FY24/2 H1 Corporate Presentation
January
13, 2023
2023
October 12,

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

www.ichigo.gr.jp/en

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

© Ichigo Inc. All rights reserved.

© Ichigo Inc. All rights reserved.

Contents
FY24/2 H1 Earnings‒ FY24/2 H1 Summary‒ All-In Disclosure to Increased Earnings Transparency‒ All-In OP +124%, Cash EPS +132% (YOY)‒ Segment Earnings Details

Powerful Value-Add Business Model & Sustainability
Focus Drives Sustainable Growth‒ Stock + Flow Earnings‒ Stable Stock Earnings‒ Embedded Forward Earnings‒ Value-Add Drives Durable Value Growth‒ Robust Cash Generation‒ Strong Financial Base
‒ Sustainable/ESG Finance

Sustainable Growth as a Sustainable Infrastructure
Company‒ SRE: Selective on Acquisitions & Sales‒ Hotels: Capturing Demand via Strong Hotel Operations‒ Hotels: Ichigo Value-Add, Ichigo Hotel Brand, Ichigo
Hotel Operations‒ Hotels: Stock Earnings Forecast to Significantly Exceed
Pre-Covid‒ Hotels: Ichigo Brand Hotel Value-Add‒ Hotels: Hotel Il Palazzo© Ichigo Inc. All rights reserved.

‒ Hotels: Driving Ichigo Hotel (3464) Shareholder Value‒ AM: Growth Support for Ichigo REITs‒ SRE: Ichigo Owners – Growing Business via Meeting
Clients’ Diverse Needs‒ SRE: Ichigo Owners – Expanding Sales Channels via Ichigo
Residence Tokens‒ Clean Energy: Environmental Contribution & Long-Term
Growth‒ Shareholder Returns: Ongoing Share Buyback‒ Shareholder Returns: Progressive Dividend Policy‒ Ichigo J.League Shareholder Program

Working to Protect Our Global Environment‒ Ichigo Climate Positive: CO2 Reductions vs. Emissions‒ Continued Renewable Energy Transition‒ Actively Improving Environmental Quality of Ichigo Assets

Appendices
Ichigo’s Sustainability Commitment (ESG)
Financial & Operational Data
Sustainable Real Estate Details
Asset Management Details
Clean Energy Details
Financial Statements
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: New Initiatives
5

FY24/2 H1 Earnings© Ichigo Inc. All rights reserved.

6

FY24/2 H1 Summary– All-In Operating Profit +124%, Cash EPS +132% YOYHotel Earnings Major Growth Driver – RevPAR +25% vs. Pre-Covid
Stock Earnings/Fixed Expenses Ratio: 231%
Doubled Self-Storage Business & Sold, Generating Gains on Sale of JPY 3.9B
Launched 2nd Ichigo Residence Token (5 Assets)– Driving Shareholder Value via Supporting Growth of Ichigo REITs
 Sold 5 Hotels to Ichigo Hotel (3463), Including 2 of Ichigo’s THE KNOT
Boutique Hotels
 Supported Ichigo Hotel Third Party Share Allotment to Finance Growth Bought Ichigo Office (8975) & Ichigo Hotel Shares to Strengthen Sponsor &Shareholder Alignment– Ongoing Share Buyback (From Sep 1, 2023)
 Forecast Total Payout Ratio 65% (Dividends + Buybacks as a % of Net Income)Note: RevPAR (Revenue Per Available Room) = ADR (Average Daily Rate) * Occupancy© Ichigo Inc. All rights reserved.

7

FY24/2 H1 Summary
Robust Stock Earnings

Durable Earnings Model
Stock Earnings/Fixed Expenses

231%■ FY23/2 H1■ FY24/2 H1+34%(JPY million)

Fixed
Expenses
JPY 4.4B

Sustainable
Real Estate
(SRE)
+65%

Flow
Earnings
JPY 9.9B Cash Earnings

Asset
Management
(AM)

Clean
Energy(CE)10,098JPY 20.0B
7,535

6,438

Stock Earnings
JPY 10.1B

-5%

3,905
% of
Total

52%

+17%
64%

997

1,164

13%

11%

2,631 2,495
35%

25%

Cash Earnings = Gross Profit + SRE Extraordinary
Gains on Sales + Depreciation© Ichigo Inc. All rights reserved.

8

All-In Disclosure for Increased Earnings Transparency– All-In disclosure allows for transparent tracking of full profitability
contribution of Sustainable Real Estate (SRE)– SRE is a core business, and Ichigo executes value-add on SRE assets
regardless of whether they are classified in accounting terms as Real
Estate for Sale (Current Assets) or Fixed Assets– Adding SRE’s Fixed Assets Gains on Sales (which are accounted for as
Extraordinary Gains in J-GAAP) to Operating Profit (OP) and Recurring
Profit (RP) to generate All-In OP & RP numbers thus provides
transparency on SRE’s actual core profit contribution© Ichigo Inc. All rights reserved.

9

All-In OP +124%, Cash EPS +132% (YOY)(JPY million)

FY23/2 H1

FY24/2 H1YOY

FY24/2
Forecast

Operating Profit

5,082

5,483

+7.9%

9,500

All-In Operating Profit

6,177

13,815+123.7%18,000Recurring Profit

4,166

4,087

-1.9%

6,000

All-In Recurring Profit

5,261

12,420+136.1%

14,500Net Income

3,429

8,503

+147.9%10,000Cash Net Income

5,872

13,258+125.7%

15,500EPS

JPY 7.38

JPY 18.76+154.3%

JPY 22.06

Cash EPS

JPY 12.63

JPY 29.24+131.5%

JPY 34.19

All-In Operating Profit (All-In Recurring Profit) = Operating Profit (Recurring Profit) + SRE Extraordinary Gains on Sales
Cash Net Income = Net Income + Depreciation + Amortization +/- Valuation Losses (Gains)© Ichigo Inc. All rights reserved.

10

Segment Earnings Details− AM: Hotel Base AM Fees Forecast to Recover to Pre-Covid Levels− SRE Stock Earnings: Forecast Record Hotel Earnings− SRE Flow Earnings: Sold Self-Storage Business & 5 Hotels to Ichigo Hotel− CE: Lower on One-Off Plant Maintenance(JPY million)
All-In Operating Profit

Segment

FY23/2 H1Multi-Asset

FY24/2
Forecast

YOY

FY23/2 H1

FY24/2 H1Earnings(Parentheses show YOY change in
Gross Profit)

YOY

814

+19.6%

1,000

997

1,278

+28.2%

4,135

11,807+185.5%15,3006,639

14,629+120.3% Rental Income (Net of Depreciation)

4,080

10,477+156.8%

11,1006,138

12,7391,330 +2,303.7%

4,200

500

1,890

4,876 (+2,657)*
Depreciation
1,561(-124)+107.5%
Gains on Sales 9,753 (+5,335)
Fixed Asset Gains on Sales 4,379 (+3,284)+278.0% Gains on Sale of Subsidiary Shares 3,952 (+3,952)

Ichigo Owners

55

Clean Energy (CE)

1,380

1,189

-13.8%

1,700

1,756

1,617

-7.9%

-19

4

－

－

－

－

－

6,177

13,815+123.7%18,0009,393

17,526+86.6%

Adjustment (including offsets of
Cross-segment transactions)
Total

Base AM Fees 1,113 (+162)
Ichigo Office 777 (+26)
Ichigo Hotel 234 (+161)
Private Funds 78 (-22)
Ichigo Green Operator Fees 22 (-2)
Flow Earnings 113 (+113)

681

Asset Management (AM)

Sustainable Real Estate (SRE)

FY24/2 H1All-In Gross Profit

Power Generation Revenue (Net of Depreciation)
1,617 (-139)* Depreciation 878 (+3)

AM & CE All-In Operating Profit = Operating Profit; SRE All-In Operating Profit = Operating Profit + SRE Extraordinary Gains on Sales
AM & CE All-In Gross Profit = Gross Profit; SRE All-In Gross Profit = Gross Profit + SRE Extraordinary Gains on Sales© Ichigo Inc. All rights reserved.

11

Powerful Value-Add Business Model & Sustainability Focus
Drives Sustainable Growth© Ichigo Inc. All rights reserved.

12

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

37,016

Cash Earnings(JPY million)

30,46728,97018,567

24,705
20,915

13,482

13,371

19,965

9,793
5,850

9,867

18,45015,065
7,877

7,723

16,985

15,59814,912
7,819

8,087

10,098

9,020
4,376

FY20/2© Ichigo Inc. All rights reserved.

FY21/2

FY22/2

FY23/2

FY24/2 H1

FY24/2Full-Year Forecast

13

Stable Stock Earnings
Stock Earnings by Segment■ Asset Management■ Sustainable Real Estate■ Clean Energy(JPY million)(Stock Earnings/
18,450
Fixed Expenses, %)(234%)

2,062

15,065(195%)

14,912(191%)

1,832

2,091

16,985(188%)

15,598(193%)

1,900

2,066
10,098(231%)

13,331
9,402

8,477

8,989

1,164

10,726

6,438

3,057

3,830

4,343

4,542

FY20/2

FY21/2

FY22/2

FY23/2© Ichigo Inc. All rights reserved.

