Feb. 2012 Fiscal Year Q1 (March 2011 – May 2011)
Corporate Presentation
July 21, 2011

Ichigo Group Holdings Co., Ltd. (2337)© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

www.ichigo-holdings.co.jp/english

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

Creating peace of mind throughhonest and committed management© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

Laying the Foundation for Stable, Long-Term Growth•

Strengthened Financial Base
- Robust Balance Sheet- Continued Asset Dispositions- Corporate Debt Repayment•Business Update- Multiple Post-Earthquake Transactions- New Rescue AM Mandates- Asset-Level Value Enhancement- Ichigo REIT (8983)- On-Going Profitability

Appendices: Financial & Real Estate Data

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

4

Strengthened Financial Base

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

5

Robust Balance Sheet
Optimizing Balance Sheet– Continued asset sales and corporate debt repayment– Investing for growth while controlling risk
(Billion yen)

Equity Ratio: 64.4%

Equity Ratio: 66.5%

Liabilities
14.2

Assets39.9

Liabilities
12.9

Assets38.4
Net Assets
25.7

Feb 11 Full-Year

Net Assets
25.5

Feb 12 Q1

Pro Forma basis© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

6

Continued Asset Dispositions¥1.9B
in Asset Sales

Private Equity
0.5(Billion yen)Transactions
Private Equity
Domestic: 1
Overseas: 0Real Estate
1.4

Real Estate
Domestic: 1
Overseas: 0・Disposing assets profitably
・CIAM asset sale expected
to complete in Q2

Feb 12 Q1
Pro Forma basis© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

7

Corporate Debt Repayment
Repaying existing debt and improving long-term debt ratio

Total Borrowings
Total Borrowings

10.8

9.9(Billion yen)

-1.2
Short-term Debt
4.6

Short-term Debt
3.4

+0.3
Long-term Debt
6.2Long-term Debt
6.5

Feb11 Full-Year

Feb 12 Q1© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

8

Business Update© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

9

Multiple Post-Earthquake Transactions•Acquisition of Suehiro-cho Building (March 2011) Ichigo Real Estate Investment Advisors-•

Attractive location along the main road in Chiyoda-ku, TokyoOffice building with floor area of 8,289㎡
Potential fund seed asset for privately-offered fund or J-REIT growth strategy

Non-recourse borrowing on Shinbashi SL Square Building (March 2011)
Ichigo Real Estate Investment Advisors-•

Commercial building in front of Shinbashi Station in Tokyo
Increased NOI by 70% through renovation
Entrusted the property and arranged a non-recourse loan

Administration contract and acquisition of leased land (July 2011)
Ichigo Estate & Ichigo Solutions-Invested in a limited liability company established to acquire land with a longterm, in-place ground lease in Atsugi City, Kanagawa Prefecture
Ichigo Group manages property administration
Will generate stable, long-term rental income and administrative fee income© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

10New Rescue AM Mandates
Four new post-earthquake rescue AM mandates Ichigo Real Estate Investment Advisors-Underscores Ichigo’s strong sourcing network in market
Won AM mandates on the back of superior asset value enhancement andfund restructuring proposal
Three regional asset mandates from major financial institutions (April & May2011)
One central Tokyo mandate from major US PE firm (June 2011)
JPY13 billion increase in AUM to generate additional stable income© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

11

Asset-Level Value Enhancement•

Community-based leasing activities

Ichigo Real Estate Investment Advisors & Ichigo REITManagement- Promoting properties’ unique characteristics- Strengthened relationships with local financial institutions and real estate brokers•

Risk diagnosis Environmental & Architectural Solutions- Earthquake risk diagnosis for all operating assets- Completed necessary repairs to increase earthquake resistance- Promoting Ichigo’s Business Contingency Plan in leasing activities•Continuous value enhancement Ichigo Real Estate Investment Advisors & Ichigo REIT Management- Leveraging Ichigo Group’s architectural expertise- Improved tenant satisfaction through renovation■Renovation of Ginza Office BuildingBefore© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

