Ichigo Inc. · TSE:2337

Ichigo — H1 FY2012 Earnings Presentation

30 slides from Ichigo's earnings presentation, Oct 20, 2011

Slide 1: Corporate Presentation: Feb. 2012 Fiscal Year H1
Feb. 2012 Fiscal Year H1 (March 2011 – August 2011) Corporate Presentation October 20, 2011 Ichigo Group Holdings Co., Ltd. (2337) © 2011 Ichigo Group Holdings Co., Ltd. All rights reserved. www.ichigo-holdings.co.jp/english
Slide 4: Laying the Foundation for Stable, Long-Term Growth
Laying the Foundation for Stable, Long-Term Growth • Strengthened Financial Base - Robust Balance Sheet - Continued Asset Dispositions - Corporate Debt Repayment • Business Update - Recent Transactions - Deploying Architectural Capabilities to Add Value - Asset-Level Value Enhancement - REIT M&A - R
Slide 6: Robust Balance Sheet
Robust Balance Sheet Optimizing Balance Sheet - Continued asset sales and corporate debt repayment - Investing for growth while controlling risk Equity Ratio: 66.5％ Equity Ratio: 68.2％ (Billion yen) Liabilities Liabilities 12.9 12.2 Assets Assets 38.4 38.4 Net Assets Net Assets 25.5 26.2 Feb 12 Q1 F
Slide 7: Continued Asset Dispositions
Continued Asset Dispositions Asset sales of ¥3.3 billion during the quarter ¥3.3B in ¥5.2B in Asset Sales Asset Sales Private Equity Private Equity 3.3 Private Equity Domestic： 2（+1） 3.8 Overseas： 1（+1） ¥1.9B in Asset Sales Real Estate Private Equity 0.5 Domestic： 1 2012年2月期 Overseas： 0 Real Estate
Slide 8: Corporate Debt Repayment
Corporate Debt Repayment Repaying existing debt and improving long-term debt ratio (67%) (Billion yen) Total Borrowings Total Borrowings 9.9 -0.1 9.8 Short-Term Debt -0.2 Short-Term Debt 3.4 3.2 Long-Term Debt Long-Term Debt 6.5 +0.1 6.6 Feb 12 Q1 Feb 12 H1 © 2011 Ichigo Group Holdings Co., Ltd. All
Slide 10: Recent Transactions
Recent Transactions • Administrator for land + ground lease fund in Atsugi, Kanagawa Prefecture [Ichigo Estate, Ichigo Solutions] • New ¥5B Osaka & Tokyo office fund [Ichigo Real Estate Investment Advisors] • Rescue AM Mandates [Ichigo Real Estate Investment Advisors] - ¥6B Tokyo office AM mandate f
Slide 11: Deploying Architectural Capabilities to Add Value
Deploying Architectural Capabilities to Add Value Attracted large new tenant to a retail facility in downtown Osaka (September 2011) [Ichigo Real Estate Investment Advisors] - High level of capabilities required to restructure and reposition a space that was originally a movie theater - Utilizing th
Slide 12: Asset-Level Value Enhancement
Asset-Level Value Enhancement • Active leasing using the Ichigo brand ■ Distinctive branding - Creating asset-level brochures to build strong brand name - Web-based targeting of overseas tenants and investors • Building value at our retail assets - PR through major media - Competitive differentiatio
Slide 13: REIT M&A
REIT M&A • Acquired 100% shares of Fund Creation REIT Advisers (“FCRA”) (August 15, 2011) - Asset management company of FC Residential REIT (8975) (“FCR”) - FCR will merge with Ichigo REIT (8983) on November 1, 2011 - Post-merger REIT will be called Ichigo Real Estate Investment Corporation (8975) -
Slide 14: REIT Business Growth Strategy
REIT Business Growth Strategy • FC Residential and Ichigo REIT merger - Further growth of Ichigo REIT  More diversified portfolio of office and residential properties  Will increase scale and expected to improve unit liquidity - Comprehensive J-REIT providing both stability and growth  More stabl
Slide 15: On-Going Profitability
On-Going Profitability Revenues (Cumulative) Net Profit/Loss (Cumulative) (Million yen) Progress towards Full-Year Forecast: Revenues: 78.1%, Net Profit: 99.4％ 16,300 12,760 12,729 7,837 1,292 1,300 620 105 Feb 11 Feb 12 Q1 Feb 12 H1 Feb 12 Full- Full-Year Year Forecast © 2011 Ichigo Group Holdings
Slide 16: Share Buybacks
Share Buybacks • 1st Share Buyback and Cancellation (FY2012) - Number of shares bought back: 38,307 shares (initial plan: 50,000 shares) - Number of shares cancelled: 38,547 shares (includes 240 shares previous to buyback) - Fell 11,693 shares short relative to initial buyback plan • 2nd Share Buyba
Slide 18: 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 19: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 11 Feb 12 Q1 Feb 12 H1 Change (QoQ) Total Assets 39,915 38,350 38,384 34 Cash and Cash Equivalents 7,093 6,710 8,403 1,693 Investment (Real Estate) 6,419 7,388 7,829 441 Investment (Domestic companies) 984 783 791 8 Investment (Overseas companies) 7,198 7,
Slide 20: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) Feb 12 H1 Feb 12 H1 Feb 11 Feb 12 Q1 Feb 12 Q2 Cumulative Cumulative Revenues 7,842 1,996 1,493 3,489 Revenues 3,489 Real Estate Management Fees 1,012 Cost of Revenues 4,102 1,187 555 1,741 Advisory Fees 8 Gross Profit 3,740 809 938 1,748 Rental Income 894 Rea
Slide 22: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 11 Feb 12 Q1 Feb 12 H1 QoQ change Total Assets 98,653 95,596 85,197 -10,399 Cash and Cash Equivalents 12,343 11,670 12,339 669 Operating Investments in Securities 8,035 5,223 5,584 361 Real Estate Held for Sale 68,823 67,164 57,713 -9,451 Fixed Assets 3
Slide 23: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Million yen) Feb 11 Feb 12 Q1 Feb 12 H1 QoQ Change Outside The Outside The Outside The in the Amount Investors' Company's Amount Investors' Company's Amount Investors' Company's Com pany's Interests Interests Interests Interests Interests Interests Interests Cash
Slide 24: P&L (Consolidated)
P&L (Consolidated) Breakdown (Million yen) Feb 12 H1 Full-Year Feb 12 H1 Feb 11 Feb 12 Q1 Feb 12 Q2 Progress Cumulative Forecast Cumulative Revenues 12,760 7,837 4,892 12,729 16,300 78.1% Revenues 12,729 Real Estate Management Fees 868 Cost of Revenues 8,805 6,959 3,948 10,908 －－ Advisory Fees 8 Gr
Slide 26: Cumulative Assets Under Management
Cumulative Assets Under Management • Historic cumulative AUM exceeds ¥1.3 trillion • Strong long-term track record of managing real estate for clients (billion yen, # of funds in parenthesis) 1,600 REIT 1,352.1 1,308.5 1,315.6 (151) 1,400 Operating (145) (148) (As of August 2011) Development 1,175.1
Slide 27: Assets Under Management
Assets Under Management Growing AUM with new AM mandates and REIT acquisition (As of August 2011) (billion yen) Development 600 2% REIT 530.1 Operating REIT 496.0 35% 500 62.0 Development 426.5 385.3 392.1 Operating 400 63% 364.6 330.6 257.0 335.9 335.0 113.8 137.2 300 56.0 113.8 320.7 123.4 Breakdo
Slide 28: Real Estate Portfolio
Real Estate Portfolio Mainly office, although significant track record across a wide variety of asset types AUM by Type # of Properties by Type (As of August 2011) Land with (Unit: # of buildings) Ground Leases 1% Other Other 11 AUM by Location Residential 2% (Unit: # of buildings) 13% Land with Oth
Slide 29: IGH Real Estate Cap Rates
IGH Real Estate Cap Rates Continually mark assets to market and eliminate unrealized losses from balance sheet (As of August 2011) Real Estate Investments held by Funds (SPCs) (Million yen, except for percentage data) Book value Cap rate (at acquisition) Cap rate (current) Location Acquisition value
Slide 30: 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