2,495
FY24/2 H1

4,359
FY24/2Full-Year Forecast
14

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
50.9

FY19/2

65.3

67.8

56.2

FY20/2

FY21/2

FY22/2

FY23/2

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

15

Value-Add Drives Durable Value Growth

Appraisal Value-Based Unrealized Gains
Actual Gains on Sales

2.8X

1.8X
2.0X

2.2X

JPY 17.1B
1.9X

JPY 11.6B
JPY 9.4B

JPY 6.1B

JPY 5.7B
JPY 3.0B

FY20/2

FY21/2

JPY 4.7B

FY22/2

JPY 9.7B
JPY 6.3B
JPY 4.5B

FY23/2

FY24/2 H1

Note: Self-storage assets sold in FY24/2 (36 assets, JPY3.9B gains on sales) accounted for as having no unrealized gains, as they were not the subject ofthird-party appraisals.
© Ichigo Inc. All rights reserved.

16

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

Net Income
Economic Operating Cash Flow

3.6X
1.7X

2.0X

2.4X

1.5X

29.5
2.2X

25.5

15.6

15.4
8.2

FY19/2

FY20/211.1
5.0
FY21/2

6.5
FY22/2

16.8

14.4
9.4

FY23/28.5

FY24/2 H1

Note: Economic Operating Cash Flow = Cash Flows from Operations, excluding net change in Real Estate and Power Plants for Sale, plus SRE
Extraordinary Gains on Sales© Ichigo Inc. All rights reserved.

17

Strong Financial Base
Weighted Average Loan Period
Weighted Average Remaining Loan Maturity
Weighted Average Interest Rate

Average Interest Rate & Loan Term
(Interest Rate)
2.5%
10.2 years

10.3 years

10.0 years

10.0 years

10.1 years(Loan Term, Years)
1210.0 years
9.5 years

2.0%

9

8.3 years
7.6 years

7.6 years

7.2 years
6.5 years

6.1 years

1.5%

1.04%
1.0%

0.97%

5.6 years

6

3

0.91%

0.92%

0.89%

0.89%

0.89%

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 H100.5%
FY18/2

FY19/2

Term Structure of Loans
Short-Term

5% (JPY 5.6B)

8% (JPY11.3B)

9% (JPY 15.6B)

8% (JPY 14.9B)

7% (JPY 12.5B)

6% (JPY 9.8B)

10% (JPY 18.7B)

95%(JPY 112.8B)

92%(JPY 132.1B)

91%(JPY 157.5B)

92%(JPY 162.7B)

93%(JPY 155.9B)

94%(JPY 157.8B)

90%(JPY 160.5B)

FY18/2

FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 H1Long-Term© Ichigo Inc. All rights reserved.

18

Sustainable/ESG Finance
Ichigo’s ESG Execution Driving Attractive Financing Terms
Strengthening Financial Base via Diversified Borrowing
ESG Loans as % of Total Borrowings

ESG Loans■ ESG loans (including green bonds)■ Remaining ESG commitment line
■ Other corporate loans & bonds (excludes short-term loans)■ ESG loans (including green bonds)■ Remaining ESG commitment line
(as of FY24/2 H1-end)(JPY billion)(JPY billion)

Total ESG Loans(Cumulative)

JPY 84.7B
46.6
47.1

18.2
ESG Loans

34%
126.5
137.4

30.8

18.2
15.8
8.2

8.6

FY21/2

FY22/22.9
FY20/2© Ichigo Inc. All rights reserved.

FY23/2

FY24/2
H1
19

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

20

Sustainable Real Estate

Selective on Acquisitions & Sales
Acquisitions: JPY 26.1B (JPY 46.3B Including Contracted, Pre-Settlement)− Owners: JPY 23.4B (JPY 43.6B Including Contracted, Pre-Settlement)− Multi-Asset: JPY 2.7B – Acquisitions to Accelerate in H2

Sales: JPY 27.6B− Sold 5 Hotels to Ichigo Hotel− Launched & Immediately Sold Out 2nd Ichigo Residence Token (5 Resi Assets)
FY24/2 H1 Net Sales: JPY 1.5B

(JPY million)

Acquisitions
No. of Assets

Multi-Asset

Ichigo Owners

Sales

Book Value (A)No. of Assets

Difference(A) – (B)Sale Price (B)Office

1

2,723

－

－

+2,723

Hotel

－

－

6

16,080-16,080

Retail

－

－

1

952

-952

Residential

－

－

1

53

-53

Other

－

－

1

81

-81

Residential

19

23,42910

9,783+13,646

Retail

－

－

1

750

-750

20

26,152

20

27,698-1,546Total

Note: Book Value of Sales: JPY 21.8B (excludes self-storage assets (36 assets, JPY 3.9B Gains on Sale))© Ichigo Inc. All rights reserved.

21

Hotels

Capturing Demand via Strong Hotel Operations
Ichigo’s Hotel Operator OneFive Hotels Became Operator of 7 More Hotels
During Covid & Maintained High Occupancy by Deploying PROPERA &Robust Operational Management in Anticipation of Economic Recovery

Name changed from Hakata Hotels on May 31, 2023

High Occupancy via Ichigo’s
PROPERA AI-based Hotel
Revenue Management System

・ Retained employees & provided
multi-skill, multi-task training
・ Maintained vendor supply chain

Average Occupancy During Covid:
FY21/2 80%
FY22/2 93%
FY23/2 96%
Note: Occupancy for Ichigo-owned hotels operated by OneFive Hotels© Ichigo Inc. All rights reserved.

22

Hotels

Ichigo Value-Add, Ichigo Hotel Brands, Ichigo Hotel Operations
Ichigo’s Strengths in Hotels
̶ Value-Add: Focus on guest functionality, comfort, satisfaction, & sustainability
̶ Hotel Operations (OneFive Hotels): Quick response to guest needs based on direct
dialogue with guests, provision of high-quality service via training of hotel staff to
fulfill multiple roles, & earnings growth via PROPERA pricing optimization
Hotel Asset Portfolio (Ichigo 12 Hotels, Ichigo Hotel 30 Hotels)

THE KNOT (4 Hotels)

OneFive Hotels
1,768 Rooms(14)(No. of hotels
in parentheses)

THE KNOT894
Rooms
The OneFive(4)
975 Rooms(9) Plaza

6,753
Rooms

Third-Party
Operators
4,985 Rooms

375
Rooms (2)HOTEL
IL PALAZZO
77 Rooms

THE KNOT SAPPOROTHE KNOT HIROSHIMAThe OneFive (9 Hotels)

Other
4,432 Rooms(26)

The OneFive Villa Fukuoka© Ichigo Inc. All rights reserved.

The OneFive Terrace Fukuoka
23

Hotels

Stock Earnings Forecast to Significantly Exceed Pre-Covid
RevPAR +25% vs. Pre-Covid, Continuing to Grow on Inbound Demand(JPY million)

Hotel Stock Earnings
JPY 10,714
RevPAR(Ichigoowned
Hotels)JPY 8,565
JPY 7,256

Forecast to
ExceedPre-Covid

JPY 3,807
JPY 2,531

JPY 3,994

JPY 563
FY20/2
Pre-Covid

FY21/2

JPY 2,681

JPY 2,902

FY23/2

FY24/2 H1(6M)

JPY 1,100
FY22/2

FY24/2
Forecast

Hotel Stock Earnings = Rental Income of Ichigo-owned Hotels + OneFive Hotels Operating Revenue (Excluding Internal Transactions) + Ichigo Hotel
Base AM Fee© Ichigo Inc. All rights reserved.

24Hotels

Ichigo Brand Hotel Value-Add
THE KNOT TOKYO Shinjuku

The OneFive Villa Fukuoka
The OneFive Terrace Fukuoka

Converted Group Tour Hotel to Boutique Hotel

Redesigned & Rebranded 35-Year Old Hotel

Introduced Ichigo’s Boutique Hotel Brand THE KNOT
Uniquely Positioned Between Budget Hotels & Luxury Hotels

Japanese Hospitality & Services
Includes welcome afternoon tea with local food &ingredients and seasonal fruits

Full-Scale Renovation Including Earthquake Resistance

Simple, High-Quality Comfort

Welcoming lounge area thatbrings together hotel guests &members of the local community

Sweets and savories madeby hotel pâtissier

JPY 17,839

JPY 15,992
JPY 12,780

ReｖPAR +82%

ReｖPAR +40%

JPY 8,792

Renewal open in FY19/2

Villa: Renewal open in FY20/2
Terrace: Renewal open in FY21/2
Before Value-Add(Pre-Covid)© Ichigo Inc. All rights reserved.

FY24/2 H1 (6M)

Before Value-Add(Pre-Covid)

FY24/2 H1 (6M)25

Hotels

Hotel Il Palazzo
Re-Envisioned and Re-Opened Japan’s Most Important Landmark Hotel− Brought original hotel concept up-to-date with today’s needs− Increased guest rooms from 62 to 77− Located in downtown Fukuoka serving broad array of guests
A Landmark Hotel Designed by Aldo Rossi

Extraordinary Architecture & Design

Extraordinary Food

Hotel Façade is Local Landmark

Blue Light Tunnel at Entrance

Buffet-style food presentation, free for hotel guests(7 a.m. – 9 p.m.), featuring local foods and ingredients

Hotel Il Palazzo website: https://ilpalazzo.jp
Hotel Il Palazzo Re-Design Project website (Japanese only): www.ichigo.gr.jp/business/il_palazzo/index.html© Ichigo Inc. All rights reserved.

26

Hotels

Driving Ichigo Hotel (3463) Shareholder Value
Sold 5 Hotels, Including 2 THE KNOT Boutique Hotels, to Capture Growing
Hotel Demand for High-Quality Hotels
Sold Assets

THE KNOT SAPPOROHOTEL THE KNOT YOKOHAMA

Ichigo Hotel Upward Earnings Forecast Revision
on New Hotel Acquisitions
January 2024 Dividend: JPY 2,246 (+5.2%)
Comfort Hotel
Quintessa Hotel
Osaka Shinsaibashi
Ogaki© Ichigo Inc. All rights reserved.