After12Asset-Level Value Enhancement (2)•Support occupancy through “Petit Value Enhancement Activities”
Environmental & Architectural Solutions- Reviewing all entrances and common spaces forvalue-adding upgrades■ Low-Cost Toiletry Upgrade- Low-cost tactical upgrades to improve properties’
selling points•

Leveraging retail asset operational skills
Ichigo Marché & Miyako City

- Attract customers through PR activities- Continuously provide attractive events- Careful tenant selection to increase value■ TV Interview at Matsudo Nanbu Market© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

■ Event at Miyako City Shopping Mall13

Ichigo REIT (8983)•Improved occupancy with tailored leasing strategies- Tailored marketing activities working with leading local brokers- Active deployment of Ichigo Group’s architectural expertise and solutions- Large increase in occupancy•

Strengthened financial base- Major refinancing completed- Refinanced JPY 2 billion from Resona Bank to pay off DB Trust loan
• Underscores significant improvement in financial stability and credibility• Extended loan maturity and cut interest rate spread from 300 bp to 150 bpAfter© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

14

On-Going Profitability(Million yen)

Revenues (Cumulative)
Net Profit / Loss (Cumulative)

Progress towards Full-Year Forecast:
Revenues: 48.1%, Net Profit: 8.1%

16,30012,760
7,837
1,300
620
105
Feb 11
Full- Year© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

Feb 12 Q1

Feb 12Full-Year
Forecast15

Appendix: Pro Forma Financial Data© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

16

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 totalinvestment 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.

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

17

Balance Sheet (Pro Forma)(Million yen)Feb 11

Total Assets

Feb 12 Q1Change (QoQ)39,915

38,350-1,565

Cash and Cash Equivalents

7,093

6,710-383

Investment (Real Estate)

6,419

7,388

969

Investment (Domestic companies)

984

783

-201

Investment (Overseas companies)

