Financial Results for Fiscal YearEnding March 31, 2023

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 topurchase 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 thisdocument 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 EndingMarch 2022
ActualPL

FY EndingMarch 2023
ActualDifference vs.

% Change vs.

previous year

previous year

FY Ending March 2023
Initial plan

Difference vs. plan

(Million yen)
Revenue

68,402

67,906

-496

-0.7%

80,000-15.1%

Gross profit

16,444

20,368+3,924+23.9%

NA

NA

24.0%

30.0%

-

+6.0%

NA

NA

11,363

14,371+3,008+26.5%

12,500+15.0%

16.6%

21.2%

-

+4.6%

15.6%

+5.5%

10,445

12,851+2,406+23.0%

11,600+10.8%

15.3%

18.9%

-

+3.7%

14.5%

+4.4%

6,630

8,376

+1,746+26.3%

7,500+11.7%

9.7%

12.3%

-

+2.6%

9.4%

+3.0%

EPS

181.0

269.7

+88.7

+49.0%

204.9+31.6%

ROE

13.2%

15.8%

-

+2.6%

NA

NA

Gross profit margin

Operating profit
Operating profit margin

Ordinary profit
Ordinary profit margin

Profit attributable toowners of parent
Net income margin

Capital efficiency

Financial highlights
Although revenue decreased as a result of fewer property sales than initially expected,
the gross profit margin rose significantly reflecting two large sales worth over 10 billion
yen and better-than-expected profit margins on property sales.

Following the cancellation of 9 million treasury shares (19.53% ofissued shares pre-cancellation) in March 2022, the company conductedbuyback of 8 million shares in June 2022 and canceled these (21.57%
of issued shares pre-cancellation) in July 2022. As a result,

Highest profit achieved since
the Lehman Crisis

EPS grew+49.0% YoY

May 2023

High level of pipeline of properties
from this FY onward (see P.14).

Groundworks are laid
for record high profits

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 topurchase 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 thisdocument 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 2022

FY Ending March 2023

Difference% Change

ActualActualvs. previous year

vs. previous year

PL (Million yen)
Revenue

68,402

67,906

-496

-0.7%

Value Creation Services

61,893

61,419

-474

-0.8%

Value-Add Services

4,964

4,416

-548

-11.0%

Future Value Creation Services

1,544

2,071

+527

+34.1%

11,363

14,371+3,008+26.5%

Value Creation Services

12,955

16,653+3,698+28.5%

Value-Add Services

1,104

765

-339

-30.7%

Future Value Creation Services-2,059-2,302-243

NM

Adjustment of all companies

-636

-745

-109

NM

Operating profit

Segment highlights (See P.30 for business details by segment)
In the core Value Creation Services segment, we were able tosell large-scale properties and to achieve better margins than
expected, resulting in revenue and operating profit growth.

In the Value-Add Services segment, rental income
decreased due to the sales of large-scale properties.
As a result,

Value Creation Services drove
overall group results

Revenue and profits decreasedin Value-Add Services

May 2023

In the Future Value Creation Services segment, although revenue
were up, the segment loss widened. We sold the golf course
business at the end of the second quarter, which accounts for about
half of this fiscal year's loss. The impact of COVID-19 on the lodging
and other businesses was also significant, especially in the first halfof the year.

In Future Value Creation Services,
revenue were up, but profits decreased

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 topurchase 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 thisdocument 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 2022

FY EndingMarch 2023

Difference

ActualActualvs. previous year

Comments(million yen)
Current assets

96,322

96,216-105

Cash and deposits

28,222

27,524-698

Real estate for sale

24,57345,167+20,593

Real estate for sale in process

38,56017,079-21,481

Non-current assets

13,524

10,535-2,989Total assets

109,847

106,752-3,095Current liabilities

10,3728,230-2,142Current portion of long-term borrowings

1,361

1,359

-2

Income taxes payable

5,493

4,052

-1,441

46,04145,803-238

Long-term borrowings

41,91041,397-514

Deposits received from tenants

3,678

4,067

+389

Total liabilities

56,41354,033-2,380Net assets

53,43352,718-714

Total liabilities and net assets

109,847

106,752-3,095

Non-current liabilities

May 2023

Decrease due to transfer of shares of Asset Holdings (golf course
business)

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

Net income was approximately 8.4 billion yen. Purchase of approx. 7.8
billion yen of treasury 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 topurchase 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 thisdocument 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 2022

FY EndingMarch 2023

Difference

ActualActualvs. previous
year

Comments

Cash flows (million yen)
Cash flow from operating activities

15,4408,706

Cash flows from investing activities-3,243

193

Cash flow from financing activities-3,946-9,666

49

56

8,300

-710

19,922

28,222

28,222

27,511

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

May 2023

Approx. 61.4 billion yen of revenue in Value Creation Services;-6,734 approx. 35.2 billion yen in spend on real estate purchases;
approx. 9.4 billion yen in spend on renovation work, etc.
Proceeds from transfer of shares of Asset Holdings (golf+3,436 course business) of approx. 2.1 billion yen; lending of approx.
600 million yen
Approx. 7.8 billion yen in repurchase of treasury stock; approx.
1.4 billion yen in dividend payments; approx. 400 million yen of-5,720decrease resulting from difference between cash inflow fromnew funds raised and repayment of loans, 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 topurchase 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 thisdocument 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

Case Studies of Property Sales in FY Ending March 2023 (1/2)
Large-scale old building: Coordinate / consolidate land rights; creation of land for development
Overview
Name

Shinjuku Yasukuni Dori PJ

Principal value
improvement method

Create land for development

Other value improvement
methodCoordinate/consolidate land rights

Age (at time of purchase)

50 years

Land area

Approx. 200 tsubo (660m2)

Floor area

Approx. 2,000 tsubo (6,600m2)

Leasable area

Approx. 1,500 tsubo (4,960m2)

Floor area ratio

900%

Number of stories

9 floors above ground /3 floors below ground

Asset classCommercial

Month and year ofpurchase

January 2022

Month and year of saleFebruary 2023

Sale value

10 billion yen or more

May 2023

Photo

Highlights•

A 50-year-old large-scale commercial facility with a total floor area of approx. 2,000 tsubo (6,600m2),
located in Shinjuku. The property was acquired when many tenants were impacted by the COVID19 pandemic•

We carefully explained to the tenants that since the building was 50 years old and had been built toout-of-date earthquake resistance standards, it did not meet current earthquake resistancerequirements and we were therefore reviewing whether to demolish it. In addition, there were partsof the site where superficies rights were not properly established, which added to the complexity ofthe situation•

Since fixed-term lease agreements with many tenants had expired and preparations for rebuilding
were underway, the buyer's purchase conditions were already met, and the property was soldwithout any rebuilding work performed

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 topurchase 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 thisdocument 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

Case Studies of Property Sales in FY Ending March 2023 (2/2)
New green building development
Overview
Name

Jingumae 2-chome PJ

Principal value
improvement method

New construction development(ZEB Ready certification)

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

N/A

Land area

Approx. 700 tsubo (2,315m2)

Floor area

Approx. 2,500 tsubo (8,265m2)

Leasable area

Approx. 1,800 tsubo (5,950m2)

Floor area ratio

500%

Number of stories

6 floors above ground

Asset class

OfficeMonth and year ofpurchase

November 2019

Month and year of saleFebruary 2023

Sale value

10 billion yen or more

May 2023

Photo

Highlights•

We purchased land in Jingumae, close to Harajuku, Meiji Jingumae and Omotesando stations, from a major
developer. The site was originally the head office of a clothing company. We acquired the property at a time
when developers were hesitant about building apartments in the city center due to the COVID-19 pandemic•

We saw the potential for attractive returns from a new office concept, taking advantage of the location's
unique characteristics. We confirmed that there was strong demand for environmentally friendly offices, andproactively utilized advanced technologies to reduce the environmental impact of the development throughincorporating natural light and wind flow. We obtained ZEB Ready certification (Net Zero Energy Building)•

Although the initial plan was to lease the space and sell the building once it was fully occupied, there wasstrong demand from investors to purchase the entire building at the construction stage and we sold withoutleasing

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 topurchase 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 thisdocument 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

Consolidated Financial Results Forecast for
the Fiscal Year Ending March 2024
FY Ending March 2023

FY Ending March 2024

Difference% Change

ActualForecast

vs. previous year

vs. previous year

PL (Million yen)
Revenue

67,90690,000+22,094+32.5%

Value Creation Services

61,41982,500+21,081+34.3%

Value-Add Services

4,416

4,500

+84

+1.9%

Future Value Creation Services

2,071

3,000

+929

+44.9%

14,371

18,000+3,629+25.3%

16,65319,000+2,347+14.1%

765

900

+135

+17.6%-2,302-1,000+1,302

NM

-745

-900

-155

NM

Operating profit
Value Creation Services
Value-Add Services
Future Value Creation Services
Reconciling items

Key points in the forecast for the fiscal year ending March 2024
In the core Asset Value Creation Services segment, we intend toincrease our focus on purchasing activities with a higher allocationof human resources than previously. We will also increase ourefforts on sales to domestic and foreign corporations andindividuals overseas.

