Ichigo Inc. · TSE:2337
Ichigo — Q3 FY Feb 2011 Earnings Presentation
26 slides from Ichigo's earnings presentation, Jan 20, 2011
Slide 1: Corporate Presentation, Fiscal Year Q3 (March 2010 – November 2010)
Feb. 2011 Fiscal Year Q3 (March 2010 – November 2010) Corporate Presentation January 20, 2011 Ichigo Group Holdings Co., Ltd. (2337) ©2011 Ichigo Group Holdings Co., Ltd. All rights reserved. http://www.ichigo-holdings.co.jp/english/
Slide 2: Creating peace of mind through honest and committed management
Creating peace of mind through honest and committed management ©2011 Ichigo Group Holdings Co., Ltd. All rights reserved. 2
Slide 3: Laying the Foundation for Stable, Long-term Growth
Laying the Foundation for Stable, Long-term Growth Building Brand as a Real Estate Asset Manager Business Development Strengthened Group Management via Organizational Re-Alignment New Group Organizational Structure Strengthened Capital Base Continued Asset Dispositions Optimizing Balan
Slide 4: Laying the Foundation for Stable, Long-term Growth
Laying the Foundation for Stable, Long-term Growth ©2011 Ichigo Group Holdings Co., Ltd. All rights reserved. 4
Slide 5: Building Brand as a Real Estate Asset Manager
Building Brand as a Real Estate Asset Manager • Acquired all shares of JAPAN OFFICE ADVISORS, Inc. (January 11, 2011) Asset manager of JAPAN OFFICE Investment Corporation, a J-REIT with JPY110 billion AUM Increases AUM by 40%, enhancing on-going profitability Net acquisition cost approx. JPY1.
Slide 6: Business Development
Business Development • Return to Growth in AUM With launch of new funds, AUM has finally returned to growth after 11 quarter decline through financial crisis Active business development focused on new fund launches and Rescue AM • M&A Organized to drive increasing profits at acquired companies
Slide 7: Strengthened Group Management via Organizational Re-Alignment
Strengthened Group Management via Organizational Re-Alignment • Maximizing consolidated performance Devolve authority to operating units to increase their efficiency and profitability Strengthening public and private fund management capability and supporting growth in PM and BM In looking to a
Slide 8: New Group Organizational Structure
New Group Organizational Structure Ichigo Trust Investment trust specializing in Japanese equities, manages assets for overseas Ichigo Group (Major shareholder of pension funds, university endowments, foundations, etc. Ichigo Group Holding) Function Business Units Real Estate Solutions Ichigo Group
Slide 9: Strengthened Capital Base
Strengthened Capital Base Significant strengthening in shareholder equity via repayment of corporate debt, CB conversion, and continued asset sales Decrease in Corporate Debt: ¥5.3 billion Equity Ratio: 49.3% Equity Ratio: 57.4% Equity Ratio: 66.3％ +1.9 Liabilities -4.2 19.0 Liabilities Liabilities
Slide 10: Continued Asset Dispositions
Continued Asset Dispositions Sold ¥3.6 billion in assets in Feb 11 Q3 3.6 8.7 (Billion yen) Private Equity 2.7 1.3 3.8 Private Equity 0.3 Private Equity Transactions 6.0 Private Equity Domestic ： 6 Private Equity Overseas ： 6 3.0 Real Estate Real Estate Domestic ： 2 0.9 Overseas ： 1 Real Estate Real
Slide 11: Optimizing Balance Sheet
Optimizing Balance Sheet While continuing to pay down total corporate debt, shifted ¥1.6 billion from short-term to long-term debt Total Borrowings Corporate Debt JPY -5.9B 16.3 Repayment: -3.7 New Borrowings: +2.6 CB Redemption: -0.1 CB Conversion: -4.1 Short-term Debt Total Borrowings 8.5 -2.7 10.