Ichigo Group Holdings — H1 FY2012 Earnings Presentation on 6ix

Ichigo — H1 FY2012 Earnings Presentation

Slide 1: Corporate Presentation: Feb. 2012 Fiscal Year H1

Slide 2: © 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

Slide 3: Creating peace of mind through honest and committed management

Slide 4: Laying the Foundation for Stable, Long-Term Growth

Slide 5: Strengthened Financial Base

Slide 6: Robust Balance Sheet

Slide 7: Continued Asset Dispositions

Slide 8: Corporate Debt Repayment

Slide 9: Business Update

Slide 10: Recent Transactions

Slide 11: Deploying Architectural Capabilities to Add Value

Slide 12: Asset-Level Value Enhancement

Slide 13: REIT M&A

Slide 14: REIT Business Growth Strategy

Slide 15: On-Going Profitability

Slide 16: Share Buybacks

Slide 17: Appendix: Pro Forma Financial Data

Slide 18: Pro Forma Disclosure to Improve Transparency

Slide 19: Balance Sheet (Pro Forma)

Slide 20: P&L (Pro Forma)

Slide 21: Appendix: Consolidated Financial Data

Slide 22: Balance Sheet (Consolidated)

Slide 23: Breakdown of Assets (Consolidated)

Slide 24: P&L (Consolidated)

Slide 25: Appendix: Real Estate Data

Slide 26: Cumulative Assets Under Management

Slide 27: Assets Under Management

Slide 28: Real Estate Portfolio

Slide 29: IGH Real Estate Cap Rates

Slide 30: These materials were prepared to explain the Company’s businesses and are not for the