Quintessa Hotel
Ise Shima
27

Asset Management

Growth Support for Ichigo REITs− Provided 5 High-Quality Hotel Assets (JPY 15B) to Ichigo Hotel− Supported Ichigo Hotel Third-Party Share Issuance (JPY 1.5B)
 Fund Growth, Minimize Share Price Impact, & Eliminate Public Offering Costs− Strengthening Sponsor/Shareholder Alignment via REIT Share Purchases
 Ichigo Office JPY 9.5B (7.1% of total shares), Ichigo Hotel JPY 1B (c. 9.2% of
total shares, in progress)
Shareholder-Focused Asset Management& Sponsor Support

IchigoGrow REIT Shareholder Value
Ichigo Office (8975)
Increase NOI
Ichigo Hotel (3463)
Increase Dividend
Increase NAVREIT Growth & Ichigo AM Business Growth© Ichigo Inc. All rights reserved.

28

Sustainable Real Estate: Ichigo Owners

Growing Business via Meeting Clients’ Diverse Needs
Sales: JPY 10.5B
Acquisitions: JPY 23.4B (JPY 43.6B Including Contracted, Pre-Settlement)
4.2
Ichigo Owners Residential Acquisitions & Sales■ Sales
3.8■ Acquisitions

3.5
50.0

2.1
Operating
Profit

0.1
2.4

Sales

FY18/2(Establishment)

Acquisitions

5.4

1.4
13.7
FY19/2

30.6
1.0

28.0
18.1
10.5

8.0
FY20/2(JPY billion)

FY21/2

FY22/2

FY23/2As ofOctober 12, 2023

FY24/2(Forecast)

FY25/2

5.9
11.7
28.5

24.3

26.7

Pre-Settlement
ExecutedContracts

23.4

37.6

36.0

40.0

14.2
Pre-Settlement
ExecutedContracts© Ichigo Inc. All rights reserved.

29

Sustainable Real Estate: Ichigo Owners

Expanding Sales Channels via Ichigo Residence Tokens
Rapid Digital Real Estate Asset Market Growth− Strong Real Estate-Backed Returns with Professional Ichigo Management− Diversification of Sales Channels Strengthening Ichigo Earnings Base
− Token Business Generating Gains on Sales & Stable AM Fees

2nd Ichigo Residence Token
Immediately Sold Out (As did
1st Ichigo Residence Token)
Underlying Assets
1. GRAN PASEO Nakameguro East &West
2. GRAN PASEO Kagurazaka II
3. GRAN PASEO Meidaimae II & III
4. PASEO Yoyogi
5. GRAN PASEO Sangenjaya© Ichigo Inc. All rights reserved.

GRANPASEO Nakameguro East & West

Total AUM: JPY 6.8B
Total Issue Price: JPY 2.1B
Asset Manager: Ichigo Investment
Advisors
Investment Term: 5 years, 3 months(expected)

30

Clean Energy

Environmental Contribution & Long-Term Growth
1 New Plant (13.9MW) Online in FY24/2; Stock Earnings Down Slightly on
One-Off Maintenance Costs
Green Biomass and Non-FIT Solar Power Plants in Pipeline (Capex JPY 14.8B)
Stock Earnings (JPY B)
Ichigo Clean Energy
Operating Plants
4.9
One-Off Cost Increase (Forecast)
In-Pipeline FIT Plants
58.1
4.5
4.3
(214.2MW)
Green Biomass(Actual)(Forecast)
In-Pipeline Non-FIT Plants
6.3

Growth Drivers
Green Biomass
Biomass power generation using
domestic feedstocks via partnerships
with local governments and communities
Contribute to solving environmental
issues via domestic forecast
conservation and forest revitalization byusing only domestic feedstocks
In-Pipeline: 4 Plants 5.0MW(5.0MW)

8.5

434(158.8MW)

4.5(50.4MW)

4.5

4.5(13.9MW)

38.8
38.8

38.8

38.8

38.8

(144.8MW)

Total Capex(JPY B)© Ichigo Inc. All rights reserved.

Solar power generation for third-party
companies and households
Meeting increasing renewable energy
demand, strengthen our contribution todomestic environmental issues
In-Pipeline: 10 Plants 50.4MW

FY23/2
Avg FIT

Non-FIT Solar PowerJPY 30.7

FY24/2
JPY 31.6

FY25/2
JPY 31.6

FY26/2~
TBD

Note: FY25/2 forecast is calculated based oneach plant’s forecast average earnings over
20-year forecast period
31

Shareholder Returns

Ongoing Share Buyback
Share Buybacks – 7th Consecutive Year
− Current Buyback: JPY 3B, Sep 1, 2023 – Feb 29, 2024

FY24/2 Total Payout Ratio Forecast: 65% (Dividends + Buybacks as % of Net Income)

JPY 4.5B
JPY 3BJPY 3BJPY 3BJPY 3BJPY 3BIn Progress

JPY 1.5B

FY18/2

FY19/2© Ichigo Inc. All rights reserved.

FY20/2

FY21/2

FY22/2

FY23/2

FY24/232

Shareholder Returns

Progressive Dividend Policy
Ichigo Dividend Policy: Growth, Certainty, & Stability
 DOE (Dividend on Equity) Payout Ratio of >3%– Stable and growing dividend unaffected by short-term earnings
volatility
 Progressive Dividend Policy– Under Ichigo’s progressive dividend policy, the dividend is maintainedor raised every year (but not cut), providing shareholders with thesecurity of a durable dividend.
Dividend

JPY 5

JPY 6

JPY 7

JPY 7

JPY 7

JPY 7

FY19/2

FY20/2

FY21/2

FY22/2

JPY 8

JPY 3
JPY 1

JPY 1.1 JPY 1.3

FY13/2*

FY14/2

FY15/2

FY16/2

FY17/2

FY18/2

FY23/2* Adjusted to reflect 200:1 stock split© 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 (82,000 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.
J.League 30th Anniversary Event(May 14, 2023)

Invited shareholders to participate inopening ceremony as flag bearers
and watch a special match

Ichigo J.League Shareholder Program Website Landing Page
© Ichigo Inc. All rights reserved.

34

Working to Protect Our Global Environment© Ichigo Inc. All rights reserved.

35

Ichigo Climate Positive: CO2 Reduction vs. Emissions
Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) &Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction)
CO2 Reduction vs. CO2 Emissions(tons)■ Total Ichigo Power Plant CO2 Reduction1■ Total Ichigo CO2 Emissions (Scope 1+2)

CO2 Emissions
Reduction Measures

Impact ofReduction
Measures-250-7,07098,647

95,47875,42575,80883,41259,445-34,470

54,803

26,409FY20/2

FY21/2CO2 Reduction Base Year

Start RE100

FY22/2

Ongoing Initiatives
Switch to Renewable
Energy28,900 tons
Decreased Energy
Consumption
870 tons
New Initiatives
Non-Fossil Certificate2
Tracking for Ichigo Power
Plants4,700 tons

FY23/2

1 Calculated using each EPCO’s adjusted CO2 emission factor disclosed by the Ministry of Environment as a fixed constant for each period
2 Certifies the environmental value of non-fossil electricity, with tracking information on power plants that can be used for RE100© Ichigo Inc. All rights reserved.

36

Continued Renewable Energy Transition
Ichigo RE100 Progress
FY24/2 Renewable Energy Transition Impact

100%
RE100 Target: 2025

CO2 Reduction

85%

Renewable
EnergySwitch

FY24/2
Target72%

51%

35,000 tons p.a.

CO2 Emissionsof Cars

× 15,200 cars p.a.

21%

Non-Fossil Certificate
Tracking for Ichigo
Power Plants

Includes all Ichigo, Ichigo Office (8975), andIchigo Hotel (3463) assets© Ichigo Inc. All rights reserved.

37

Actively Improving Environmental Quality of Ichigo Assets
Received Highest S Rank CASBEE Certification for 2 Assets− Continuing Value-Add After Receiving Certifications to Reduce
Environmental Impact & Drive Further Growth in Asset Value

Ichigo & Ichigo Office Have Received CASBEE Certifications for a
Total of 16 Assets, of Which Seven are S Rank Buildings

Ichigo Hakata Ekimae
SquareIchigo Hakata Meiji Dori
Building

CASBEE Certification
CASBEE evaluates and rates buildings’ environmental
performance based on their energy and resource efficiency,
recycling activity, environmental load, and aesthetic appeal.
CASBEE-certified buildings receive a total environmental
performance ranking (from highest to lowest): S, A, B+, B-, C© Ichigo Inc. All rights reserved.

38

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

39

Ichigo Sustainability Policy
Harmony With the Environment and Recycling
Ichigo actively monitors and minimizes the environmental impact of its business operations via extending the useful life of its
assets, reducing water and water consumption, and recycling.
Addressing Climate Change and Shift to Low-Carbon Society
Ichigo seeks to contribute to a low-carbon society and address climate change by lowering its energy consumption andgreenhouse gas emissions, using renewable energy, and improving the resilience of its assets.
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 applicable changes in laws and regulations.
Training, Awareness, and Cooperation With Stakeholders
Ichigo works to increase sustainability awareness via company training sessions, and promotes understanding of its
Sustainability Policy among all Ichigo employees and tenant employees working at its assets. Ichigo also works withstakeholders to promote understanding of its Sustainability Policy and implement sustainability initiatives.
Sustainability Performance Communication and Disclosure
Ichigo communicates this Sustainability Policy and Ichigo’s sustainability initiatives to society at large. Ichigo also obtains
certifications for its sustainability activities on an ongoing basis.
Sustainable Procurement
Ichigo implements sustainable procurement measures, including the use of environmentally-friendly construction methods
and materials, actively installing energy and resource efficient equipment, and the inclusion of sustainability initiatives as aselection criteria for business partners.
Building a Diverse, Inclusive Organization
Ichigo respects human rights and works to build a diverse organization where employees work with respect for each otherand realize their full potential regardless of race, beliefs, religion, skin color, nationality, age, gender, sexual orientation,
gender identity, disabilities, and social status. Ichigo also provides a healthy, comfortable work environment that focuses on
employee performance and well-being, and drives organizational growth.
Biodiversity and Ecosystem Preservation
Ichigo contributes to the preservation of biodiversity and ecosystems via the addition of greenery to the interiors andexteriors of its assets, primarily using native plants.
© Ichigo Inc. All rights reserved.