Slide 12: Securing On-Going Profitability
Securing On-Going Profitability • Expect second consecutive year of profitability • Conservative full-year forecast Revenues (Cumulative) Net Profit / Loss (Cumulative) (Million yen) Progress towards Full-Year Forecast (Post-Upward Revision): Revenues: 74.4%, Net Profit: 115.9% 21,112 10,267 13,800
Slide 13: Appendix: Pro Forma Financial Data
Appendix: Pro Forma Financial Data ©2011 Ichigo Group Holdings Co., Ltd. All rights reserved. 13
Slide 14: Pro Forma Disclosure to Improve Transparency
Pro Forma Disclosure to Improve Transparency • Under Japanese accounting rules, SPCs in which Ichigo Group Holdings (“IGH”) is a greater than 50% investor or SPCs for which IGH is the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated onto IG
Slide 15: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 10 Feb 11 Q1 Feb 11 H1 Feb 11 Q3 Change (QoQ) Total Assets 42,804 48,252 44,704 40,543 -4,161 Cash and Cash Equivalents 5,268 7,791 7,888 8,670 782 Investment (Real Estate) 5,707 5,866 5,860 6,391 531 Investment (Domestic companies) 2,046 1,887 1,606 918 -
Slide 16: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) Feb 11 Q3 Feb 11 Q3 Feb 10 Feb 11 Q1 Feb 11 Q2 Feb 11 Q3 Cumulative Cumulative Revenues 14,127 2,691 1,473 2,129 6,294 Revenues 6,294 Real Estate Management Fees 768 Cost of Revenues 9,785 1,617 704 1,217 3,539 Advisory Fees 40 Gross Profit 4,342 1,074 769 912
Slide 17: Appendix: Consolidated Financial Data
Appendix： Consolidated Financial Data ©2011 Ichigo Group Holdings Co., Ltd. All rights reserved. 17
Slide 18: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 10 Feb 11 Q1 Feb 11 H1 Feb 11 Q3 QoQ change Total Assets 100,268 107,315 104,107 100,335 -3,772 Cash and Cash Equivalents 10,728 13,389 12,842 12,940 98 Operating Investments in Securities 9,404 9,411 8,501 8,588 87 Real Estate Held for Sale 69,445 70,0
Slide 19: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Million yen) Feb 10 Feb 11 Q1 Feb 11 H1 Feb 11 Q3 QoQ Change Outside The Outside The Outside The Outside The in the Amount Investors' Company's Amount Investors' Company's Amount Investors' Company's Amount Investors' Company's Com pany's Interests Interests Inter
Slide 20: P&L (Consolidated)
P&L (Consolidated) (Million yen) Feb 11 Q3 Full-Year Feb 11 Q3 Feb 10 Feb 11 Q1 Feb 11 Q2 Feb 11 Q3 Progress Cumulative Forecast Cumulative Revenues 21,112 4,104 3,006 3,156 10,267 13,800 74.4% Revenues 10,267 Real Estate Management Fees 516 Cost of Revenues 16,991 3,017 2,107 2,200 7,325 － － Adviso
Slide 21: Appendix: Real Estate Data
Appendix： Real Estate Data ©2011 Ichigo Group Holdings Co., Ltd. All rights reserved. 21
Slide 22: Cumulative Assets Under Management
Cumulative Assets Under Management • Historic Cumulative AUM Exceeds ¥1 trillion • Strong Long-Term Track Record of Managing Real Estate for Clients (billion yen, # of funds in parenthesis) 1,164.5 1,175.1 1,194.5 1,128.4 (141) (141) (145) 1,200 (137) 64.0 64.0 64.0 REIT 64.0 (As of November 2010) O
Slide 23: Assets Under Management
Assets Under Management • With launch of new funds, AUM has finally returned to growth after 11 quarter decline through financial crisis (AUM increased by ¥12.1 billion) (As of November 2010) • 97% of Current Portfolio is Comprised of Operating Assets Development 3% 600 REIT 530.1 (billion yen) Oper
Slide 24: Real Estate Portfolio
Real Estate Portfolio • Mainly Office, although Significant Track Record across a Wide Variety of Asset Types • Particular Experience in Managing Small & Mid-Size Assets from ¥1 - 5 billion in Tokyo AUM by Type # of Properties by Type Land Leaseholds (Unit: # of buildings) (As of November 2010) 0.1%
Slide 25: IGH Real Estate Cap Rates
IGH Real Estate Cap Rates • Cap Rates Increased Due to Early Adoption of Lower of Cost or Market Rule • Continually Mark Assets In-line with Current Market Pricing and Eliminate Any Unrealized Losses from B/S (As of November 2010) Real Estate Investments held by Funds (SPCs) (Million yen, except for
Slide 26: These materials were prepared to explain the Company’s businesses and are not for the
These materials were prepared to explain the Company’s businesses and are not for the purpose of soliciting investment in marketable securities issued by the Company. The Company does not guarantee the accuracy of the figures, information, estimates or other statements included herein, and accepts n
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