Feb. 2013 Fiscal Year H1 (March – August 2012)
CorporatepPresentation
October 18, 2012

Ichigog Groupp Holdings
g Co.,, Ltd. (2337)()© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

www.ichigo-holdings.co.jp/english

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

Creating peace of mind through honest
and committed management.
management© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

Accelerating Growth-Ichigo Growth Strategy
Feb. 2013 H1 Consolidated Financial Results
Feb. 2013 H1 Assets Under Management (AUM)
St t l Profitability
StructuralP fit bilit
Strong Cash Position to Fund Investments for Growth
Refinancing Debt at Improved Terms
Ichigo REIT (8975) Growth
Retail Asset Redevelopment by Ichigo Estate
Ichigo’s Miyake, Silver Medalist Weightlifter

AAppendix
di-Financial Data (Pro Forma and Consolidated)
Real Estate Data

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

4

Accelerating Growth© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

5

Ichigo Growth Strategy
Having Achieved Structural Profitability, Entering Accelerated Growth Stage
Building StructuralProfitability

Accelerated Growth StageSignificant Expansion of StructuralProfitability
・Growth in private equity RE fund AUM- Launch new private equity RE funds- Expand investor base- Rescue AM・Organic growth of J-REIT・Acquisition and warehousing for J-REIT・Small-sized asset and ground-lease products
・Value enhancement of retail assets
・Strengthening of BM businessStable Financial Base・Optimizing balance sheet
Compressing and strengthening
・Optimizing interest-bearing debt
Reduction and term extension
Increase Structural Profitability
・Increase real estate fee income
・M&A of J-REIT AM companies
・Value enhancement of assets
M&A off stable/profitable
t bl / fit bl companies
i・M&A
・SG&A cost-cutting

100%
CoverageRatio

Target:Tokyo Stock
Exchange
First Section
GrowthInvestments+Increased
ShareholderDividends

Structural Profitability

Feb 11Feb 12* Beginning of each fiscal year.

Feb 13© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

6Feb. 2013 H1 Consolidated Financial Results(Million yen)F b 13 H1 A
Feb
Actuall vs FFebb 13 F
Full-Yearll YFForecastRevenues 44.9%, Net Profit 53.5%

Feb. 2013 H1 Financial Results(Million yen)
FY 13Full-Year
Forecast

vs.
Forecast

7,637

17,00044.9%

Operating Profit

694

1,500

46.3%

Recurring Profit

617

1,20051.4%

Net Profit

535

1,00053.5%-200-Feb 13 H1Cumulative

Revenues

Revenues

17,000

Revenues

7,637

Revenues

2 362
2,362

Net Profit
Net Profit

Net Profit
264

ActualFeb 13 Q1(3 mos)

1,000

535
ActualFeb 13 H1(6 mos)© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

Dividend per Share (Yen)

Forecast
Feb 13 Full-Year(12 mos)

7Feb. 2013 H1 Assets Under Management (AUM)
Higher Profitability despite Decrease in Total AUM QoQ- AUM decreased due to disposition of assets with low profitability- Focus on efficiency
y over increasingg AUM

PE RE Fund
Asset Sales(Billion yen)
Others 0.05

35.8
REIT Asset Sales 0.8

374.5

May 12© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

REIT Acquisitions
2.1340 0340.0

Aug 128

Structural Profitability
H1 Fixed Revenues over 120% of Fixed Costs- Seed assets of J-REIT and private equity RE funds contributing rental income
Fixed Revenues (“locked-in”( locked-in revenues,revenues excludes transaction fees,fees capital gainsgains, etcetc.))
Fixed Costs (SG&A + Interest Expense)

Coverage： 121.0%(Million yen)
Coverage： 88.0%

BM Fees 224

Dividends
472

Interest 164

Interest 143

BM Fees 167
Interest and Other 23

Dividends 110

2,016

Rental Income
509
SG&A
1,506

1,470

Rental Income
518

1,671

AM Fees684

Feb 12 H1（6 mos）

SG&A
1,522

1,667

Maintain
StableCoverage
Ratio

AM Fees779

Feb 13 H1（6 mos）

* Pro Forma base (definition on p. 16)© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

