FY22/2 Q3 Corporate Presentation
January2021
January 13, 2022

Ichigo (2337)© Ichigo Inc. All rights reserved.

www.ichigo.gr.jp/en

We would like to express our deepest condolences
to all those affected by the Covid pandemic globally,
and our wishes for the earliest and fullest possible
recovery.
Take care, be safe.

© Ichigo Inc. All rights reserved.

2

Make The World
More Sustainable© Ichigo Inc. All rights reserved.

© Ichigo Inc. All rights reserved.

© Ichigo Inc. All rights reserved.

Contents
FY22/2 Q3 Earnings‒ FY22/2 Q3 Summary‒ Operating Profit -41%, Net Income -54%, Cash EPS -9% (YOY)‒ Segment Earnings Details‒ Covid Impacts

Powerful Value-Add Business Model Underpins Growth‒ Business Model (1) Stock + Flow Earnings‒ Business Model (2) Stable Stock Earnings‒ Business Model (3) Embedded Forward Earnings‒ Business Model (4) Value-Add Drives Durable Value Growth‒ Business Model (5) Robust Cash Generation‒ Strong Financial Base

Ichigo’s Sustainability Execution‒ Accelerated RE100 Target 15 Years From 2040 to 2025
‒ Ichigo Office RE100 Achievement by April 2022
‒ CDP Climate Change Assessment: Ichigo Highest Leadership
Level‒ ESG Finance Supporting Sustainable Growth© Ichigo Inc. All rights reserved.

Sustainable Growth as a Sustainable Infrastructure
Company‒ Sustainable Real Estate: Selective on Acquisitions & Sales‒ Ichigo Owners: Driving Long-Term Growth‒ Ichigo Owners: New Co-Ownership Business‒ Ichigo Owners: Building Out Business & Earnings Model‒ Asset Management: Growth Support for Ichigo REITs &Ichigo Green‒ Clean Energy: Scaling Rapidly‒ Share Buybacks‒ Ichigo J.League Shareholder Program

Appendices
Ichigo’s Sustainability Commitment (ESG)
Financial & Real Estate Data
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: New Initiatives

6

FY22/2 Q3 Earnings© Ichigo Inc. All rights reserved.

7

FY22/2 Q3 Summary– Real Estate Market & Prices of Many Assets Recovering to Pre-Covid
Levels– Some Recovery in Domestic Travel Demand, but Full Recovery,
Including Inbound, Expected to Take Time– Clean Energy Business: Stable Earnings Driver, Growth on Track 6 New Plants Online through Q3 – Power Generation Revenue +10% YOY– Ichigo Owners Co-Ownership Business Expansion
 Started Management of First Co-Ownership Asset on Dec 1, 2021
 Launched Second Sale Today– Continued Ichigo Sustainability Execution
 Achieved Highest Leadership Level in CDP Climate Change Assessment Rapid ESG Financing Growth: JPY 20B Loans (Uncollateralized: JPY 13B)

© Ichigo Inc. All rights reserved.

8

FY22/2 Q3 Summary
Robust Stock Earnings

Durable Earnings Model
Stock Earnings/Fixed Expenses

191%■ FY21/2 Q3 (Cumulative)■ FY22/2 Q3 (Cumulative)(JPY million)

-2%
Flow
Earnings
JPY 2.34B
Fixed
Cash Earnings Expenses
JPY 5.90B
13.60B

Sustainable
Real Estate(SRE)© Ichigo Inc. All rights reserved.

Clean
Energy(CE)-11%11,495 11,260
7,015

Stock Earnings
JPY 11.26B

Cash Earnings = Gross Profit + Fixed Asset Gains on
Sales + Depreciation Expenses (Non-Cash)

Asset
Management
(AM)

+10%
6,263

+15%
% of
Total

3,136 3,449

1,343 1,547
61%

55%

12%

14%

27%

31%

9

OP -41%, Net Income -54%, Cash EPS -9% (YOY)− Decreased Flow Earnings through Q3, but Q4 Expected to Be Strong
On Track vs. FY22/2 Forecast− Cash Earnings Significantly Exceed Accounting Earnings Due to
Focus on Cash Generation(JPY million)

FY21/2 Q3(9M)

FY22/2 Q3
(9M)

YOY

Full-Year Forecast

Operating Profit

8,551

5,036

-41.1%

9,100–

12,000Recurring Profit

6,535

3,030

-53.6%

6,000

–

8,900

Net Income

4,265

1,969

-53.8%

5,000

–

8,000

Cash Net Income

6,801

6,051

-11.0%

11,400–14,400EPS

JPY 8.86

JPY 4.20-52.6%

JPY 10.69–

JPY 17.10

Cash EPS

JPY 14.13

JPY 12.90-8.7%

JPY 24.37–

JPY 30.78

Cash Net Income = Net Income + Non-Cash Expenses (e.g., Depreciation, Goodwill Amortization)
Cash EPS = Cash Net Income / Average Number of Shares Outstanding in FY22/2 Q3© Ichigo Inc. All rights reserved.

10

Segment Earnings Details− Asset Management: Increase in Ichigo Office (8975) & Ichigo Hotel (3463)
Base AM Fees
− Sustainable Real Estate
Stock Earnings: Lower on Temporary Downtime at Re-Tenanting
Flow Earnings: Actively Marketing Assets – Expect Strong Q4− Clean Energy: 6 New Plants Online Through Q3 Driving Continued Stock
Earnings Growth(JPY million)

Operating Profit
Segment

Asset Management (AM)FY21/2 Q3
(9M)

944

FY22/2 Q3
(9M)

1,124

YOY

Gross Profit
Full-Year Forecast+19.1%

1,300

FY21/2 Q3
(9M)

1,445

FY22/2 Q3
(9M)

1,547

Earnings Drivers(Parentheses show YOY change in
Gross Profit)

YOY

+7.1%

Base AM Fees 1,477 (+242)
Acquisition/Disposition Fees 0 (-22)
Ichigo Office Cash Flow Performance Fees 0 (-79)
Ichigo Green Operator Fees 32 (0)Sustainable Real Estate (SRE)

6,069

2,091

-65.5%

5,700 – 8,600

9,748

5,836

-40.1%

Rental Income 3,531* (-1,248)* After Depreciation Expense of 2,731 (+495)
Gains on Sales 2,304 (-2,663)** Excludes Gains of Sales of Fixed Assets(Extraordinary Gains) 33

Clean Energy (CE)

1,621

1,814

+12.0%

2,100

2,080

2,229

+7.2%

Power Generation Revenue 2,229* (+149)* After Depreciation Expense of 1,219 (+163)

-82

5

–

–

–

–

8,551

5,036

-41.1%

13,2739,613-27.6%

Adjustments (including offsets ofcross-segment transactions)

Total© Ichigo Inc. All rights reserved.

–
9,100 – 12,000

11Covid Impacts
Stock Earnings
Asset TypeEarnings Impact
Q1

Q2

Q3

Office

Low

Low

Low

Decrease in demand for large offices in central Tokyo, but mid-size office demand
continues to be strong

Hotel

High

High

High

Domestic travel demand recovering, but inadequate to trigger variable rent income
Upfront costs on accelerating Hakata Hotels’ growth with new operator contracts

Retail

Low

Low

Low

Variability among tenant categories, but leasing activity gradually picking up andsuccessfully re-tenanting

Residential

None

None

None

Robust performance

Clean
Energy

None

None

None

Growth on track, stable earnings driver

Flow Earnings
Asset TypeEarnings Impact
Q1

Q2

Q3

Office

High

Low

Low

Hotel

High

High

MediumInvestment demand gradually increasing. Investor dependent, but closing the gap inprice expectations between buyers and sellers

RetailHigh

MediumMediumHigh demand for Ichigo assets in prime locations. Asset dependent, but closing the
gap in price expectations between buyers and sellers

Residential

None

None

None

High earnings stability driving high transaction activity

Logistics

None

None

None

High earnings stability driving high transaction activity© Ichigo Inc. All rights reserved.

Transactions & pricing normalized to pre-Covid level

12Powerful Value-Add Business Model Underpins Growth© Ichigo Inc. All rights reserved.

13

Business Model (1) Stock + Flow Earnings
Stock Earnings (Primarily Rental Income, Power Generation Revenues, Depreciation (Non-Cash), & Base AM Fees)
Flow Earnings (Primarily Gains on Value-Add Real Estate Sales )Fixed Expenses (Fixed SG&A + Interest Expenses)

37,016

Cash Earnings(JPY million)

33,759FY22/2 Forecast
27,95326,551

18,567
15,273

22,132

20,915

12,146

13,015

5,850

7,727

13,5972,337
18,45018,485

15,065

14,9396,371

FY18/27,071

FY19/2

7,877

14,405

14,405
7,723

11,260

7,896

7,896

Bottom of Range

Top of Range

5,899

FY20/2

FY21/2

FY22/2 Q3

Note: Cash Earnings = Gross Profit + Fixed Asset Gains on Sales + Depreciation Expenses (Non-Cash)© Ichigo Inc. All rights reserved.

14

Business Model (2) Stable Stock Earnings
Stock Earnings by Segment(JPY million)

Stock Earnings(Stock Earnings/Fixed Expenses)
14,939(234%)
Asset
Management

18,485(261%)

18,450(234%)

2,057

2,062

1,956

1,832

Clean Energy

13,331
9,402

7,998

3,830

4,460

FY21/2

FY22/2 (Forecast)

11,4371,545
FY18/2© Ichigo Inc. All rights reserved.

14,405(182%)
1,948

13,451

Sustainable
Real Estate

15,065(195%)

2,978

3,057

FY19/2

FY20/215

Business Model (3) Embedded Forward Earnings
Full Economic Earnings From Value-Add Exceed Accounting Earnings
Value-Add Thus Generates Significant Unrealized Gains That Are
an Earnings Bank for Future Periods(JPY billion)

63.9
45.4

50.9

56.2

36.8

FY17/2

FY18/2

FY19/2

FY20/2

FY21/2

Appraisal Value-Based Unrealized Gains© Ichigo Inc. All rights reserved.

16

Business Model (4) Value-Add Drives Durable Value Growth
Gains on Sales Consistently Exceed Appraisal Value-Based Unrealized Gains
2.8X

Appraisal Value-Based Unrealized Gains
Gains on Sales (Gross Profit)

2.5X
4.4X

JPY 17.1B
JPY 15.0B

1.9X

JPY 12.0B

JPY 5.9B

JPY 6.1B
JPY 3.0B

JPY 2.7B
FY18/2© Ichigo Inc. All rights reserved.

FY19/2

FY20/2

1.5X

JPY 5.7B

FY21/2

JPY 1.5B

JPY 2.3B

FY22/2 Q3
17

Business Model (5) Robust Cash Generation
Economic Operating Cash Flow Exceeds Net Income(JPY billion)

3.6X

Net Income
Economic Operating Cash Flow

1.7X

1.4X
1.2X
29.5

25.5

2.1X

21.5
14.9

14.0

16.7

15.4
10.4
8.2
5.0

FY20/2
FY17/2
FY18/2
FY19/2
Note: Economic Operating Cash Flow = Cash Flows from Operations excluding net change in Real Estate and Power Plants for Sale
© Ichigo Inc. All rights reserved.

FY21/218

Strong Financial Base
Average Interest Rate & Loan Term

Weighted Average Loan Period
Weighted Average Remaining Loan Maturity
Weighted Average Interest Rate

(Interest Rate)

2.5%
10.8 years
10.2 years
8.7 years

10.3 years

10.0 years

12
10.0 years

9.6 years
8.3 years

2.0%

9
7.6 years

7.6 years

7.8 years
1.5%

10.0 years(Loan Term, Years)

7.2 years

6.7 years

1.41%

6

1.24%

1.04%

1.0%

0.97%

0.91%

0.92%

0.88%

0.5%

3

0
FY16/2

FY17/2

FY18/2

FY19/2

FY20/2

FY21/2

FY22/2 Q3

10% (JPY 10.3B)

6% (JPY 6.1B)

5% (JPY 5.6B)

8% (JPY 11.3B)

9% (JPY 15.6B)

8% (JPY 14.9B)

7% (JPY 13.3B)

90%(JPY 94.4B)

94%(JPY 92.2B)

95%(JPY 112.8B)

92%(JPY 132.1B)

91%(JPY 157.5B)

92%(JPY 162.7B)

93%(JPY 170.9B)

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2

FY21/2

FY22/2 Q3

Term Structure of Loans
Short-Term
Long-Term© Ichigo Inc. All rights reserved.