40

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.

Annual Power Production

222,927,029 kWh
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.

Equivalent to annual energy
consumption of 51,600 households
Annual Energy Consumption(Japan Average) 4,322kWh/household(Ministry of Environment document)

Annual CO2 Reduction

98,647,576 tons
Equivalent to annual CO2 emissionof 43,000 cars
Gasoline Passenger Cars 2,300kg/car
per year(Ministry of Environment document)*Ichigo, Ichigo Green FY23/2 Actuals

Ichigo Group-Wide
Ichigo & Ichigo Office (8975)
Total 16 Assets
Ichigo Office (8975)
4 Stars / Green Star
Ichigo Hotel (3463)
2 Stars / Green Star
BELS
3 Assets
DBJ Green Building 2 Assets
Tokyo Low-Carbon
Small and Medium-Sized
Model Building
8 Assets
41

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 ourrenewable energy power plants also
support their host communities by providing
new and sustainable 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

Chisato Kiyoyama(Track and Field)
Hiromi Miyake(Weightlifting)

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

OnlineIn-Person

Certified as a Sports Yell
Company & Tokyo Metropolitan
Government Sports
Promotion Company for 6th year in a row
Ichigo Sports Site (Japanese only)
www.ichigo.gr.jp/ichigosports© Ichigo Inc. All rights reserved.

42

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

Majority Independent Director Board
Underpins Strong Governance

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, majority are Independent
Directors, including former CEOs of TSE
Prime (formerly 1st Section)

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.

FY18/2 to present
Nobuhide Nakaido (former CEO of SCSK)
FY17/2 to May 2023
Masatoshi Matsuzaki (former CEO of Konica
Minolta)
FY16/2 to May 2019
Kosuke Nishimoto (former CEO of Meitec;
stepped down from Ichigo’s board upon
appointment as EVP of Misumi Group)

Annual Board of Directors
Evaluation
Board evaluations are conducted by having
each Director assess the Board along thecriteria shown below, with aggregate survey
results collectively reviewed by the Board.
(1) Board Composition(2) Board Operation(3) Board Effectiveness(4) Board Support Resources(5) Engagement with Shareholders andStakeholders(6) Board Operation Under Covid(7) SDGs and Sustainability Initiatives

FY16/2 to FY17/2
Takashi Kawamura (former CEO of Hitachi;
stepped down from Ichigo’s board upon
appointment as Chairman of TEPCO)

43

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 for companies and organizations to take leadership and take actions as members ofsociety to implement universal sustainability principles. Companies and organizations that sign the UN Global Compact are required to achieve theTen Principles regarding human rights, labor, environment, and anti-corruption based on CEO commitments.

TCFD (Task Force on Climate-related Financial Disclosures)
TCFD was established by the Financial Stability Board (“FSB”) in December 2015, at the request of the G20, to develop a framework on climaterelated financial risk disclosures and how the financial sector can address climate change. TCFD recommends that companies disclose theirclimate-related risks and opportunities.

CDP
CDP is a global initiative led by a non-profit organization representing over 500 global investors that runs the global disclosure system for investors,
companies, cities, states, and regions to manage their environmental impacts. Assessment is based on governance, risk management, businessstrategy, targets and performance, etc., and companies are scored from A to D-.
Ichigo’s scores for 2022: A- (Climate Change Assessment), A- (Water Security Assessment)

RE100
RE100 is a global initiative bringing together the world’s most influential businesses committed to 100% renewable power. The RE100’s mission isto accelerate change towards a net zero carbon society.
Ichigo’s RE100 Target: 100% renewable electricity across its operations, including Ichigo Office (8975) and Ichigo Hotel (3463), 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-to-date
information openly and broadly.
© Ichigo Inc. All rights reserved.

44

Ichigo RE100 Initiative
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 led by a non-profit organization representing over 500 global investors
that runs the global disclosure system for investors, companies, cities, states, andregions to manage their environmental impacts.

© Ichigo Inc. All rights reserved.

45

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.

46

Appendix: Financial & Operational Data

© Ichigo Inc. All rights reserved.

47

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.

© Ichigo Inc. All rights reserved.

48

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

LocationBook Value as ofAugust 31, 2023
(A)

Appraisal NOI
(B)

Tokyo

88,091

5,308

OutsideTokyo

86,915

Total

175,007

Cap Rate(B)/(A)

Appraisal Value(C)

Unrealized Gains(C) – (A)

6.0%

124,315+36,224

5,767

6.6%

111,836+24,921

11,075

6.3%

236,151+61,144

Note: Excludes Ichigo Owners and Centro assets (book value JPY 74.2B)© Ichigo Inc. All rights reserved.

49

Risk-Based Balance Sheet
Mark-to-Market Consolidated Balance Sheet: JPY 422.2B(Book Value JPY 356.3B + Unrealized Gains JPY 65.9B)
Cash & Cash Equivalents

JPY 41.6B

Risk-Based Consolidated Balance Sheet: JPY 336.2B(Book Value JPY 270.3B + Unrealized Gains JPY 65.9B)

Non-Recourse Loans &Related Liabilities

JPY 44.3B

Non-Recourse Loans& Related Assets

JPY 62.8B
Corporate Loans
Real Estate forSale
JPY 96.5B(including Bonds

JPY 7.4B)
JPY 179.2B

Debt
248.4B

Non-Recourse Loans &Related Assets JPY 18.4B…

Real Estatefor Sale
JPY 96.5B

Shareholder
EquityJPY 107.9B

Other
JPY 27.0B

Unrealized Gains
JPY 65.9B

Post-Tax Unrealized
Gains

JPY 45.7B
Tax JPY 20.1B(including Bonds

JPY 7.4B)
JPY 137.6B

Debt
162.4BOther
JPY 24.8B

Other
JPY 24.8B

Fixed Assets
JPY 128.3B

Corporate Loans

Mark-toMarket
Shareholder
Equity Ratio

36.4%

Fixed Assets
JPY 128.3B

Shareholder
EquityJPY 107.9B

Other
JPY 27.0B

Unrealized Gains
JPY 65.9B

Risk-Based
Shareholder
Equity Ratio

45.7%
Post-Tax
Unrealized Gains
JPY 45.7B
Tax JPY 20.1B

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

50

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

15.2%

30.1%

84.4%
30.9

84.4%
32.0

Fixed Asset Ratio
84.7%

84.3%

29.5

29.7

140.2
162.3
167.2

173.3

FY20/2

FY21/2

162.8

159.3

FY22/2

FY23/260.4
29.1
FY18/2

FY19/2(JPY billion)

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 fundgrowth investments

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

51

Robust Cash Flow Generation & Strong Earnings BaseKey Ichigo Strength: Robust Cash Generation to Fund Growth− Maximal use of depreciation allowances to lower accounting earnings &increase cash flow
− Majority of cash earnings are Stock Earnings− Maintained high Stock Earnings/Fixed Expenses Ratio even amidst Covid(JPY million)

FY18/2

Stock Earnings (A)FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 H1

FY24/2
Forecast

14,93918,48518,45015,065

14,912

15,598

10,09816,985

Depreciation

967

1,632

2,507

4,603

5,278

5,135

2,439

4,769

Flow Earnings

13,015

15,273

18,567

5,850

9,793

13,371

9,867

13,482

Cash Earnings

27,95333,75937,016

20,91524,70528,97019,96530,467

Fixed Expenses (B)

6,371

7,071

7,877

7,723

7,819

8,087

4,376

9,020

Stock Earnings/
Fixed Expenses (A/B)

234%

261%

234%

195%

191%

193%

231%

188%

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

52

Post-GFC Shift in Earnings Base & Financial Position

Stock Earnings/
Fixed Expenses
Coverage Ratio

FY09/2GFC

FY14/2Start of Shift Up MTP

FY23/2

vs. GFC

75%

140%

193%

2.6X

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

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%

2.8 years

28%<3 years
28%<3 years
93%>3 years
72%

2.22%

1.96%

5.6 years

3.6X

2.8 years

21%<3 years
21%-72%>3 years
79%

0.89%

-60%
(Interest Rate -1.33%)

53

Consolidated Balance Sheet: Segment Breakdown(JPY million)
Cashand Cash
Equivalents

Operational
Loan
Investments

Operational
Securities
Investments

Real Estatefor Sale

Asset Management (AM)

–

–

–

–

Sustainable Real Estate(SRE)

17,158

1,324

1,195

Clean Energy (CE)

3,421

–

Company-Wide Assets

27,180Total

47,759Segment© Ichigo Inc. All rights reserved.