In the Value-Add Services segment, while property
management income is stable, rental income fromcompany-owned properties differs from the level of rental
income derived from properties owned by the company lastyear.

In the Future Value Creation Services segment, wesold the golf course business, which made a loss ofapprox. 1 billion yen last year. Other businesses arealso on an improving trend.

Plan in place to drive significant growth inrevenue and profit in Value Creation Services

In Value-Add Services, we only expect
modest growth in revenue and profit

We expect a sharp reduction in losses inFuture Value Creation Services

May 2023

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 topurchase 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 thisdocument 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

Upward Revision of theMedium-Term Management Plan

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 topurchase 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 thisdocument 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

Upward Revision of the Medium-Term Management Plan
Metrics and Targets
FY Ended March 2023
Actual(Million yen)

FY Ending March 2024
TargetFY Ending March 2025
TargetPL
Revenue

67,90690,000115,000-0.7%+32.5%+27.8%

14,371

18,00023,000

21.2%

20.0%

20.0%

12,851

16,80021,500

18.9%

18.7%

18.7%

8,376

11,00014,000

12.3%

12.2%

12.2%

Dividend payout ratio

20%

Guideline of 40%

Guideline of 40%

Dividend per share

55 yen

175 yen

196 yen

N/A

175 yen

175 yen

ROE

15.8%

15~20%+

15~20%+

EPS

269.7

384.6

489.5

Growth rate
Operating profit
Operating profit margin
Ordinary profit
Ordinary profit margin
Profit attributable to owners of parent

Net income margin
Shareholder return

Minimum dividend per share
Capital efficiency

May 2023

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 topurchase 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 thisdocument 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

Difference with the Previous Medium-Term Management Plan
FY Ending March 2023
ActualPL

FY Ending March 2024
TargetFY Ending March 2025
TargetPrevious plan

New planPrevious plan

New plan

Revenue

67,90690,00090,000100,000

115,000

Operating profit

14,371

13,50018,00017,00023,000

Profit attributable toowners of parent

8,376

8,300

11,00010,50014,000

Dividend payout ratio

20%

20%

Target of 40%

20%

Target of 40%

Dividend per share

55 yen60 yen

175 yen

75 yen196 yen

Minimum dividend
per share

N/A

N/A

175 yen

N/A

175 yen

15.8%

10-20%

15-20%+

10-20%

15-20%+

Shareholder return

Capital efficiency
ROE

May 2023

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 topurchase 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 thisdocument 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

Record High Profit Forecast
We expect to achieve record high profits in the final year of the medium-term management planfollowing a successful recovery post the Lehman crisis（in JPY bn）

Revenue (LHA)

Operating Profit (RHA)

140

30
23
115

120
18

18

15

14

100
11

10
7

80

8
6

5
1

58

60

0

1

2

6

11

12

90

11

39

68

3
59

15

68

2
55

5
0

44

40

32

31

23
17

20

20

10

7

49
40

25

-14

34

-5
32

28

20

16

-10

15
9

8

0

-15
-20

FY2003/3 FY2004/3 FY2005/3 FY2006/3 FY2007/3 FY2008/3 FY2009/3 FY2010/3 FY2011/3 FY2012/3 FY2013/3 FY2014/3 FY2015/3 FY2016/3 FY2017/3 FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2022/3 FY2024/3 FY2025/3(E)(E)

May 2023

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 topurchase 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 thisdocument 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.

12

Reasons for Upward Revision of Medium-Term Management Plan

01

Sales targets based on current inventory
conditions and past purchase performance

02

High operating leverage in effect as value pertransaction increases

03

Leverage our strong balance sheet

Reasons04

May 2023

Reduced deficit in Future Value Creation Services

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 topurchase 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 thisdocument 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.

13

1

Reasons for Upward Revision of Medium-Term Management Plan
Sales targets based on current inventory conditions and past purchase performance
Although we only include a small
number of properties scheduled for salein the FY ending March 2026 andbeyond, we forecast reserved revenueof approx. 141.1 billion yen

In the remaining two years of themedium-term management plan,we aim to accumulate revenue ofapprox. 190-200 billion
yen in Value Creation Services

If we set a sales target of 200 billion yen, we need to generate additional
revenue of 58.9 billion yen by the first half of FY ending March 2025
(approx. 1.5 years remaining) to achieve this objective. We areconfident that we can achieve this given that the annual
procurement of real estates over the last 5 years were around 57.4 billion
yen on sale value basis

Reserved forecast revenue based on current inventory status and revenues required to achieve target(Unit: Million yen)

250,000* The average annual procurement ofreal estates over the past five years
was 57.4 billion yen on sale value basis

200,000* The average gross margin for all
deals (weighted average basis) overthe past five years was 27.6%

150,000

58,878100,000

200,000
47,829141,122

110,075

50,00062,246
0
Real estate for sale +Real estate for sale in process(as of March end)

Value of contracted properties
which has not settled yet andestimated costs for adding value to
new/existing properties

Total expected book value※Estimated reserved revenue
based on 22.0% gross profit margin

Current balance sheet and future sales activities
May 2023※Revenues required in theremaining 1.5 years

Revenues required to accumulate
in the remaining 2-year
management plan in the Value
Creation Services

Purchasing and sales activities
over the remaining period of the medium-term
management planThis 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 topurchase 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 thisdocument 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.

14

2

Reasons for Upward Revision of Medium-Term Management Plan
High operating leverage in effect as value per transaction increases
The personnel resources that are allocated to each real estate

In Value Creation Services and Value-Add Services, we expect to be able toproject are not determined by the size ofincrease operating profit per employee by utilizing

the transaction

operating leverage through focusing on large-scale properties

Changes in operating profit and operating profit per employee in the real estate business(Value Creation Services, Value-Add Services, head office costs)
Operating profit (LHA)(Million yen)

Operating profit per employee (RHA)

20,000200
16,67315,00013,423

12,888
11,325
10,000

159

150

133
119

106

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

100

3,615

5,000

50

33
0

0
FY2019/3

FY2020/3

FY2021/3

FY2022/3

FY2023/3

Notes: Operating profit and employee numbers exclude Future Value Creation Services.

May 2023

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 topurchase 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 thisdocument 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.

15

3

Reasons for Upward Revision of Medium-Term Management Plan
Leverage our strong balance sheet
The Company has a very strong
balance sheet with capital
adequacy ratio of 49% andmaintain a high liquidity ratio of

11.7x

approx. 500 million yen at

The majority of our bank loans have long-term
maturities with no covenants attached. We havepresent. The impact of any future
rate rises will be limited

sufficient capacity to expand our business and to remain resilient in
the face of macroeconomic downturns

Interest expenses are only

Balance sheet for year ending March 2023

Breakdown of current assets(Unit: Million yen)

6,446
7%

Current liabilities

8.2 billion yen

27,52428%
Cash and deposits

Non-current liabilities
Current assets

96.2 billion yen

45.8 billion yen
Real estate for sale andreal estate for sale inprocess
OthersNet Assets

52.7 billion yen
Fixed Assets

62,24665%

10.5 billion yen
May 2023

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 topurchase 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 thisdocument 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.

