Ichigo Inc. · TSE:2337
Ichigo — Q1 FY2011 Earnings Presentation
24 slides from Ichigo's earnings presentation, Jul 21, 2010
Slide 1: Asset Managers Holdings Corporate Presentation
Asset Managers Holdings Feb. 2011 Fiscal Year Q1 (March 2010 – May 2010) Corporate Presentation July 21, 2010
Slide 2: Corporate Name Change to Ichigo Group Holdings
Corporate Name Change to Ichigo Group Holdings Change of company name to Ichigo Group Holdings Co., Ltd. on September 1, 2010 Purpose of the Name Change 9 Uniting with the Ichigo brand --- we are committed to achieving excellence for our clients as a core company of the Ichigo Group 9 “Ichigo” c
Slide 3: Laying the Foundation for Stable, Long-term Growth
Laying the Foundation for Stable, Long-term Growth 9 Strengthened Capital Base 9 Continued Asset Dispositions 9 Optimizing Balance Sheet 9 Securing On-Going Profitability 9 Upward Revision to Full-Year Earnings Forecasts 9 Focus on Growth and Improved Profitability Appendices： Financial & Real E
Slide 4: Laying the Foundation for Stable, Long-term Growth
Laying the Foundation for Stable, Long-term Growth 4
Slide 5: Strengthened Capital Base
Strengthened Capital Base Significant increase in capital strength due to profits on asset sales and mark-to-market of unrealized gains Net Assets Increased by ¥6 billion and Equity Ratio Increased by 6.9% from Feb 2010 Full-Year Disclosure Equity Ratio: 17.3% Equity Ratio: 49.3% Equity Ratio: 5
Slide 6: Continued Asset Dispositions
Continued Asset Dispositions Sold ¥3.7 Billion in Assets in Feb 11 Q1 3.7 Private Equity Private Equity Domestic: 1 2.95 Overseas: 2 Positive Cashflow and Profitability Real Estate Real Estate 0.75 Commercial: 1 (Billion yen) Feb 11 Q1 Pro Forma basis: For details to page 12 6
Slide 7: Optimizing Balance Sheet
Optimizing Balance Sheet While repaying existing corporate debt, raised new debt for M&A and other growth activities Total Borrowings 36.6 Repayment: -1.4 Borrowings: + 1.7 CB Conversion: -0.3 Newly Consolidated: +0.2 Short-term Debt -18.2 15.5 Total Borrowings Total Borrowings +0.2 18.6 18.4 Long-t
Slide 8: Securing On-Going Profitability
Securing On-Going Profitability Forecasting Second Consecutive Full-Year of Profitability Revised Full-Year Earnings Forecast Upward on May 26, 2010 Revenues (Cumulative) Net Profit / Loss (Cumulative) (Million yen) Progress towards Full-Year Forecast before Revision: Revenues: 29.7％, Net Profit
Slide 9: Upward Revision to Full-Year Earnings Forecasts
Upward Revision to Full-Year Earnings Forecasts Feb 2011 Full-Year Consolidated Forecast and Results (Revised upward on May 26, 2010) （Million yen） Before Revision After Revision Changes Reasons of Revision Revenues 13,800 13,800 ±0 - Operating Profit 1,000 1,000 ±0 - Recurring Profit 700 1,000 +3
Slide 10: Focus on Growth and Improved Profitability
Focus on Growth and Improved Profitability Positive Transition in Structure of Profitability 9 Business model moving from capital gains on asset sales to a stable fee income, asset management business 9 Top-line revenues will decrease as balance sheet slims down and asset sales fall off, but profi
Slide 11: Appendix: Pro Forma Financial Data
Appendix: Pro Forma Financial Data 11
Slide 12: Pro Forma Disclosure to Improve Transparency
Pro Forma Disclosure to Improve Transparency Under Japanese accounting rules, SPCs in which AMH is a greater than 50% investor or SPCs for which AMH is the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated onto AMH’s balance sheet. Our s
Slide 13: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) Feb 10 Feb 11 Q1 Change Total Assets 42,804 48,252 5,448 Cash and Cash Equivalents 5,268 7,791 2,523 Investment (Real Estate) 5,707 5,866 159 Investment (Domestic companies) 2,046 1,887 -159 Investment (Overseas companies) 10,434 13,324 2,890 Real Estate Held
Slide 14: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) (Million yen) Feb 10 Feb 11 Q1 Feb 11 Q1 Revenues 14,127 2,691 Revenues 2,691 Real Estate Management Fees 291 Cost of Revenues 9,785 1,617 Advisory Fees 24 Gross Profit 4,342 1,074 Rental Income 446 SG&A 3,012 584 Real Estate Sales / Dividends 908 Securities S
Slide 15: Appendix: Consolidated Financial Data
Appendix： Consolidated Financial Data 15
Slide 16: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 10 Feb 11 Q1 QoQ change Total Assets 100,268 107,315 7,047 Cash and Cash Equivalents 10,728 13,389 2,661 Operating Investments in Securities 9,404 9,411 7 Real Estate Held for Sale 69,445 70,056 611 Fixed Assets 3,201 3,255 54 Investments in Securities
Slide 17: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Million yen) Feb 10 Feb 11 Q1 QoQ Change Outside The Outside The in the Amount Investors' Company's Amount Investors' Company's Company's Interests Interests (A) Interests Interests (B) Interests (B-A) Cash and Cash Equivalents 10,728 - - 13,389 - - - Operating In
Slide 18: P&L (Consolidated)
P&L (Consolidated) (Million yen) Full-Year Forecast Feb 10 Feb 11 Q1 Progress Feb 11 Q1 Before Revision Revenues 21,112 13,800 4,104 29.7% Revenues 4,104 Cost of Revenues 16,991 － 3,017 － Real Estate Management Fees 201 Gross Profit 4,120 － 1,087 － Advisory Fees 24 Rental Income 1,497 SG&A 3,011 － 5
Slide 19: Appendix: Real Estate Data
Appendix： Real Estate Data 19
Slide 20: 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 1,175.4 1,128.4 1,200 (141) (141) (141) REIT (137) 64.0 64.0 64.0 Operating 64.0 (As of May 20
Slide 21: Assets Under Management
Assets Under Management Expertise across Full Spectrum from Development to Operating Assets (As of May 2010) 90% of Current Portfolio is Comprised of Operating Assets Development (billion yen) 8% 600.0 REIT 530.1 Operating 496.0 500.0 62.0 Development Operating 426.5 92% 400.0 330.6 335.9 257.0
Slide 22: 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 (As of May 2010) Other (Unit: # of buildings) 3% Other AUM by Loc
Slide 23: AMH Real Estate Cap Rates
AMH 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 9 Cap rates changed QoQ due to asset dispositions (As of May 2010) Real Estate Investments
Slide 24: Disclaimer
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