Fixed
AssetsIntangible
AssetsSecurities
Investments

Other
Assets

Total
Assets

–

525

125

866

1,517

96,531

152,325

1,492

695

4,974

275,699––

31,148

157

–

1,868

36,595

–

–

–

97

44

13,767

1,465

42,555

1,324

1,195

96,531

183,570

2,220

14,5889,174

356,36754

Consolidated P&L: Segment Breakdown(JPY million)

All-In Gross Profit
Segment

FY23/2 H1

FY24/2 H1All-In Operating Profit
YOY

FY23/2 H1

FY24/2
Forecast

YOY

FY24/2 H1Asset Management (AM)

997

1,278

+28.2%

681

814+19.6%

1,000

Base AM Fees

997

1,164

+16.7%－－－－

Acquisition/Disposition
Fees

－

113

－

－

－

－

－

Sustainable Real Estate
(SRE)

6,639

14,629+120.3%4,135

11,807+185.5%15,300Rental Income

2,219

4,876

+119.7%

1,294

3,827

+195.6%－

Asset Sales

4,418

9,753

+120.7%

2,840

7,979

+180.9%－Other Flow Earnings

－

－

－

－

－

－

－

Clean Energy (CE)

1,756

1,617

-7.9%

1,380

1,189

-13.8%

1,700

－

－

－

-19

14

－

－

9,393

17,526+86.6%

6,177

13,815+123.7%18,000Adjustment (including
offsets of crosssegment transactions)
Total

AM & CE All-In Gross Profit = Gross Profit; SRE All-In Gross Profit = Gross Profit + SRE Fixed Asset Gains on Sales
AM & CE All-In Operating Profit = Operating Profit; SRE All-In Operating Profit = Operating Profit + SRE Fixed Asset Gains on Sales© Ichigo Inc. All rights reserved.

55

Appendix: Sustainable Real Estate Details© Ichigo Inc. All rights reserved.

56

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.

57

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
58

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.

59

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. 180%
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.

60

Sustainable Real Estate: Gross Profit Margin (GPM)
Ichigo Sustainable Value-Add Supports Ongoing High GPM
FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 H1

GPM(vs. Revenue)

28.3%

13.9%

20.6%

21.1%

20.9%

GPM
(vs. Book Value)

39.5%

16.2%

26.2%

27.1%

26.5%

Revenue(JPY M)

60,601

41,43045,83055,166

27,698Gross Profit(JPY M)

17,158

5,762

9,421

11,648

5,799

Includes Fixed Asset Gains on Sales© Ichigo Inc. All rights reserved.

61

Ichigo-Owned Real Estate Portfolio
Actively Acquiring Mid-Size Assets with Value-Add Potential, Including Retail
Assets Near Stations, Offices, Retail, & Hotels in Tokyo & Major Cities
Hokkaido
2%

By Asset TypeGround Lease 1%

Other 1%

Nagoya3%
Osaka
3%

Logistics 1%

Residential
26%

Hotel
18%

By Location

Sendai2%* Acquisition price basis (Total Ichigo-Owned Assets Book Value: JPY 247.2B)* Ichigo-Managed AUM includes JPY 11.4B Ichigo Green assets

Tokyo
Metro
11%

Office30%

Other 3%

Total Ichigo-Owned Assets: JPY 253.0B(Including Ichigo-Managed AUM: JPY 587.4B)

By Location

Tokyo
57%

(JPY billion)

144.3

Fukuoka19%

Retail23%
By Asset Size

>JPY 10B
11%<JPY 1B18%

46.9

JPY 5B-10B
19%
JPY 1B-5B
52%© Ichigo Inc. All rights reserved.

27.7
7.3
Tokyo

Fukuoka

Tokyo Nagoya
Metro(Ex-Tokyo)

6.8

4.8

5.0

Osaka Hokkaido Sendai

9.8
Other

62

Sustainable Real Estate Asset Breakdown (1)143 Assets, JPY 247.2B, Annual NOI JPY 11B (6.3% Yield)
No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
1
NOI/Year

Ichigo Equity
Investment

Forecast Equity
2
Multiple

Forecast
3
IRR

1

RetailFixed Asset

Matsudo, Chiba

JPY 2B-3B

2005/06

51 years–

JPY 1,900M

–

–

2

RetailFixed Asset

Minato-ku, Tokyo

JPY 2B-3B

2005/1054 years

JPY 136M

JPY 1,033M

–

–

3

RetailFixed Asset

Minato-ku, Tokyo>JPY 3B

2006/0338 years

JPY 165M

JPY 1,356M

–

–

4

RetailFixed Asset

Yokohama

JPY 1B-2B

2006/0918 years

JPY 60M

JPY 1,157M

–

–

5

OfficeFixed Asset

Sendai>JPY 3B

2006/1015 years

JPY 240M

JPY 1,042M

–

–

6

OfficeFixed Asset

Fukuoka>JPY 3B

2006/1215 years

JPY 350M

JPY 1,339M

–

–

10

RetailFixed Asset

Chiyoda-ku, Tokyo

JPY 1B-2B

2007/0643 years

JPY 85M

JPY 240M––

11

RetailFixed Asset

Chiyoda-ku, Tokyo

JPY 1B-2B

2007/0642 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

2012/0227 years

JPY 75M

JPY 172M––

16

RetailFixed Asset

Yokohama<JPY 1B

2012/109 years

JPY 34M

JPY 171M––

17

RetailFixed AssetToshima-ku, Tokyo>JPY 3B

2013/03

12 years

JPY 243M

JPY 340M––

18

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2013/05

37 years

JPY 57M

JPY 154M––

19

RetailFixed Asset

Chofu, Tokyo

JPY 1B-2B

2013/0638 years

JPY 136M

JPY 310M––

27

RetailFixed Asset

Tokorozawa, Saitama

JPY 1B-2B

2013/1115 years

JPY 74M

JPY 92M––

Note: Annual NOI & Yield excludes Ichigo Owners and Centro assets.
1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast 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.
2© Ichigo Inc. All rights reserved.

63

Sustainable Real Estate Asset Breakdown (2)Forecast Equity
2
Multiple

Ichigo Equity
Investment

Forecast
3
IRR

AcquisitionPrice

Acquisition
Date

Fixed Asset

Fujisawa, Kanagawa

JPY 1B-2B

2014/03–

JPY 113M

JPY 273M––

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2014/0339 years

JPY 51M

JPY 108M––

32

RetailFixed Asset

Fukuoka

JPY 1B-2B

2014/04

17 years

JPY 58M

JPY 279M––

35

OfficeFixed Asset

Minato-ku, Tokyo

JPY 2B-3B

2014/05

14 years

JPY 144M

JPY 434M––

37

RetailFixed Asset

Minato-ku, Tokyo<JPY 1B

2014/0750 years

JPY 47M

JPY 77M––

39

RetailFixed Asset

Fukuoka<JPY 1B

2014/0719 years

JPY 50M

JPY 213M––

40

RetailFixed Asset

Fukuoka<JPY 1B

2014/0938 years

JPY 49M

JPY 252M

–

–

41

Hotel

Fixed Asset

Utsunomiya, Tochigi

JPY 1B-2B

2014/09

36 years

JPY 143M

JPY 400M––

42

RetailFixed Asset

Fukuoka

JPY 1B-2B

2014/09

22 years

JPY 59M

JPY 177M––

43

RetailFixed AssetOsaka

JPY 1B-2B

2014/09

21 years

JPY 114M

JPY 301M––

57

Residential

Fixed Asset

Minato-ku, Tokyo

JPY 1B-2B

2014/1219 years–

JPY 186M––

62

RetailFixed Asset

Fukuoka<JPY 1B

2014/1219 years

JPY 41M

JPY 212M––

63

RetailFixed Asset

Meguro-ku, Tokyo

JPY 1B-2B

2014/1217 years

JPY 85M

JPY 129M––

64

RetailFixed Asset

Shinagawa-ku, Tokyo<JPY 1B

2015/01–

JPY 26M

–

–

–

68

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2015/04

21 years

JPY 48M

JPY 79M––

Asset Type29

Ground Lease

30

Classification

Building
Age

Forecast
1
NOI/Year

LocationNo.

1

Forecast NOI/ Year is based on the business plan of each asset and is the Forecast 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.
2© Ichigo Inc. All rights reserved.

64

Sustainable Real Estate Asset Breakdown (3)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
1
NOI/Year

Forecast Equity
2
Multiple

Ichigo Equity
Investment

Forecast
3
IRR

71

RetailFixed Asset

Fujisawa, Kanagawa

JPY 1B-2B

2015/07

8 years

JPY 100M

JPY 126M

–

–

110

Hotel

Fixed Asset

Fukuoka>JPY 3B

2016/0338 years

JPY 273M

JPY 905M

–

–

112

Hotel

Fixed Asset

Yokohama>JPY 3B

2016/0336 years

JPY 319M

JPY 354M

–

–

114

Hotel

Fixed Asset

Fukuoka>JPY 3B

2016/04

33 years

JPY 182M

JPY 550M

–

–

116

RetailFixed Asset

Sendai<JPY 1B

2016/04

34 years

JPY 63M

JPY 86M––

118

RetailFixed Asset

NagoyaJPY 1B-2B

2016/06

26 years

JPY 83M

JPY 102M

–

–

119

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2016/06

36 years

JPY 42M

JPY 136M

–

–

120

Hotel

Fixed Asset

Shinjuku-ku, Tokyo>JPY 3B

2016/09

43 years

JPY 554M

JPY 349M

–

–

121

OfficeFixed Asset

Minato-ku, Tokyo>JPY 3B

2016/1022 years

JPY 1,540M

JPY 3,450M

–

–

145

Hotel

Fixed Asset

Fukuoka>JPY 3B

2018/035 years

JPY 194M

JPY 301M

–

–

147

Hotel

Fixed Asset

Kyoto>JPY 3B

2018/08

5 years

JPY 327M

JPY 1,666M

–

–

149

RetailFixed Asset

Chiyoda-ku, Tokyo>JPY 3B

2018/09

33 years

JPY 308M

JPY 2,269M

–

–

151

OfficeFixed Asset

Fukuoka<JPY 1B

2018/1024 years

JPY 36M

JPY 38M––

155

OfficeFixed Asset

Shinagawa-ku, Tokyo

JPY 2B-3B

2019/0338 years

JPY 169M

JPY 616M

–

–

157

OfficeFixed Asset

Chiyoda-ku, Tokyo<JPY 1B

2019/04

40 years

JPY 52M

–

–

–

1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast 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.
2© Ichigo Inc. All rights reserved.