16

4

Reasons for Upward Revision of Medium-Term Management Plan
Significant turnaround expected in loss-making Future Value Creation Services
In Future Value Creation Services, we expect to reduce the operating loss of about 2.3 billion yen recorded in
FY2023/3, by approx. 1.3 billion yen in FY2024/3
Business description

Asset holdings(Golf course business)

We Base /Edajimaso

Ownership and operation of golf coursesOperation of seven lodging facilities
Most land and buildings are not owned by theCompany

RayPower(Emergency generator
business)Production and sales of 3kVA and 50kVA
emergency generators
The business operates under a “fabless”
system (outsourced fabrication)

Best Medical(Medical services)

LIBERTE(Lodging business)(Bakery business)

May 2023

Trends from this fiscal year onward

Comprehensive medical services and healthcheckups for high net-worth customers
Stress-free endoscopy is a key feature

Occupancy rates are recovering, helped by a partial upturn in inbound tourism
Our plan is to determine future management policies at an early stage while monitoring the extent ofrecoveryMore attention is being paid to BCPs (Business Continuity Plans) and we see increasing interest from large
customers on this topic
We have launched structural reforms to optimize the expansion of production while keeping a close eye on
our order status
In the fiscal year ending March 31, 2023, we proactively recorded a provision of approx. 1 billion yen forbusiness restructuring expenses







Operation of three French bakery stores (onein Kichijoji and two in Kyoto)

The business was sold at the end of the second quarter of the fiscal year ending March 31, 2023 and will nolonger impact profits from this year
Approx. 1 billion yen benefit to profitIn the fiscal year ending March 31, 2023, we saw an approx. fourfold increase in the number of patients
utilizing our services
We are looking to expand the number of cases we handle by collaborating with universities and othermedical institutions, in order to grow profits further without incurring additional costs
The business was profitable notwithstanding the backdrop of rising inflation. In future, we will consider waysof franchising without incurring additional costs
LIBERTE items are popular as gifts and souvenirs with customers who come across the brand in their main
business. This means the business has a brand value that goes beyond the financial results

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 topurchase 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 thisdocument 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.

17

Strengthening Corporate Governance: Summary

We have implemented the following improvements to corporate governance

1

2

3

4

5

Shareholder
return measuresdesigned tomaximize
corporate value

Rejuvenation of
the board
structure

Appointment of
2 female outside
directors

Management
incentivization
based onrestricted stock
awardsEstablishment of
optional
Nomination andRemuneration
Committee

May 2023

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 topurchase 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 thisdocument 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.

18

1Strengthening Corporate Governance
Shareholder return measures designed to maximize corporate value
Since our price to book ratio remains consistently below 1x, we have formulated more aggressive shareholder return measures

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

May 2023

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 topurchase 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 thisdocument 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.

19

1

Reference: Analysis of implied stock price and dividend yield assuming
a dividend of 175 yen per share
Implied stock price(Dividend per share of 175 yen/dividend yield)
Dividend yield

Implied stock price (Yen)

2.00%

8,750

2.05% (Standard Market average)

8,537

2.40% (Prime Market average)

7,292

3.00%

5,833

3.87% (The Company’s previous level)

4,528

4.00%

4,375

5.00%

3,500

6.00%

2,917

7.00%

2,500

Note: Standard Market average, Prime Market average, and the Company’s previous level are as of May 10, 2023

May 2023

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 topurchase 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 thisdocument 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.

20

2Strengthening Corporate GovernanceRejuvenation of the board structure
Since last year‘s annual general meeting (“AGM”), the Board of
Directors has determined to increase the number of board members byseven (two directors from Oasis, the largest shareholder, appointed at the extraordinary

As a result, the average age of the new board of directors will reduce from

61 years at the previous annual general shareholder meeting to 52 years

shareholders meeting in January 2023; three young directors and two female directors tobe appointed at the AGM in June 2023)

Board of Directors post-AGM in June 2022#

Position

1

President, Representative Director

2

3

Name

Age

Board of Directors post-AGM in June 2023 (expected)
GenderTsuyoshi Komachi

50

Male

Executive Vice President,
Representative Director

Tatsuya Iizuka

63

Male

Senior Managing Director

Kiyoshi Isogai

68

Male

4

Executive Managing Director

Taro Someya

48

Male

5

Director (Full-time Audit andSupervisory Committee Member)

Hideaki Okada

57

Male

6

Outside Director (Audit andSupervisory Committee Member）

Takashi Fukai

7

Outside Director (Audit andSupervisory Committee Member）

Shinichi Nakase

51

Male

8

Outside Director (Audit andSupervisory Committee Member）

Masaki Miki

78

Male

Average：
61

Ratio of female
directors: 0%

69

Male

#

Age

GenderPresident, Representative Director

Tsuyoshi Komachi

51

Male

2

Executive Vice President,
Representative Director

Tatsuya Iizuka

64

Male

3

Senior Managing Director

Kiyoshi Isogai

69

Male

4

Executive Managing Director

Taro Someya

49

Male

5

Managing Director

Kentaro Kanai

32

Male

6

Managing Director

Yuji Shinohara

31

Male

7

Managing Director

Daisuke Inoue

40

Male

8

Managing Director

Nobuyuki Ozawa

38

Male

9

Managing Director

Kazuhisa Horie

40

Male

Hideaki Okada

58

Male

Takashi Fukai

70

Male

Shinichi Nakase

52

Male

Masaki Miki

79

Male

Harumi Kobe

61

FemaleMayumi Ando51

FemaleAverage： 52

Ratio of female
directors: 13%

10

12

13
14
15

Director (Full-time Audit and Supervisory
Committee Member
Outside Director (Audit and Supervisory
Committee Member）
Outside Director (Audit and Supervisory
Committee Member）
Outside Director (Audit and Supervisory
Committee Member）
Outside Director (Audit and Supervisory
Committee Member）
Outside Director (Audit and Supervisory
Committee Member）
Ratio of outside directors: 33%

May 2023

Name

1

11

Ratio of outside directors: 38%

Position

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 topurchase 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 thisdocument 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.

21

2Strengthening Corporate GovernanceAppointment of 3 young directors
We recognize the importance of rejuvenating the board of directors and are appointing three new directors.
We are strengthening governance by appointing two directors from inside the company, along with one director from outside who has experience atother companies (to be appointed at AGM in June)

Daisuke Inoue

Nobuyuki Ozawa

Kazuhisa Horie

Date of birth:
October 10, 1982

Date of birth:
September 27, 1984

Date of birth:
March 28, 1983

April
2006

Joined Meiwa Estate Co., Ltd.

April
2007

Joined Raysum Co., Ltd. (New graduate)

January
2008

Joined Raysum Co., Ltd.

April
2014

General Manager, Legal Department

April
2017

General Manager, Real Estate Headquarters

April
2019

Executive Officer and General Manager,
Legal Department

October
2021

Executive Officer and General Manager,
Real Estate Headquarters

October
2020

Raysum Capital Co., Ltd.
Representative Director (Current position)

April
2022

Senior Executive Officer, Real Estate Headquarters
General Manager, Real Estate Division (Current
position)

November
2021

Executive Officer and General Manager, Legal
Department andHead of Legal Structuring (Current position)

May 2023

April
2005

Joined Yachiyo Bank (now Kiraboshi Bank, Ltd.)

August2007

Joined Goldman Sachs Realty Japan
Limited

September
2019

Goldman Sachs Japan Co., Ltd.
Transferred to the Asset Management Department

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 topurchase 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 thisdocument 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.

22

3Strengthening Corporate GovernanceAppointment of two female outside directors
We place great importance on the ratio of outside directors and the ratio of female directors in order to enhance diversity.
We will appoint two female outside directors (scheduled to be elected at AGM in June). As a result, the ratio of female

directors will increase from 0% to 13%

April 1985
July 1991
May 2000

Harumi Kobe

Mayumi Ando

Date of birth: April 6, 1962

Date of birth: November 30, 1971

Joined the Ministry of FinanceDirector of Kakegawa Tax Office, Nagoya
Regional Taxation Bureau
First secretary of Mission of Japan to theEuropean Union (counselor from Jan 2002)

July 2011

June 2013
July 2014(In charge of Customs and Tariff Bureau)

Embassy of Japan in Belgium

July 2003

Director for Minister's Secretariat, Ministry of
Finance

June 2016(International Organizations Division, International Bureau)

July 2005
July 2006
July 2008

October 2009
July 2010

Director, First Taxation Department, Tokyo
Regional Taxation Bureau
Director, Liquor Tax and Industry Division,
Taxation Department, National Tax Agency
Director, Large Enterprise and Criminal
Investigation Department, Large Enterprise
Division, National Tax Agency
Director, Customs Clearance Division,
Customs and Tariff Bureau, Ministry of
Finance
Director, Planning Division, Commissioner's
Secretariat, National Tax Agency

May 2023

Accounts Division, Commissioner’s
Secretariat, National Tax Agency
Regional Commissioner, Hiroshima Regional
Taxation Bureau (First female director)
Deputy Director General for Minister's
Secretariat, Ministry of FinanceJuly 2018

Deputy Director-General for Cybersecurity
and Informatization, Minister's Secretariat,
Ministry of Finance
Deputy Director General for Minister's
Secretariat, Ministry of Finance(In charge of Minister's Secretariat)

July 2019Concurrent appointment as Deputy Directorof the Policy Research Institute
Professor at the National Graduate Institutefor Policy Studies(Graduate School of Policy Studies)

July 2021
November
2021
June 2022

Retired from Ministry of Finance

April
1995

Chemical Bank (now JPMorgan Chase Bank)
Joined Tokyo Branch

September
1999

Joined Morgan Stanley Securities

February
2001

Joined Rating and Investment Information, Inc.