19

Ichigo’s Sustainability Execution© Ichigo Inc. All rights reserved.

20

Accelerated RE100 Target 15 Years From 2040 to 2025
Further Lowering Energy Impacts as a Sustainable Infrastructure Company
Ichigo RE100 Target

100% Renewable Electricity by 2025
Ichigo is committed to sourcing 100% renewable electricity across its operations,
including Ichigo Office (8975) and Ichigo Hotel (3463)

RE100
A global initiative bringing together businesses committed to 100% renewable electricity,
including solar, wind, hydro, and biomass energy, and accelerating the change towards
a net zero carbon society.

CDP
A global initiative that runs the global disclosure system for companies to manage theirenvironmental impacts. Companies are assessed on governance, risk management,
business strategy, targets and performance, and engagement, and are ranked from A toD-.

© Ichigo Inc. All rights reserved.

21

Ichigo Office RE100 Achievement by April 2022
Ichigo Office Will Complete Transition to Using Electricity Sourced From
Renewable Energy Across All of its Assets by April 2022
− Renewable Energy Ratio: 92% (65 of 73 Assets)− Also Transitioning Ichigo and Ichigo Hotel (3463) Assets to Renewable Energy

Impact of Ichigo Office’s Renewable Energy Transition

CO2 Reduction% Reduction

19,622 tons
89%

CO2 Emissionsof Cars

× 8,531Annual CO2 emission per car c. 2,300kg (Ministry of Environment)

Note: Ichigo Office RE100 excludes partially-owned and co-owned assets
Reduction rate = Amount of CO2 reduction / 2019 CO2 emissions (Scope 1 + Scope 2)
Scope 1: Direct greenhouse gas emissions by Ichigo Office
Scope 2: Indirect gas emissions via use of electricity, heat, and steam supplied by other companies© Ichigo Inc. All rights reserved.

22

CDP Climate Change Assessment: Ichigo Highest Leadership Level
Ichigo Recognized for Global Best-Practice Climate Change Initiatives− Further Accelerating Ichigo Environmental Initiatives via Launch of ReGenerationGroup− Ichigo Score: A- (Achieved A Score in 8 of 11 Categories)
Global Scores of Companies in CDP's "Land & Property Ownership & Development" Industry Group

A/A15%
D/D-

13%

25%
C/C-

47%
B/B-

CDP Score Categories
・ A/A- (Leadership) Ichigo
Implementing current best practices
・ B/B- (Management)
Taking coordinated action on climate issues
・ C/C- (Awareness)
Knowledge of impacts on, and of, climate issues
・ D/D- (Disclosure)Transparent about climate issues
Global Average Score Across All Sectors: BGlobal Sector Average Score: B-© Ichigo Inc. All rights reserved.

23

ESG Finance Supporting Sustainable Growth (1)JPY 20B ESG Financing (Uncollateralized Portion: JPY 13B) in Recognitionof Ichigo’s Outstanding ESG Execution
ESG/SDGs Finance

Sustainability-Linked Loan

Lenders: SMBC-led syndicate

Lenders: Mizuho, Asahi Shinkin Bank, Shiga Bank,
Shizuoka Bank, Hiroshima Bank, Fukuho Bank

Loan Amount： JPY 6.9B
Overview: Financed based on acomprehensive analysis andevaluation of the environmental,social, and economic impacts ofIchigo's business activities.

Loan Amount: JPY 13B (Uncollateralized)
Overview: Financed based on third-party assessmentof Ichigo’s alignment with the Sustainability Linked
Loan Principles and its sustainability performance
SPT (Sustainability Performance Target): Ichigo’sachievement of RE100 target
Ichigo’s RE100 target: To source 100% renewableelectricity across all of its operations, including Ichigo
Office (8975) and Ichigo Hotel (3463), by 2025.

Ichigo contributing to achieving SDG 7 & SDG 11(Japan Research Institute assessment)© Ichigo Inc. All rights reserved.

24

ESG Finance Supporting Sustainable Growth (2)Ichigo’s ESG Execution Underpinning Attractive ESG Financing Terms
ESG Loans

ESG Loans as % of Total Borrowings■ ESG loans and green bonds■ Remaining ESG commitment line
(JPY billion)■ ESG loans and green bonds■ Remaining ESG commitment line
■ Other corporate loans (excludes bonds, non-recourse loans, & shortterm loans)(JPY billion)

ESG Loans

17%

23.5

8X
11.8

16.4

17.8
16.4

3.6

170.2
8.2

7.1

2.9
FY20/2

FY21/2© Ichigo Inc. All rights reserved.

Current(Jan 13, 2022)
25

Sustainable Growth as a Sustainable Infrastructure Company© Ichigo Inc. All rights reserved.

26

Sustainable Real Estate

Selective on Acquisitions & Sales
Q3 Acquisitions: JPY 25.6B− 2 Office Assets (JPY 2.8B, 11% of Total)− Ichigo Owners Acquisitions: 20 Residential Assets (JPY 22.2B, 87% of Total)

Q3 Sales: JPY 12.4B− Also, JPY 17.7B Sale to Domestic Institutional Investor to Close in Q4

FY 22/2 Q3 (9M) Net Acquisitions: JPY 13.1B(JPY million)

Acquisitions

Sales

No. OfBook Value (A)AssetsNo. OfSales Price (B)AssetsDifference(A) - (B)

Residential

22

22,46333

5,610+16,853

Office/Hotel/Retail

2

2,785

–

–

+2,785

Logistics

–

–

2

6,011

-6,011

Other

3

311

3

798

-487

Total

27

25,55938

12,418+13,141

Note: Book Value of Sales: JPY 9.9B

© Ichigo Inc. All rights reserved.

27

Sustainable Real Estate

Ichigo Owners: Driving Long-Term Growth
On Track to Meet JPY 30B FY22/2 Acquisition Target – 88% of Full-Year
Target Contracted through Q3-End

Ichigo Owners Residential Acquisitions & Sales Since Launch(JPY billion)■ Acquisitions■ Sales

26.4
ExecutedContract

4.2
30.6

28.5
24.3

Acquired

22.2
11.7
5.4

13.7

2.4

FY18/2* Includes Q3 executed contracts© Ichigo Inc. All rights reserved.

FY19/2

ExecutedContract

17.7

8.0
FY20/2

FY21/2

FY22/2 Q3~(Includes sales to berecorded in Q4)28

Sustainable Real Estate

Ichigo Owners: New Co-Ownership Business
New Business with Diverse Earnings Streams & Generating Both Flow
Earnings & Stock Earnings− Expand Client Base: Grow individual investor client base
− Broaden Sales Channel: Working with accountants & financial institutions− Drive Stock Earnings: Driving stable long-term earnings growth
Ichigo Owners Co-Ownership Business Overview(1) Acquire quality assets and sell to LP(2) Offer small-lot investments to individual investors via LP and operate LP(3) Asset management during investment term (currently 12 years)(4) Asset sale at end of investment term
Addressing Individual Investors’ Investment Needs
Long-term real estate investment, asset diversification, & estate planning needs
Asset Sale #1 (Meguro, Central Tokyo)

In Operation (12-year investment term）© Ichigo Inc. All rights reserved.

Asset Sale #2 (Meguro, Central Tokyo)

Sale Start: Today (12-year investment term)
29Sustainable Real Estate

Ichigo Owners: Building Out Business & Earnings Model
Growing Stock Earnings via Ichigo Owners Core Capabilities & Client Base
Expansion

Residential
Asset Sales

Residential
Asset Sales+
Asset Management

New
Co-Ownership
Business

Clients
Individual
Investors
OperatingCompanies
Institutional
Investors

Institutional
Investors

DirectOwnership
Portfolio
CreationLong-Term
Investment

Business Model
Contribution

Earnings

Needs
Start

AM PeriodEnd・ Increased transactions
・ Better market
understanding

Flow(Gains on Sale)

Flow(Gains on Sale)

Stock

Flow

(Management
Fees)(Performance
Fees)

Short ~
Long-term

Individual
Investors(Small-Lot Investments)

Long-Term
Investment
Diversification

Flow(Gains on Sale)

Stock

Flow

(Management
Fees)(Performance
Fees)

Estate Planning

・ Broaden investment
offering
・ Expand customer base・ Drive stable earnings
・ Broaden investment
offering
・ Expand customer base・ Drive stable earnings

Long-term© Ichigo Inc. All rights reserved.

30

Asset Management

Growth Support for Ichigo REITs & Ichigo Green
OfficeHotel

Ichigo Office(8975)

Ichigo Hotel(3463)

Green Infrastructure

Ichigo Green(9282)

Portfolio
86 Assets JPY 206.1B

Portfolio
23 Hotels JPY 51.9B

Portfolio
15 Solar Power Plants JPY 11.4B

Dividend Yield (as of 2022/1/7)
5.1%

Dividend Yield (as of 2022/1/7)
1.8%

Dividend Yield (as of 2022/1/7)
5.7%

・ Entered FTSE Global REIT Index, a key
benchmark for global investors

・ Geographically diversified portfolio
focused on lodging-focused hotels

・ Ichigo Office & Ichigo Hotel only J-REITs
to implement no fixed fee, performancefee-only structure

・ Ichigo Office & Ichigo Hotel only J-REITs
to implement no fixed fee, performancefee-only structure

・ Solar power producer focused on driving
shareholder value via income stability andearnings growth and contributing toJapan’s self-sufficiency in clean energy

・ Transition to renewable energy acrossassets by April 2022 (excluding 13
partially-owned and co-owned assets)

・ Driving earnings & value growth via valueadd, strategic asset acquisitions & sales, &share buybacks

・ Portfolio of robust assets that havesuffered no injuries or damages fromnatural disasters

Ichigo Growth Support

Ichigo Growth Support

Ichigo Growth Support

Providing comprehensive coverage to Ichigo
Office assets via Ichigo’s disaster response
systemProvided subordinated debt (JPY 870M) to
support IHR’s financial base & reduced operator
risk by bringing in Hakata Hotels at 4 hotels

Operating all plants and providing ongoing
performance guarantee

Ichigo-Wide
Initiatives© Ichigo Inc. All rights reserved.

UN Global Compact
RE100
ESG & Value-Add

Includes Ichigo Office, Ichigo Hotel, & Ichigo GreenGroup-wide RE100 targets & strengthened environmental initiatives
Accelerating ESG & sustainable value-add initiatives
31

Clean Energy

Scaling Rapidly
Ichigo’s First Wind Power Plant (7.3MW) Online in H1
4.4
Total 9 New Plants (Total 19.1MW) Online FY22/2 (+3 in Q4) (Forecast)
3.8

IchigoOperating Plants: JPY 38.0B (139.7MW)
In-Pipeline Plants: JPY 10.5B (30.0MW)

2.9

3.0

48.5
(+28%)
10.5

Reference: Ichigo Green (9282)
Operating Plants: 29.4MW+17%(as of January 13, 2022)

1.4

1.5

Stock Earnings (JPY B)

21.0(+192%)
Total Capex(JPY B)
Power Generation
Avg FIT

23.6(+12%)

30.0(+27%)

32.5
(+8%)

38.0

38.0

FY22/2139.7MWJPY 31.2

FY23/2 ~169.7MWJPY 30.9

7.2
FY17/2
28.4MW
JPY 37.3© Ichigo Inc. All rights reserved.

FY18/2
72.3MW
JPY 36.4

FY19/2
83.6MW
JPY 35.3

FY20/2106.8MWJPY 34.3

FY21/2120.6MWJPY 32.8

32

Share Buybacks
Ichigo 2030: Flexible Deployment of Share Buybacks
5th Consecutive Year of Share Buybacks (JPY 13.5B, 7.4% of Shares)
April 2021 Buyback
AmountNumber of Shares
Buyback Period

JPY 1.5B (Average share price: JPY 343)
4,363,500(0.9% of shares outstanding, net of treasury shares)
April 20, 2021 – June 4, 2021
Number of Shares
Purchased(% of Shares Outstanding)

Average PurchasePrice

AmountFY21/2

9,645,800(1.9%)

JPY 311

JPY 3 billion

FY20/2

7,081,200(1.4%)

JPY 424

JPY 3 billion

FY19/2

7,869,700(1.6%)

JPY 381

JPY 3 billion

FY18/28,436,500(1.7%)

JPY 355

JPY 3 billion© Ichigo Inc. All rights reserved.

