Ichigo Inc. · TSE:2337
Ichigo — Q1 FY2013 Earnings Presentation
27 slides from Ichigo's earnings presentation, Jul 19, 2012
Slide 1: Ichigo Group Holdings Corporate Presentation
Feb. 2013 Fiscal Year Q1 (March – May 2012) Corporate p Presentation July 19, 2012 Ichigo g Group p Holdings g Co., Ltd. (2337) ( ) © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. www.ichigo-holdings.co.jp/english
Slide 2: © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.
© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.
Slide 3: Creating peace of mind through honest and committed management
Creating peace of mind through honest and committed management. management © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.
Slide 4: Accelerating Significant Growth
Accelerating Significant Growth - Ichigo Growth Strategy - Feb. 2013 Q1 Consolidated Financial Results - Feb. 2013 Q1 Assets Under Management (AUM) - O Ongoing i StStructural t l Profitability P fit bilit - Sound Financial Base - New Business Developments - New Group Structure - Ichigo’s Hiromi Miya
Slide 5: Accelerating Significant Growth
Accelerating Significant Growth © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 5
Slide 6: Ichigo Growth Strategy
Ichigo Growth Strategy Having Achieved Structural Profitability, Entering Accelerated Growth Stage Target: Building Structural Profitability Accelerated Growth Stage Tokyo Stock Exchange First Section Significant Expansion of Structural Stable Financial Base Profitability ・Optimizing balance sheet ・
Slide 7: Feb. 2013 Q1 Consolidated Financial Results
Feb. 2013 Q1 Consolidated Financial Results Driven by Stable Profitability (Million yen) Feb 13 Q1 Actual vs Feb 13 Full-Year Forecast Feb. 2013 Q1 Financial Results Revenues 13.9%, Net Profit 26.4% (Million yen) Feb 13 FY 13 vs. Q1 Forecast Forecast Revenues 2,362 17,000 13.9% Operating Profit 335
Slide 8: Feb. 2013 Q1 Assets Under Management (AUM)
Feb. 2013 Q1 Assets Under Management (AUM) Slight Decrease in Total AUM, but Higher Profitability - AUM decreased due to asset dispositions - However,, AM fees from private p equity q y RE funds increased by y ¥14MM p p.a. [¥6MM decrease and ¥20MM increase] (Billion yen) Others 0.3 PE RE Fund Asset
Slide 9: Ongoing Structural Profitability
Ongoing Structural Profitability Q1 Fixed Revenues at 122% of Fixed Costs Fixed Revenues (“locked-in” ( locked in revenues, excludes transaction fees, capital gains, etc.) Fixed Costs (SG&A + Interest Expense) Coverage： 121.5% (Million yen) BM Fees 109 Dividends Interest 71 259 Interest and Other 18
Slide 10: Sound Financial Base
Sound Financial Base Balance Sheet Shareholder Equity Shareholder Equity Ratio 68.9% Ratio 66.1% (Billi yen)) (Billion Assets ・ Assets & Liabilities Liabilities +2.0 Liabilities 11.8 13.6 Increased with New Warehousing Fund for Ichigo Assets A t Assets 38.0 40.0 REIT Net Assets Net Assets 26.1 26.5
Slide 11: New Business Developments
New Business Developments • Property P t Best-Use B tU C Consulting lti and d Ad Advisory i (I (Ichigo hi E Estate t t CCo., Ltd Ltd.)) - Brought in a Major Supermarket on Behalf of a Tokyo Property Owner - Generating long-term stable rental income for owner - Ichigo Estate works for owner via a lon
Slide 12: New Group Structure
New Group Structure • On July 1, 2012, Reorganization Completed to Strengthen Ichigo’s Capabilities as a Full-Service Real Estate Asset Manager - Formed New Asset Management Company to Manage J-REIT and Private Equity RE Funds - C Concentrate t t Asset A t Management M t Resources R to t Accelerate
Slide 13: Ichigo's Hiromi Miyake Selected for 2012 London Olympics
Ichigo’s Hiromi Miyake Selected for 2012 London Olympics We are committed to fulfilling our Corporate Social Responsibilities with respect to all stakeholders, society, and the earth that we share. As part of our support for excellence in all social activities, including g athletics, Ichigo g sponso