9Strong Cash Position to Fund Investments for Growth• Maintaining Structural Profitability and Sound Financial Base
- Shareholder equity ratio as of the end of H1: 70.0% (+3.9% QoQ)
- Reduced interest-bearing debt by 2.2 billion yen to 9 billion yen through asset
sales• Building Cash through Profitable Asset Sales(Billion yen)

Shareholder Equity Ratio
70.0%
Cash
5.8

Liabilities
11.5
Cash Position

Assets38.3
Net Assets
26.8

5.8

Use cash to fund growth
while limiting risk

* Pro Forma base (definition on p. 16)

Feb 13 H1© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

10Refinancing Debt at Improved Terms• Have Increased Building Occupancy via Stronger Leasing Activities• Taking Advantage of Improved Financing Environment• Refinancings are Directly Contributing to Higher Returns for Both Ichigo
and Our Investors• Recent Refinancing Example- Reduced Weighted-Average Interest Rate of Debt (Senior/Subordinate)by c. 181bp-181bp(Before Refinancing)Debt
6 3 billion yen
6.3

WeightedAverage
Interest Rate(After Refinancing)

Results in c.
110 million yen
annual profit
contribution

Weighted-Average
Interest Rate© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

11Ichigo REIT (8975) Growth• FiFirst Ichigo
I hi REIT Property
PAcquisition
Ai i i sinceiJJoining
i iIchigo Group- Acquired a high-grade office property in CBD throughwarehousing fund
- Further optimizing the portfolio by disposing and upgrading
assets• Maximizing Occupancy through Low-Cost Enhancements
for Tenants using Ichigo’s Architectural Capabilities

Ichigo REIT’s Newly Acquired
Property (M’s SQUARE)• Consolidating Property Management Companies to Improve Service Levels- Hands-on approach to property management to meet Ichigo quality standards- Increasing the quality of property management while reducing costs© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

12Retail Asset Redevelopment by Ichigo Estate• Upgraded Retail Asset near Hiroo Station (Minato Ward)- Structural improvements to fully meet all safety standards- Replaced signboards for better design and aesthetics- Re-tenanting strategy tailored to building andneighborhood characteristics and needs- Brought
g in new flagshipg p Italian restaurant- 1.9X NOI increase• Acquisition of Small-Sized
Small Sized Retail Asset in Historic
Yokohama Motomachi Shopping Arcade- Signed the PSA on October 17, 2012 and close
Retail Asset,
3 min walk from Hiroo stationin late October 2012
- Will improve and reposition the asset by using Ichigo’s expertise inconstruction and development© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

13

Ichigo’s Miyake, Silver Medalist Weightlifter
As part of our support for excellence in all social
activities, including athletics, Ichigo sponsors aworld-class weightlifting teamHiromi Miyake Wins a Silver Medal
Thank you for your warm support

Profile of Hiromi Miyake
yJoined Ichigo in April 2008
Results of Major Tournaments- 2004 Athens Olympics, 48kg-Class 9th Place- 2008 Beijing Olympics
Olympics, 48kg
48kg-ClassClass 6th Place- 2010 Japan Weightlifting Championships, 53kg-Class Champion- 2011 Japan Weightlifting Championships, 53kg-Class Champion- 2011 World Weightlifting Championships, 53kg-class 6th Place- 2012 London Olympics, 48kg-Class Silver Medal
Please visit Facebook & Twitter

Hiromi Miyake© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

[Facebook]www.facebook.com/#!/ichigo.weightlifting[Twitter]

https://twitter.com/#!/Ichigo_Group14

Appendix: Pro Forma Financial Data© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

15

Pro Forma Disclosure to Improve Transparency•

Under Japanese accounting rules, SPCs in which Ichigo Group Holdings(“IGH”) is a greater than 50% investor or SPCs for which IGH is the asset
manager and no single equity investor holds more than 50% of the total
investment must be consolidated onto IGH’s balance sheet.

•Our statutory consolidated and parent financial statements thus include clientrelated assets and liabilities and P&L which do not belong to IGH. In order tomore accurately reflect the true economic exposures borne by ourshareholders, we disclose Pro Forma financials which are intended to betterreflect IGH’s actual corporate financial position.

