Financial Results for the Third
Quarter of Fiscal Year Ending
March 31, 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by Raysum. Choosing
shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was prepared, and Raysum does not promise or
guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

1Consolidated Financial Results
FY Ending March
2023
Q3 ActualPL

FY Ending March
2024
Q3 Actual

Year-on-year

Year-on-year %changechangeFY Ending March 2024
Initial plan

Progression rate

(in million yen)
Net sales

23,361

53,250+29,888+127.9%90,00059.2%

Gross profit

7,381

16,127+8,745+118.5%

N/A

N/A

31.6%

30.3%

-

-1.3%

N/A

N/A

2,889

11,597+8,708+301.4%18,00064.4%

Gross profit margin
Operating profit

12.4%

21.8%

-

+9.4%

20.0%

N/A

Ordinary profit

Operating profit margin

2,685

10,838+8,152+303.6%

16,80064.5%

Ordinary profit margin
Profit attributable toowners of the parent
Net income margin

11.5%

20.4%

-

+8.9%

18.7%

N/A

1,872

7,047

+5,175+276.4%

11,000

64.1%

8.0%

13.2%

-

+5.2%

12.2%

N/A

Financial highlights
Several large properties were sold in Q3, too. As of the end of Q3,
progress toward the full-year forecast was 64.4% for operating profit
and 64.1% for profit attributable to owners of the parent. As with lastyear, several large property sales are scheduled for Q4.

Gross profit rose approx. 119% year-on-year while operating
profit rose approx. +301% year-on-year.

Steady performance toward achievement of full-year
forecasts

Virtuous circle of increased operating leverageas net sales increases

February 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

2

Segment Highlights
FY Ending March
2023
Q3 Actual

FY Ending March
2024
Q3 Actual

Year-on-year

Year-on-yearchange% change

FY Ending March 2024
Initial plan

Progression rate

PL (in million yen)
Net sales

23,361

53,250+29,888+127.9%90,00059.2%

Value Creation Services

18,54147,831+29,289+158.0%82,50058.0%

Value-Add Services

3,209

3,792

+582

+18.2%

4,500

84.3%

Future Value Creation Services

1,609

1,625

+15

+1.0%

3,000

54.2%

2,889

11,597+8,708+301.4%18,000

64.4%

4,886

12,349+7,463+152.7%19,000

65.0%

508

1,034

+525

+103.3%900

115.0%

Future Value Creation Services-1,941-1,038+903

NM-1,000NM

Adjustment of all companies

-564

-747

-183

NM

-900

NM

Operating profit
Value Creation Services
Value-Add Services

Segment highlights (See P.8 for business details by segment)
In the core Value Creation Services segment, thepositive trend of the first six months of the year
continued in Q3 and several large properties were soldin Q3. Both net sales and operating profit

In the Value-Add Services segment, rental income
increased due to progress in procuring incomegenerating real estate in the Value Creation Services
Segment.

In the Future Value Creation Services segment,
despite the impact from the deconsolidation of thegolf course business which was sold in the previous
fiscal year, every business has expanded.

Value Creation Services drove overall
performance

Revenue and profits increased in
Value-Add Services

Future Value Creation Services saw aincrease in revenue and a narrowing in theoperating loss

February 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

3

Consolidated Balance SheetFY EndingMarch 2023

FY EndingMarch 2024

Change from

ActualQ3 Actualprevious
year-end

Comments

Balance Sheet (in million yen)
Current assets

96,216110,348+14,131

Cash and deposits

27,524

26,862-661

Real estate for sale

45,16740,476-4,691

Real estate for sale in process

17,07936,849+19,770

Non-current assets

10,535

11,650+1,114

Total assets

106,752

121,998+15,245

8,230

6,433

-1,797

Current portion of long-term borrowings

1,359

1,640

+280

Income taxes payable

4,052

1,604

-2,44845,80357,691+11,888

Long-term borrowings

41,39752,368+10,970

Deposits received from tenants

4,067

5,072

+1,00554,03364,124+10,091

Current liabilities

Non-current liabilities

Total liabilities
Net assets
Total liabilities and net assets
February 2024

52,71857,873+5,154

106,752

121,998+15,245

Steady trend of purchasing real estate

General borrowing terms: 10 year loan term with amortization
period of 20-30 years

