Ichigo Inc. · TSE:2337
Ichigo — Investor Presentation (October 2008)
40 slides from Ichigo's investor presentation, Oct 20, 2008
Slide 1: Asset Managers Holdings Corporate Presentation
Asset Managers Holdings Corporate Presentation October 20, 2008
Slide 2: 2008 First Half Summary / Going Forward
2008 First Half Summary 9 Focus on Cashflow 9 Successful Asset Dispositions 9 Repayment of Corporate Debt 9 New & Refinanced Non-Recourse Debt 9 Strong Liquidity 9 Strengthened Financial Position Going Forward 9 We Are Asset Managers 9 Stable, High ROE Asset Management Business 9 Streamlined Dec
Slide 3: 2008 First Half Summary
Asset » \ Managers Holdings 2008 First Half Summary
Slide 4: Focus on Cashflow
Focus on Cashflow C/F and B/S Far More Important than P/L Running Operating Cashflow Strongly Positive Maximize Cash Position and Liquidity Fully Write-Down All Assets in 2009, Return to Profitability in 2010 Dramatically Decrease Risk Profile through Slimmed B/S (Billion yen) Consolidated
Slide 5: Outsized Return Opportunity
Outsized Return Opportunity (Billion yen) Shareholders Equity 50.9 Billion yen Cash Balance 9.8 Billion yen Net Assets Market Cap 50.9 （10/17/2008） 10/17/2008） 11.8X 4.3 Billion yen Market 2.3X Cash Capitalization 9.8 4.3 Stock Price Cash Per Share Book Value Per Share 5,740yen 12,955yen 67,225yen *
Slide 6: Successful Asset Dispositions
Successful Asset Dispositions 16.1 Billion Yen of Asset Sales, Net Profit of 1.9 Billion Yen (Billion yen) Private Breakdown Equity Domestic：21 4.1 Overseas: 1 Breakdown Office：1 Real Estate Residential: 6 12.0 Commercial：3 Development：1 Other：1 1st Half of FY2008 *Pro Forma Consolidated Basis: Asse
Slide 7: Repayment of Corporate Debt
Repayment of Corporate Debt ¥31.4B Debt Repaid, ¥7.2B New Borrowings, ¥4.9B Refinancings Total Borrowings (Billion yen) 59.7 Billion Yen △ 19.3 Billion yen Total Borrowings Short-Term Debt 40.4 Billion yen 35.3 Short-Term Debt 16.8 Long-Term Long-Term Debt Debt 11.4 10.6 CB CB 13.0 13.0 As of Feb 20
Slide 8: New & Refinanced Non-Recourse Debt
New & Refinanced Non-Recourse Debt Maintaining Non-Recourse Debt Financing (Billion yen) Refinancing ＋ 3.5 Repayments & Redemption New borrowing △ 20.5 ＋ 15.2 98.0 96.2 As of Feb 2008 As of Aug 2008 8
Slide 9: Strong Liquidity
Strong Liquidity (Billion yen) New Capital Investments Increase △ 3.7 + 5.0 Fee Income + 2.4 Loan Repayment Asset △ 19.5 Sales + 16.1 Other △ 1.4 Cash Cash 10.9 9.8 As of Feb 2008 As of Aug 2008 *Pro Forma Consolidated Basis: Asset Managers, Asset Managers International, Asset Managers Partners, Ass
Slide 10: Strengthened Financial Position
Strengthened Financial Position (Billion yen) Equity Ratio 42.8％ 53.7％ Liabilities Liabilities 63.6 43.9 Assets 111.1 Assets 94.8 Equity Equity 50.9 47.5 As of Feb 2008 As of Aug 2008 *Pro Forma Consolidated Basis: Asset Managers, Asset Managers International, Asset Managers Partners, Asset Investme
Slide 11: Going Forward
Asset » \ Managers Holdings Going Forward 11
Slide 12: We Are Asset Managers
We Are Asset Managers Asset Manager focused on Real Estate 9 Core Fee Business 9 Significant Reduction in Corporate Risk Disposition of On-Balance Sheet Private Equity Investments Acquisition of Synergistic Asset Management & Fee Businesses 12
Slide 13: Stable, High ROE Asset Management Business
Stable, High ROE Asset Management Business Continuing Earnings Streams 9 Stability and Certainty of Asset Management Revenue Streams 9 Reduction of B/S Investments Will Dramatically Reduce Earnings Volatility Transition to Longer-Term, Commitment-Based Fund Structures Will Further Enhance Earnin
Slide 14: Streamlined Decisionmaking
Streamlined Decisionmaking Corporate Reorganization First Stage: New Management Structure from Nov. 1, 2008 Old Structure New Structure （from 11/1/2008） General Meeting of General Meeting of Shareholders Shareholders Board of Directors Board of Directors 取締役会 Compliance Committee Nominating Audit Co
Slide 15: Structural Profitability via Reduced Cost Structure
Structural Profitability via Reduced Cost Structure Create Structural Profitability with Cost Structure Below On-Going, Stable Revenues (Billion yen) Stable SG&A Revenues SG&A 4.3 4.0 3.8 SG&A 2.5 2008/02 2009/02 Forecast 2010/02 Forecast Stable Revenues = Fixed Fund Management Fees (excluding Perfo
Slide 16: Improved Disclosure
Improved Disclosure Introduction of Pro Forma Financials Under Japanese accounting rules, SPCs in which we are a greater than 50% investor or SPCs for which we are the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated onto our balance sheet.