33

Ichigo J.League Shareholder Program
Represents Two Firsts for a Shareholder Program in Japan− First Japanese company to include not just its own shareholders, but also theshareholders of the REITs and listed solar power producer that it manages, in its
shareholder program (65,000 shareholders in total)− First company to offer shareholders free tickets to every J.League game at every
J.League club

Ichigo is deepening its partnership with the J.League and working tofurther Ichigo’s mission of promoting local community development.
Events & Presents− Ichigo Kids J.League Events
 Escort players onto field High-fives with players
 Other participatory programs− J.League Merchandise Autographed jerseys from all
J.League clubs
 Ichigo original J.League towels− J.League Online Events
Ichigo J.League Shareholder Program Website Landing Page
© Ichigo Inc. All rights reserved.

34

Appendix: Ichigo’s Sustainability Commitment (ESG)© Ichigo Inc. All rights reserved.

35

Ichigo Sustainability Policy
Harmony with the Environment
Ichigo actively monitors and minimizes the environmental impact of its business operations.

Energy Conservation, CO2 Reduction, and Recycling
Ichigo seeks to contribute to a low-carbon, low-waste society by reducing energy
consumption, extending the useful life of assets, actively recycling, reducing waste
production and water consumption, and implementing green procurement measures.

Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independently
established environmental rules. Ichigo also carefully monitors and complies with all applicablechanges in laws and regulations.

Training and AwarenessIchigo promotes understanding of its Sustainability Policy and works to increase sustainability
awareness among all Ichigo employees.

Sustainability Performance Communication and Disclosure
Ichigo communicates its Sustainability Policy and Ichigo’s sustainability initiatives to society atlarge. Ichigo also obtains certifications for its sustainability activities on an ongoing basis.

© Ichigo Inc. All rights reserved.

36

Sustainability Initiatives
Joining Third-Party Initiatives to Accelerate Ichigo’s Sustainability Activities
UN Global Compact
UN Global Compact is a global sustainability initiative that calls forcompanies and organizations to take leadership and take actions as
members of society to implement universal sustainability principles.
Companies and organizations that sign the UN Global Compact are
required to achieve the Ten Principles regarding human rights, labor,
environment, and anti-corruption based on CEO commitments.

CDP
CDP is a global initiative led by a non-profit organization
representing over 500 global investors to assess companies andorganizations of their environmental performance. Assessment isbased on governance, risk management, business strategy, targets
and performance, etc., and companies are scored from A to D-.
Ichigo’s score for 2021: A- (1 rank up from 2020)

RE100
RE100 is a global initiative bringing together the world’s mostinfluential businesses committed to 100% renewable power. The
RE100’s mission is to accelerate change towards a net zero carbon
society.

Ichigo’s
RE100 Target

100% Renewable Electricity by 2025

Fun to ShareFun to Share is the Ministry of Environment’s campaign to promote
the achievement of a low-carbon society by sharing the most up-todate information openly and broadly.
© Ichigo Inc. All rights reserved.

37

Delivering on Sustainability
Clean Energy Business Growth Addressing Critical Environmental Issues
Ichigo is Net Zero Carbon Today
Total Ichigo Power Plant CO2 Reductions

Total Ichigo CO2 Emissions■ Ichigo (93,526 tons)■ Ichigo Green (22,357 tons)■ Ichigo (28,763 tons)■ Ichigo Office (22,727 tons)■ Ichigo Hotel (7,745 tons)

115,884

59,235tons

tons

FY21/2 Actuals
Note: Ichigo CO2 reductions are also significantly greater than pre-Covid emissions. FY20/2 CO2 Emissions: 75,807 tons

© Ichigo Inc. All rights reserved.

38

Rich ESG Content
ICHIGO Sustainable City

Ichigo Sustainability Report

Introducing Ichigo’s Vision for Society’s Future

Promoting Awareness of Ichigo’s Sustainability
Initiatives via Ichigo Sustainability Report

Sustainable InfrastructureSportsSenior Management Message

Sustainable Business Management

CultureSmart Agriculture

Sustainability Policy

ESG Initiatives

Regional Development

ESG/SDGs

Third-Party Assessments

ESG Data

Ichigo Brand Site: ICHIGO Sustainable City

Ichigo Sustainability Reportwww.ichigo.gr.jp/company/brand (Japanese only)

www.ichigo.gr.jp/pdf/esg/Ichigo_Sustainability_Report_ENG.pdf© Ichigo Inc. All rights reserved.

39

ESG Initiatives: Environmental
Climate Positive & Sustainability-Driven
Preserve & Improve Real Estate
to End Wasteful Demolition

Community-Based, Productive Use of
Idle Land for Clean Energy

Pro-Active Environmental
Certifications

Ichigo's Sustainable Real Estate businesshas a proven track record of preserving andimproving existing real estate. Ichigo willbuild on this long-standing commitment tosustainability by developing newtechnologies to extend the lives of buildings
and other social infrastructure 100 years
and beyond.

Ichigo will not build power plants that require
the clearing of wooded land or the altering of
the landscape in a way that increases the riskof floods, landslides, or other water-related
disasters, or that face opposition from local
communities.

By obtaining certifications such as GRESB,CASBEE, BELS, and DBJ Green Building,
Ichigo is demonstrating our long-standing
commitment to sustainability via initiatives
that benefit investors, tenants, clients, andother stakeholders.

Ichigo’s Sustainable Real Estate
Preserve & Create Value
Sustainable
Real Estate

Increase
Quality ofTenantServices+

Renovate &RepairIncrease= Tenant
Satisfaction

Improve aesthetics and comfort
Seismic reinforcements
Regulatory compliance
Increase energy efficiency© Ichigo Inc. All rights reserved.

Annual Power Production

175,581,824 kWh
Equivalent to annual
energy consumption of
58,500 households
Annual CO2 Reduction

115,884,001 kg
Equivalent to annual
CO2 emission of
50,400 cars
* FY21/2 Actuals

Ichigo Group-Wide
Ichigo & Ichigo Office (8975)
Total 15 Assets
Ichigo Office (8975)
3 Stars / Green Star
Ichigo Hotel (3463)
2 Stars / Green StarBELS
DBJ Green Building

2 Assets
2 Assets40

ESG Initiatives: Social
Contributing to Society
Contributing to Regional Revitalization

Ichigo University

Sports Initiatives

Ichigo works to revitalize local communities
and promote regional economic
development. Ichigo’s model of preserving
and improving existing real estate creates
jobs and supports businesses, and ourclean energy plants also support their hostcommunities by providing new andsustainable sources of income.

Ichigo established Ichigo University in May
2013 to support employees’ continuing
education and personal growth.

As a top partner of the J.League
professional soccer league, we support theleague’s mission to promote community
development. Ichigo supports outstanding
athletes in weightlifting, rifle shooting, andtrack and field.

Ichigo University courses are taught byemployees and external professionals whoare specialists in their fields and have deep
experience.
Average Annual Number of Courses: 30◀ Miyako City

Ichigo University Classes

Retail Asset / Miyazaki
www.miyakocity.com

THE KNOT TOKYO ▶
Shinjuku
Hotel / Tokyo
https://hotel-theknot.jp/tokyoshinjuku/en

Chisato Kiyoyama(Track and Field)
OnlineIn-Person

Hiromi Miyake(Weightlifting)
Ichigo Sports Site (Japanese only)
www.ichigo.gr.jp/ichigosports© Ichigo Inc. All rights reserved.

41

ESG Initiatives: Governance
Global-Best Practice Governance
Early Adopter of Global Best PracticeCorporate Governance Structure

Majority Independent Director Board
Underpins Strong Governance

Annual Board of Directors
Evaluation

All Directors on Ichigo’s Board of Directors
are aware of their fiduciary responsibility
towards shareholders and work
collaboratively and appropriately with otherstakeholders to ensure sustained value
creation for shareholders.

Of 9 members of Ichigo’s Board of
Directors, 5 are Independent Directors
Including former CEOs of TSE 1st Section

Board evaluations are conducted by having
each Director assess the Board along thecriteria shown below, with aggregate survey
results collectively reviewed by the Board.

FY20/2 to Present(1) Board Composition

Major Initiatives
Adopted Independent Director-led, committee
based governance system in 2006
̶

Exceeded legal requirements by establishingCompliance Committee in addition to
Nominating, Audit, and Compensation
Committees

̶

̶

̶

̶

̶

Nominating Committee: 5 members(3 Independent Directors)
Audit Committee: 3 members(All Independent Directors)
Compensation Committee: 5 members(3 Independent Directors)
Compliance Committee: 4 members(2 Independent Directors)© Ichigo Inc. All rights reserved.

(2) Board Operation(3) Board Effectiveness(4) Board Support Resources
Masatoshi Matsuzaki(former CEO of
Konica Minolta)

Nobuhide Nakaido(former CEO of SCSK)(5) Engagement with Shareholders andStakeholders

FY16/2 to FY17/2
Takashi Kawamura (former CEO of Hitachi;
stepped down from Ichigo’s board upon
appointment as Chairman of TEPCO)
FY16/2 to May 2019
Kosuke Nishimoto (former CEO of Meitec;
stepped down from Ichigo’s board upon
appointment as EVP of Misumi Group)42Appendix: Financial & Real Estate Data

© Ichigo Inc. All rights reserved.

43

Covid Countermeasures− Infection control & response, communication with tenants, thoroughinformation gathering, & extensive safety measures for tenants
General Covid Infection Countermeasures

Covid Awareness & Prevention
Promotion Poster

Provide touchless hand sanitizers ubiquitously
Cover touch surfaces with antibacterial sheets
Post awareness & prevention promotion posters, distribute countermeasure
best-practice guidelines
Limit capacity indoors
Thorough disinfection and cleaning
Countermeasures by Asset Type
OfficeInstall thermal cameras for temperature checks & otherinfection prevention tools

Hotel

Provide guest rooms for Covid patients
Provide space for vaccination venue

RetailHold events that meet countermeasure best-practiceguidelines & drive customer satisfaction, such as silent
bingo and small workshops

Residential

Provide free Wi-Fi at all assets to facilitate remote work

© Ichigo Inc. All rights reserved.

44

Significant Unrealized Gains on Balance Sheet
Real Estate Directly Held by Ichigo(JPY million)

Book Value as ofNovember 30, 2021 (A)Appraisal NOI
(B)

Tokyo

92,932

5,330

5.7%

126,972+34,040

Outside Tokyo

106,790

6,981

6.5%

133,824+27,034

Total

199,723

12,311

6.2%

260,796+61,073

Location

Cap Rate(B)/(A)

Appraisal Value(C)

Unrealized Gains(C) - (A)

Note: Excludes Ichigo Owners, Centro, and self-storage assets (book value JPY 64.28B)© Ichigo Inc. All rights reserved.

45

Risk-Based Balance Sheet
Mark-to-Market Consolidated Balance Sheet: JPY 413.5B(Book Value JPY 348.1B + Unrealized Gains JPY 65.4B)

Cash & Cash Equivalents

JPY 29.2B

Non-Recourse Loans &Related Liabilities

JPY 44.6B

Consolidated Risk-Based Balance Sheet: JPY 339.5B(Book Value JPY 274.1B + Unrealized Gains JPY 65.4B)

Non-Recourse Loans &Related Assets

JPY 61.8B

Real Estate for Sale

JPY 80.7B

Fixed Assets

Non-Recourse Loan-Related ICH Equity

JPY 17.1B

Corporate Loans(including Bonds JPY 5.9B)

JPY 184.3B

Debt
JPY
251.6B

Unrealized Gains

JPY 65.4B

Post-Tax Unrealized
Gains JPY 45.3B
Tax JPY 20.0B

Corporate Loans(including Bonds JPY 5.9B)

JPY 155.0B

Debt
JPY
177.7B

Other JPY 22.8B

JPY 158.5B

JPY 158.5B

Other JPY 17.6B

JPY 80.7B

Fixed Assets

Other JPY 22.8B

Shareholder
EquityJPY 96.2B

Real Estate for Sale

Shareholder
EquityJPY 96.2B

Mark-toMarket
Shareholder
Equity Ratio

34.3%

Other JPY 17.6B

Unrealized Gains

JPY 65.4B

Risk-Based
Shareholder
Equity Ratio

41.7%

Post-Tax Unrealized
Gains JPY 45.3B
Tax JPY 20.0B

Note: Risk-Based Balance Sheet excludes client and non-recourse assets & liabilities and nets out Cash & Cash Equivalents.
© Ichigo Inc. All rights reserved.