Inventory levels are rising, and borrowing is also increasing

Increase of approximately 7 billion yen in net income; decrease of approximately
1.6 billion yen due to dividend payments; decrease of approx. 9 billion yen due topurchase of treasury shares, increase of approx. 8.3 billion yen due to a capitalincrease via public offering.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

4Consolidated Statement of Cash FlowsFY EndingMarch 2023
Q3 Actual

FY EndingMarch 2024
Q3 Actual

Year-on-yearchangeComments

Cash flows (in million yen)
Cash flow from operating activities-10,291-7,880Cash flows from investing activities

313-1,705

Cash flows from financing activities-8,972

8,914

41

5

-18,908-665

28,222

27,511

9,313

26,845

Exchange rate impact on cash andcash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at
beginning of year
Cash and cash equivalents at theend of year
February 2024

Approx. 47.8 billion yen of net sales in Value Creation Services;
approx. 40.3 billion yen spent on real estate purchases; approx.
+2,410
7.8 billion yen spent on renovation work, SG&A expenses,
income taxes, etc.
Approx. 300 million yen of proceeds from paid-in capital
reduction of shares in affiliates; approx. 1.1 billion yen spent on-2,019 purchase of shares of subsidiaries and affiliates; approx. 500
million yen spent on the acquisition of non-current assets;
lending of approx. 300 million yen
Increase of approx. 11.2 billion yen from the difference between
new financing and repayment of borrowings; approx. 8.3 billion+17,887 yen of proceeds from stock issuance; treasury share purchasesof approx. 9 billion yen; dividend payments of approx. 1.6 billion
yenThis document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

5

Progression Rate of Operating Profit by Quarter
Over the last five years, from FY2019/3 through FY2023/3, theaverage and median progression rates of operating profit as apercentage of full year profit at the end of Q3 were 52.0% and66.1%, respectively. Progress toward the full-year forecast for the

Although the progress rate was below 75% as of the end of Q3, the company’s sales andprofits tend to be seasonally weighted to the 2nd half, with several large property sales
also scheduled for Q4. The company is on track to achieve its full-year operating
profit target of 18 billion yen, and is making further efforts in procurement andsales initiatives to drive sales growth in the next fiscal year and beyond.

current fiscal year was 64.4% at the end of Q3.

Progression rate of operating profit in each quarter for the past five years compared to the current quarter
Q1
FY2019/3

8.9%

FY2020/3-2.5% 5.5% 14.5%

FY2021/3※During FY2021/3, we
scaled back our sales
activities due to the
COVID-19 pandemic.

-5.1%

16.1%

82.5%
94.9%

25.0%

FY2023/3-1.6% 5.1%

16.5%

FY2024/3

21.2%-20.0%

Q4
32.9%-23.8%-0.6%-40.0%Q3

42.0%

FY2022/3-60.0%

Q2

0.0%

48.1%

27.6%
79.9%

32.3%
20.0%

33.9%

40.0%

10.9%
60.0%

80.0%

100.0%

120.0%

140.0%

Notes: For the period from FY2019/3 to FY2023/3, the denominator is actual full-year operating profit; for FY2024/3, the denominator is the target full-year operating profit of 18 billion yen.

February 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

6

Ratio of Tradable Shares Improved Significantly due to the Share
Buyback through Tender Offer and Public Offering
During Q3, the company conducted a self-tender offer and a public
offering. The tradable share ratio increased significantly
following the acquisition and cancellation of shares from Japan
Investment Inc., the former second largest shareholder in the
Company and through public offering.

Since the public offering is exactly the same size as the number ofshares acquired via the share buyback through the self-tender offer,
there is no share dilution through this series of corporate actions.

Total number of shares issued and tradable share ratio after share buyback through tender offer and public offering (Note)
30,000,000

No increase in total number of shares issued

27,500,000

25.9%

25,000,000
29,081,400

33.2%

40%

30%

20%

20.6%

29,081,400

26,239,700

22,500,000

10%

20,000,000

0%2023
3月31日時点
As of年03/31/2023

自己株
TOBの取得株式
After sharebuyback
and cancellation ofsharesacquired through tender offer（単元未満株除く）消却後
Total number of shares issued
発行済み株式総数（左軸）
(LHS)

公募増資後
Post-public
offering（最大で）(Maximum)Tradableshare ratio (RHS)
流通株式比率（右軸）Notes: Assumes that all 700,000 shares sold in the market in June-July 2023 under the preliminary plan known by Japan Investment Inc. have become tradable shares.
The number of shares to be issued in the public offering (the same number of shares acquired through the tender offer and canceled) is 2,841,700 shares. Calculations are based on the assumption that all 2,840,700
shares, excluding the 1,000 shares remaining in Japan Investment Inc. after the tender offer become tradable shares.