April
2007

Joined Tokio Marine Asset Management Co., Ltd.

August2021

Co-Head of Gender Research Institute (Current position)

Adviser, Aioi Nissay Dowa Insurance Co.,
Ltd. (Current position)
Outside Director, Amada Co. Ltd. (Current
position)

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 topurchase 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 thisdocument 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.

23

4Strengthen corporate governanceManagement incentivization based on restricted stock awards
Performance-linked compensation and restricted stock awards

to ensure that management is aligned withshareholder interests

Concept of thecompensation system

May 2023

Our aim is to ensure that the business ismanaged with a keen awareness of stock priceperformance01

Basic remuneration

02

Performance-linked compensation

03

Stock-based compensation• Comprehensive consideration of the company's business performance,
the individual’s contribution, and other factors in accordance with eachdirector's position, responsibilities, and length of tenure• A lump-sum payment is made each fiscal year based on the percentage
increase in "consolidated operating profit" for the year compared to theprevious year. Annual “performance-linked compensation” under thispolicy is paid in the following fiscal year

• Delivery of restricted shares and stock acquisition rights as tax-eligible
stock options. In order to incentivize management with respect to medium
to long-term business performance and stock price appreciation, restricted
stock is subject to a transfer restriction period from the date of delivery,
and these restrictions are lifted upon a director’s retirement. Similarly,
restriction periods for exercise of stock options are also in place

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 topurchase 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 thisdocument 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.

24

5Strengthening Corporate Governance
Establishment of optional Nomination and Remuneration Committee
We have established a optional Nomination and Remuneration Committee to strengthen corporate
governance
Establishment of optional of Nomination and Remuneration Committee

Nomination and Remuneration Committee

Deliberation

The Nomination and Remuneration Committee consists of six directors, including three outside directors,
and deliberates on the following:

Internal

Reports

Resolution
May 2023

External

1.

Policy regarding the appointment and dismissal of Directors

2.

Proposals for agenda items for the General Meeting of Shareholders regarding the appointment anddismissal of Directors

3.

Proposals for the selection and dismissal of representative directors and executive directors

4.

Other matters deemed necessary by the Board of Directors regarding the appointment and dismissal of
Directors

5.

Policy regarding the resolution of remuneration and other benefits for Directors

6.

Matters concerning proposals for the General Meeting of Shareholders regarding Directors’ remuneration

7.

Details of individual Director’s remuneration and other benefits (excluding Audit and Supervisory Committee
members)

8.

Establishment, amendment, and abolition of basic policies and measures for resolution of the preceding
items

9.

Other matters deemed necessary by the Board of Directors regarding Directors’ remuneration and otherbenefits

Board of Directors

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 topurchase 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 thisdocument 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.

25

Initiatives to Boost PBR Over 1x
Raysum’s
PBR
is currently
below 1x

On the other hand, in terms of ROE and EPS growth, which arealso focus indicators for us, ROE is well above the 8%

Our analysis is that our PBR is less than 1x because 1)
investors believe they will not see the benefits of the
profits we make in terms of shareholder returns, and 2)
our results tend to be very volatile. In order to get our
PBR back over 1x as quickly as possible, we aim to
maximize our efforts to stabilize performance and to
significantly improve our shareholder return policy (seeP.19)

objective set for Japanese companies in the
Ito Report, and our average annual EPS
growth over the past 10 years has also beenstrong at around 20%. Naturally we aim for long-termsustainable growth

Trend in the Company’s ROE and EPS over the past 10 years
ROE (LHA)

EPS (RHA)

10Y EPS CAGR: 19.7%

25%

20.9%

300

20.7%

20%
17.3%

17.1%
14.9%
15%

200.6

181.0

207.9
188.1

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

141.6

128.0

250

15.8%

200

17.2%

10.3%
10%

269.7

13.2%
150
100

108.0
5%

50

53.5

1.4%
18.1

0%
2014/3

May 2023

2015/3

2016/32017/3

2018/3

2019/32020/32021/302022/32023/3This 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 topurchase 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 thisdocument 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.

26

Medium to Long-term VisionThis 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 topurchase 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 thisdocument 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.

27

Roadmap to Medium to Long-Term Vision
Medium to Long-term Vision

1

Business Strategy•••

Focus on medium-sized properties with a sale value
range of approx. 5 to 30 billion yen
Active engagement in joint investment projects with highcapital efficiency
Create a virtuous circle of clients through meeting thedemands of domestic corporations who are increasingly
focused on capital efficiency and overseas corporations
and high net worth individuals who are reviewing theirglobal asset holdings, while at the same time enhancing
our ability to provide unique products to domestic highnet worth individuals in terms of both quantity andquality

RevenueROE

300 billion yen

20%+

2

Financial Strategy•

Maintain a capital adequacy ratio of 40% or morein principle to ensure flexibility in our ability toacquire property at any time•

10-year loan terms with no covenants concerning
forfeiture of the benefit of time•

Well-balanced allocation of operating cash flow toinvestment for growth and active shareholder
returns•

Dividend payout ratio raised from 20% to 40%

3

Non-Financial Strategy•

Strengthen corporate governance•

Actively develop and promote human resources;
improve the appointment and appraisal-based
remuneration system•

Enhance think-tank capabilities•

Help Raysum’s belief sink in, connecting “thefuture” and “the essence of people’s thoughts andfeelings”

Basic management policy to achieve the objectives
Based on the three management approaches of Business Strategy, Financial Strategy and Non-Financial Strategy, we strive to consistently enhance corporate value across a
broad range of stakeholders. We intend to accelerate growth with medium to long-term targets of 300 billion yen revenue and ROE in excess of 20%
Current FY Ending March 2023
RevenueROE

67.9 billion yen 15.8%
May 2023

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 topurchase 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 thisdocument 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.

28

Raysum’s Philosphy

Importance of fulfilling our mission for society•

Conversion of real estate whose value has been lost over time into real estate that has a real
meaning for society in the future•

The accumulation of experience in shaping thoughts and ideas into products is none other thanchanging what seems to be a coincidence in society, into destiny for our company•

We aim to be a leader by always staying ahead of change so we can identify the essential valueof real estate and create real estate that will bring joy to our clients and society

Key values for the delivery of our mission•

We place the utmost importance on realizing the essential value of real estate through “boots on
the ground” site inspections and careful deliberations in the field•

The key to this is “implementation and achievement through utilizing imagination that connects
the present and the future.” The foundation of this aspiration is a desire to create unique realestate that satisfies society and opens the door to a brighter future

May 2023

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 topurchase 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 thisdocument 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.

29

Raysum’s Business Segment
Details

Revenue
FY Ending March 2023
(Percentage of total)

Operating Profit
FY Ending March 2023
(Operating profit margin）

61,41916,653

90.4%

27.1%

4,416

765

6.5%

17.3%

2,071

-2,302

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 are 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 casesCreate 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 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 individual (see P.36)

Value-Add
Services

Real 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

Future Value
Creation
Services

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 as noted on P.17, we are increasingly confident in our ability to reduce the deficit andreturn to profit in future

May 2023

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 topurchase 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 thisdocument 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.