46

Cash Flow Maximization
Maximal Use of Depreciation to Increase Cash Flow
Real Estate for Sale & Fixed Assets
Fixed Assets (SRE)
Real Estate for Sale (SRE)

15.2%

Fixed Asset Ratio
84.4%
84.4%

30.1%

(JPY billion)

12.8%

30.9

32.0

140.2
164.9

162.3
167.2

173.3

FY 20/2

FY 21/2

60.4
24.3

29.1

FY 17/2

FY 18/2

FY 19/2

Reclassification of
Sustainable Real Estate
Assets to Fixed Assets in
FY20/2
Maximal use ofdepreciation allowances
lowers stated accounting
earnings, but createsvalue by being cashgenerative to fund growthinvestments

Note: Excludes Ichigo Owners, Centro, and self-storage assets© Ichigo Inc. All rights reserved.

47

Robust Cash Flow Generation & Strong Earnings BaseKey Ichigo Strength: Robust Cash Generation to Fund Growth− Maximal use of non-cash depreciation allowances− Majority of cash earnings are Stock Earnings− Stock Earnings/Fixed Expenses Ratio – even amidst Covid – isconsistently c. 200%
(JPY million)
FY16/2

FY17/2

FY18/2

FY19/2

FY20/2

FY21/2

FY22/2 Q3(9M)

FY22/2
Bottom of Range

FY22/2Top of Range

12,57814,502

14,93918,48518,45015,065

11,26014,405

14,405

Depreciation

731

716

967

1,632

2,507

4,603

3,951

5,518

5,518

Flow Earnings

8,986

14,13913,015

15,273

18,567

5,850

2,337

7,727

12,146

Cash Earnings

21,56328,641

27,95333,75937,016

20,915

13,597

22,132

26,551

Fixed Expenses (B)

5,846

6,502

6,371

7,071

7,877

7,723

5,899

7,896

7,896

Stock Earnings/
Fixed Expenses (A/B)

215%

223%

234%

261%

234%

195%

191%

182%

182%

Stock Earnings (A)Note: Cash Earnings = Gross Profit + Fixed Asset Gains on Sales + Depreciation Expenses (Non-Cash)© Ichigo Inc. All rights reserved.

48

Post-GFC Shift in Earnings Base & Financial Position

Stock Earnings/
Fixed Expenses
Coverage Ratio

FY09/2GFC

FY14/2Start of Shift Up MTP

FY21/2

vs. GFC

75%

140%

195%

2.6X

10.2 years
Loan Maturity(Weighted avg.,
corporate + non-recourse loans)

3.6X

5.6 years
2.8 years

93%% of <3 Year Loans(corporate + non-recourse loans)Interest Rate
(Weighted avg., corporate loans)© Ichigo Inc. All rights reserved.

>3 years
7%28%<3 years
28%

17%>3 years17%<3 years
93%>3 years72%<3 years
83%

2.22%

1.96%

0.92%

-76%

-59%
(Interest Rate -1.3%)

49

Business Segments

Asset Management

Asset Management (AM) generates fee income via management of
Ichigo Office (8975), Ichigo Hotel (3463), Ichigo Green (9282), andprivate real estate funds.

Sustainable
Real Estate

Sustainable Real Estate (SRE) preserves and improves real estate.
Ichigo receives rental income during the period in which it carries out
its value-add, along with earning gains on sales that reflect the realestate’s higher value after the value-add is complete.

Clean Energy

Clean Energy (CE) is utility-scale solar and wind power productionthat produces clean energy and brings productive use to idle land.

Note: The Sustainable Real Estate segment was formerly called Value-Add. In keeping with its Ichigo 2030 vision, Ichigo changed thesegment name to Sustainable Real Estate in 2019 in order to put full focus on Ichigo’s commitment to preserving and improving realestate as a sustainable infrastructure company.
© Ichigo Inc. All rights reserved.

50

Consolidated Balance Sheet: Segment Breakdown(JPY million)

Cash andCash
Equivalents

Operational
Loan
Investments

Operational
Securities
Investments

Real Estatefor SaleFixed Assets

Intangible
AssetsSecurities
Investments

-

-

-

-

-

648

119

1,169

1,938

Sustainable Real Estate (SRE)

14,8691,324

864

80,728

181,464

2,703

2,539

3,977

288,472

Clean Energy (CE)

3,618

-

-

-

30,952

177

-

1,660

36,407Company-Wide Assets

17,717

-

-

-

95

101

1,724

1,446

21,085

Total

36,2051,324

864

80,728

212,512

3,631

4,383

8,254

347,903

Segment

Asset Management (AM)© Ichigo Inc. All rights reserved.

Other
AssetsTotal Assets

51

Consolidated P&L: Segment Breakdown(JPY million)

Gross Profit
Segment

YOY
ChangeFY22/2 Q3

FY21/2 Q3Operating Profit
YOY
ChangeFY22/2 Q3

FY21/2 Q3

FY22/2 Forecast

1,300

1,445

1,547

+7.1%

944

1,124

+19.1%

1,343

1,547

+15.2%––––

Acquisition/Disposition Fees

101

–

–

–

–

–

–

Sustainable Real Estate (SRE)

9,748

5,836

-40.1%

6,069

2,091

-65.5%

Rental Income

4,779

3,531

-26.1%––––

Asset Sales

4,977

2,318

-53.4%

–

–

–

–

-8

-13

–

–

–

–

–

2,080

2,229

+7.2%

1,621

1,814

+12.0%

–

–

–

-82

5

–

13,2739,613-27.6%

8,551

5,036

-41.1%

Asset Management (AM)Base AM Fees

Other Flow Earnings
Clean Energy (CE)
Adjustment (including
offsets of cross-segment
transactions)
Total© Ichigo Inc. All rights reserved.

5,700 – 8,600

2,100–
9,100 – 12,00052Asset Management AUM Detail

Ichigo Office(8975)

Ichigo Hotel(3463)

Ichigo Green(9282)
Private Equity
Real Estate Funds(excluding
consolidated funds)
Total(excluding
consolidated funds)

FY17/2(12M)

FY18/2(12M)

FY19/2(12M)

FY20/2(12M)

FY21/2(12M)

FY22/2 Q3(9M)

AUM (Fiscal Year End)JPY 194.5B

JPY 196.9B

JPY 203.0B

JPY 203.2B

JPY 206.1B

JPY 206.1B

Base AM Fee Gross Profit (Actual)

JPY 1,291M

JPY 1,373M

JPY 1,426M

JPY 1,436M

JPY 1,524M

JPY 1,276M

AUM (Fiscal Year End)JPY 47.6B

JPY 50.9B

JPY 50.7B

JPY 50.8B

JPY 51.9B

JPY 51.9B

Base AM Fee Gross Profit (Actual)

JPY 287M

JPY 450M

JPY461M

JPY 381M

JPY 42M

JPY 65M

AUM (Fiscal Year End)JPY 10.0B

JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

Base AM Fee Gross Profit (Actual)

JPY 11M

JPY 77M

JPY 85M

JPY 82M

JPY 79M

JPY 64M

AUM (Fiscal Year End)JPY 6.4B

JPY 12.3B

JPY 20.6B

JPY 36.8B

JPY 36.8B

JPY 36.8B

Base AM Fee Gross Profit (Actual)

JPY 27M

JPY 12M

JPY 41M

JPY 116M

JPY 137M

JPY 104M

AUM (Fiscal Year End)JPY 258.6B

JPY 271.7B

JPY 285.8B

JPY 302.4B

JPY 306.4B

JPY 306.4B

Base AM Fee Gross Profit (Actual)

JPY 1,617M

JPY 1,914M

JPY 2,014M

JPY 2,016M

JPY 1,782M

JPY 1,510M

Ichigo Green Base AM Fee Gross Profit (Actual) includes operator fees.

© Ichigo Inc. All rights reserved.

53

Sustainable Real Estate Social SignificanceSustainable Infrastructure for a Sustainable Society
End Wasteful Demolishment and Embrace Sustainable Real Estate‒ Improve quality of assets via Sustainable Value-Add‒ Preserve and improve highly functional real estate to contribute toenvironmental conservation and sustainability‒ Lengthening buildings’ useful lives beyond 100 years© Ichigo Inc. All rights reserved.

54

Powerful Sustainable Real Estate Business Model
Significant Synergies Between Ichigo’s Sustainable Real Estate & AssetManagement Businesses
Sustainable Real Estate Business Model
Green
Infrastructure

Solar Plants
Buy

Ichigo Green(9282)
OfficeIchigo Office(8975)
Hotel

Ichigo Hotel(3463)© Ichigo Inc. All rights reserved.

Sell

Real
不動産
EstateSustainable
Value-Add
Preserve &ImproveReal
EstateThirdParty
Investors

Sell

Buy
55

Sustainable Real Estate

Value-Add Robust to Changes in Market Environment

NormalMarketBuy

MarketDownturn

Build strong tenant relationship
Improve assets
Improve soft services

NOI
+25%

Sustainable Real Estate
Value-Add (avg. 2-5 years)

Complete
Value-Add

Acquisition Criteria
Acquire assets with earnings upside
driven by Ichigo value-add(NOI +20～30%)

Multi-Asset

Ichigo Owners

GPM
32%

GPM
11%

Avg. Hold:
3.2 Years

Avg. Hold:
0.8 Years

Sell (orContinued Hold)

Earnings Structure/ Financial Base
Stock Earnings/Fixed Expenses c. 200%
Rental Income During Holding Period
Average Loan Period c. 10 years

Value-Add
Minimizes Downside Risk

Sell Asset at Optimal Timing

Note: NOI = FY18~FY20 Actual Office, Retail, Hotel NOI at acquisition vs. NOI at saleMulti-Asset GPM = FY18~FY20 Actual Office, Retail, Hotel (weighted average)
Ichigo Owners GPM = FY18~FY21 Actual Residential (weighted average)© Ichigo Inc. All rights reserved.

56

Ichigo Sustainable Real Estate Earnings Model Example
5.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.5% Interest Rate, JPY 50M
Capex, 15% Increase in NOI, 3-Year Value-Add Period
Value-Add Measures: Improved exterior, interior, & tenant services; seismic
strengthening; increased energy efficiency; new tenant leasing; etc.
NOI at Acquisition(JPY 110M NOI/year) － (JPY 22.5M interest/year) ＝ JPY 87.5M NOI/yearNOI÷ Initial Investment ＝17.5% NOI return during investment period
.

Debt
Asset

JPY1.5B

JPY
2.0B

NOI after Value-Add(JPY 126.5M NOI/year) － (JPY 22.5M interest/year) ＝ JPY 104M NOI/year
NOI ÷ Total Investment (JPY 500M + JPY 50M) ＝18.9% NOI return during
investment period.

EquityJPY 0.5B

Capital Gain
The 15% increase in NOI at an equivalent cap rate increases the exit price by
15%: JPY 2B * 115% = JPY 2.3B
JPY 2.3B – (JPY 2B + JPY 50M) = JPY 250M capital gain.

Value-Add (Capex JPY 50M )© Ichigo Inc. All rights reserved.

OutcomeJPY 550M investment generates JPY 512M over 3 years → 31.1% p.a.

57

Sustainable Real Estate: Gross Profit Margin (GPM)
Ichigo Sustainable Value-Add Supports Ongoing High GPM

FY18/2

FY19/2

FY20/2

FY21/2

FY22/2 Q3

GPM(vs. Revenue)

33.7%

25.5%

28.3%

13.9%

18.6%

GPM
(vs. Book Value)

50.9%

34.3%

39.5%

16.2%

23.4%

Revenue(JPY M)

35,73358,69360,601

41,43012,418Gross Profit(JPY M)

12,05014,986

17,158

5,762

2,314

© Ichigo Inc. All rights reserved.

58

Ichigo-Owned Real Estate Portfolio
By Location

By Asset TypeGround Lease
Other
1％
Logistics 1%
3%

Office26%

Residential
20%

Hotel
24%

Retail25%(JPY billion)

Sendai 2%
Hokkaido 2％11％
Nagoya 3%
Other
5%
Osaka 3%
Tokyo
Metro*
11%
Fukuoka20%

Hokkaido
5.7

Tokyo
54%

Sendai
5.7*Ex-Tokyo

By Asset Size

>JPY 10B<JPY 1B
10%
21%

Tokyo
145.8

Nagoya7.3

Fukuoka
52.8

Osaka
8.9

Tokyo
Metro
(ExTokyo)
28.9

Other
13.3

JPY 5B-10B
21%
JPY 1B-5B
48%

Total Ichigo-Owned Assets: JPY 268.8B
Including Ichigo-Managed AUM: JPY 575.2B* Acquisition price basis
Ichigo-Managed AUM includes JPY 11.4B Ichigo Green assets.
Total Ichigo-Owned Assets Q3-End Book Value: JPY 261.9B© Ichigo Inc. All rights reserved.