Slide 17: Pro forma Corporate Balance Sheet
Pro forma Corporate Balance Sheet （Unit: Million yen） Feb 2008 Aug 2008 Change Reason Cash 10,868 9,815 ▲1,053 Investment（Real estate） 39,908 31,419 ▲8,489 Asset disposition Investment（Domestic PE） 21,888 13,335 ▲8,553 Asset disposition Investment（Overseas PE） 18,421 19,072 +651 Real estate held for
Slide 18: Pro Forma Corporate P&L
Pro Forma Corporate P&L Current Period Net Loss Comes from Non-Cash Items 1st Half of Breakdown （unit :Million yen） FY2008 Net Sales 9,301 Gross Profit 4,065 SGA 3,623 Bad debt allowance △1,438 Operating Income 443 Non-operating Items 33 Ordinary Income 476 Loss on sales of investment securities △47
Slide 19: Global Investor Relations
Global Investor Relations Significant Differentiation Opportunity Broaden Shareholder Base into the Global Investor Community 9 Detailed English Language Disclosure 9 Global Standards of Best Practice 9 English Language Analyst Meetings and Conference Calls 9 Overseas Marketing 19
Slide 20: Distributions to Shareholders
Distributions to Shareholders With B/S Shrinkage, Return Excess Equity to Shareholders via Dividends, Special Dividends, and Stock Repurchase Pure Asset Manager Model Does Not Require Significant Capital (Billion yen) Liabilities 43.9 Assets 94.8 Equity 50.9 Shareholder Distributions Aug 2008 Go
Slide 21: Appendix (Financial Data)
Appendix （Financial Data） 21
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet February 2008 May 2008 August 2008 August 2008 C versus A [A] [B] [C] Ratio (unit: million yen) Current assets 238,677 233,910 210,827 90.2% 88.3% Cash and equivalents 33,113 28,095 29,293 12.5% 88.5% Inventories 156,531 162,554 146,685 62.7% 93.7% Loans 2,029 1,994 1,302
Slide 23: Consolidated Assets
Consolidated Assets (unit: million yen) Feb 2008 [A] May 2008 [B] Aug 2008 [C] Change (A to C) Outside investors’ The Company’s Outside investors’ The Company’s Outside investors’ The Company’s The Company’s Inventories Amount Amount Amount interests interests interests interests interests interests
Slide 24: Consolidated Liabilities & Cash Position
Consolidated Liabilities & Cash Position Change in 1st half of FY2008 Feb 2008 May 2008 Aug 2008 Due within Due in over Amount Ratio (unit: million yen) one year one year Corporate debt 74,294 60,644 53,582 20,276 33,305 △20,711 △27.9％ Interest-bearing debts 57,269 43,619 36,557 20,276 16,280 △20,71
Slide 25: Consolidated P&L
Consolidated P&L FY2007 FY2008 C versus A (unit: million yen) Interim [A] Full-Year [B] Interim [C] Sales 41,947 70,833 37,030 88.3% Real Estate 33,572 52,108 31,410 93.6% Private Equity 6,067 14,158 3,477 57.3% Other 2,308 4,566 2,141 92.78% Cost of sales 22,063 41,292 31,763 144.0% Gross profit 19
Slide 26: Consolidated P&L – Real Estate
Consolidated P&L – Real Estate FY2007 FY2008 C versus A Interim [A] Full-Year [B] Interim [C] (unit: million yen)) Sales (Real Estate) 33,572 52,108 31,410 93. 6% Acquisition fees 42 100 45 107.5% Management fees 941 1,723 818 86.9% Disposition fees 98 123 － 0.0% Pass-through income 4,894 9,433 3,27
Slide 27: Consolidated P&L – Private Equity
Consolidated P&L – Private Equity FY2007 FY2008 C versus A Interim [A] Full-Year [B] Interim [C] (unit: million yen) Sales (Private Equity) 6,067 14,158 3,477 57.3% Domestic 1,599 7,662 2,883 180.3% Overseas 4,468 6,495 594 13.3% Cost of goods sold (Private Equity) 3,065 10,523 9,644 314.6% Domestic
Slide 28: Consolidated Balance Sheet Forecast
Consolidated Balance Sheet Forecast Forecast Change Feb 2008 May 2008 Aug 2008 Feb 2009 from Feb 2008 （Actual） （Actual） （Actual） （forecast） (unit: million yen) to Feb 2009 The The The The The Amount Amount Amount Amount Company’s Company’s Company’s Amount Company’s Company’s interests interests int
Slide 29: Consolidated P&L Forecast
Consolidated P&L Forecast FY2007 FY2008 FY2008 Progress Revised B versus A relative to full- Forecast before forecast Full-Year Interim results year forecast revision [A] (unit: million yen) [B] Sales 70,833 76,800 66,500 △13.4 37,030 52.5% Real Estate Investment 52,108 51,700 50,400 △2.5 31,410 62.