February 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

7

Raysum’s Business Segment(Repost from materials published in May 2023)
Details

Revenue
FY Ending March 2023
(Percentage of total)

Operating Profit
FY Ending March 2023
(Operating profit margin）

61,419Million Yen

16,653
Million Yen

90.4%

27.1%

4,416
Million Yen

765
Million Yen

6.5%

17.3%

2,071
Million Yen-2,302Million Yen

3.0%

(NM)

Purchase and sale of real estate
Our core businessWe utilize the following methods to enhance value with a focus on increasing NOI. The methods used in 101 property sales over the
past 5 years until FY23/3 were as follows. (For some cases, methods overlap or do not belong to any of the below categories)
Increase
NOI

Value
Creation
Services

62 cases

Change ofuse/increase floorarea ratio
8 casesValue-Add
Services

Future Value
Creation
Services

February 2024

Create land fordevelopment

New construction
development

33 cases

16 cases

14 cases

Coordinate/consolidate land
rights
23 cases

We pride ourselves as being one of the few listed players with the expertise to offer the optimal solution from a wide range ofoptions, including complex methods such as those outlined above
Our transactions have covered almost all asset classes over the past five years until FY23/5 as shown below (measured by value).

Offices 40%

Large-scalerenovation

Commercial 32%

Residential 13%

By region, the majority of our projects are in major cities, with Tokyo accounting for approx. 70% of projects by value
At the end of 2021, we launched a scheme to commercialize multiple properties in small lots and sell units to individualReal estate leasing and building management
Rental income from Value Creation Services segment, management fees and other income from properties that the Company
managesReal estate management services for clients who have purchased real estate from Value Creation Services segment and who retain
the Company to continue to manage their assets

As of the end of March 2023 we managed approx. 180 properties/1,800 rooms

Various business activities leveraging our accumulated real estate expertiseBusinesses include the operation of lodging facilities, the manufacture and sale of bread and confectionery, the development,
manufacture, and sale of gas engine generators, and support services for advanced medical careThe segment is loss-making at present, but we are increasingly confident in our ability to reduce the deficit and return to profit in
futureThis document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

8Raysum's Business Model (Value Creation Services/Value-Add Services)(Repost from materials published in May 2023)

Raysum has unique strengths at each stage of the purchase and sale process
Purchase

Value Enhancement•

The decision making speed outpaces
our competitors•

We increase rental income by pushingup low rents•

Ability to deal with a wide range ofasset classes••

Most of our new project referrals
come from repeat customers (whotrust Raysum’s capabilities to take oncomplex projects)•

Trusted relationships with financial
institutions enable us to obtainfinancing for projects that are normallydifficult to finance (e.g older buildings)•

February 2024

•

Sale
•

We adopt a flexible approach that is
not bound by factors such as existing
usage purpose or market rents

Strong relationships withinstitutional investors, high net
worth domestic individuals,
and foreign investors•

We utilize our extensive knowledge ofrenovation and reconstruction of oldproperties

We have the establishedcapabilities to find the optimal
investor for each property•

Recently, we have also
developed a new investor
base through the sale ofsmall-lot 50 million yen
products•

Creative leasing approach to fulfill
new needs and requirements•

Careful reviews of interim costs

A corporate culture and employees who relish challenges

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

9

Policy of Shareholder Return(Repost from materials published in May 2023)

FY2023/3

Dividend per share• Dividend per share
increased by 18 yen

FY2024/3 ~ FY2025/3

Shareholder returns
policyYoY to 55 yen• Annual dividend per share is set at a minimum of 175 yen• The dividend payout ratio target for FY2024/3 & FY2025/3 is 40%

Dividend per share(yen)

Actual/Initial plan

Forecast

250

Minimum dividend per share of
200

175

175 yen

196

150

100

75
60

55
50

37

0
FY2022/3

February 2024

FY2023/3

FY2024/3

FY2025/3

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

10

This document was prepared to provide information related to the business overview and management strategies ofRaysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual.
Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information.
Furthermore, the information is subject to change without notice.

Inquiries
Administration Division,
Public Relations Division
Raysum Co., Ltd.
TEL 03-5157-8881
http://www.raysum.co.jp

February 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to change without notice.

11