65

Sustainable Real Estate Asset Breakdown (4)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
1
NOI/Year

Forecast Equity
2
Multiple

Ichigo Equity
Investment

Forecast
3
IRR

159

RetailFixed Asset

Shibuya-ku, Tokyo

JPY 2B-3B

2019/05

43 years

JPY 123M

JPY 210M

–

–

161

Hotel

Fixed Asset

Fukuoka>JPY 3B

2019/0729 years

JPY 354M

JPY 1,636M

–

–

162

Hotel

Fixed Asset

Fukuoka>JPY 3B

2019/07

25 years

JPY 353M

JPY 1,170M

–

–

167

Hotel

Fixed Asset

Hiroshima>JPY 3B

2020/08

3 years

JPY 306M

–

–

–

171

OfficeFixed Asset

Taito-ku, Tokyo<JPY 1B

2022/0244 years

JPY 71M

JPY 38M––

172

OfficeFixed Asset

Sapporo, Hokaido>JPY 3B

2022/04–

JPY 624M

JPY 3,349M

–

–

175

OfficeFixed Asset

Utsunomiya, Tochigi

JPY 2B-3B

2022/09

16 years

JPY 203M

JPY 217M

–

–

177

RetailFixed Asset

Matsudo, Chiba

JPY 1B-2B

2023/01

18 years

JPY 69M

JPY 1,189M––

JPY 9,326M

JPY 31,562M––

53 Fixed Assets

JPY 152,521M
JPY 145,949M (Book Value)

1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast 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.
2© Ichigo Inc. All rights reserved.

66

Sustainable Real Estate Asset Breakdown (5)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
1
NOI/Year

Ichigo Equity
Investment

Forecast Equity
2
Multiple

Forecast
3
IRR

61

RetailOperational Loan

Shinjuku-ku, Tokyo

JPY 1B-2B

2014/1260 years

JPY 120M

JPY 57M

15.26X

51.7%

89

OfficeReal Estate for Sale

Musashino, Tokyo>JPY 3B

2015/0734 years

JPY 134M

JPY 670M

1.72X

13.3%

143

RetailReal Estate for Sale

Fukuoka

JPY 1B-2B

2017/0938 years

JPY 105M

JPY 223M

3.78X

19.9%

153

Hotel

Real Estate for Sale

Fukuoka

JPY 1B-2B

2019/0230 years

JPY 110M

–

5.00X

20.3%

156

Logistics

Real Estate for Sale

Fukuoka

JPY 2B-3B

2019/0335 years

JPY 150M

JPY 651M

3.60X

30.0%

163

RetailReal Estate for Sale

Nagoya>JPY 3B

2019/08

26 years

JPY 481M

JPY 1,146M

3.47X

17.0%

166

RetailReal Estate for Sale

Shibuya-ku, Tokyo<JPY 1B

2020/0317 years

JPY 39M

JPY 83M

3.23X

13.5%

168

OfficeReal Estate for Sale

Koto-ku, Tokyo

JPY 1B-2B

2020/1133 years

JPY 105M

–

3.17X

53.6%

169

OfficeReal Estate for Sale

Fukuoka

JPY 1B-2B

2021/1037 years

JPY 54M

JPY 109M

2.70X

170.5%

170

OfficeReal Estate for Sale

Fukuoka

JPY 1B-2B

2021/11

14 years

JPY 64M

JPY 270M

1.68X

23.9%

173

OfficeReal Estate for Sale

Chiyoda-ku, Tokyo

JPY 1B-2B

2022/05

15 years

JPY 74M

JPY 121M

5.02X

74.2%

174

OfficeReal Estate for Sale

Meguro-ku, Tokyo

JPY 2B-3B

2022/08

33 years

JPY 106M

JPY 344M

3.25X

41.2%

176

OfficeReal Estate for Sale

Fukuoka<JPY 1B

2022/0918 years

JPY 41M

JPY 65M

3.85X

36.7%

178

RetailReal Estate for Sale

Shibuya-ku, Tokyo<JPY 1B

2022/12

14 years

JPY 35M

JPY 28M

7.96X

44.6%

179

OfficeReal Estate for Sale

Minato-ku, Tokyo

JPY 1B-2B

2023/0232 years

JPY 59M

JPY 170M

2.38X

33.6%

180

OfficeReal Estate for Sale

Funabashi, Chiba

JPY 2B-3B

2023/04

32 years

JPY 178M

JPY 203M

7.05X

27.3%

JPY 1,855M

JPY 4,140M

3.44X

41.9%

JPY 11,181M

JPY 35,703M––

16 Real Estate For Sale

Subtotal 69 Assets

JPY 30,829M
JPY 32,720M (Book Value)
JPY 183,350M
JPY 178,669M (Book Value)

1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast 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.
2© Ichigo Inc. All rights reserved.

67

Sustainable Real Estate Asset Breakdown (6)Acquisition
Price

Asset TypeNo.

Forecast

vs. FY23/2 Q4

NOI/Year1

Ichigo Equity
Investment

Forecast Equity
Multiple

Forecast
IRR

A

Ichigo Owners (Residential)

52 Assets

JPY 60,820M+JPY 15,005M

JPY 2,379M

JPY 15,079M

–

–

B

Ichigo Owners (Other)

3 Assets

JPY 2,323M-JPY 787M

JPY 175M

JPY 1,048M

–

–

C

Centro (Primarily Office & Residential)

19 Assets

JPY 6,548M–

JPY 460M

JPY 1,619M––

JPY 14,197M

JPY 53,451M––

Total 143 Assets

JPY 253,043M
JPY 247,237M (Book Value)

Assets acquired in FY24/2 Q1 (3M)

Total 13 Assets

JPY 17,720M

JPY 749M

JPY 3,392M––

Assets acquired in FY24/2 Q2 (3M)

Total 7 Assets

JPY 8,431M

JPY 319M

JPY 1,586M––

Assets acquired in FY24/2 H1 (6M)

Total 20 Assets

JPY 26,152M

JPY 1,069M

JPY 4,979M––© Ichigo Inc. All rights reserved.

68Appendix: Asset Management Details© Ichigo Inc. All rights reserved.

69

Asset Management

Ichigo REITs & Ichigo Green
Ichigo Office 8975

Ichigo Hotel 3463

Ichigo Green 9282

Portfolio

JPY 212.1B (88 Assets)

JPY 69.8B (30 Hotels)

JPY 11.4B (15 Solar Plants)

Dividend Yield

4.8%

4.5%

5.7%

・ Entered FTSE Global REIT Index,
a key benchmark for global
investors
・ Ichigo Office & Ichigo Hotel only
J-REITs with a no fixed fee,
performance fee-only fee
structure
・100% renewable energy for all
assets with full Ichigo ownership(74 assets, excludes partiallyowned and co-owned assets)

・ Geographically diversified
portfolio focused on lodgingfocused hotels
・ Ichigo Office & Ichigo Hotel only
J-REITs to implement no fixedfee, performance fee-only
structure・ Driving earnings & value growth
via value-add, strategicacquisitions & sales
・ 31% renewable energy

・ Solar power producers focusedon driving shareholder value via
income stability and earnings
growth and contributing toJapan’s self-sufficiency in clean
energy・ Portfolio of robust assets thathave suffered no injuries ordamages from natural disasters(as of October 10, 2023)

Overview*as of FY24/2 H1-end© Ichigo Inc. All rights reserved.

70

Asset Management

Growth & ESG Support for Ichigo REITs & Ichigo Green・ Ichigo Office acquired 2 assets (JPY 6.2B) of 4 assets in Ichigo-createdbridge fundIchigo Office ・ Ichigo Office share purchase (JPY 9.5B)(8975)
・ Added Ichigo Office assets to Ichigo’s disaster management system toenable rapid disaster response

Ichigo Hotel(3463)・ Reduced Ichigo Hotel operator risk via bringing in OneFive Hotels (6Hotels, 734 rooms) when there have been issues at Ichigo Hotel operators
・ Sold 5 hotel assets (JPY 15B)
・ Ichigo Hotel share purchase (max. JPY 1B, in addition to JPY 1.5B via
third-party share allotment)

Ichigo Green ・ Ichigo ECO Energy operating all 15 power plants(9282)

・ Ichigo earnings support via minimum daylight hour guarantee

・ Assessing asset risks using value-add know-how and supporting groupESG Support wide ESG initiatives
・ Strengthening ESG initiatives via third-party assessments© Ichigo Inc. All rights reserved.