59

Sustainable Real Estate Asset Breakdown (1)184 Assets, JPY 268.8 B, Annual NOI JPY 12.3B (6.2% Yield)
No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Expected

Ichigo Equity
Investment

NOI/Year1

Forecast Equity

Forecast

Multiple2

IRR3

1

Wholesale Market

Fixed Asset

Matsudo, Chiba

JPY 2B-3B

2005/0649 years–

JPY 1,900M

–

–

2

RetailFixed Asset

Minato-ku, Tokyo

JPY 2B-3B

2005/1052 years

JPY 136M

JPY 1,033M

–

–

3

RetailFixed Asset

Minato-ku, Tokyo>JPY 3B

2006/0336 years

JPY 165M

JPY 1,356M

–

–

4

RetailFixed Asset

Yokohama

JPY 1B-2B

2006/09

16 years

JPY 60M

JPY 1,157M

–

–

5

OfficeFixed Asset

Sendai>JPY 3B

2006/10

13 years

JPY 240M

JPY 1,042M

–

–

6

OfficeFixed Asset

Fukuoka>JPY 3B

2006/12

13 years

JPY 350M

JPY 1,339M

–

–

10

RetailFixed Asset

Chiyoda-ku, Tokyo

JPY 1B-2B

2007/0642 years

JPY 85M

JPY 240M––

11

RetailFixed Asset

Chiyoda-ku, Tokyo

JPY 1B-2B

2007/06

40 years

JPY 125M

JPY 233M––

14

Ground Lease

Fixed Asset

Atsugi, Kanagawa

JPY 2B-3B

2011/06–

JPY 172M

JPY 147M––

15

RetailFixed Asset

Hiratsuka, Kanagawa<JPY 1B

2012/0226 years

JPY 77M

JPY 172M––

16

RetailFixed Asset

Yokohama<JPY 1B

2012/10

8 years

JPY 34M

JPY 171M––

17

RetailFixed AssetToshima-ku, Tokyo>JPY 3B

2013/0310 years

JPY 244M

JPY 340M––

18

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2013/05

35 years

JPY 57M

JPY 154M––

19

RetailFixed Asset

Chofu, Tokyo

JPY 1B-2B

2013/06

36 years

JPY 135M

JPY 310M––

21

Residential

Fixed Asset

Minato-ku, Tokyo<JPY 1B

2013/06

6 years

JPY 47M

JPY 203M––

Note: Annual NOI & Yield excludes Ichigo Owners, Centro, and self-storage assets.
1

Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estatefor Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
2© Ichigo Inc. All rights reserved.

60

Sustainable Real Estate Asset Breakdown (2)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Expected
NOI/Year1

Ichigo Equity
Investment

Forecast Equity
Multiple2

Forecast
IRR3

27

RetailFixed Asset

Tokorozawa, Saitama

JPY 1B-2B

2013/11

14 years

JPY 76M

JPY 92M––

29

Ground Lease

Fixed Asset

Fujisawa, Kanagawa

JPY 1B-2B

2014/03–

JPY 114M

JPY 273M––

30

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2014/0337 years

JPY 51M

JPY 108M––

32

RetailFixed Asset

Fukuoka

JPY 1B-2B

2014/04

15 years

JPY 58M

JPY 279M––

35

OfficeFixed Asset

Minato-ku, Tokyo

JPY 2B-3B

2014/05

12 years

JPY 144M

JPY 434M––

37

RetailFixed Asset

Minato-ku, Tokyo<JPY 1B

2014/0749 years

JPY 47M

JPY 77M––

39

RetailFixed Asset

Fukuoka<JPY 1B

2014/0717 years

JPY 52M

JPY 213M––

40

RetailFixed Asset

Fukuoka<JPY 1B

2014/09

36 years

JPY 49M

JPY 252M

–

–

41

Hotel

Fixed Asset

Utsunomiya, Tochigi

JPY 1B-2B

2014/09

34 years

JPY 143M

JPY 400M––

42

RetailFixed Asset

Fukuoka

JPY 1B-2B

2014/09

21 years

JPY 60M

JPY 177M––

43

RetailFixed AssetOsaka

JPY 1B-2B

2014/09

19 years

JPY 117M

JPY 301M––

45

RetailFixed Asset

Fukuoka

JPY 1B-2B

2014/1118 years

JPY 92M

JPY 135M––

57

Residential

Fixed Asset

Minato-ku, Tokyo

JPY 1B-2B

2014/1217 years

JPY 56M

JPY 186M––

62

RetailFixed Asset

Fukuoka<JPY 1B

2014/1217 years

JPY 41M

JPY 212M––

63

RetailFixed Asset

Meguro-ku, Tokyo

JPY 1B-2B

2014/1215 years

JPY 85M

JPY 129M––

1

Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estatefor Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
2© Ichigo Inc. All rights reserved.

61

Sustainable Real Estate Asset Breakdown (3)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Expected
NOI/Year1

Ichigo Equity
Investment

Forecast Equity

Forecast

Multiple2

IRR3

64

RetailFixed Asset

Shinagawa-ku, Tokyo<JPY 1B

2015/01–

JPY 26M

–

–

–

66

RetailFixed Asset

Sendai<JPY 1B

2015/0217 years

JPY 65M

JPY 8M––

68

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2015/04

20 years

JPY 46M

JPY 79M

–

–

69

Hotel

Fixed AssetOsaka

JPY 2B-3B

2015/05

19 years

JPY 170M

JPY 633M––

71

RetailFixed Asset

Fujisawa, Kanagawa

JPY 1B-2B

2015/07

6 years

JPY 99M

JPY 126M

–

–

110

Hotel

Fixed Asset

Fukuoka>JPY 3B

2016/0336 years

JPY 273M

JPY 905M

–

–

111

Hotel

Fixed Asset

Yokohama

JPY 2B-3B

2016/0337 years

JPY 207M

JPY 228M

–

–

112

Hotel

Fixed Asset

Yokohama>JPY 3B

2016/0334 years

JPY 239M

JPY 354M

–

–

113

Hotel

Fixed Asset

Yokohama>JPY 3B

2016/0334 years

JPY 288M

JPY 344M

–

–

114

Hotel

Fixed Asset

Fukuoka>JPY 3B

2016/04

31 years

JPY 183M

JPY 550M

–

–

115

Hotel

Fixed AssetOsaka

JPY 2B-3B

2016/04

14 years

JPY 130M

JPY 274M

–

–

116

RetailFixed Asset

Sendai<JPY 1B

2016/04

33 years

JPY 63M

JPY 86M––

118

RetailFixed Asset

NagoyaJPY 1B-2B

2016/06

24 years

JPY 83M

JPY 102M

–

–

119

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2016/06

34 years

JPY 42M

JPY 136M

–

–

120

Hotel

Fixed Asset

Shinjuku-ku, Tokyo>JPY 3B

2016/0942 years

JPY 554M

JPY 349M––

1

Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estatefor Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
2© Ichigo Inc. All rights reserved.

62

Sustainable Real Estate Asset Breakdown (4)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Expected
NOI/Year1

Ichigo Equity
Investment

Forecast Equity

Forecast

Multiple2

IRR3

121

OfficeFixed Asset

Minato-ku, Tokyo>JPY 3B

2016/1020 years

JPY 1,540M

JPY 3,450M

–

–

122

Hotel

Fixed Asset

Shima, Mie<JPY 1B

2017/01

23 years

JPY 78M

JPY 73M

–

–

133

Hotel

Fixed Asset

Minato-ku, Tokyo<JPY 1B

2017/04

19 years

JPY 46M

JPY 152M

–

–

138

Hotel

Fixed Asset

Ogaki, Gifu

JPY 1B-2B

2017/05

32 years

JPY 116M

–

–

–

144

OfficeFixed Asset

Chiyoda-ku, Tokyo

JPY 1B-2B

2018/0233 years

JPY 129M

JPY 268M

–

–

145

Hotel

Fixed Asset

Fukuoka>JPY 3B

2018/033 years

JPY 194M

JPY 301M

–

–

146

RetailFixed Asset

Chuo-ku, Tokyo

JPY 1B-2B

2018/08

31 years

JPY 32M

–

–

–

147

Hotel

Fixed Asset

Kyoto>JPY 3B

2018/08

3 years

JPY 327M

JPY 1,666M

–

–

149

RetailFixed Asset

Chiyoda-ku, Tokyo>JPY 3B

2018/09

31 years

JPY 308M

JPY 2,269M

–

–

151

OfficeFixed Asset

Fukuoka<JPY 1B

2018/1023 years

JPY 33M

JPY 38M––

152

OfficeFixed Asset

Fukuoka

JPY 2B-3B

2019/0234 years

JPY 174M

JPY 382M

–

–

154

Residential

Fixed Asset

Kita Kyushu, Fukuoka

JPY 1B-2B

2019/03

7 years

JPY 83M

JPY 181M

–

–

155

OfficeFixed Asset

Shinagawa-ku, Tokyo

JPY 2B-3B

2019/0336 years

JPY 169M

JPY 616M

–

–

157

OfficeFixed Asset

Chiyoda-ku, Tokyo<JPY 1B

2019/04

38 years

JPY 52M

–

–

–

158

Other

Fixed Asset

Chuo-ku, Tokyo

JPY 1B-2B

2019/05–

JPY 12M

–

–

–

1

Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estatefor Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
2© Ichigo Inc. All rights reserved.

63

Sustainable Real Estate Asset Breakdown (5)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Expected
NOI/Year1

Ichigo Equity
Investment

Forecast Equity
Multiple2

Forecast
IRR3

159

RetailFixed Asset

Shibuya-ku, Tokyo

JPY 2B-3B

2019/05

42 years

JPY 123M

JPY 210M

–

–

160

OfficeFixed Asset

Fukuoka

JPY 2B-3B

2019/06

24 years

JPY 129M

JPY 248M

–

–

161

Hotel

Fixed Asset

Fukuoka>JPY 3B

2019/0727 years

JPY 368M

JPY 1,636M

–

–

162

Hotel

Fixed Asset

Fukuoka>JPY 3B

2019/0723 years

JPY 353M

JPY 1,170M

–

–

164

Hotel

Fixed Asset

Chiyoda-ku, Tokyo<JPY 1B

2020/03

13 years

JPY 61M

JPY 62M

–

–

165

Hotel

Fixed Asset

Sapporo>JPY 3B

2020/031 year

JPY 268M

JPY 700M

–

–

167

Hotel

Fixed Asset

Hiroshima>JPY 3B

2020/08

1 yearJPY 306M–––

JPY 10,476M

JPY 30,662M––

67 Fixed Assets

JPY 176,736M
JPY 170,883M (Q3-End Book Value)

1

Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estatefor Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
2© Ichigo Inc. All rights reserved.

64

Sustainable Real Estate Asset Breakdown (6)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Expected
NOI/Year1

Ichigo Equity
Investment

Forecast Equity
Multiple2

Forecast
IRR3

61

RetailOperational Loan

Shinjuku-ku, Tokyo

JPY 1B-2B

2014/1258 years

JPY 120M

JPY 57M

15.26X

51.7%

89

OfficeReal Estate for Sale

Musashino, Tokyo>JPY 3B

2015/0732 years

JPY 131M

JPY 670M

1.72X

13.3%

92

OfficeReal Estate for Sale

Fukuoka

JPY 1B-2B

2015/07

14 years

JPY 85M

JPY 353M

1.82X

17.7%

143

RetailReal Estate for Sale

Fukuoka

JPY 1B-2B

2017/0937 years

JPY 106M

JPY 223M

3.78X

19.9%

150

RetailReal Estate for Sale

Chuo-ku, Tokyo>JPY 3B

2018/1034 years

JPY 359M

JPY 1,161M

6.17X

24.7%

153

Hotel

Real Estate for Sale

Fukuoka

JPY 2B-3B

2019/0228 years

JPY 110M

–

－

－

156

Logistics

Real Estate for Sale

Fukuoka

JPY 2B-3B

2019/0333 years

JPY 150M

JPY 651M

3.60X

30.0%

163

RetailReal Estate for Sale

Nagoya>JPY 3B

2019/08

24 years

JPY 479M

JPY 1,146M

3.47X

17.0%

166

RetailReal Estate for Sale

Shibuya-ku, Tokyo<JPY 1B

2020/0316 years

JPY 39M

JPY 83M

3.23X

13.5%

168

OfficeReal Estate for Sale

Koto-ku, Tokyo

JPY 1B-2B

2020/1131 years

JPY 100M

–

3.17X

53.6%

169

OfficeReal Estate for Sale

Fukuoka

JPY 1B-2B

2021/1036 years

JPY 54M

JPY 109M

2.70X

170.5%

170

OfficeReal Estate for Sale

Fukuoka

JPY 1B-2B

2021/11

12 years

JPY 59M

JPY 270M

1.68X

23.9%

JPY 1,791M

JPY 4,722M

3.81X

39.6%

JPY 12,268M

JPY 35,384M––

12 Real Estate For Sale

Subtotal 79 Assets

JPY 30,943M
JPY 31,127M (Q3-End Book Value)
JPY 207,680M
JPY 202,010M (Q3-End Book Value)

1

Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estatefor Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
2© Ichigo Inc. All rights reserved.