Slide 14: Appendix: Pro Forma Financial Data
Appendix: Pro Forma Financial Data © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 14
Slide 15: 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 16: Balance Sheet (Pro Forma)
Balance Sheet (Pro Forma) (Million yen) F b 12 Feb F b 13 Q1 Feb Ch Change (Q (QoQ) Q) Total Assets 37,980 40,038 2,058 Cash and Cash Equivalents 5,713 5,730 17 Investment (Real Estate) 8,151 8,447 296 Investment (Domestic companies) 600 551 -49 Investment (Overseas companies) 4,598 4,573 -25 Real E
Slide 17: P&L (Pro Forma)
P&L (Pro Forma) Breakdown (Million yen) Feb 12 Feb 13 Q1 Feb 13 Q1 Revenues 7,927 1,736 Revenues 1,736 Cost of Revenues 4 101 4,101 663 Real Estate Management g Fees 467 Advisory Fees 6 Gross Profit 3,826 1,073 Rental Income 468 SG&A 2,871 766 Real Estate Sales / Dividends 259 Securities Sales / Div
Slide 18: Balance Sheet NAV
Balance Sheet NAV Significant Unrealized Gains on Balance Sheet Assets - Real Estate (Million yen) Book Value Appraisal Value Acquisition Value Unrealized Gain (As of May 12) (As of Feb 12) Directly Owned on B/S 17,392 12,889 15,275 +2,384 Investment in IGH Funds 16,406 8,448 14,121 +5,674 Total 33,
Slide 19: Appendix: Consolidated Financial Data
Appendix： Consolidated Financial Data © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 19
Slide 20: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Million yen) Feb 12 Feb 13 Q1 QoQ change Total Assets 82,170 84,010 1,840 Cash and Cash Equivalents 9,791 9,944 153 Operating Investments in Securities 4,226 4,281 55 Real Estate Held for Sale 49,674 51,838 2,164 Fixed Assets 10,109 10,073 -36 Intangible Assets 2,105 2,
Slide 21: Breakdown of Assets (Consolidated)
Breakdown of Assets (Consolidated) (Milli yen)) (Million Feb 12 Feb 13 Q1 QoQ Change Outside The Outside The in the Amount Investors' Company's Amount Investors' Company's Com pany's Interests Interests Interests Interests Interests Cash and Cash Equivalents 9,791 - - 9,944 - - - Operating Investmen
Slide 22: P&L (Consolidated)
P&L (Consolidated) (Million yen) Breakdown Full-Year vs. Feb 12 Feb 13 Q1 Forecast Forecast F b 13 Q1 Feb Revenues 18,952 2,362 17,000 13.9% Revenues 2,362 Cost of Revenues 15,030 1,260 － － Real Estate Management Fees 394 Advisory Fees 6 Gross Profit 3,921 1,102 － － Rental Income 1,421 SG&A 2,871 76
Slide 23: Appendix: Real Estate Data
Appendix： Real Estate Data © 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 23
Slide 24: Assets Under Management (AUM)
Assets Under Management (AUM) Net AUM Decreased by ¥ 5 Billion – Decrease of ¥16.4 Billion from Disposition of Assets and Increase of ¥11.4 Billion from Launching New Funds and New Rescue AM Mandate (As of May 2012) (Billion yen) 600 REIT 28% 530.1 Development 500 Operating 62.0 496 0 496.0 Operatin
Slide 25: Real Estate Portfolio
Real Estate Portfolio • Track Record Mainly in Office and Also Across a Wide Variety of Other Asset Types • Strong in Mid-Sized Assets in Tokyo, Which are Highly Liquid and Have Stable Cashflows AUM by Type # of Properties by Type (As of May 2012) (Unit: # of buildings) (Unit: # of buildings) Land w
Slide 26: Real Estate Cap Rates
Real Estate Cap Rates • Conservative assessment of cap rates, generally more conservative than market • Continually mark assets to market • Unrealized gains in both client and IGH assets (As of May 2012) Real Estate Investments held by Funds (SPCs) (Million yen) Book Value NOI Cap rate (at Acquisiti
Slide 27: 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 g y of the figures, g , information,, estimates or other statements included herein,, and
Ichigo Group Holdings — Q1 FY2013 Earnings Presentation on 6ix