Slide 30: Appendix (Real Estate)
Asset » \ Managers Holdings Appendix (Real Estate) 30
Slide 31: Assets Under Management (Domestic Real Estate)
Assets Under Management (Domestic Real Estate) Ending Reclassified: Ending Increase Decrease Development NET ( billion yen) Feb 2008 completed Aug 2008 (billion yen) 600 Development 160.9 0.4 △46.5 △16.1 △62.2 98.7 508.6 503.7 Completed 311.7 19.7 △27.6 16.1 8.2 319.9 500 12.7 13.4 23.3 454.9 23.3 C
Slide 32: Selected Properties
Selected Properties Development Development Development Development →EXIT →Leasehold Tenjin, Chuo-ku, Fukuoka-shi, Fukuoka Kitahama Grande Buildings Kyobashi, Chuo-ku, Tokyo Kakyoin Plaza Sep. 2009 Apr. 2008 Dec. 2009 Completed Completed Completed Mar. 2008 Completed (Expected) (Expected) Acquired S
Slide 33: Domestic Real Estate Funds by Property Type
Domestic Real Estate Funds by Property Type by Number of Buildings by Value #of Bldg. ％ 160 100 151 143 143 130 140 21 28.5 26.3 17 12 34.7 8 7 9 80 41.7 120 7 8 6 7 8 2.8 1.3 3.1 1.5 8 100 2.8 1.3 10.9 10.4 42 44 Development 60 43 38 3.3 1.2 10.3 12.5 80 Other 10.9 14.6 9.6 11 13 15 13 Nursing Home
Slide 34: Domestic Real Estate Funds by Location
Domestic Real Estate Funds by Location by Number of Buildings by Value #of Bldg. ％ 160 100 151 143 143 130 6.5 6.3 6.4 6.7 1.1 1.4 1.9 2.1 4.1 5.7 5.9 5.7 140 26 24 24 5.6 1.0 1.3 1.3 1.5 80 3.8 8.5 10.7 8.4 120 2 22 2.0 11 3 3 Other 2.0 2.2 2 3 11 20 20 Sendai 100 16 3 4 60 21 10 10 4 Fukuoka 80 12
Slide 35: Domestic Real Estate Funds by Investor & Lender
Domestic Real Estate Funds by Investor & Lender by Investors (Value) by Lenders (Value) 100% 100% 3 2 4 19 19 21 ASSET Group ASSET Group 27 29 80% 80% 36 38 42 Non-Japan financial 28 28 13 institutions 32 60% 27 60% Overseas pensions 7 5 7 Domestic corporations 40% Overseas financial 40% 27 28 insti
Slide 36: Appendix (Private Equity)
Appendix (Private Equity) 36
Slide 37: Overseas Listed Company Investments
Overseas Listed Company Investments Initial Balance Sheet Total Investment Investment Business (Millions of Yen) Date Oceanus Group Ltd 2007/11 Fish cultivation 862 China Best Group Holding Ltd 2005/02 Restructuring and investment in China’s coal industry 1,043 Golden Harvest Entertainment 2005/01 M
Slide 38: Overseas Unlisted Company Investments
Overseas Unlisted Company Investments Initial Balance Sheet Total Investment Business Investment Date (Millions of Yen) Unlisted Overseas Company 01 2007/03 Metal processor with particular expertise in metal coating technologies 1,033 Unlisted Overseas Company 02 2005/11 Consumer finance in South Ko
Slide 39: Domestic Private Equity Investments
Domestic Private Equity Investments Initial Business restructuring investments Investment Description Date 1. Hotel Nikko Ibaraki Osaka 2004/03 Hotel management (Formerly Ibaraki Kyoto Hotel) 2. Matsudo Wholesale Market Wholesale market 2005/01 Secured stable cash flow with an operating rate of at l
Slide 40: 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