30

Key Features of Properties Sold Over the Past Five Years
Office and commercial
projects account for about
70% of our projects.
The Tokyo Metropolitan area
accounts for about 70% of
our projects

We use various methods ofvalue enhancement toincrease the value of ourproperties

Value improvement
method (by value)

Domestic investors accountfor about 85% of our property
buyers (of which around 30%
are individual buyers and 55%
are corporate buyers)

Asset class

RegionAge

Buyer base(by value)(by value)(by value)(by value)

7%

8%
8%

26%

In particular, the Company specializes
in properties that are older than 20
years old. 70% of our projects,
excluding development projects basedon land or leasehold land, are properties
that are over 20 years old

17%
40%

13%

11%
3%
3%
2%

9%
26%

3%

3%

13%

29%

22%

40%

10%

2%
2%
16%

15%

14%
17%

Increase NOI

32%

29%
OfficeChange of use/increase floorarea ratio
Large-scale renovation

Commercial

Create land for development

Residential

Tokyo 5 central wards
Tokyo (excl. 5 central wards)

Coordinate/consolidate land
rightsOthersMay 2023

Warehouse

5-10 years

Kanagawa

10-20 years
20-30 years

Kyoto
FukuokaHotelLess than 5 years

SaitamaOsaka
New construction development

26%*Excludes development projects fromland or land with leasehold interest

Others30-40 years
40 years or more

55%
Domestic
individuals
Domestic
corporates
Overseas
individuals
Overseas
corporates

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 topurchase 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 thisdocument 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.

31

Robust Profit Performance over Past 5 Years Even During Pandemic
Leveraging our strong purchasing/sales teamOver the past five years in the Value
Creation Services segment which is ourcore driver of earnings, we have sold

101 properties
Gross profit margin of
properties sold in past 5 years(# of cases)
Less then 0%

101 properties

2

0-5%

1

5-10%

2

By number of transactions, approximately 70% of total

The average gross margin isproperties sold are under 2 billion yen.
By total transaction value, deals of 2 billion yen or moreaccount for approx. 75% of the total

27.6%, with gross profitability
tending to be higher for larger
projects

Gross profit margin of properties
sold in past 5 years by price range

Sale price range of properties soldover past 5 years(by number of properties)

Average（%)

By number oftransactions

25.3%

By value

27.6%

7%
Less than
1 bn yen

Sale price range of properties soldover past 5 years(by transaction value)
7%

3%
37%

22.1%

24%
19%

23%

1-2 bn yen

25.3%
21%
29%

10-15%

31%

7
2-5 bn yen

15-20%

19

20-25%

18

25-30%
30% or more

May 2023

5-10 bn yen

27.7%
Less than
1 bn yen

1-2 bn yen

2-5 bn yen

5-10 bn yen

29.7%
10 bn yenor more23
29

10 bn yenor more29.1%

Less than
1 bn yen

1-2 bn yen

2-5 bn yen

5-10 bn yen

10 bn yenor more(Notes) Small-lot products (see P.36) are excluded. Allbulk transactions and separately settled land andbuildings transactions are counted as one caseThis 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 topurchase 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 thisdocument 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.

32

Achieving High IRR Through Focus on Property Turnover and
Gross Profit Margin
We are especially proud of our high median IRR on
transactions over the past 5 years: The median IRR is

Within the product mix, smaller projects tend to have higher unlevered IRR due tohigher turnover, while larger projects tend to have higher levered IRR because theyuse more debt and less equity capital (See P.55 for the definition of each IRR)

53.2% (unlevered) and 79.7% (levered)
Unlevered IRR for properties soldover past 5 years

Less then 10%

Total 101
cases

12

Levered IRR for properties sold overpast 5 years

Less then 10%

Total 101
cases

6

53.2%

12

Less then 10%

10-20%

79.7%

6

10-20%

17

20-40%

11

20-40%

40-60%

15

40-60%

13

40-60%

60-80%

1360-80%

1660-80%

100% or more

80-100%42880-100%3

100% or more

46

Levered IRR for properties sold for 2
billion yen or more over past 5 years

Less then 10%

Total 33
cases

2

MedianMedian20-40%

80-100%Total 68
cases

9MedianMedian10-20%

Unlevered IRR for properties sold forless than 2 billion yen over past 5 years

100% or more

58.8%

8

6

12

10-20%

3

20-40%

240-60%

260-80%

10

80-100%2

21100% or more

118.4%

3

2

19*Includes 42 unlevered projects

May 2023

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 topurchase 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 thisdocument 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.

33

Our Market Share of the Real Estate Industry is Still Small
The Japanese real estate market is said to be worth
approx. 2,900 trillion yen. We can satisfy the needsof all types of clients, including individuals,
public institutions and corporations

In FY2023/3, our revenue in the Value Creation Services segment were 61.4 billion
yen, and the value of transactions in the real estate market in 2020 was 4.363 trillion
yen. On this basis, our revenue only accounted for 1.4% of the real estatetransaction market. Therefore, we see significant upside potential

Japanese real estate market 2,900 trillion yen
Nationwide real estate

1,350 trillion yen

280 trillion yen

1,000 trillion yen

J-REIT, private real estate, etc.

550 trillion yen

45 trillion yen
Tokyo

Approx. 50%
Individually owned

Publicly owned

150 trillion yen

Corporate owned

Commercialization invarious fields
Source: Compiled by Raysum from the Ministry of Land, Infrastructure, Transport and Tourism's "National Accounts 2020", NLI Research Institute's "Japanese Real Estate Investment Market", and Mitsui Trust's "Survey on Private Real
Estate Funds."

May 2023

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 topurchase 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 thisdocument 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.

34

Our Specialty Area is Old and Small/Medium-Size Properties.
This is the fastest-growing segment in the real estate industry
The market for leased office space is worth more than 20 trillion

Although we handle a wide range of projects, 70% of our transactions inyenterms of value are for properties over 20 years old, making us thestrongest and most established player in this growing market. We have an
unrivaled track record of accumulated expertise and are well-placed tocapitalize on growth opportunities. Offices of less than 5,000 tsubo (16,500m2) in buildings that are 20

years old or more account for more than 80% of the total officespace in the five central wards of Tokyo. This market will continue to growas the buildings age

Office space Tokyo 5 central wards age pyramid (Total properties: 6,862)
Small and medium-sized(Floor area: 300-5,000 tsubo)(990-16,500m2)
6,310 properties

Old earthquake standards:
1,659 properties (26%）
Over 20 years old：
5,371 properties (85%）

Large-scale(Floor area: 5,000 tsubo or more)(16,500m 2)552 properties

Old earthquake standards:
101 properties (18%)
Over 20 years old:
330 properties (60%）

Age(No. of years
since construction)Less than 20 years old:939 properties (15%）

Less than 20 years old:222 properties (40%）

Number of properties (buildings)
Source: Compiled by Raysum from XYMAX Research InstituteMay 2023

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 topurchase 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 thisdocument 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.

35

Customer base is expanding as a result of the utilization ofsmall-lot products with real estate trust beneficiary interests•

At the end of 2021, welaunched RAYEX, asmall-lot product with realestate trust beneficiaryinterests based on theconcept of making real estate
investment more accessible ata price of approx. 50 million
yen per unit••

The first stage (approx. 6 billion
yen revenue, approx. 3 billion yen
of investment units) sold out
immediately after launch
Currently, the second stage(approx. 10 billion yen revenue,
approx. 5 billion yen of investment
units) is almost sold out
We are now finalizing to launch
the third stage

Attractions of RAYEX for buyers

The concept of RAYEX is to increase the asset value of realestate over a period of up to approx. 10 years. Based ontargeting properties with significant NOI

upside potential and leveraging our expertise inadding value to assets, we aim for an "increase in yield overthe investment period" and a "capital gain upon exit." Avirtuous cycle is created whereby investors who appreciate
our ability to improve NOI become interested in larger
physical real estate assets

In this business, the Company isentrusted with management of theasset over the investment period(approx. 7 to 10 years). Any capitalgains that are generated on exit areshared between investors and theCompany. In this way, investors
and Raysum collaborate in a winwin relationship to increase asset
value.

Diagram of the target PL yield (pre- tax) for small-lot stage 2

Direct real estate
investment
opportunity toLarge-scale
securitization
Leverage without
the need forborrowing(Raysum handles
all the complex
issues)May 2023

Theme color makes
PPT moreconvenient to andConveniencepeace of mindchangesince Raysum
manages theassetsBenefit of attractive
yields and twice ayear dividends（Prospective
capital gains on NOI
improvement whenproperties are sold)Phase 1

Phase 2Phase 3

Year 1~3

From Year 4

From Year 8

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 topurchase 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 thisdocument 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.