7,198

7,123-75

Real Estate Held for Sale

11,177

9,402-1,775

Other

7,044

6,943

-101

Liabilities

14,205

12,853-1,352

Interest-Bearing Debt

10,783

9,935-848

Other

3,422

2,918-504

Net Assets

25,70925,497-212*Pro Forma definition on p.17

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

18

P&L (Pro Forma)
Breakdown
Feb 11Revenues

Feb 12 Q1(Million yen)Feb 12 Q1

7,842

1,996

4,102

1,187

Gross Profit

3,740

809

SG&A

2,603

696

1,137

113

265

30

1,402

143

1,273-32

Advisory Fees

82,675

111

Rental Income

249

4227

Real Estate Sales / Dividends

59

2,013

-22

Securities Sales / Dividends

408

Building Maintenance Fees

83

620

105

Cost of Revenues

Operating Profit
Non-Operating Gain (Loss), net

Recurring Profit
Extraordinary Gain (Loss), net

Pre-tax Profit
Tax
Minority Interests
Net Profit

Revenues
Real Estate Management Fees

1,996492

Advisory Fees

8

Rental Income

437Real Estate Sales / Dividends

59

Securities Sales / Dividends

596

Building Maintenance Fees

369

Other35

Gross Profit809

Real Estate Management Fees

Other459-456*Pro Forma definition on p.17

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

19

Appendix： Consolidated Financial Data

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

20

Balance Sheet (Consolidated)(Million yen)Feb 11

Total Assets

Feb 12 Q1

QoQ change

98,653

95,596-3,057

Cash and Cash Equivalents

12,343

11,670-673

Operating Investments in Securities

8,035

5,223-2,812

Real Estate Held for Sale

68,823

67,164-1,659Fixed Assets

3,178

3,121

-57

Investments in Securities

5,682

5,753

71

592

2,665

2,073

70,881

67,967-2,914

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

10,782

9,934

-848

Non-Recourse Loans

51,91349,964-1,949

Other

8,186

8,069

-117

Net Assets

27,771

27,629-142

Shareholders Equity

25,51425,399-115

Minority Interests and Other

2,257

2,230

-27

Other
Liabilities© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

21

Breakdown of Assets (Consolidated)
Feb 11AmountFeb 12 Q1

OutsideInvestors'
Interests

TheCompany's
Interests--

11,670

AmountOutsideInvestors'
Interests

TheCompany's
Interests

QoQ Change
in theCom pany's
Interests---

Cash and Cash Equivalents

12,343Operating Investments in Securities

8,035

0

8,035

5,223

0

5,223

-2,812

2,684

0

2,684

2,656

0

2,656

-28

0000

000

Unlisted Domestic Companies

2,701

0

2,701

104

0104-2,597

Listed Overseas Companies

1,448

0

1,448

1,261

01,261-187

Unlisted Overseas Companies

1,201

01,201

1,202

0

1,202

1

Domestic Real Estate
Listed Domestic Companies

Reference: Allow ance for Bad Debts forOperating Investments in Securities-3,358--3,358-1,294--1,294

2,064

Operating Investments in Securities less
Allow ance for Bad Debts for Operating
Investments in Securities

4,677

-

4,677

3,929

-

3,929

-748

Real Estate Held for Sale

68,82353,94814,875

67,164

51,99815,166291

Domestic Real Estate

68,82353,94814,875

67,164

51,99815,166291

0000000

Investments in Securities

5,682

05,682

5,753

05,75371

Domestic Companies5230523

4930493-30

Overseas Companies

4,842

0

4,842

4,954

0

4,954

112

317

0317

306

0306

-11

Overseas Real Estate

OthersReference: Allow ance for Bad Debts forInvestments in Securities

-115

--115

-115

-

-115

0

Investments in Securities less Allow ance for
Bad Debts for Investments in Securities

5,567

-

5,567

5,639

-

5,639

72

Tangible Assets

3,178

-

-

3,121

-

--

Other Assets

4,065-

-

4,073

---

Total Assets

98,653-25,11995,596-

24,734© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

(Million yen)

-385

22

P&L (Consolidated)(Million yen)Feb 11Full-Year
Forecast

Feb 12 Q1

Feb 12 Q1

ProgressRevenues

7,837

12,7607,837

16,300

48.1%

8,805

6,959

－

－

Advisory Fees

8

Gross Profit

3,954

877

－－

Rental Income

1,469

2,603

695

－

－

Real Estate Sales / Dividends

SG&A

4,941

Securities Sales / Dividends

596

1,351

181

1,000

18.1%

Building Maintenance Fees

369

266

30

－－Other15

Gross Profit

878

Revenues

Real Estate Management Fees
Cost of Revenues

Operating Profit
Non-Operating Gain (Loss), netRecurring Profit
Extraordinary Gain (Loss), net

Pre-tax Profit
Tax
Minority Interests

1,616

211

1,273-30

2,889

700

30.1%

Real Estate Management Fees－－Advisory Fees

8－－Rental Income

181

450

4127－

2,22748－620© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

105

1,300

405

Real Estate Sales / Dividends

1－Securities Sales / Dividends

408－

Building Maintenance Fees

83

OtherNet Profit

439-477

8.1%

23

Appendix： Real Estate Data

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

24

Cumulative Assets Under Management••Historic cumulative AUM exceeds ¥1 trillion
Strong long-term track record of managing real estate for clients(billion yen, # of funds in parenthesis)

1,600
REIT

1,400

Operating
Development

1,128.4
(137)

1,200

64.0

1,164.5(141)

1,175.1
(141)

64.0

64.0

1,308.5(145)

1,315.6
(148)

177.8

177.8

(As of May 2011)

1,000

791.7(107)
800

62.0

498.8
(70)

600

544.8

568.7

572.9

592.5

599.6

REIT
14%

Development
41%

378.3

56.0

Operating46%

400

2000103.5
(15)
38.7
64.8

213.4
(33)

219.4
519.6

531.8

538.2538.2

538.2

351.4

87.1
223.5
126.3

Assets Under Management
Assets managed within funds - does not include
investments held directly by IGH on B/S© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

