquisition/Disposition Fees 10

53. Slide 53: Asset Management AUM Detail

    Asset Management AUM Detail FY17/2 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Q3 (12M) (12M) (12M) (12M) (12M) (9M) Ichigo Office AUM (Fiscal Year End) JPY 194.5B JPY 196.9B JPY 203.0B JPY 203.2B JPY 206.1B JPY 206.1B (8975) Base AM Fee Gross Profit (Actual) JPY 1,291M JPY 1,373M JPY 1,426M JPY 1,436M JPY 1

54. 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

55. 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

56. Slide 56: 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

57. Slide 57: 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

58. Slide 58: 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 Q3 GPM (vs. Revenue) 33.7% 25.5% 28.3% 13.9% 18.6% GPM (vs. Book Value) 50.9% 34.3% 39.5% 16.2% 23.4% Revenue (JPY M) 35,733 58,693 60,601 41,430 12,418 Gross

59. Slide 59: Ichigo-Owned Real Estate Portfolio

    Ichigo-Owned Real Estate Portfolio By Asset Type By Location (JPY billion) Ground Lease 1％ Other Sendai 2% Logistics 1% 3% Hokkaido 2％11％ Hokkaido Nagoya 3% Other 5.7 Osaka 3% 5% Office Residential 26% Tokyo 20% Metro* 11% Tokyo Tokyo 54% 145.8 Hotel Retail Fukuoka 24% 25% 20% Sendai 5.7 *Ex-Tokyo N

60. Slide 60: Sustainable Real Estate Asset Breakdown (1)

    Sustainable Real Estate Asset Breakdown (1) 184 Assets, JPY 268.8 B, Annual NOI JPY 12.3B (6.2% Yield) Acquisition Acquisition Building Expected Ichigo Equity Forecast Equity Forecast No. Asset Type Classification Location Price Date Age NOI/Year1 Investment Multiple2 IRR3 1 Wholesale Market Fixed A

61. Slide 61: 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 Price Date Age NOI/Year1 Investment Multiple2 IRR3 27 Retail Fixed Asset Tokorozawa, Saitama JPY 1B-2B 2013/11 14 years JPY 76M JPY 92M

62. Slide 62: 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 Price Date Age NOI/Year1 Investment Multiple2 IRR3 64 Retail Fixed Asset Shinagawa-ku, Tokyo <JPY 1B 2015/01 – JPY 26M – – – 66 Retail F

63. Slide 63: 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 Price Date Age NOI/Year1 Investment Multiple2 IRR3 121 Office Fixed Asset Minato-ku, Tokyo >JPY 3B 2016/10 20 years JPY 1,540M JPY 3,450

64. Slide 64: 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 Price Date Age NOI/Year1 Investment Multiple2 IRR3 159 Retail Fixed Asset Shibuya-ku, Tokyo JPY 2B-3B 2019/05 42 years JPY 123M JPY 210M

65. Slide 65: 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 Price Date Age NOI/Year1 Investment Multiple2 IRR3 61 Retail Operational Loan Shinjuku-ku, Tokyo JPY 1B-2B 2014/12 58 years JPY 120M JPY

66. Slide 66: 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 Multiple2 IRR3 A Ichigo Owners (Residential) 44 Assets JPY 45,511M +JPY 23,552M JPY 1,932M JPY 12,943M – – B Ichigo Owners (Other) 4 Assets

67. Slide 67: 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

68. Slide 68: 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: 199.1MW (Operating/I

69. Slide 69: 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 Shikoku Hokkaido JPY 14 2% 3% 2% Tohoku 3% JPY 18 In Pipeline 11% JPY 40 >5 years 13% 15% Kyus

70. Slide 70: 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

71. Slide 71: Consolidated Balance Sheet: Assets

    Consolidated Balance Sheet: Assets (JPY million) FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 H1 FY22/2 Q3 vs. FY22/2 H1 Assets Current Assets Cash and cash equivalents 45,510 50,225 41,067 50,832 45,381 36,205 -9,176 Trade notes and accounts receivable 1,097 1,344 2,308 1,382 1,583 1,958 +375 Operational loa

72. Slide 72: Consolidated Balance Sheet: Liabilities & Net Assets

    Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 H1 FY22/2 Q3 vs. FY22/2 H1 Liabilities Current Liabilities Short-term loans 1,042 3,275 3,086 4,879 4,458 3,294 -1,164 Bonds (due within one year) 112 112 274 274 274 274 – Long-term loans (due with

73. Slide 73: Consolidated P&L

    Consolidated P&L (JPY million) FY22/2 FY18/2 FY19/2 FY20/2 FY21/2 FY22/2 Q3 FY21/2 Q3 Change vs. Full-Year (12M) (12M) (12M) (12M) (9M) (9M) (YOY) Forecast Forecast Revenue 57,846 83,540 87,360 61,368 29,386 55,188 -25,802 – – Cost of Goods Sold 30,860 51,413 52,851 45,776 19,773 41,915 -22,142 – –

74. Slide 74: Consolidated Cash Flows: Operations

    Consolidated Cash Flows: Operations (JPY million) FY18/2 (12M) FY19/2 (12M) FY20/2 (12M) FY21/2 (12M) FY22/2 Q3 (9M) Cash Flows from Operations Pre-tax income 20,109 23,079 16,545 7,610 3,055 Depreciation 1,015 1,696 2,630 4,797 4,212 Share-based compensation expenses 215 213 194 21 49 Amortization

75. Slide 75: 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 Q3 (9M) Cash Flows from Investments Payments into time deposits -6 -118 -113 -7 -6 Proceeds from withdrawal from time deposits – 1,060 5,033 – – Payments for securities investmen

76. Slide 76: Ichigo 2030: Ichigo as a Sustainable Infrastructure Company

    Ichigo 2030: Ichigo as a Sustainable Infrastructure Company © Ichigo Inc. All rights reserved. 76

77. Slide 77: 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

78. Slide 78: Addressing Needs of Diverse Individuals & Communities

    Addressing Needs of Diverse Individuals & Communities © Ichigo Inc. All rights reserved. 78

79. Slide 79: 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

80. Slide 80: 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

81. Slide 81: Ichigo 2030: New Initiatives

    Ichigo 2030: New Initiatives © Ichigo Inc. All rights reserved. 81

82. Slide 82: 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

83. Slide 83: 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

84. Slide 84: 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

85. Slide 85: 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

86. Slide 86: 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 12 hotels PROPERA Deployment – Generating 10 to 40% revenue increases p.a. – Sales of PROPERA to non-Ic

87. Slide 87: 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

88. Slide 88: Make The World More Sustainable

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