36

Appendix

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 topurchase 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 thisdocument 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.

37

Raysum’s Business Segment (Repost)
Details

Revenue
FY Ending March 2023
(Percentage of total)

Operating Profit
FY Ending March 2023
(Operating profit margin）

61,41916,653

90.4%

27.1%

4,416

765

6.5%

17.3%

2,071

-2,302

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 are 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 casesCreate 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 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 individual (see P.36)

Value-Add
Services

Real 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

Future Value
Creation
Services

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 as noted on P.17, we are increasingly confident in our ability to reduce the deficit andreturn to profit in future

May 2023

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 topurchase 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 thisdocument 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.

38

Key Features of Properties Sold Over the Past Five Years(Repost)
Office and commercial
projects account for about
70% of our projects.
The Tokyo Metropolitan area
accounts for about 70% of
our projects

We use various methods ofvalue enhancement toincrease the value of ourproperties

Value improvement
method (by value)

Domestic investors accountfor about 85% of our property
buyers (of which around 30%
are individual buyers and 55%
are corporate buyers)

Asset class

RegionAge

Buyer base(by value)(by value)(by value)(by value)

7%

8%
8%

26%

In particular, the Company specializes
in properties that are older than 20
years old. 70% of our projects,
excluding development projects basedon land or leasehold land, are properties
that are over 20 years old

17%
40%

13%

11%
3%
3%
2%

9%
26%

3%

3%

13%

29%

22%

40%

10%

2%
2%
16%

15%

14%
17%

Increase NOI

32%

29%
OfficeChange of use/increase floorarea ratio
Large-scale renovation

Commercial

Create land for development

Residential

Tokyo 5 central wards
Tokyo (excl. 5 central wards)

Coordinate/consolidate land
rightsOthersMay 2023

Warehouse

5-10 years

Kanagawa

10-20 years
20-30 years

Kyoto
FukuokaHotelLess than 5 years

SaitamaOsaka
New construction development

26%*Excludes development projects fromland or land with leasehold interest

Others30-40 years
40 years or more

55%
Domestic
individuals
Domestic
corporates
Overseas
individuals
Overseas
corporates

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 topurchase 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 thisdocument 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.

39

Robust Profit Performance over Past 5 Years Even During Pandemic
Leveraging our strong purchasing/sales team (Repost)
Over the past five years in the Value
Creation Services segment which is ourcore driver of earnings, we have sold

101 properties
Gross profit margin of
properties sold in past 5 years(# of cases)
Less then 0%

101 properties

2

0-5%

1

5-10%

2

By number of transactions, approximately 70% of total

The average gross margin isproperties sold are under 2 billion yen.
By total transaction value, deals of 2 billion yen or moreaccount for approx. 75% of the total

27.6%, with gross profitability
tending to be higher for larger
projects

Gross profit margin of properties
sold in past 5 years by price range

Sale price range of properties soldover past 5 years(by number of properties)

Average（%)

By number oftransactions

25.3%

By value

27.6%

7%
Less than
1 bn yen

Sale price range of properties soldover past 5 years(by transaction value)
7%

3%
37%

22.1%

24%
19%

23%

1-2 bn yen

25.3%
21%
29%

10-15%

31%

7
2-5 bn yen

15-20%

19

20-25%

18

25-30%
30% or more

May 2023

5-10 bn yen

27.7%
Less than
1 bn yen

1-2 bn yen

2-5 bn yen

5-10 bn yen

29.7%
10 bn yenor more23
29

10 bn yenor more29.1%

Less than
1 bn yen

1-2 bn yen

2-5 bn yen

5-10 bn yen

10 bn yenor more(Notes) Small-lot products (see P.36) are excluded. Allbulk transactions and separately settled land andbuildings transactions are counted as one caseThis 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 topurchase 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 thisdocument 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.

40

Achieving High IRR Through Focus on Property Turnover and
Gross Profit Margin (Repost)
We are especially proud of our high median IRR on
transactions over the past 5 years: The median IRR is

Within the product mix, smaller projects tend to have higher unlevered IRR due tohigher turnover, while larger projects tend to have higher levered IRR because theyuse more debt and less equity capital (See P.55 for the definition of each IRR)

53.2% (unlevered) and 79.7% (levered)
Unlevered IRR for properties soldover past 5 years

Less then 10%

Total 101
cases

12

Levered IRR for properties sold overpast 5 years

Less then 10%

Total 101
cases

6

53.2%

12

Less then 10%

10-20%

79.7%

6

10-20%

17

20-40%

11

20-40%

40-60%

15

40-60%

13

40-60%

60-80%

1360-80%

1660-80%

100% or more

80-100%42880-100%3

100% or more

46

Levered IRR for properties sold for 2
billion yen or more over past 5 years

Less then 10%

Total 33
cases

2

MedianMedian20-40%

80-100%Total 68
cases

9MedianMedian10-20%

Unlevered IRR for properties sold forless than 2 billion yen over past 5 years

100% or more

58.8%

8

6

12

10-20%

3

20-40%

240-60%

260-80%

10

80-100%2

21100% or more

118.4%

3

2

19*Includes 42 unlevered projects

May 2023

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 topurchase 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 thisdocument 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.

41

Raysum's Business Model(Value Creation Services/Value-Add Services)
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)•

May 2023

•

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 topurchase 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 thisdocument 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.

42

Case studies of our expertise in enhancing value
Case#1 Increase NOI
Overview
Name

Premium Residence Shirogane
Chojamaru

Principal value
improvement method

Increase NOI

Other value improvement
methodLarge-scale renovation

Age (at time of purchase)Less than 1 year

Land area

Approx. 390 tsubo (1,290m2)

Floor area

Approx. 650 tsubo (2,150m2)

Leasable area

Approx. 600 tsubo (1,985m2)

Floor area ratio

200%

Number of stories

3 floors above ground

Asset class

Residential

Month and year ofpurchase

June 2019

Month and year of sale

August 2021

Sale value

2 billion - 5 billion yen

May 2023

Photo

Highlights• The company purchased 17 newly built condominiums (approx.100m2 each) from a generalcontractor. We undertook a large-scale renovation and converted the building into an exclusive
residential property featuring 7 units of approx. 200m2 each with completely refurbished interiors• We set a rent per sq. m that was thought to be unachievable for a non-local high value rental
company, and around 70% of the viewers of the property were in their 20s-30s. In the end, theproperty was fully leased by our leasing team in about five months• This project is the result of a six-year effort to bring about positive change in the supply-demand gap
and to create tenant demand for luxury rental condominiums of 200m2+. Those outside the company
might say that we got lucky on this. Internally, however, we view this as a vindication of our ability totake on difficult projects and generate a successful return

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 topurchase 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 thisdocument 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.

43

Case studies of our expertise in enhancing value
Case#2 Increase NOI
Overview

Photo

Name

Riverside Shinagawa Konan Building

Principal value
improvement method

Increase NOI

Other value improvement
methodLarge-scale renovation

Age (at time of purchase)

30 years

Land area

Approx. 980 tsubo (3,240m2)

Floor area

Approx. 3,050 tsubo (10,085m2)

Leasable area

Approx. 2,200 tsubo (7,270m2)

Floor area ratio

300%

Number of stories

8 floors above ground/
1 floor below ground

Asset class

OfficeMonth and year ofpurchase

March 2018

• We acquired a large office building completed in 1987 as an exit transaction for a foreign fund.
Although there was a green space on the site to meet greening requirements, the property is
located close to the coast of Tokyo Bay near JR Shinagawa Station and has excellent accessto Narita and Haneda airport. To take advantage of this, we reduced the size of the green area
and added 14 parking spaces. We added a rooftop to replace the green space and comply withgreening requirements

Month and year of saleNovember 2018

• Due to the scarcity of offices with on-site parking in this location, we immediately achieved asignificant rental uplift due to the converted space as we had hoped

Sale value

5 billion - 10 billion yen

May 2023

Highlights• This case led Raysum to create a small-lot product with real estate trust beneficiary intereststhat would enable investors to benefit from a long-term upsideThis 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 topurchase 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 thisdocument 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.