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

16

Balance Sheet (Pro Forma)(Million yen)Feb 12

Total Assets

Feb 13 Q1

Feb 13 H1Change (QoQ)

37,98040,03838,327-1,711

Cash and Cash Equivalents

5,713

5,730

5,817

87

Investment (Real Estate)

8 151
8,151

8 447
8,447

8 558
8,558

111

Investment (Domestic companies)

600

551

602

51

Investment (Overseas companies)

4,598

4,573

4,643

70

Real Estate Held for Sale

3,785

5,890

3,748

-2,142

Fixed Assets

10,10910,073

10,059-14

Intangible Assets

2,105

2,075

2,045

-30

Other

2,919

2,699

2,855

156

Liabilities

11,831

13,557

11,505-2,052

Interest-Bearing Debt

9,351

11,1898,959-2,230

Other

2,480

2,368

2,546

178

N tA
NetAssetst

26 14926,14926 481
26,481

26 822
26,822341© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

17

P&L (Pro Forma)

Breakdown
Feb 12Revenues
Cost of Revenues

Feb 13 Q1

Feb 13 H1Cumulative

Feb 13 Q2

7,927

1,736

4,116

5,853

4,101

663

3,014

3,678

(Million yen)Feb 13 H1Cumulative

Revenues

5,853

Real Estate Management Fees

932

Advisory Fees

47989

Gross Profit

3,826

1,073

1,102

2,175

Rental Income

SG&A

2,871

766

756

1,522

Real Estate Sales / Dividends

2,623

Securities Sales / Dividends

954

306

346

652

200

Building Maintenance Fees

1,056

-70-28-50-77

Other884

278295574

Gross Profit

997

0-14-14

Operating Profit
Non-Operating Gain (Loss), net

Recurring Profit
Extraordinary Gain (Loss), net

Pre-tax Profit

62,175

Real Estate Management Fees

854

Advisory Fees

47

1,881

279

282560Rental Income

518

Tax

159

16

1229

Real Estate Sales / Dividends

494

Minority Interests-48-2-3-5

Securities Sales / Dividends

165

Building Maintenance Fees

224

1,770

264

270535

Other-127

Net Profit© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

18

Balance Sheet NAV
Significant Unrealized Gains on Balance Sheet Assets- Real Estate(Million yen)
Acquisition ValueBook Value(As of Aug 12)

Appraisal Value(As of Feb 12)

Unrealized Gain

Directly Owned on B/S

15,345

10,72913,045+2,316

Investment in IGH Funds

16,398

8,558

14,078+5,520

Total

31 742
31,74219 287
19,28727 12327,123+7 836+7,836- Private Equity((Million yyen))Book Value(As of Aug 12)

Market Value(As of Sep 12)

Unrealized Gain

Domestic Securities

323

542+218

Overseas Securities

998

1,207-41

1,321

1,749+177

Total© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

19

Appendix： Consolidated Financial Data

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

20

Balance Sheet (Consolidated)(Million yen)Feb 12

Total Assets

Feb 13 Q1

Feb 13 H1

QoQ change

82,17084,01081,629-2,381

Cash and Cash Equivalents

9,791

9,944

10,076132

Operating Investments in Securities

4,226

4,281

4,445

164

Real Estate Held for Sale

49 674
49,67451 83851,83849 20549,205-2,633
2 633

Fixed Assets

10,10910,073

10,059-14

Intangible Assets

2,105

2,075

2,045

-30

Investments in Securities

3,589

3,478

3,514

36

Other

2,676

2,321

2,285

-36

Liabilities

53,982

55,462

52,725-2,737

Interest-Bearing Debts (excl. Non-Recourse Loans)