25

Assets Under Management••

New AUM has increased with four new rescue AM mandates
AUM balance has decreased due to asset disposals(As of May 201１)
Development
2%

600
REIT

(billion yen)

530.1
Operating

500

62.0

Development

REIT
31%

496.0

Operating
67%

426.5
385.3

400

364.6
330.6

257.0

335.9

335.0

113.8

56.0

300

113.8

320.7

Breakdown of Equity Investors

123.4

200

166.4

312.1
263.2

66.4
100

211.1

78.8
32.7

Domestic Financial
Institution
7%

242.5

151.2

161.0

100.0

46.1
0

105.9
23.8

8.3

8.3

IGH
29%

Overseas Operating
Company
7%

Domestic Operating
Company
12%
Domestic Insurance
Company
1%Overseas
Pension Fund
33%

Overseas Financial
Institution
12%© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

26

Real Estate Portfolio••

Mainly office, although significant track record across a wide variety of asset types
Particular experience in managing small & mid-size assets from ¥1 - 5 billion in Tokyo
AUM by Type# of Properties by TypeLand
Leaseholds
0.04%(Unit: # of buildings)(As of May 2011)

Other11

Residential
Other
9%

AUM by Location(Unit: # of buildings)

2%

Mixed
11%

Land with
Ground Leases
61

Commercial
4%

Other
7%

Office
86

Kanto
3%

Sendai3%

Nagoya7%

Development2%

Of f ice
72%
Residential
22

Mixed
18

AUM by Size

Fukuoka6%

Commercial
8Development
1Tokyo
64%

Osaka
10%

# of Properties by Size
Tokyo91(Unit: # of buildings)

10 bn yen~
13%

0~1 bn yen
8%

5~10 bn yen
24%

Sendai 410 bn yen~
35~10 bn yen
12

1～5 bn yen
87
1~5 bn yen
54%© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

Kanto
70～1 bn yen
105

Fukuoka
11

Osaka
8

Nagoya7

Other
18

Landwith
GroundLeases&Others
61

27

IGH Real Estate Cap Rates
Continually mark assets to market and eliminate unrealized losses from balance sheet(As of May 2011)

Real Estate Investments held by Funds (SPCs)(Million yen, except for percentage data)

Book value

Cap rate (current)

Acquisition valueTokyo

140,469

126,002

5,916

5.0%

5.8%Outside Tokyo

62,913

51,252

3,123

5.5%

7.2%

Total

203,382

177,255

9,039

5.2%

6.3%

(af ter write-down)

NOI (current)

Cap rate (at acquisition)
NOI / Acquisition value

Location

NOI / Book v alue af ter write-down

Real Estate Investments directly held by IGH
Book value(Million yen, except for percentage data)
Cap rate (current)

Location

Acquisition value

Tokyo

3,809

2,941

242

6.9%

7.9%

Outside Tokyo

8,494

5,737

596

6.5%

10.1%

Total

12,303

8,678

838

6.6%

9.4%

(af ter write-down)

NOI (current)

Cap rate (at acquisition)
NOI / Acquisition value

NOI / Book v alue af ter write-down*Cap rate calculation excludes one development asset (c. JPY700MM) which is not currently generating NOINOI (Net Operating Income)NOI = rental income – management costs (taxes, property management fees and repairs)© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

28

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 accuracy of the figures, 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 upon information available as of the publication date, and may containforward-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 Companymay differ substantially from those indicated by forward-looking statements. The information enclosed
is also subject to revision without prior notice.

Contact:
Ichigo Group Holdings Co., Ltd.
PR & IR GroupTEL: +81-3-3502-4818 FAX:+81-3-3502-4801
E-mail： IR@ichigo-holdings.co.jp
www.ichigo-holdings.co.jp/english
Ichigo Group Holdings is Japan’s first zero carbon listed real estate company.
We 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.

© 2011 Ichigo Group Holdings Co., Ltd. All rights reserved.

29