71

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)

FY19/2(12M)

FY20/2(12M)

FY21/2(12M)

FY22/2(12M)

FY23/2(12M)）

FY24/2(6M)

AUM (Fiscal Year End)JPY 203.0B

JPY 203.2B

JPY 206.1B

JPY 205.4B

JPY 212.1B

JPY 212.1B

Base AM Fee Gross Profit(Actual)JPY 1,426M

JPY 1,436M

JPY 1,524M

JPY 1,725M

JPY 1,517M

JPY 777M

AUM (Fiscal Year End)JPY 50.7B

JPY 50.8B

JPY 51.9B

JPY 51.9B

JPY 54.7B

JPY 69.8B

Base AM Fee Gross Profit(Actual)JPY 461M

JPY 381M

JPY 42M

JPY 95M

JPY 201M

JPY 234M

AUM (Fiscal Year End)JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

Base AM Fee Gross Profit(Actual)

JPY 85M

JPY 82M

JPY 79M

JPY 77M

JPY 78M

JPY 46M

AUM (Fiscal Year End)JPY 20.6B

JPY 36.8B

JPY 36.8B

JPY 49.3B

JPY 42.3B

JPY 40.9B

Base AM Fee Gross Profit(Actual)JPY 41M

JPY 116M

JPY 137M

JPY 144M

JPY 212M

JPY 78M

AUM (Fiscal Year End)JPY 285.8B

JPY 302.4B

JPY 306.4B

JPY 318.2B

JPY 320.7B

JPY 334.4B

Base AM Fee Gross Profit(Actual)JPY 2,014M

JPY 2,016M

JPY 1,782M

JPY 2,042M

JPY 2,010M

JPY 1,136M

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

© Ichigo Inc. All rights reserved.

72

Appendix: Clean Energy Details© Ichigo Inc. All rights reserved.

73

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

By Feed-In Tariff

Shikoku 2%

Hokkaido 3%
Tohoku3%

JPY 1811%
JPY 21
7%

Kyushu
13%
TEPCO
44%

Kansai
6%
Chubu
11%

By Years in Operation

JPY 142%<1 year1%

JPY 4019%

1-3 years
14%

JPY 24
7%
JPY 27
2%

In
Pipeline
9%>5 years
54%

JPY 3210%

3-5 years
22%

JPY 3643%

Chugoku18%
By Solar Intensity

By Output

Panel Output and FIT by Customer>10MW(In-Pipeline)
9%

<2MW
16%

>10MW
37%
2-10MW
38%

OperatingC
9%B(In-Development)
10%
B
31%

Area

A
50%

TEPCO
Chugoku
KyushuChubu
KansaiTohokuHokkaido
Shikoku
Total

Panel
Output
(MW)
67.4
26.6
5.3
16.9
9.3
4.6
4.4
2.5
137.4

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

FIT(Pre-Tax)
(JPY)
14-40
18-40
32-40
14-36
18-32
36
40
40

C: ≥3.50, <3.75

In-Pipeline
Panel
Output
(MW)
–
–
13.9
–
–
–
–
–
13.9

FIT
(Pre-Tax)
(JPY)
–
–
40
–
–
–
–
–

D: <3.5

74

Ichigo Solar Power Plant Portfolio
Operating
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Solar Power Plant
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 Inc. All rights reserved.

Area
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

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

FIT
(Pre-tax)
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

Operation
Start Date
2013/08
2014/03
2014/04
2014/04
2014/04
2014/10
2014/10
2015/01
2015/03
2015/122016/01
2016/03
2016/06
2016/07
2016/07
2016/102017/022017/082017/092018/022018/032018/032018/032018/04
2019/01
2019/05
2019/07
2020/01
2020/01
2020/0275

Ichigo Solar Power Plant Portfolio
Operating
No.
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47

Solar Power Plant
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
Ichigo Obu Yoshidamachi
Ichigo Sera Shimozuta
Ichigo Ueda Yoshidaike
Total (Operating)

Area
Kanto
Kanto
Chugoku
Chubu
Chubu
Kanto
Kanto
Chugoku
Chubu
Chubu
Kanto
Chubu
KyushuKansai
Chubu
ChugokuChubu
47 Plants

Panel Output
(MW)
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
1.00
2.93
1.16
137.4MW

FIT(Pre-tax)
JPY 24
JPY 27
JPY 21
JPY 18JPY 18JPY 18JPY 14
JPY 18JPY 14
JPY 14
JPY 14
JPY 14
JPY 32
JPY 18JPY 18JPY 18JPY 18Operation
Start Date
2020/032020/04
2020/04
2020/09
2020/102021/01
2021/092021/102021/112021/112021/112021/122021/122022/01
2022/032022/032022/11

FIT(Pre-tax)
JPY 40Operation
Start Date
2024/01

In-Pipeline
No.

Solar Power Plant

Area

48

Ichigo Ebino Suenaga
Total (Operating)

Kyushu1 Plant

Panel Output
(MW)
13.99
13.9MW

48 Plants

151.4MW

Total (Operating & In-Pipeline)© Ichigo Inc. All rights reserved.

76

Ichigo Wind Power Plant Portfolio
OperatingNo.
1Wind Power Plant
Ichigo Yonezawa Itaya
Total (Operating)

Area

Panel Output
(MW)

FIT
(Pre-tax)

Operation
Start Date

Tohoku7.39

JPY 222021/03

1 Plant

7.3MW

Ichigo Solar & Wind Power Plant (Operating/In-Pipeline) Total: 49 Plants 158.8MW
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
Power Source[Contract Period]

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

Determined via Determined via Determined via Determined via Determined via
Determined via auction process
auction process auction process auction process auction process auction process(>2,000kW)(>500kW)(>250kW)(>250kW)(>250kW)(>250kW)

Solar Power(>10kW)[20 years]

Wind Power(>20kW)[20 years]

Biomass(Domestic Feedstocks)[20 years]

JPY 40

JPY 36

JPY 32

JPY 29JPY 27

JPY 24

JPY 21(10kW2,000kW)

JPY 18(10kW2,000kW)

JPY 14(10kW500kW)

JPY 12(50kW250kW)

JPY 11(50kW250kW)

JPY 10(50kW250kW)

JPY 9.5(50kW250kW)

JPY 13(10kW50kW)

JPY 12(10kW50kW)

JPY 11(10kW50kW)

JPY 10(10kW50kW)

JPY 21
JPY 22

JPY 32© Ichigo Inc. All rights reserved.

JPY 22

JPY 22

JPY 22

JPY 22*JPY 22 until
Sept 30, 2017

JPY 20

JPY 19JPY 18JPY 17

JPY 16

JPY 15

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 3277

Ichigo Green (9282) Solar Plant Portfolio
Operating
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Solar Power Plant
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)

Area
Kanto
Hokkaido
Hokkaido
Hokkaido
Shikoku
Hokkaido
Hokkaido
Hokkaido
Okinawa
Hokkaido
Shikoku
Kyushu
Chubu
Chugoku
Chugoku
15 Plants

Panel Output
(MW)
1.33
1.40
1.24
1.12
1.23
1.93
1.16
1.02
8.44
1.24
2.43
1.44
1.80
1.24
2.35

FIT
(Pre-tax)
JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40
JPY 36
JPY 36
JPY 32
JPY 40
JPY 36

Operation
Start Date
2013/09
2014/02
2014/03
2014/03
2014/04
2014/11
2014/12
2014/122015/02
2015/02
2015/06
2015/07
2015/09
2015/122016/04

29.4MW

Ichigo & Ichigo Green Power Plant (Operating/In-Pipeline) Total: 188.2MW
Solar Power Plants: 151.4MW
Wind Power Plants: 7.3MW
Ichigo Green Plants: 29.4MW© Ichigo Inc. All rights reserved.

78

Green Biomass Entry
Fully Local Green Biomass as Ichigo’s 3rd Renewable Energy Business− 4 Plants In Development (5.0MW, JPY 6.3B in Total Business Expenses)− Diversify & stabilize power production− Procure biomass feedstock via Ichigo’s relationships with local government
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 67% (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.

79

Appendix: Financial Statements© Ichigo Inc. All rights reserved.

80

Consolidated Balance Sheet: Assets(JPY million)
FY20/2
AssetsCurrent Assets
Cash and cash equivalents
Trade notes and accounts receivable
Operational loan investments
Operational securities investments
Real estate for sale
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.

FY21/2

FY22/2

FY23/2

FY24/2 Q1

FY24/2 H1

vs. FY24/2 Q1

41,067
2,308
1,324
902
68,2903,721-6
117,608

50,832
1,382
1,324
590
64,1092,698-167
120,771

46,458
1,819
1,324
2,547
68,666
2,613-633
122,798

40,536
3,866
1,324
47
79,151
3,197-66
128,057

37,865
4,813
1,324
–
95,341
3,428-33
142,740

47,759
2,434
1,324
1,195
96,5312,830-13152,063+9,894-2,379–+1,195+1,190-598+20+9,32355,05023,425
122,114
5,607
206,198

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

56,20827,953116,079
3,796
204,038

54,03926,862
114,4313,990
199,323

53,114
26,423113,039
6,591
199,168

44,62026,010106,219
6,719
183,570-8,494-413-6,820+128-15,598

1,090
687
705
2,482

968
1,272
1,797
4,038

1,580
1,365
605
3,551

717
1,397
283
2,398

696
1,397
249
2,343

674
1,332
213
2,220

-22
-65
-36
-123

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

3,463
270
883
3,013
-131
7,498
215,089
337,887

4,455
240
341
3,937
-133
8,840
210,562
338,619

6,489
232
431
3,928
-135
10,945
212,457
355,198

14,588
225
350
3,893
-545
18,512
204,303356,367+8,099
-7
-81
-35
-410
+7,567-8,154+1,16981

Consolidated Balance Sheet: Liabilities & Net Assets(JPY million)
FY20/2
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
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.