9,351

11,1898,959-2,230Non-Recourse Loans

37 694
37,69437 39237,39236 66836,668

-724
724

Other

6,937

6,881

7,098

217

Net Assets

28,18728,54828,903355

Shareholders Equity

25,972

26,202

26,366

164

Minority Interests and Other

2,215

2,346

2,537

191

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

21

Breakdown of Assets (Consolidated)(Million yen)Feb 12
AmountFeb 13 Q1

OutsideInvestors'
Interests

TheCompany's
Interests

--

9,944

AmountFeb 13 H1

OutsideInvestors'
Interests

TheCompany's
Interests--

10,076

AmountOutsideInvestors'
Interests

TheCompany's
Interests

QoQ Change
in theCom pany's
Interests---

Cash and Cash Equivalents

9,791

Operating Investments in Securities

4,226

0

4,226

4,281

0

4,281

4,445

0

4,445

164

2,254

0

2,254

2,273

0

2,273

2,357

02,35784

Listed Domestic Companies

0000000000

Unlisted Domestic Companies

42042

3703738038

1

Listed Overseas Companies

1,019

0

1,019

1,061

0

1,061

1,201

0

1,201

140

Unlisted Overseas Companies

911

0911

910

0910

850

0850

-60

Domestic Real Estate

Reference: Allow ance for Bad Debts forOperating Investments in Securities

-288

--288

-286

-

-286

-283

-

-283

3

Operating Investm
In estm ents in Securities
Sec rities
less Allow ance for Bad Debts forOperating Investm ents in Securities

3,938

-

3,938

3,995

-

3,995

4,163

-4,163

168

Real Estate Held for Sale

49,67440,066

9,608

51,83840,058

11,78049,20539,587

9,618-2,162

Investments in Securities

3,589

0

3,589

3,478

0

3,478

3,514

0

3,514

36

Domestic Companies

5290529

514

0

514

564

056450Overseas Companies

2,955

0

2,955

2,889

0

2,889

2,87602,876-13

105

0

105

75

075

75

075

0

OthersReference: Allow ance for Bad Debts for
Investments in Securities-75--75-75

--75

-75

--75

0

Investm ents in Securities less
Allow ance for Bad Debts for
Investm ents in Securities

3,515-

3,515

3,404-

3,404

3,440-

3,440

36

Fixed Assets

10,109--10,073--

10,059---Intangible Assets

2,105--

2,075--

2,045---

Other Assets

3,038--

2,681--

2,641---

Total Assets

82,170-17,06184,010-19,17981,629-17,221© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

-1,95822

P&L (Consolidated)

Breakdown
Feb 12

Feb 13 Q1

Feb 13 Q2

F b 13 H1
Feb
Cumulative

F ll Y
Full-Year
Forecast

vs.
Forecast

18,952

2,362

5,274

7,637

17,00044.9%

15,030

1,260

4,158

5,419

－

－

Gross Profit

3,921

1,1021,115

2,217－－

SG&A

2,871

766

756

1,522－

1,050

335

359

694

-70-28-50

979

307

997

Revenues(Million yen)Feb 13 H1Revenues

7,637Real Estate Management Fees

704

Advisory Fees

47

Rental Income

2,919

－

Real Estate Sales / Dividends

2,727

1,500

46.3%

Securities Sales / Dividends

200－－

Building Maintenance Fees

-78

1 033
1,033

309

617

1,200

51.4%

0-14-14－－

Real Estate Management Fees

627

1,976

308

295

603

－－

Advisory Fees

47

Rental Income

159161229－－

1,255

Tax
Minority Interests4726

1137－－1 770
1,770264

270

535

1 000
1,00053 5%
53.5%

Cost of Revenues

Operating Profit
Non-Operating Gain (Loss), netRecurring Profit
Extraordinary Gain (Loss), netPre-tax Profit

N tPNetProfitfit© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

OtherGross Profit

72,217

Real Estate Sales / Dividends

69

Securities Sales / Dividends

165

Building Maintenance Fees

201

Other-147

23

Appendix： Real Estate Data

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

24

Assets Under Management (AUM)
Net AUM Decreased by 34.5 Billion Yen due to Asset Dispositions(As of August 2012)(Billion yen)
600

530.1

Development
500

Operating

62.0

REIT
31%

496.0

Operating
69%

REIT

426.5
385.3

400

330.6

257.0

379.6

374.5
340.0

335.9
335.0

113.8

106.1

104.8

56.0

300

106.2
320.7

123.4

200

166.4

263.2

66 4
66.4
100

265.2

151.2
100.0

269 6
269.6
233.8

211.1

78.8
32.7

Breakdown of Equity Investors

312.1

Domestic Financial
Institution
Domestic
4%

161.0

OperatingCompany
13%

105.9

46.1
023.8

8.3

8.3

IGH
31%

Overseas Fund
19%

Domestic Insurance
Company1%

OverseasPension Fund
32%

Overseas FinancialInstitution
1%© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