44

Case studies of our expertise in enhancing value
Case#3 Change of use/increase floor area ratio
Overview
Name

No. R. Hamamatsucho

Principal value
improvement method

Change of use/increase floor area
ratio

Other value improvement
methodIncrease NOI, large-scale renovation

Age (at time of purchase)

30 years

Land area

Approx. 100 tsubo (330m2)

Floor area

Approx. 500 tsubo (1,650m2)

Leasable area

Approx. 430 tsubo (1,420m2)

Floor area ratio

600%

Number of stories

9 floors above ground

Asset class

OfficeMonth and year ofpurchase

December 2017

Month and year of sale

June 2018

Sale value

1 billion - 2 billion yen

May 2023

Photo

Highlights• A project to convert a gas station near Hamamatsucho Station (a major monorail station with adirect connection to Haneda Airport) to a convenience store. In addition, the nine upper floors wererenovated into a medium-sized office building with updated specifications• With the shift away from cars in urban areas and the arrival of the EV era on the horizon, we founda way to combine two business trends (major oil company restructuring and convenience store
opening in city center locations), and successfully converted the building into a profitable asset• With the development of Haneda as an international airport, urban redevelopment around
Hamamatsucho, a major central Tokyo transport hub, is progressing rapidly, and local office rents
are growing at a high single-digit rate annually. The property is in an exclusive location and ourdeal secured a stable long-term stable income stream as well as liquidity for the ownerThis 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 topurchase 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 thisdocument 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.

45

Case studies of our expertise in enhancing value
Case#4 Change of use/increase floor area ratio
Overview
Name

Respir Mitaka

Principal value
improvement method

Change of use/increase floor area
ratio

Other value improvement
methodLarge-scale renovation, increase
NOI

Age (at time of purchase)

44 years

Land area

Approx. 150 tsubo (495m2)

Floor area

Approx. 800 tsubo (2,645m2)

Leasable area

Approx. 500 tsubo (1,650m2)

Floor area ratio

300%

Number of stories

9 floors above ground

Asset class

Residential

Month and year ofpurchase

August 2015

Month and year of sale

September 2017

Sale value

1 billion - 2 billion yen

May 2023

Photo

Highlights•

Located in a quiet residential area near Mitaka Station on the JR Chuo Line and close to Inokashira Park, a 44year-old 9-story dormitory was renovated and converted into rental apartments with the latest specifications•

Due to a change in zoning regulations, the building would potentially have had to be demolished and replacedwith detached houses. However, by adopting a repurposing method utilizing the existing frame, we were able tomaintain the dimensions of the building and restore the value of the 9-story building with stunning views of thesurrounding area•

The building was old and had no building inspection certificate, and it was difficult to obtain regulatory approval
from the government and financing from financial institutions. Even though it was difficult to assess the likely
impact on investment returns of seismic reinforcement work and renovation of the specification of the facilities, ourunique strengths enabled us to take this project on and make it a success. Since we were able to maintain amuch larger floor area than we could have done if we had rebuilt on the site, we were able to make a sufficient
return even by keeping rents at the existing market level

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 topurchase 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 thisdocument 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.

46

Case studies of our expertise in enhancing value
Case#5 Large-scale renovation
Overview
Name

1928 Building

Principal value
improvement method

Large-scale renovation

Other value improvement
methodIncrease NOI, coordinate/consolidate
land rights

Age (at time of purchase)

90 years

Land area

Approx. 100 tsubo (330m2)

Floor area

Approx. 320 tsubo (1,060m2)

Leasable area

Approx. 250 tsubo (825m2)

Floor area ratio

400%

Number of stories

5 floors above ground/
1 floor below ground

Asset classCommercial

Month and year ofpurchase

March 2018

Month and year of sale

March 2019

Sale value

1 billion - 2 billion yen

May 2023

Photo

Highlights•

A restoration project for a tangible cultural property building registered in Kyoto that was completed in 1928. It is
located on the corner of Sanjo-dori in Kyoto. We had successfully restored a nearby 120-year old “kyomachiya”(traditional Kyoto-style house) in the neighborhood, and based on this, we were approached by the former owner, afamous local architect, about the preservation of the Sanjo-dori building•

The property was located on a popular pedestrian street, but since the rent of the existing tenants was over 50%
below the average for the area, the project required us to improve the mix of tenants on each floor. We did this byremoving the obtrusive partition walls on the first floor to expand the leasable area and attracting tenants exceeding
the market rent. As a result we achieved a significant overall improvement in NOI•

We arranged financing from financial institutions that knew our capabilities in property revitalization andmanagement, and sold to an individual investor who had a keen interest in historical architecture. Subsequently,
insurance premiums have come down and its marketability has increased following compliance with Kyoto City
earthquake resistance certification. Tenant rents have continued to increase

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 topurchase 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 thisdocument 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.

47

Case studies of our expertise in enhancing value
Case#6 Large-scale renovation
Overview
Name

Kaigan Building

Principal value
improvement method

Large-scale renovation

Other value improvement
methodIncrease NOIAge (at time of purchase)

109 years

Land area

Approx. 250 tsubo (825m2)

Floor area

Approx. 620 tsubo (2,050m2)

Leasable area

Approx. 470 tsubo (1,555m2)

Floor area ratio

700%

Number of stories

3 floors above ground

Asset classCommercial

Month and year ofpurchase

November 2020

Month and year of sale

July 2021

Sale value

1 billion - 2 billion yen

May 2023

Photo

Highlights•

Located in Kobe City, this 109-year-old historical building is also designated as a national tangible culturalproperty. Its striking brickwork construction and 6meters high ceilings are unique, but the previous owner
was frustrated by the <50% occupancy rate and sold the building to our company, based on ourestablished track record in revitalization of historical Kyoto buildings•

After acquiring the property, we were able to balance the needs of modern tenants while undertaking a
restoration of the original flooring and fixtures of this unique and rare building. We sold the property after
receiving strong interest from prospective buyers. In about six months, the building was 100% occupied ata rent above the local market rent, with the earnings capacity almost doubled•

Other companies would struggle to secure institutional financing for old properties, but a financial
institution who trusted in our ability to renovate buildings and attract tenants advanced a super-long-termloan (over 30 years) to the client

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 topurchase 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 thisdocument 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.

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Case studies of our expertise in enhancing value
Case#7 Creation of land for development
Overview

Photo

Name

Yaesu 1-chome PJ

Principal value
improvement method

Create land for development

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

45 years

Land area

Approx. 100 tsubo (330m2)

Floor area

Approx. 800 tsubo (2,645m2)

Leasable area

Approx. 600 tsubo (1,985m2)

Floor area ratio

800%

Number of stories

10 floors above ground/1 floor below ground

Asset class

OfficeMonth and year ofpurchase

March 2019

• This is a super-prime area which is currently undergoing rapid redevelopment. We formulated a
redevelopment plan and set development specifications, but in the face persistent interest fromanother major real estate company, we decided to sell the property based on a consideration ofcapital efficiency

Month and year of saleFebruary 2020

• Currently, a major developer company is working on the redevelopment, and we are proud tohave been able to create the site for this development

Sale value

5 billion - 10 billion yen

May 2023

Highlights• We acquired a 45-year-old fully occupied office building located on the Yaesu Exit side ofTokyo Station from a private individualThis 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 topurchase 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 thisdocument 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.

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Case studies of our expertise in enhancing value
Case#8 Creation of land for development
Overview
Name

Shinjuku Yasukuni Dori PJ

Principal value
improvement method

Create land for development

Other value improvement
methodCoordinate/consolidate land rights

Age (at time of purchase)

50 years

Land area

Approx. 200 tsubo (660m2)

Floor area

Approx. 2,000 tsubo (6,600m2)

Leasable area

Approx. 1,500 tsubo (4,960m2)

Floor area ratio

900%

Number of stories

9 floors above ground /3 floors below ground

Asset classCommercial

Month and year ofpurchase

January 2022

Month and year of saleFebruary 2023

Sale value

10 billion yen or more

May 2023

Photo

Highlights•

A 50-year-old large-scale commercial facility with a total floor area of approx. 2,000 tsubo(6,600m2), located in Shinjuku. The property was acquired when many tenants were impacted by
the COVID-19 pandemic•

We carefully explained to the tenants that since the building was 50 years old and had been built toout-of-date earthquake resistance standards, it did not meet current earthquake resistancerequirements and we were therefore reviewing whether to demolish it. In addition, there were partsof the site where superficies rights were not properly established, which added to the complexity ofthe situation•

Since fixed-term lease agreements with many tenants had expired and preparations for rebuilding
were underway, the buyer's purchase conditions were already met, and the property was soldwithout any rebuilding work performed

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 topurchase 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 thisdocument 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.