65

Sustainable Real Estate Asset Breakdown (7)No.

Acquisition
Price

Asset Typevs. FY21/2 Q4

Expected
NOI/Year1

Ichigo Equity
Investment

Forecast Equity
Multiple2

Forecast
IRR3

A

Ichigo Owners (Residential)

44 Assets

JPY 45,511M+JPY 23,552M

JPY 1,932M

JPY 12,943M

–

–

B

Ichigo Owners (Other)

4 Assets

JPY 3,308M-JPY 5,211M

JPY 204M

JPY 1,463M

–

–

C

Centro (Primarily Office & Residential)

21 Assets

JPY 8,076M+JPY 279M

JPY 590M

JPY 1,927M

–

–

D

Self-Storage

36 Assets

JPY 4,295M+JPY 544M

JPY 433M

JPY 896M––

JPY 15,428M

JPY 52,615M––

Total 184 Assets

JPY 268,871M
JPY 261,974M (Q3-End Book Value)

Assets acquired in FY22/2 Q1 (3M)

Total 11 Assets

JPY 8,368M

JPY 358M

JPY 2,120M––

Assets acquired in FY22/2 Q2 (3M)

Total 6 Assets

JPY 4,574M

JPY 205M

JPY 1,161M––

Assets acquired in FY22/2 Q3 (3M)

Total 10 Assets

JPY 4,183M

JPY 175M

JPY 1,128M––

Assets acquired in FY22/2 Q3 (9M)

Total 27 Assets

JPY 17,125M

JPY 738M

JPY 4,410M––

Assets acquired and sold in FY22/2*

Total 3 Assets

JPY 129M

–

–

–

–

* Sold 3 Centro assets
1 Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

© Ichigo Inc. All rights reserved.

66

Ichigo Solar & Wind Power Plant Portfolio
Ichigo Solar Power Plants (Operating)Solar Power Plant

Area

Ichigo Tokushima Higashi-Okinosu
Ichigo Fuchu Jogecho Yano
Ichigo Yubetsu Barou
Ichigo Maebashi Naegashima
Ichigo Kijo Takajo
Ichigo Betsukai Kawakamicho
Ichigo Toyokoro Sasadamachi
Ichigo Higashi-Hiroshima Saijocho Taguchi
Ichigo Akkeshi Shirahama
Ichigo Hamanaka Bokujo Tsurunokotai
Ichigo Yonago Izumi
Ichigo Kasaoka Takumicho
Ichigo Toki Oroshicho
Ichigo Toride Shimotakai Kita
Ichigo Toride Shimotakai Minami
Ichigo Hamanaka Bokujo Kajibayashi
Ichigo Sera Tsukuchi
Ichigo Sera Aomizu
Ichigo Showamura Ogose
Ichigo Memuro Nishi-Shikari
Ichigo Kure Yasuuracho Nakahata
Ichigo Tsu
Ichigo Kasaoka Iwanoike
Ichigo Toki Tsurusatocho Kakino
Ichigo Itoshima Iwara
Ichigo Sakahogi Fukagaya
Ichigo Sennan Kitsuneike
Ichigo Minakami Aramaki
Ichigo Takashima Kutsuki
Ichigo Toki Tsurusatocho Kakino Higashi
Ichigo Hitachiomiya
Ichigo Hokota Aoyagi
Ichigo Kasaoka Osakaike
Ichigo Minokamo Hachiyacho Kamihachiya
Ichigo Seto Jokojicho
Ichigo Toride Shimotakai Nishi
Ichigo Chiba Wakaba-ku Omiyacho Higashi
Ichigo Kasaoka Idachiike
Ichigo Komagane Akaho Minami
Ichigo Komagane Akaho Kita
Ichigo Chiba Wakaba-ku Omiyacho Nishi
Ichigo Tatsunomachi Sawasoko
Ichigo Miyakonojo Takazakicho Tsumagirishima
Ichigo Kobe Pompuike
Total (Operating)

Shikoku
Chugoku
Hokkaido
Kanto
KyushuHokkaido
Hokkaido
Chugoku
Hokkaido
TohokuChugoku
Chugoku
Chubu
Kanto
Kanto
TohokuChugoku
Chugoku
Kanto
Hokkaido
Chugoku
Chubu
Chugoku
Chubu
KyushuChubu
Kansai
Kanto
Kansai
Chubu
Kanto
Kanto
Chugoku
Chubu
Chubu
Kanto
Kanto
Chugoku
Chubu
Chubu
Kanto
Chubu
KyushuKansai© Ichigo Inc. All rights reserved.

Ichigo Solar Power Plants (In-Pipeline)

Panel
Output
(MW)
2.52
0.99
0.80
0.67
0.89
0.88
0.60
2.72
0.80
2.31
2.61
1.11
1.39
1.03
0.54
2.31
2.54
2.87
43.34
1.32
2.90
2.94
2.64
1.31
1.48
2.89
2.86
12.02
3.74
1.67
2.99
2.48
2.66
1.29
1.45
2.84
0.74
2.66
0.74
0.39
0.74
0.74
2.96
2.73

FIT
(Pre-tax)

Operation
Start Date

JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40
JPY 36
JPY 40
JPY 32
JPY 36
JPY 32
JPY 32
JPY 36
JPY 32
JPY 32
JPY 36
JPY 40
JPY 36
JPY 24
JPY 24
JPY 24
JPY 36
JPY 21
JPY 21JPY 36
JPY 32
JPY 21
JPY 24
JPY 27
JPY 21
JPY 18JPY 18JPY 18JPY 14
JPY 18JPY 14
JPY 14
JPY 14
JPY 14
JPY 32
JPY 18Aug 2013
Mar 2014
Apr 2014
Apr 2014
Apr 2014
Oct 2014
Oct 2014
Jan 2015
Mar 2015
Dec 2015
Jan 2016
Mar 2016
Jun 2016
Jul 2016
Jul 2016
Oct 2016
Feb 2017
Aug 2017
Sep 2017
Feb 2018
Mar 2018
Mar 2018
Mar 2018
Apr 2018
Jan 2019
May 2019
Jul 2019
Jan 2020
Jan 2020
Feb 2020
Mar 2020
Apr 2020
Apr 2020
Sep 2020
Oct 2020
Jan 2021
Sep 2021
Oct 2021
Nov 2021
Nov 2021
Nov 2021
Dec 2021
Dec 2021
Jan 2022

Solar Power Plant
Ichigo Obu Yoshidamachi
Ichigo Sera Shimotsuda
Ichigo Ueda Yoshidaike
Ichigo Ebino Suenaga
Total (In-Pipeline)
Total (Operating & In-Pipeline)

Area
Chubu
Chugoku
Chubu
KyushuPanel
Output
(MW)
1.10
2.93
1.01
13.99

FIT
(Pre-tax)

Operation
Start Date

JPY 18JPY 18JPY 18
JPY 40Mar 2022
Mar 2022
May 2022
Jan 2024

4 Plants 19.0MW
48 Plants 151.1MW

48 Ichigo Solar Power Plants (Operating/In-Pipeline) 151.4MW

Ichigo Wind Power Plants (Operating)Wind Power Plant

Area

Ichigo Yonezawa Itaya
Total (Operating)TohokuPanel
Output
(MW)
7.39

FIT
(Pre-tax)

Operation
Start Date

JPY 22

Mar 2021

1 Plant 7.3MW

Ichigo Wind Power Plants (In-Pipeline)
Wind Power Plant

Area

Ichigo Takashinoyama
Ichigo Onjuku Iwawada Nishi
Ichigo Onjuku Iwawada Higashi
Total (In-Pipeline)

Tohoku
Kanto
Kanto

Panel
Output
(MW)
6.99
1.99
1.99

FIT
(Pre-tax)

Operation
Start Date

JPY 21
JPY 22
JPY 22

Dec 2023
Dec 2024
Dec 2024

3 Plants 10.9MW

4 Ichigo Wind Power Plants (Operating/In-Pipeline) 18.3MW
Total 52 Ichigo Solar & Wind Power Plants 169.7MW

44 Plants 132.3MW

67

Ichigo Green (9282) Solar Power Plant Portfolio
Ichigo Green Solar Power Plants (Operating)Solar Power Plant

Panel
FIT
Output(Pre-tax)
(MW)
Kanto
1.33
JPY 40
Hokkaido
1.40
JPY 40
Hokkaido
1.24
JPY 40
Hokkaido
1.12
JPY 40Shikoku
1.23
JPY 40
Hokkaido
1.93
JPY 40
Hokkaido
1.16
JPY 40
Hokkaido
1.02
JPY 40Okinawa
8.44
JPY 40
Hokkaido
1.24
JPY 40Shikoku
2.43
JPY 36
Kyushu1.44
JPY 36
Chubu
1.80
JPY 32
Chugoku
1.24
JPY 40Chugoku
2.35
JPY 3615 Plants 29.4MW
Area

Ichigo Kiryu Okuzawa
Ichigo Motomombetsu
Ichigo Muroran Hatchodaira
Ichigo Engaru Kiyokawa
Ichigo Iyo Nakayamacho Izubuchi
Ichigo Nakashibetsu Midorigaoka
Ichigo Abira Toasa
Ichigo Toyokoro
Ichigo Nago Futami
Ichigo Engaru Higashimachi
Ichigo Takamatsu Kokubunjicho Nii
Ichigo Miyakonojo Yasuhisacho
Ichigo Toyokawa Mitocho Sawakihama
Ichigo Yamaguchi Aionishi
Ichigo Yamaguchi Sayama
Total (Operating)Operation
Start Date
Sep 2013
Feb 2014
Mar 2014
Mar 2014
Apr 2014
Nov 2014
Dec 2014
Dec 2014
Feb 2015
Feb 2015
Jun 2015
Jul 2015
Sep 2015
Dec 2015
Apr 2016

Ichigo Total: 199.1MW (Operating/In-pipeline)
Solar Power Plants

151.4MWWind Power Plants

18.3MW

Ichigo Green (9282)
Solar Power Plants

29.4MW

Reference: Japan’s Feed-In Tariff (FIT)• A policy mechanism to encourage investment in renewable energies by guaranteeing a fixed purchase price for electricity over a 20-year
contract period• The fixed price for new contracts is adjusted every year, but locked in for the duration of the contract period
Wind Power FIT

Solar Power FIT
Contract Date

FIT

Guarantee
PeriodContract Date

FIT

Guarantee
PeriodFY2012

JPY 4020 years

FY2017 (4/1~9/30)

JPY 2220 years

FY2013

JPY 3620 years

FY2017 (10/1~3/31)

JPY 2120 years

FY2014

JPY 3220 years

FY2018JPY 2020 years

FY2015 (4/1~6/30)

JPY 2920 years

FY2019JPY 1920 years

FY2015 (7/1~3/31)

JPY 2720 years

FY2020

JPY 1820 years

FY2016

JPY 2420 years

FY2021–FY2017~

Determined via
auction process 1

Determined via
auction process 2–© Ichigo Inc. All rights reserved.