FY21/2

FY22/2

FY23/2

FY24/2 Q1

FY24/2 H1

vs. FY24/2 Q1+2,026-72-1,3493,086
274
12,277

4,879
274
9,751

2,382
274
9,888

962
364
8,539

3,500
364
14,285

5,526
292
12,936

1,178

1,358

1,375

4,218

4,220

4,244

+24

2,416
33
5,013
24,280573
95,527
22,374

1,888
39
5,012
20,861

949
112
4,053
19,200

864
308
3,100
26,643

3,817
268
3,650
30,736+2,953-40+550+4,093

6,082
151,483

5,878
156,890

5,603
150,389

5,239
152,624

5,198
164,254

7,158
153,345+1,960-10,909

39,156
1,890
8,118
1,107
207,838
232,119

40,974
1,868
7,795
1,039
214,446
236,820

39,489
1,795
6,749
805
204,833
225,695

38,012
1,589
7,163
396
205,026
224,226

37,863
1,590
7,078
485
216,472
243,115

37,156
1,451
6,705
417
206,234
236,971

-707
-139
-373
-68
-10,238-6,144

26,885
11,272
71,505-8,988100,674

26,888
11,27573,160-11,988
99,33526,888
11,26876,310-13,423
101,043

26,888
11,26682,438-17,914102,678

26,888
11,26680,266-17,914
100,506

26,888
11,26687,321-17,914
107,561––+7,055–+7,055

158

90

25

296

261

351

+90

-397

-375

-254

51

-94

-12

+82

-239
988
184
101,607
333,726-285
1,007
10,197110,255
347,076-228
961
10,415
112,191
337,887347
814
10,552
114,393338,619

167
801
10,607
112,083
355,198

339
832
10,663
119,395
356,367

+172
+31
+56
+7,312+1,16982

Consolidated P&L(JPY million)
FY20/2(12M)
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
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 sale 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.

FY21/2(12M)

FY22/2(12M)

FY23/2(12M)

FY24/2 H1(6M)

FY23/2 H1(6M)

FY24/2Full-Year
Forecast

Change(YOY)

vs.
Forecast

87,36052,851
34,5096,787
27,721

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

56,93440,757
16,177
6,159
10,01868,093
48,674
19,4186,926
12,492

26,496
17,302
9,193
3,710
5,483

25,475
17,176
8,299
3,216
5,082

+1,021
+126
+894
+494
+401

–
–
–
–
9,500

–
–
–
–
57.7%

8
78

17
78

29
30

46
38

20
92

23
13

-3
+79

–
–

–
–

–

243

98

790

54

254

-200

–

–

62
150

78
417

202
361

103
979

140
307

64
355

+76
-48

–
–

–
–

2,293

2,338

2,341

2,165

1,143

1,083

+60

–

–

336

29

53

–

267

–

+267

–

–

538
307
3,476
24,395

279
258
2,906
7,179

157
355
2,908
7,471

171
285
2,622
10,848

104
187
1,703
4,087

91
96
1,271
4,166

+13
+91
+432
-79

–
–
–
6,000

–
–
–
68.1%

–
11
–
169
35
215

720
–
–
–
–
720

3,248
15
–
–
120
3,383

4,416
–
–
–
205
4,621

4,379
89
3,952
–
379
8,801

1,094
–
–
–
–
1,094

+3,285+89+3,952–+379+7,707

–
–
–
–
–
–

–
–
–
–
–
–

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

5
43
716
–
493
1,259
9,595
2,901
6,694
220
6,473

23
261
803
–
146
1,235
14,234
4,578
9,656
246
9,409

–
–
–
–
409
409
12,479
3,861
8,618
114
8,503

–
–
–
–
–
–
5,261
1,723
3,537
107
3,429

–
–
–
–
+409
+409
+7,218+2,138+5,081+7+5,074

–
–
–
–
–
–
–
–
–
–
10,000

–
–
–
–
–
–
–
–
–
–
85.0%

83

Consolidated Cash Flows: Operations(JPY million)
FY20/2 (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 sale of subsidiary shares
Losses (gains) on sale of shares in affiliates
Losses (gains) on sale of securities investments
Losses (gains) on disposal of fixed assets
Losses (gains) on sale 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
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.

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 (12M)
9,595
5,644
73
149
29
505
-60
2,341
–
–
-15
5
-3,248
716
43
-437
1,279
-3,873
–
2
-60
-74
-113
25
795
-1,045-877
11,40360-2,174-1,3507,939

FY23/2 (12M)
14,234
5,339
–
177
73
134
-85
2,165
–
–
–
23
-4,416803
261-2,096
3,178-10,114
–
3
-6
-62
462
-38
-908
413
-1,8597,682
85-2,051-5,462254

FY24/2 H1 (6M)
12,479
2,540
–
42
163
358
-112
1,143
–
-3,952-89–-4,379––1,421
47-18,048
–
–
-496
73
-889
–
6
-330
1,449
-8,572112-1,057-849-10,36784

Consolidated Cash Flows: Investments & Financing(JPY million)
FY20/2 (12M)
Cash Flows from Investments
Payments into time deposits
Proceeds from withdrawal from time deposits
Payments for securities investments
Proceeds from sale 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
Proceeds from sale of subsidiary shares resulting inchange of consolidation scope
Acquisitions of consolidated subsidiary
Other
Net Cash from (Used for ) Investments
Cash Flows from Financing
Net increase (decrease) in short-term loans
Proceeds from bond issuance
Repayment of maturing bond principal to bondholders
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
Dividends paid to minority interests
Dividends paid
Net Cash from (Used for ) Financing© Ichigo Inc. All rights reserved.

FY21/2 (12M)

FY22/2 (12M)

FY23/2 (12M)

FY24/2 H1 (6M)

-113
5,033
-2,361
111-11,244

-7
–
-547
10
-16,447

-7
30
-606
569
-5,798

-2
23
-968
–
-10,516––-10,973114-2,609–2,850

12,757

14,065

17,110

-562
-2
–
-34

-1,468
-3
15
–

-195
-4
–
-16

-24
-6
97
–

-82
–
–
-127

–

–

–

–

3,356

-187
-902
-10,263–-30-15,630

–
-223
6,502

–
-33
2,635

–
1,751
8,541

426
5,828
-193
49,957-26,475
5,300-17,701
95-2,999–-1,276-8-3,416
9,537

1,793
70
-274
51,877-48,996
3,300-1,301
4-2,99910,000–-5-3,298
10,167-2,497–-274
26,552-32,940–-1,467–-1,499––-2-3,230-15,360-1,419–-274
41,834-40,385
3,000-1,633–-4,499––-6-3,197-6,582

4,564
1,991
-153
31,008-22,600
–
-830
–
–
–
–
-3
-3,552
10,42485

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

86

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.

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

88

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− Target 11 consecutive years of JPX-Nikkei 400 Index inclusion
 Consecutive inclusion until periodic review in August 2030

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,
plus post-tax gains on sales of Sustainable Real Estate assets recorded as extraordinary gains© Ichigo Inc. All rights reserved.

89

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

JPY 5

JPY 6

JPY 7

JPY 7

JPY 7

JPY 7

FY19/2

FY20/2

FY21/2

FY22/2

JPY 8

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

FY18/2

FY23/290

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

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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© Ichigo Inc. All rights reserved.

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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.

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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

FY26/2
TargetSite controller: A channel management system that integrates & coordinates information
across multiple online distribution channels© Ichigo Inc. All rights reserved.

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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 26K 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 by FY26/2
Drive Earnings via Shift From PROPERA Lite to PROPERAPROPERA・ Fully Automated Revenue Optimization
・ Usage Fee: 1% of Revenue(monthly per hotel)**Standard Plan
© Ichigo Inc. All rights reserved.

PROPERA Sample Earnings Model
Hotel with RevPAR JPY 6,000 and 100 rooms
Annual Ichigo Earnings: c. JPY 2M
95

PROPERA: Ichigo's AI Hotel Revenue Management System
Launch ofThird-Party
Sales

Increase Market Share

Drive Non-Asset Stock
Earnings

Earnings Upside From Participation in
Hotel Earnings GrowthLong-Term Earnings Growth

PROPERA Business Market Turnaround・ Strong domestic & inbound hotel demand recovery
・ Focus on operating cost reductions
・ Optimizing operations impacted by staff shortage
FY24/2
TargetStart promotions targeting
1,000 hotels with PMS that havecompleted integrating systems
by FY22/2-end

2,000
Hotels(10% Market
Share*)
FY26/2
TargetLaunch ofThird-Party
Sales

49
Hotels
FY21/2127
Hotels155

500

Sample Earnings Model

HotelsUsage Fee: 1% of Revenue

Hotel with RevPAR JPY 6,000& 100 Rooms

Hotels

FY22/2

FY23/2
Actual* Of JapaneseHotels
Deploying Site
Controllers

Target of 500 hotels moved to
FY24/2 to allow more time forcustomization of PMS integration

Annual Ichigo Earnings:
JPY 2M

1 PMS: In-house hotel system that manages check-in/check-out & revenue 2 20,000 Japanese Hotels Deploying Site Controllers© Ichigo Inc. All rights reserved.

96

Real Estate x Tourism

OneFive Hotels: Hotel Operations
Non-Asset Business Growth Driver− Operations and Master Leases of Third-Party Hotels− Growth Exceeding Pre-Covid Levels Without Dedicated Sales andMarketing Teams− Driving Earnings and Cost Reductions via PROPERA deployment at
hotels (generating 10 to 40% revenue increases p.a.)Operating 14 hotels (1,768 rooms)
in major cities
Name changed from Hakata Hotels Inc. on May 31, 2023

HOTEL IL PALAZZO
Tourism

The OneFive Villa Fukuoka© Ichigo Inc. All rights reserved.

The OneFive Terrace Fukuoka
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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 Prime 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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