50

Case studies of our expertise in enhancing value
Case#9 New construction development
Overview
Name

Jingumae 2-chome PJ

Principal value
improvement method

New construction development(ZEB Ready certification)

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

N/A

Land area

Approx. 700 tsubo (2,315m2)

Floor area

Approx. 2,500 tsubo (8,265m2)

Leasable area

Approx. 1,800 tsubo (5,950m2)

Floor area ratio

500%

Number of stories

6 floors above ground

Asset class

OfficeMonth and year ofpurchase

November 2019

Month and year of saleFebruary 2023

Sale value

10 billion yen or more

May 2023

Photo

Highlights•

We purchased land in Jingumae, close to Harajuku, Meiji Jingumae and Omotesando stations, from a major
developer. The site was originally the head office of a clothing company. We acquired the property at a time
when developers were hesitant about building apartments in the city center due to the COVID-19 pandemic•

We saw the potential for attractive returns from a new office concept, taking advantage of the location's
unique characteristics. We confirmed that there was strong demand for environmentally friendly offices, andproactively utilized advanced technologies to reduce the environmental impact of the development throughincorporating natural light and wind flow. We obtained ZEB Ready certification (Net Zero Energy Building)•

Although the initial plan was to lease the space and sell the building once it was fully occupied, there wasstrong demand from investors to purchase the entire building at the construction stage and we sold withoutleasing

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 topurchase 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 thisdocument 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.

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Case studies of our expertise in enhancing value
Case#10 New construction development
Overview
Name

Tokyo Heart Rhythm Clinic

Principal value
improvement method

New construction development

Other value improvement
methodIncrease NOIAge (at time of purchase)

N/A

Land area

Approx. 140 tsubo (465m2)

Floor area

Approx. 260 tsubo (860m2)

Leasable area

Approx. 260 tsubo (860m2)

Floor area ratio

200%

Number of stories

3 floors above ground

Asset classCommercial

Month and year ofpurchase

September 2015

Month and year of sale

March 2017

Sale value

1 billion - 2 billion yen

May 2023

Photo

Highlights•

In response to the aging society and pursuing an appropriate new medical system, we created a hospital
specializing in “super doctors” for catheter ablation treatment for arrhythmia in this project•

We purchased land for condominiums in a quiet location in Setagaya-ku (an area with significant latentdemand for this kind of treatment) that was a long way from the station. Our objective was to create a property
with similar profit potential to a commercial development in an attractive location near the station by specificallytargeting the needs of an aging population and the local community (however, tenants’ rent as a percentage ofsales was only in the single-digit percentage range)•

By constructing a new building space that is ideal for patients, doctors and medical staff, and installing thelatest medical equipment, we can offer efficient and effective advanced medical services. This is now
established as a hospital to which many high-difficulty patients are referred from local hospitals. This project
has also inspired us to become more involved with advanced medical projects

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 topurchase 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 thisdocument 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.

52

Case studies of our expertise in enhancing value
Case#11 Coordination/consolidation of land rights
Overview
Name

Ginza 8-chome Building

Principal value
improvement method

Coordinate/consolidate land rights

Other value improvement
methodCreation of land for development,
Change of use/increase floor area
ratio

Age (at time of purchase)

19 years

Land area

Approx. 130 tsubo (430m2)

Floor area

Approx. 1,200 tsubo (3,965m2)

Leasable area

Approx. 1,200 tsubo (3,965m2)

Floor area ratio

800%

Number of stories

10 floors above ground/
2 floors below ground

Asset classCommercial

Month and year ofpurchase

September 2020

Month and year of sale

December 2021

Sale value

10 billion yen or more

May 2023

Photo

Highlights•

When a large commercial property on Ginza Chuo-dori was suddenly put up for sale due to the
COVID-19 pandemic, we moved quickly to secure preferential negotiating rights. Regarding thebuilding, another unit owner had been operating stores on the first floor for many years, The divisionof the leased space into units was an obstruction to ownership of the entire building•

One year after the acquisition of the property, following detailed negotiations, the company
purchased the units owned by the other operator and successfully acquired the whole building. This
provided the opportunity for a 200% increase in floor area as a single building, and allowed thecompany the option of rebuilding•

As a large-scale property in Ginza, there was strong demand from overseas investors. We alsoneeded to raise capital ahead of our next purchase so we sold the property to a group of high-networth Asian investors

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 topurchase 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 thisdocument 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.

53

Case studies of our expertise in enhancing value
Case#12 Coordination/consolidation of land rights
Overview
Name

Sala Azabu Building

Principal value
improvement method

Coordinate/consolidate land rights

Other value improvement
methodCreate land for development

Age (at time of purchase)

44 years

Land area

Approx. 160 tsubo (530m2)

Floor area

Approx. 620 tsubo (2,050m2)

Leasable area

Approx. 620 tsubo (2,050m2)

Floor area ratio

400%

Number of stories

7 floors above ground

Asset class

OfficeMonth and year ofpurchase

March 2019

Month and year of sale

March 2020

Sale value

2 billion - 5 billion yen

May 2023

Photo

Highlights• Acquisition of a high-end furniture company located on a street in one of the most exclusive
residential areas of central Tokyo, from Roppongi to Hiroo, and commercialization of the head
office building• We have extensive experience in acquiring real estate that has been collateralized or companyowned, based on acquisitions of operating companies, wealth management companies or nonperforming loans• The deal was well received by the seller, who carefully and accurately facilitated the smoothtransfer of the acquirer’s furniture, equipment and employees. Although we initially planned todevelop the property ourselves, strong demand from major domestic real estate companies led
us to sell the property based on considerations of capital efficiency

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 topurchase 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 thisdocument 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.

54

Definition of Unlevered IRR and Levered IRR
Unlevered IRR
A metric that assesses the total return on a real estate
investment without taking account of borrowings orborrowing costs
Example 1

Example 2

Example 1

Sell a property at 100 in one year at a gross profit margin of 15%

2022/1/1 2023/1/1(100.0)115.0(100.0)
115.0

Purchase cost
Sale value
Total CF

Gross profit
No. of days owned
Unlevered IRR

15.0
366
15.0%

Invest 20 to increase the value of a property valued at 100 and sell in six
months with a gross profit margin of 15%

Purchase cost
Investment in enhancing value
Sale value
Total CF2022/1/1 2022/2/1 2022/7/1(100.0)(20.0)
138.0(100.0)(20.0)
138.0

Gross profit
No. of days owned
Unlevered IRR

18.0
182
33.6%

We have a policy of not making investments based on the rental
income generated by properties, and we do not include rental
income in our IRR calculation (we believe this is more conservative
than calculation of actual IRR)

May 2023

Levered IRR
A metric that assesses the return on a real estate
investment based on funds available taking into accountthe leverage effect of debt
Purchase a property for 100 utilizing 70% debt. Sell the property within
one year of purchase with an interest rate of 2% per annum and a grossprofit margin of 15%

Purchase cost
Borrowing
Interest
Sale value
Repayment of borrowings
Total CF

Example 2

2022/1/1 2022/7/1 2023/1/1(100.0)
70.0
(0.7)
(0.7)
115.0
(70.0)(30.0)(0.7)
44.3

Gross profit
No. of days owned
Levered IRR

13.6
366
44.9%

Purchase property for 100 utilizing 70% debt. Invest 20 to increase thevalue. The interest rate on the loan is 2% per annum, gross profit margin is15%, and the property is sold within six months of purchase

Purchase cost
Borrowing
Investment in enhancing value
Interest
Sale value
Repayment of borrowings
Total CF2022/1/1 2022/2/1 2022/7/1(100.0)70.0(20.0)(0.7)
138.0(70.0)(30.0)(20.0)
67.3

Gross profit
No. of days owned
Levered IRR

17.3
182
90.1%

Notes: All monthly cash flows are assumed to occur on the last day of the month.

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 topurchase 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 thisdocument 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.

55

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

May 2023

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 topurchase 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 thisdocument 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.

56