1 2017 FIT for >2MW non-residential, 2019 FIT for>0.5MW non-residential, and 2020~ FIT >0.25MW
non-residential solar power production
2 FIT for >0.25MW wind power generation

68

Ichigo-Owned Solar Power Plant Portfolio
Total Operating and In-Pipeline Ichigo-Owned Solar Power Plants: 48 Plants (151.4MW)
By Customer (Electric Power Utility Co)
Shikoku
Hokkaido
2%
3%

By Feed-In Tariff

By Years in Operation

JPY 14
2%

Tohoku3%
JPY 18
11%

Kyushu13%

JPY 21
7%

TEPCO
44%

Kansai
6%
Chubu
11%

JPY 27
2%

In Pipeline
13%

JPY 4019%<1 year8%>5 years
15%

JPY 24
7%
JPY 3210%

1-3 years
24%

JPY 3643%

3-5 years
40%

Chugoku
18%

By Output

By Solar Intensity

2-10MW(In Pipeline)
2%<2MW(In Pipeline)
1%

A(In-Pipeline)
2%

>10MW
37%

>10MW
(In
Pipeline)
9%C(In Pipeline)
2%

Area
C
8%

<2MW
14%

B
(In Pipeline)
9%2-10MW
37%

Panel Output and FIT by Customer

B
31%

A
48%

TEPCO
Chugoku
KyushuChubu
KansaiTohokuHokkaido
Shikoku
Total

Operating
Panel
FIT
Output(Pre-tax)
(MW)
(JPY)
67.4
14 – 40
23.7
18 – 40
5.3
36 – 40
14.8
18 – 36
9.3
21 – 32
4.6
36
4.4
40
2.5
40
132.3

Solar Intensity Rank
A: ≥4.00 B: ≥3.75, <4.00
Unit: kWh/m2 per day© Ichigo Inc. All rights reserved.

C: ≥3.50, <3.75

In-Pipeline
Panel
FIT
Output(Pre-tax)
(MW)
(JPY)
–
–
2.9
18
13.9
40
2.1
18
18
－
–
–
–
–
–
–
19.0
D: <3.569

Green Biomass Entry
Fully Local Green Biomass as Ichigo's Third Renewable Energy Business− Diversify & stabilize power production− Procure biomass feedstock via Ichigo’s community relationships
Weather
Characteristics
Impacts
Solar Power・ Lots of potential plant site candidates, able to make effective use ofidle land

YesWind Power・ Night time power production capability

Yes・ 24-hour power generation capacity regardless of weather conditions
・ Able to control power generation
・ Requires stable supply of biomass energy sources

No

Biomass

Maintain & Conserve Forests− Support biodiversity & contribute to fight against climate change
Purposeful Use of Japan’s Abundant Forest Resources− Japan’s forest ratio is 68% (3rd highest amongst OECD countries), 8th largest
cultivated forest area in the world− Productive use of unused domestic wood materials as biomass energy source© Ichigo Inc. All rights reserved.

70

Consolidated Balance Sheet: Assets(JPY million)
FY18/2
AssetsCurrent Assets
Cash and cash equivalents
Trade notes and accounts receivable
Operational loan investments
Operational securities investments
Real estate for sale
Deferred tax assets
Other
Less: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures (net)
Solar and wind power plants (net)Land
Other (net)Total Property, Plant, and Equipment
Intangible Assets
Goodwill
Leasehold rights
Other
Total Intangible Assets
Investments and Other Assets
Securities investments
Long-term loans receivable
Deferred tax assets
Other
Less: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets© Ichigo Inc. All rights reserved.

FY19/2

FY20/2

FY21/2

FY22/2 H1

FY22/2 Q3

vs. FY22/2 H1

45,510
1,097
1,324
2
180,789
342
2,643
-28
231,681

50,225
1,344
1,324
1,218
161,322–2,156-2
217,590

41,067
2,308
1,324
902
68,290–3,721-6
117,608

50,832
1,382
1,324
590
64,109–2,698-167
120,771

45,381
1,583
1,324
1,973
67,876–2,183-168
120,154

36,205
1,958
1,324
864
80,728–
2,842-168
123,756-9,176+375–-1,109+12,852–+659–+3,602

10,60019,773
26,993
1,190
58,55820,33819,05849,924
5,655
94,97655,05023,425
122,114
5,607
206,198

60,67324,191
122,592
6,935
214,392

59,695
26,869122,597
4,476
213,639

59,125
27,168
121,9114,307
212,512

-570
+299
-686
-169
-1,127

1,600
135
233
1,968

1,346
316
331
1,993

1,090
687
705
2,482

968
1,272
1,797
4,038

869
1,272
1,552
3,695

844
1,365
1,420
3,631

-25
+93
-132
-64

2,184
10
68
2,132
-91
4,303
64,831
296,512

2,455
10
177
2,231
-91
4,782
101,752
319,343

4,321
510
568
2,128
-91
7,436
216,118
333,726

5,147
10
605
2,202
-91
7,874
226,305
347,076

5,494
285
585
2,048
-91
8,322
225,656
345,811

4,383
277
571
2,863
-91
8,004
224,147
347,903-1,111
-8
-14
+815
–
-318
-1,509+2,09271

Consolidated Balance Sheet: Liabilities & Net Assets(JPY million)
FY18/2
Liabilities
Current Liabilities
Short-term loans
Bonds (due within one year)
Long-term loans (due within one year)
Long-term non-recourse loans (due within one
year)
Income taxes payable
Deferred tax liabilities
Accrued bonuses
Other current liabilities
Total Current Liabilities
Long-Term Liabilities
Bonds
Long-term loans
Long-term non-recourse loans
Deferred tax liabilities
Long-term security deposits received
Other long-term liabilities
Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares
Total Shareholders’ Equity
Accumulated Other Comprehensive Income
Valuation gains (losses) on other securities
Deferred gains (losses) on long-term interest rate
hedgesTotal Accumulated Other Comprehensive Income
Stock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets© Ichigo Inc. All rights reserved.

FY19/2

FY20/2

FY21/2

FY22/2 H1

FY22/2 Q3

vs. FY22/2 H1

1,042
112
4,449

3,275
112
7,881

3,086
274
12,277

4,879
274
9,751

4,458
274
9,682

3,294
274
9,780

-1,164
–
+98

3,921

1,666

1,178

1,358

1,367

1,367

–

1,609
494
34
4,652
16,316

3,760
–
31
5,178
21,905

2,416
–
33
5,013
24,280

573
–
9
5,527
22,374

849
–
157
3,709
20,499

169
–
316
3,913
19,117

-680
–
+159
+204
-1,382

520
112,366
63,588
1,744
8,492
758
187,470
203,787

538
131,569
51,068
2,164
8,292
946
194,579
216,484

6,082
151,483
39,156
1,890
8,118
1,107
207,838
232,119

5,878
156,890
40,974
1,868
7,795
1,039
214,446
236,820

5,740
161,795
40,254
1,764
7,075
1,253
217,884
238,3835,700
165,289
40,120
1,763
7,168
1,038
221,080
240,198-40+3,494
-134
-1
+93
-215
+3,196+1,81526,723
11,11354,324-2,99589,16526,820
11,207
66,730-5,98898,76926,885
11,272
71,505-8,988100,674

26,888
11,27573,160-11,988
99,33526,888
11,26871,582-13,423
96,31526,888
11,26871,820-13,423
96,553

–
–
+238
–
+238

543

386

158

90

139

48

-91

-372

-408

-397

-375

-372

-313

+59

171
666
2,722
92,725296,512

-21
827
3,283
102,859
319,343

-239
988
184
101,607
333,726-285
1,007
10,197110,255
347,076-233
1,039
10,306
107,427
345,811-265
1,056
10,361
107,705
347,903

-32
+17
+55
+278
+2,09272

Consolidated P&L(JPY million)
FY18/2(12M)

FY19/2(12M)

FY20/2(12M)

FY21/2(12M)

FY22/2 Q3(9M)

FY21/2 Q3(9M)

Change(YOY)

FY22/2Full-Year
Forecast

vs.
Forecast

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Mark-to-market gains on long-term interest
rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
Mark-to-market losses on long-term interest
rate hedges

57,84630,86026,986
5,067
21,91983,54051,41332,126
5,847
26,27987,36052,851
34,5096,787
27,721

61,36845,776
15,591
5,923
9,668

29,386
19,773
9,613
4,576
5,036

55,18841,915
13,273
4,721
8,551-25,802-22,142-3,660-145-3,515––––9,100 – 12,000––––
42.0% – 55.3%

3
57

3
68

8
78

17
78

17
27

12
75

+5
-48

–
–

–
–

–

5

–

243

51

158

-107

–

–

–
–

–
–

Debt financing-related fees
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Gains on sales of fixed assets
Gains on sales of securities investments
Gains on sales of shares in affiliates
Gains on sales of subsidiary shares
Other
Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Valuation losses on securities investments
Impairment loss
Covid writedown of real estate for sale
Other
Total Extraordinary Losses
Pre-Tax Income
Total Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority Interests
Net Income© Ichigo Inc. All rights reserved.

100
161

70
147

62
150

78
417

121
218

43
290

+78
-72

2,249

2,328

2,293

2,338

1,772

1,752

+20

–

–

270

491

336

29

192

55

+137

–

–

207
168
2,895
19,185

327
203
3,350
23,076

538
307
3,476
24,395

279
258
2,906
7,179

40
218
2,224
3,030

268
229
2,306
6,535

-228
-11
-82
-3,505–––6,000 – 8,900–––
34.0% – 50.5%

–
–
1,221
–
41
1,263

–
2
–
–
–
2

–
11
–
169
35
215

720
–
–
–
–
720

33
–
–
–
–
33

–
–
–
–
–
–

+33
–
–
–
–
+33

–
–
–
–
–
–

–
–
–
–
–
–

11
–
327
–
–
339
20,1095,923
14,185167
14,018––––––23,0797,333
15,746373
15,373

27
229
319
7,487
–
8,065
16,545
7,406
9,139
938
8,201

–
114
27
–
146
288
7,610
2,564
5,046
18
5,027

4
–
–
–
3
7
3,055
920
2,135
166
1,969

–
114
–
–
1
116
6,418
2,149
4,269
3
4,265

+4
-114
–
–
+2
-109
-3,363-1,229-2,134+163-2,296

–
–
–
–
–
–
–
–
–
–
5,000 – 8,000

–
–
–
–
–
–
–
–
–
–
24.6% – 39.4%

73

Consolidated Cash Flows: Operations(JPY million)
FY18/2 (12M)
Cash Flows from Operations
Pre-tax income
Depreciation
Share-based compensation expenses
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expense
Losses (gains) on sales of subsidiary shares
Losses (gains) on sales of shares in affiliates
Losses (gains) on sales of securities investments
Losses (gains) on disposal of fixed assets
Losses (gains) on sales of fixed assets
Impairment loss
Valuation losses on securities investments
Decrease (increase) in trading notes and receivables
Decrease (increase) in operational securities investments
Decrease (increase) in real estate for sale
Covid writedown of real estate for sale
Decrease (increase) in power plant for sale
Valuation losses on SPC capital contributions
Decrease (increase) in advances paid
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in security deposits received
Other
Sub-TotalInterest and dividend income received
Interest expenses paid
Income taxes paid and refunded
Net Cash from (Used for) Operations© Ichigo Inc. All rights reserved.

20,109
1,015
215
111
32
-355
-61
2,249
–
-1,221
–
–
–
327
–
-468
1,663
-8,112
–
996
–
871
-10
573
-47
30
125
585
18,62861-2,231-5,854
10,603

FY19/2 (12M)
23,079
1,696
213
254
-3
-26
-71
2,328
–
–
-2
–
–
–
–
-247
3,509
-3,163
–
–
–
-333
-399
-332
25
269
-264
1,887
28,42071-2,118-4,61021,762

FY20/2 (12M)
16,545
2,630
194
174
2
4
-86
2,293
-169
–
-11
–
–
319
229
-903
11,682-17,447
7,487
–
–
16
29
201
-36
-285
-169
600
23,30486-2,068-9,43011,892

FY21/2 (12M)
7,610
4,797
21
121
-24
161
-96
2,338
–
–
–
–
-720
27
114
925
343
5,342
–
–
4
61
16
-437
94
-57
-323
1,550
21,87096-2,119-4,384
15,463

FY22/2 Q3 (9M)
3,055
4,212
49
123
307
–
-44
1,772
–
–
–
4
-33
–
–
-576
1,097
-16,616
–
–
1
11
108
-545
4
–
-626
-670
-8,36344-1,589-1,085-10,99374

Consolidated Cash Flows: Investments & Financing(JPY million)
FY18/2 (12M)
Cash Flows from Investments
Payments into time deposits
Proceeds from withdrawal from time deposits
Payments for securities investments
Proceeds from sales of securities investments
Acquisitions of property, plant, and equipment
Proceeds from sale of property, plant, andequipment
Acquisitions of intangible assets
Payments of SPC capital contributions
Redemptions of SPC capital contributions
Payments of security deposits
Acquisitions of subsidiary shares resulting in change ofconsolidation scope
Sales of subsidiary shares resulting in change ofconsolidation scope
Acquisitions of consolidated subsidiary
Other
Net Cash from (Used for ) Investments
Cash Flows from Financing
Net increase (decrease) in short-term loans
Net increase (decrease) in short-term non-recourse loans
Proceeds from bond issuance
Repayment of maturing bond principal to bondholders
Redemption of non-recourse bonds
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from long-term non-recourse loans
Repayment of long-term non-recourse loans
Proceeds from employee exercise of stock options
Share buyback
Proceeds from minority interests
Payments to minority interests
Sales of subsidiary shares resulting in no change ofconsolidation scope
Dividends paid to minority interests
Dividends paid
Net Cash from (Used for ) Financing© Ichigo Inc. All rights reserved.

