Financial Results for the Second
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
Q2 ActualPL

FY Ending March
2024
Q2 Actual

Year-on-year

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

Progression rate

(in million yen)
Net sales

18,88838,828+19,939+105.6%90,00043.1%

Gross profit

6,526

12,589+6,063+92.9%

N/A

N/A

34.6%

32.4%

-

-2.1%

N/A

N/A

3,113

9,631

+6,517+209.3%18,000

53.5%

16.5%

24.8%

-

+8.3%

20.0%

N/A

Ordinary profit

3,188

9,440

+6,251+196.1%

16,80056.2%

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

16.9%

24.3%

-

+7.4%

18.7%

N/A

2,233

6,212

+3,979+178.2%

11,000

56.5%

11.8%

16.0%

-

+4.2%

12.2%

N/A

Gross profit margin
Operating profit
Operating profit margin

Financial highlights
Following the first quarter, several large properties were sold in
Q2. As of the end of Q2, progress toward the full-year forecast
was 53.5% for operating profit and 56.5% for profit attributableto owners of the parent (net income).

Steady performance towardachievement of full-year forecasts

Gross profit rose approx. 93% year-on-year while operating
profit rose approx. +209% year-on-year.

Virtuous circle of increased operating leverageas net sales increases

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

2

Segment Highlights
FY Ending March
2023
Q2 Actual

FY Ending March
2024
Q2 Actual

Year-on-year

Year-on-yearchange% change

FY Ending March 2024
Initial plan

Progression rate

PL (in million yen)
Net sales

18,88838,828+19,939+105.6%90,000

43.1%

Value Creation Services

15,62935,275+19,645+125.7%82,50042.8%

Value-Add Services

2,141

2,528

+387

+18.1%

4,500

56.2%

Future Value Creation Services

1,117

1,024

-93

-8.4%

3,000

34.1%

3,113

9,631

+6,517+209.3%18,000

53.5%

4,840

10,192+5,352+110.6%19,000

53.6%

344

685

+340

+98.7%

900

76.1%

Future Value Creation Services-1,672

-742

+929

NM

-1,000NM

Adjustment of all companies

-399

-504

-104

NM

-900

NM

Operating profit
Value Creation Services
Value-Add Services

Segment highlights (See P.11 for business details by segment)
In the core Value Creation Services segment, both net
sales and operating profit grew in Q2, following on fromQ1, due to several large real estate sales.

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,
there was also an impact from the deconsolidationof the golf course business which was sold in theprevious fiscal year.

Value Creation Services
drove overall performance

Revenue and profits increased in
Value-Add Services

Future Value Creation Services
saw a decline in revenue, but a narrowing of
the operating loss

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

3

Consolidated Balance SheetFY EndingMarch 2023

FY EndingMarch 2024

Change from

ActualQ2 Actualprevious
year-end

Comments

Balance Sheet (in million yen)
Current assets

96,216110,333+14,116

Cash and deposits

27,524

28,675+1,151

Real estate for sale

45,16740,068-5,098

Real estate for sale in process

17,07936,280+19,200

Non-current assets

10,535

10,888+352

Total assets

106,752

121,221+14,469

8,230

8,232

+2

Current portion of long-term borrowings

1,359

1,479

+120

Income taxes payable

4,052

3,340

-711

45,80355,192+9,389Long-term borrowings

41,39749,923+8,525

Deposits received from tenants

4,067

4,989

+922

Total liabilities

54,03363,425+9,391

Net assets

52,71857,796+5,077

Total liabilities and net assets

106,752

121,221+14,469

Current liabilities

Non-current liabilities

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

Net income of approximately 6.2 billion yen; dividend payments ofapproximately 1.6 billion yen

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

4Consolidated Statement of Cash FlowsFY EndingMarch 2023
Q2 Actual

FY EndingMarch 2024
Q2 Actual

Year-on-yearchangeComments

Cash flows (in million yen)

Cash flow from operating activities-1,164-5,507

Cash flows from investing activities-1,658-516

Cash flows from financing activities-13,046

7,029

121

143

-15,747

1,148

28,222

27,511

12,474

28,660Exchange 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

Approx. 35.3 billion yen of net sales in Value Creation Services;
approx. 31.9 billion yen spent on real estate purchases; approx.
-4,343
4.5 billion yen spent on renovation work; approx. 4.0 billion yen
spent on income taxes, etc.
Approx. 300 million yen of proceeds from paid-in capital
reduction of shares in affiliates; approx. 500 million yen spent+1,141on the acquisition of non-current assets; lending of approx. 200
million yen
Increase of approx. 8.6 billion yen from the difference between+20,076 new financing and repayment of borrowings; dividend payments
of approx. 1.6 billion yen, etc.

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

5

Progression Rate of Operating Profit by Quarter
Although sales and profits tend to be seasonally weighted to the 2nd half, the
1st half performance was very solid. The company is on track to achieve its full-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 Q2 were 17.6% and21.7%, respectively. Progress toward the full-year forecast for theyear operating profit target of 18 billion yen and is making further

efforts in procurement and sales initiatives to drive sales
growth in the next fiscal year and beyond.

current fiscal year was 53.5% at the end of Q2.

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
FY2021/3-2.5%※During FY2021/3, we
scaled back our sales
activities due to the
COVID-19 pandemic.