25

Real Estate Portfolio••

Track record mainly in office and also across a wide variety of other asset types
Strong in mid-sized assets in Tokyo, which are highly liquid and have stable cashflows
AUM by Type(As of August 2012)# of Properties by Type
(Unit: # of buildings)

Residential
17%(Unit: # of buildings)

AUM by Location

Land with
Ground
Lease
1%

Other
10

Other
3%

Of f ice
57%

Office71

Land with
Ground Lease
56

Other5%
Fukuoka Sendai6%2%
Nagoya
6%

Kanto
6%

Mixed
12%
Retail10%

Residential
44

Retail16Mixed
16Tokyo
65%

Osaka
11%

Tokyo97
Sendai 3

AUM by Size

# of Properties by Size

Kanto

(Unit: # of buildings)

10 bn yen~
20%

15

10 bn yen~
100~1 bn yen
10%

Land
withGround
Leases&Others

Osaka

15
Nagoya1~5 bn yen
28%

5~10 bn yen
56

5~10 bn yen
42%© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

Fukuoka

90～1 bn yen
108

756
Others111～5 bn yen
3926

Real Estate Cap Rates•••

Conservative assessment of cap rates vis-à-vis market cap rates
Continually mark assets to market
Unrealized gains in both client and IGH assets(As of August 2012)

Real Estate Investments held by Funds (SPCs)(Million yen)Book ValueNOI(current)

Cap rate (at Acquisition)
NOI / Acquisition Value

Cap Rate (current)

Appraisal Valueas of February 2012

Location

Acquisition ValueTokyo

135,722

120,959

6,174

5.5%

6.2%

123,682+2,722

Outside Tokyo

82,246

63,079

4,111

5.3%

6.9%

72,268+9,189Total

217 968
217,968

184 038
184,038

10 285
10,285

5 4%5.4%

6 4%
6.4%

195 950
195,950+11 912+11,912(af ter write-down)

NOI / Book Value af ter write-down

Unrealized Gain

Real Estate Investments directly held by IGH(Million yen)Book ValueNOI(current)

Cap rate (at Acquisition)
NOI / Acquisition Value

Cap Rate (current)

Appraisal Valueas of February 2012

Location

Acquisition ValueTokyo

5,599

4,713

352

6.8%

7.4%

5,731

+1,018

O id T
OutsideTokyok

7 462
7,462

5 309
5,309

587

6 2%
6.2%

10 0%
10.0%

6 607
6,607

+1,298
1 298

Total13,062

10,022940

6.5%

8.8%

12,338+2,316(af ter write-down)

NOI / Book Value af ter write-down

Unrealized Gain

*Excludes one development asset (c. ¥700M) which is not currently generating NOI© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

27

MEMO

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

28

MEMO

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

29

MEMO

© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

30

These materials were prepared to explain the Company’s businesses and are not for the purpose ofsoliciting investment in marketable securities issued by the Company. The Company does notguarantee the accuracygy of the figures,g, information,, estimates or other statements included herein,, andaccepts no responsibility for damages or losses arising through the use of the figures, information,
estimates or other statements contained herein.
These materials are based uponp information available as of the ppublication date,, and may
y contain
forward-looking statements pertaining to the Company’s expectations, targets, plans and strategies.
Such forward-looking statements are not facts, but are the result of management’s judgment based on
information currently available. Actual operating results or developments concerning the Companymayy differ substantiallyy from those indicated byy forward-looking
g statements. The information enclosed
is also subject to revision without prior notice.

Contact:
Ichigo Group Holdings Co., Ltd.
Investor Relations

Ichigog Groupp Holdings
g is Japan’sp
first zero carbon listed real estate company.
p yWe are taking responsibility for the carbon emissions we create, such as via thispresentation material, by taking measures to create offsets to our carbon
emissions and working with organizations to invest in low-carbon technologies.
© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

TEL: +81-3-3502-4818 FAX:+81-3-3502-4801
E-mail： IR@ichigo-holdings.co.jp
www.ichigo-holdings.co.jp/english

31