FY19/2 (12M)

FY20/2 (12M)

FY21/2 (12M)

FY22/2 Q3 (9M)

-6
–
-140
–
-4,796

-118
1,060
-539
32
-15,440-113
5,033-2,361
111-11,244

-7
–
-547
10
-16,447

-6
–
-604
568
-3,462

–

–

–

2,850

744

-83
-28
–
-36

-425
-6
32
-16

-562
-2
–
-34

-1,468
-3
15
–

-185
-4
–
-16

-2,619

–

–

–

–

2,096

–

–

–

–

–
-32
-5,645–-181-15,602-187-902-10,263–-30-15,630–-250-3,217

-306
-611
–
-112
-100
32,660-13,402
3,518-22,366
110-2,999
–
–

2,232
–
129
-112
–
43,062-20,352
3,500-18,473143-2,999
90
–

426
–
5,828
-193
–
49,957-26,475
5,300-17,701
95-2,999–-1,276

1,793
–
70
-274
–
51,877-48,996
3,300-1,301
4-2,99910,000–-1,584––-177–
19,649-11,242–-844–-1,499
–
–

–

100

–

–

–

–
-2,513-6,124–-2,9724,346-8-3,4169,537-5-3,298
10,167-1-3,2291,068

75

Ichigo 2030: Ichigo as a Sustainable Infrastructure Company© Ichigo Inc. All rights reserved.

76

Go for Growth
Grow & Expand Ichigo’s Core Businesses into New Areas, Creating New
Earnings Streams and Increasing Both Earnings and Earnings Stability
Sustainability

Infrastructure

Sustainability is integral to the health anddevelopment of people, society, and the environment.

Ichigo has a direct and critically important role inpreserving and improving the social infrastructure that
supports the quality of people’s lives.

Ichigo’s current core business of preserving andimproving real estate is a highly sustainable businessmodel that combines high efficiency with low
environmental impact.
Under Ichigo 2030, Ichigo will continue its longstanding commitment to sustainability whiledeveloping new technologies to extend the lives ofkey social infrastructure beyond 100 years.

By expanding its current real estate and clean energy
businesses into other infrastructure areas, Ichigo will
integrate the “hard” physical elements and “soft”
service elements of infrastructure to serve broadclient needs.
Critical to success will be unifying Ichigo’s
Sustainable Value-Add and IT capabilities. Ichigo will
work to deliver first-in-class and best-in-classsolutions to drive significant value for clients andsociety across a diverse set of infrastructures. Being
one of many is not enough. Ichigo needs to lead.

Ichigo as a Sustainable Infrastructure Company© Ichigo Inc. All rights reserved.

77Addressing Needs of Diverse Individuals & Communities© Ichigo Inc. All rights reserved.

78

KPI Targets
1. High Capital Efficiency− FY20/2~FY30/2 Average ROE >15%
 Increase long-term ROE by driving higher capital efficiency & earnings stability
 Via high ROE, grow long-term EPS as a key driver of shareholder value− FY20/2~FY30/2 Continuous JPX-Nikkei 400 Index Inclusion Target 11 consecutive years of inclusion

2. High Cash Flow Generation− FY20/2~FY30/2 Continuous Economic Operating Cash Flow > Net Income
 Ichigo’s robust cash flows fund both growth investments and shareholder returns
 Target 11 consecutive years of EOCF > NI

3. High Earnings Stability− FY30/2 Stock Earnings Ratio >60%
 Raise Stock Earnings ratio from FY19/2’s 53%
 Concurrently increase and diversify Flow Earnings, which are currently centered on
Sustainable Real Estate Gains on Sales

Note: Economic Operating Cash Flow = Cash Flows from Operations excluding net investment in Real Estate and Power Plants for Sale
© Ichigo Inc. All rights reserved.

79

Shareholder Return Policy
Ichigo Dividend Policy: Growth, Certainty, & Stability− Progressive Dividend Policy
 Ichigo’s progressive dividend policy underscores our commitment todriving continued organic earnings and dividend growth forshareholders. Under this policy, the dividend is maintained or raised
every year (but not cut), providing shareholders with the security of adurable dividend.
− DOE (Dividend on Equity) Payout Ratio of >3%
 Stable and growing dividend unaffected by short-term earnings volatility− Flexible Deployment of Share Buybacks (New)Dividend growth via
DOE > 3% Policy

 Conduct share buybacks to optimize capital
structure and drive shareholder value

9 Consecutive Years of
Dividend Growth
JPY 5

JPY 6

JPY 7

JPY 7

JPY 7

JPY 7

FY19/2

FY20/2

FY21/2

FY22/2(Forecast)

JPY 3
JPY 1*

JPY 1.1 JPY 1.3

FY13/2
FY14/2
FY15/2* Adjusted to reflect 200:1 stock split© Ichigo Inc. All rights reserved.

FY16/2

FY17/2

FY18/280

Ichigo 2030: New Initiatives© Ichigo Inc. All rights reserved.

81

Real Estate x Sports

Top Partner of J.League, Japan’s Professional Soccer League
Partner with J.League to Promote Community Development, Revitalize Local
Economies, & Help People Enjoy Fuller and Healthier Lives
J.League’s 100-Year Vision:
Promote Sports Development

Ichigo’s Mission:Serve Important Social Needs

J.League’s mission is to establish sports clubs rooted in local
communities, cooperating with local residents, businesses, andmunicipalities to promote community development

Ichigo believes that companies exist to serve society, andseeks to contribute to local communities as a sustainableinfrastructure company

Ichigo’s role as the only real estate company that is a J.League Top Partner:– Renovate and upgrade stadiums and help local governments find solutions for the rising costs ofoperating stadiums– Work to build stronger and healthier communities in cooperation with local residents, businesses, andmunicipalities©J.LEAGUE© Ichigo Inc. All rights reserved.

82

Real Estate x IT x Tourism

PROPERA: Ichigo's AI Hotel Revenue Management System− Maximizes Hotel Revenues & Increases Labor Productivity− Solves Issues Faced by Hotels and Supports Competitiveness− Developed PROPERA-Lite* Tailored to Hotels’ Needs* Provides limited information on pricing levels

Number of Lodging Facilities
in Japan

50,000

Number of Hotel Booking
System Users

Revenue Managers- Determine prices based on guest room
reservations and market research- Reflect prices in hotel booking
system

20,000Issues Faced by Lodging Facilities
Managing Check-in/Check-out and Revenue-

Managing Multiple Reservation Sites

Lack of revenue managers
Dependent on managers’ know-how
Differences in skill levels
Labor-intensive

Hotel
Booking System

Core Hotel System

From People to AI
Reservation
Information

Optimal Pricing
Information onreservations andsales conditions

Actual Sales Information

PROPERABusiness Alliance withTEMAIRAZU used by hotel
reservation sites such as
Booking.com

Lead time between installing algorithm leveraging Ichigo know-how
and system implementation is shortest in the industry© Ichigo Inc. All rights reserved.

83Real Estate x IT x Tourism

PROPERA: Market Size & Customer Acquisition Target
Customer Acquisition Target: 2,000 Hotels Within 5 Yearsc. 50,000

No. Of Japanese Hotels

c. 33,000

No. Of Japanese Hotels With
Online Booking Systems

c. 20,000

No. Of Japanese Hotels
Deploying Site Controllers

2,000
Hotels

5-Year Target
Site controller: A channel management system that integrates & coordinates information
across multiple online distribution channels© Ichigo Inc. All rights reserved.

84

Real Estate x IT x Tourism

PROPERA: Accelerating External Sales
Two Key Initiatives to Increase Market Share
1. Drive Customer Growth via
PROPERA Lite
PROPERA Lite・ Price trend visualization only・ Pricing requires manual intervention
・ Usage fee: JPY 24K monthly per hotel

2. Tightly Integrate With Site Controllers
PROPERA Site Controller Integration
Will Give Access to c. 18,000 Hotels(90% of all Japanese hotels
with site controllers)

Increase Share to 2,000 Hotels Within 5 Years
Drive Earnings via Shift From PROPERA Lite to PROPERAPROPERAPROPERA Sample Earnings Model・ Fully Automated Revenue Optimization
・ Usage Fee: 1% of Revenue*

Hotel with RevPAR JPY 6,000 and 100 rooms
Annual Ichigo Earnings: c. JPY 2M*Standard Plan
© Ichigo Inc. All rights reserved.

85

Real Estate x Tourism

Hakata Hotels: Hotel Operations
Hotel Operator in Kyushu/Yamaguchi Region
Seeing Inbound Tourism Growth– Started operations at 3 hotels on June 1, 2019& currently operating 12 hotels

PROPERA Deployment– Generating 10 to 40% revenue increases p.a.
– Sales of PROPERA to non-Ichigo hotel
operators will drive Ichigo non-asset revenue
streams
Ichigo’s Hotel Il Palazzo in Fukuoka was the first building outside theU.S. to win an American Institute of Architects Honor Award in 1991

The Hakata Hotels logo features hakata-ori woven silk textiles that are a local Fukuoka
craft, including the koukou shima weaving pattern in which a thick vertical line issurrounded by thin vertical lines. The thin lines represent children, and the thick lines
parents, expressing the sense of care shown within families. The multiple colors reflect
Ichigo’s values of respect for diversity. The values represented in the logo are also
resonant with Ichigo’s philosophy of Ichigo Ichie, literally meaning “One lifetime, one
encounter.”© Ichigo Inc. All rights reserved.

Tourism86

Real Estate x Entertainment x Culture x Tourism

Ichigo Animation: Anime + Real Estate Synergies
Released the Complete Series of New Anime VLADLOVE Written & Directedby Mamoru Oshii, with Co-Director Junji Nishimura– Established Ichigo Animation in April 2019
– Introducing tenant collaboration initiatives that go beyond typical owner/tenant,hands-off leasing relationships– Collaborating across multiple industries to drive new synergies with Ichigo’s existing
businesses

New Earnings via Anime Content Streaming & Sales of DVDs, CDs, & Goods
Promote Ichigo’s AKIBA CULTURES ZONE (ACZ) as Global Anime Landmark– Increase ACZ’s value by integrating anime content & events(anime, dance, music, entertainment, retail, tourism, etc.)

Entertainment

 Anime-related events & sales of goods at ACZ will drive
both customer traffic & higher earnings
Tourism×©2020 Mamoru Oshii/Ichigo Animation© Ichigo Inc. All rights reserved.

CultureAKIBA CULTURES ZONE
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These materials were prepared to explain Ichigo’s businesses and are not for the purpose of soliciting investment inmarketable securities issued by Ichigo. Ichigo does not guarantee the accuracy of the figures, information, estimates, orother statements included herein, and accepts no responsibility for damages or losses arising through the use of the
figures, information, estimates, or other statements contained herein.
These materials are based upon information available as of the publication date, and may contain forward-looking
statements pertaining to Ichigo’s expectations, targets, plans, and strategies. Such forward-looking statements are notfacts, but are the result of management’s judgment based on information currently available. Actual operating results ordevelopments concerning Ichigo may differ substantially from those indicated by forward-looking statements. The
information enclosed is subject to revision without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation,
the Japanese version shall prevail.

Make The World
More Sustainable

Contact:
Ichigo (TSE First Section 2337)
Investor Relations
TEL: +81-3-3502-4818
E-mail： ir@ichigo.gr.jp
www.ichigo.gr.jp/en
Ichigo is Japan’s first zero-carbon listed real estate company.
We are taking responsibility for our environmental footprint by offsetting ourcarbon emissions and investing in low-carbon technologies such as solar energy.

© Ichigo Inc. All rights reserved.

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