-5.1%

32.9%

16.1%

82.5%

-23.8%

94.9%

FY2023/3-1.6% 5.1% 16.5%

FY2024/3

25.0%

21.2%
-20.0%

Q4

5.5% 14.5%-0.6%-40.0%Q3

42.0%

FY2022/3-60.0%

Q2

0.0%

33.9%

48.1%

27.6%
79.9%

32.3%
20.0%

40.0%

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.
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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

6

Current Inventory Conditions
In the Value Creation Services business, despite sales ofabout 35.3 billion yen in the 1st half of the year, reserved
forecast net sales which was approx. 141.1 billion yen as of
May 2023 has now increased to approx. 201.9 billion yen(approx. +60.8 billion yen, +43% in about 6 months)

Steady progress inpurchasing to further increase
sales and profits in the next fiscal
year, as highlighted in theMedium-Term Management Plan.

Although there will be significant expenses related toadding value in future along with high unsettled
balances, and there are many properties wherecontracts have been brought forward and settlement
delayed, so the balance of cash and deposits is

not a problem.

Reserved forecast net sales in light of current inventory levels(in million yen)

250,000*Average gross profit margin for all
deals (on a weighted average basis)over the past five years from FY2019/3
to FY2023/3 is 27.6%, and 32.4% for
the 1st half of FY2023.

200,000

150,000

Refer to P.14 ofdisclosure materials in
May 2023

22,39958,717100,000

201,877
157,464

141,12250,00076,3480Reserved forecast net sales
as disclosed in May 2023

Real estate for sale + for sale in Amount of contracted but unsettled
process
properties(end-Sept.)
and estimated value improvement
costs forexisting/new properties

Amount of unsettled properties
to be purchased within a year

Total estimated book value*Reserved forecast net sales
with our 22.0%-profit

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

7

Ratio of Tradable Shares Improved Significantly due to the Share
Buyback through Tender Offer, Whose Period Ended in OctoberWe cancelled 2,841,700 shares repurchased through the self-tender offer. Of these, we acquired
2,840,700 shares from Japan Investment Inc., the second largest shareholder in the Company,
resulting in a significant increase in the tradable share ratio.
The tradable share ratio is forecast to improve to a maximum of 33% (see note) after
completion of the public offering, which is expected to be implemented in future in order to secure
the funds necessary to achieve the medium-term management plan.

Since the maximum number of shares to be issued
via the public offering will be no more than thenumber of shares repurchased through the selftender offer, no share dilution is expectedcompared to before the self-tender offer.

Total number of shares issued and tradable share ratio after share buyback through tender offer and public offering (Note)
No increase in total number of shares issued

As of 03/31/2023

After share buyback and cancellation ofshares acquired through tender offer
Total number of shares issued(LHS)

Post-public offering(Maximum)Tradable share ratio (RHS)

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 is assumed to be 2,841,700 shares, the same number of shares acquired through the tender offer and canceled. Calculations are based on the assumptionthat all 2,840,700 shares, excluding the 1,000 shares remaining in Japan Investment Inc. after the tender offer become tradable shares.
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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

8

Case study of property sold in FY2024/03 (1/2)- New development in a prime Kyoto location Overview
Name

Kyoto Shijo PJ

Principal value
improvement method

New construction development

Other value improvement
methodN/AAge (at time of purchase)

N/A

Land area

Approx. 120 tsubo (397m2)

Floor area

Approx. 800 tsubo (2,645m2)

Leasable area

Approx. 700 tsubo (2,314m2)

Floor area ratio

700%

Number of stories

9 floors above ground

Asset classCommercial/OfficeMonth and year ofpurchase

March 2021

Month and year of sale

June 2023

Sale value

Between 5-10 billion yen

Photo

Highlights•

Simultaneous purchase of two connected, highly visible buildings located in Shijo, Kyoto. We
acquired the properties while they were under the management of the previous owner whose hotel
operations were impacted by the COVID-19 pandemic.

•

The existing buildings were demolished and new wide frontage buildings were constructed withseparate entrances for the retail space and the office space. Taking advantage of its location, we
have transformed the property into an income-generating asset with stable occupancy by attracting
luxury brands on the ground floor, with the upper floors leased out as office space and to service
providers.

•

We saw strong interest from an investor who wanted to own a prime real estate asset in Shijo,
Kyoto. Since the investor owned a prime location property in Tokyo, we sold the Kyoto Shijobuilding on the condition that we could purchase the Tokyo property in exchange.

•

The building received a Good Design Award in 2023 in recognition of the innovative architecturaldesign of its frontage, making the most of narrow land, which is a common feature of Kyoto.

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

9Case study of property sold in FY2024/03 (2/2)
Large-scale renovation of an old property in Urawa
Overview
Name

Shimadaya Hondaya Building

Principal value
improvement method

Large-scale renovation

Other value improvement
methodIncrease NOIAge (at time of purchase)

46 years

Land area

Approx. 300 tsubo (992m2)

Floor area

Approx. 1,100 tsubo (3,636m2)

Leasable area

Approx. 800 tsubo (2,645m2)

Floor area ratio

400%

Number of stories

5 floors above ground/1 basement
floor

Asset classCommercial

Month and year ofpurchase

March 2023

Month and year of sale

September 2023

Sale value

Between 2-5 billion yen

Photo

Highlights• The property was built 46 years ago in a prime location near Urawa Station in Saitama City,
Saitama Prefecture. The building had no inspection certificate and the existing main tenant had
decided to vacate the building. Against this backdrop, we acquired the property while otherbuyers were hesitant about making a move.
• We successfully carried out a large-scale renovation to make the asset more attractive to new
tenants and to significantly increase NOI.
• The building is an income-generating asset and is almost 100% occupied in a prime location. It
will eventually be sold to a major Japanese business corporation, a long-term investor looking
at future redevelopment.

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

10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

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

11

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)
•

•

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

12

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 of200
175

175 yen

196

150

100
75
60

55
50

37

0
FY2022/3

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

13

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

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

November 2023 Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, 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 ch ange without notice.

14