Asset Managers Holdings

Feb. 2010 Fiscal Year Q1 (March-May 2009) Corporate Presentation
July 17, 2009 Feb. 2010 Fiscal Year Q1 Summary
9 Focus on Cashflow
9 Successful Asset Dispositions
9 Repayment of Corporate Debt
9 Strengthened Balance Sheet
9 Return to Profitability

 Forward Strategy
9 Expansion of Asset Management Business
9 New Fee Businesses
9 Further Actions to Drive Corporate Value Appendices： Financial & Real Estate Data2

Feb. 2010 Fiscal Year Q1 Summary3

Focus on Cashflow
 C/F and B/S = Fundamental
 Operating Cashflow Strongly Positive
9 Positive for the last four quarters, cumulative +¥26.5 billion

 Dramatically Decrease Risk Profile through Slimmed B/S
Quarterly Consolidated Operating Cashflow(Billion yen)

+3.3+5.2+4.4+13.6
FY2/09 Q1-0.2

FY2/09 Q2

FY2/09 Q3

FY2/09 Q4

FY2/10 Q1

FY2/094

Successful Asset Dispositions¥2.8 billion in Asset Sales in Q1¥2.8 billion

Private Equity¥1.9 billion

Real Estate¥0.9 billion

Breakdown
Domestic: 4Overseas: 4

Breakdown
Office:1

FY2/10 Q1*Pro Forma Consolidated Basis: Asset Managers Holdings, Asset Managers, Asset Managers
International, Asset Investment Advisors, Asset Securities &Asset Managers (Asia)

5Repayment of Corporate Debt
-4.0 billion
Repayment: -4.0(Billion yen)

Refinance: +0.7
Totalborrowings¥36.6 billion

Short-term Debt
¥15.5

Long-term Debt
¥8.0*Consolidated Basis

FX Effect: +0.3
Convertible Bond : -1.0

Totalborrowings¥32.6 billion

有利子負債・CB
有利子負債・CB●億円
Short-termDebt¥15.2

Long-term Debt
¥5.3

CB
¥13.0

CB
¥12.0

FY2/09FY2/10 Q16

Strengthened Balance Sheet

Shrank B/S through Asset Sales
Increased Shareholder Equity by ¥900 million via CB Conversions
Net Profit & Higher B/S Asset Values Further Grew Shareholder Equity by 3,400 million
With CB exercises through June-end,
reflecting May-end B/S

Equity Ratio: 17.3%
17.3%* Adjusted B/SEquity Ratio: 24.5%

Equity Ratio: 27.8%(Billion yen)

Assets¥52.1

Liabilities¥43.1

Assets¥50.7

Liabilities¥38.2

Assets¥50.7

CB ¥12.0

Liabilities¥36.5
CB ¥10.3

CB ¥13.0

Net Assets¥14.1

Net Assets¥12.4

Net Assets¥9.0

February 2009

June 2009

May 2009

Adjusted B/S removes assets and liabilities of consolidated client funds to which the Company has no economic exposure
・Adjusted net assets = Net assets – Minority equity of consolidated client funds financed with non-recourse loans
・Adjusted total assets = Total assets – (Non-recourse loans + Minority equity of consolidated client funds financed with non-recourse loans)・Adjusted liabilities = Adjusted total assets – Adjusted net assets



Exercise of March 17, 2012 Convertible Notes
Exercise period# of shares
exercised

Total amount
exercised (mn yen)

Exercise
price4/1/2009 - 4/30/2009

63,641520¥8,1705/1/2009 - 5/31/2009

42,836350¥8,1706/1/2009 - 6/30/2009

212,962

1,740¥8,170

Total

319,4392,610－7

Return to Profitability On-track towards Full-Year Profit Forecast
Sales (Cumulative)（Million yen）

Net Income / Loss (Cumulative)
50,444
44,16837,030Sales
18,20014,700
Sales

8,722
876

FY2/09 Q2

FY2/09 Q3

FY2/09 Q4

FY2/09 Q1

Net
Income209
FY2/10 Q1△4,477

SalesNet
12,300 Income

NetIncome
1,000300

FY2/10 H1 forecast

FY2/10 FY forecast△9,263△48,171

FY2/098

Forward Strategy9

Expansion of Asset Management Business

Q1 Developments
Current Developments

New Fund Launches

Rescue AM*

Mezzanine Fund
Opportunities AlsoEmergingOutlook

・In disc uss ion with equity investors and lenders about launching ・Continue sourcing deals by expanding network ofa new residential fund of c. JPY 50 bn
financial institutions and possible Real Estates ellers, in the current environment of limited supply
・NCF after leverage is getting close to investors' expectationsof for-sale Class A properties
・Have already achieved an exit on one Rescue AM taken on ・Currently in dis cus sions with s everal potential
alliance partners
this year
・Continuing due dilligence on other Rescue AM opportunities,
foc using on fee struc ture and quality of properties owned
・Seeking to serve as arranger for mezzanine coverage on the・Continue marketing to investors and senior
portions of senior loans that have been negatively impacted by lenders given an inc rease in demand for
reduc ed real es tate c ollateral valuesmezzanine financing→Fee income via both fund fees and ass et management feesfor the underlying properties* Rescue AM: Serve as an alternative AM firm for financial instituitions looking to switch out of AM firms in financial difficulty.

 Strengthening Functions as an Asset Management Company
9 Established an Investor Relations Group in Asset Investment Advisors on March 1,
2009 to drive fundraising
9 Focusing on profitability rather than asset size

10

New Fee Businesses

Q1 Developments
Current Developments

CRE Business・ Concluded 3rd real estate advisory contract with Netz
Toyota Higashi Saitama
・Established new CRE Solution Group on July 1s t, 2009
・Proposing solutions to existing clients

Outlook・Can expand our client base leveraging thenetwork of Toyota D&C Co., Ltd.

・Closed first deal as financing arranger
New Fee Businesses

・Inquiries from financial institutions are increasing

 Corporate Real Estate (CRE) Advisory Business
9 Fee income as financing arranger and real estate development consultant for
redevelopment projects on properties held by Japanese corporations
9 Fee income from advisory and financing arranger services for large-scale building
repairs or improvements to conserve energy and reduce environmental impacts orbuilding management costs
9 Brokerage fee income from matching sellers to buyers

 Concluded 1st Deal as Financing Arranger
9 Successfully paired a borrower needing refinancing to a lender, and advised on astructure that met both the borrower’s and lender’s requirements
9 Currently working on 2nd and 3rd deals
11Further Actions to Drive Corporate Value

Q1 Developments
Current Developments

Execute Accretive M&A

・In the process of due dilligence in several situations
・Newly established a strategic investment group to focus on M&A
on July 1st, 2009

Increase Value of Client Fund ・Maintain rent levels and increase occupancy rates to increase
asset values
Assets and Company's B/S・Significant increase in asset values due to equity market
assetsrecoveryStrengthen B/S and Earnings
Structure

・Generating positive operating cashflow
・ Reductions in SG&A costs to support forward profitability
・Merged with fully-owned subsidiaries on June 1st, 2009 to lower
operating costs and absorb tax assets which support highly efficientprofitability structure

Outlook・Ongoing deal flow

・Refinance existing positions andtake steps to add value in order tosupport higher exit prices whenmarket recovers
・Will continue focus on
maximizing returns to shareholders

 Significantly Reduced SG&A Costs
FY2/09 Actual
FY2/10 Forecast
FY2/10 Q1 Actual¥4,982 million¥2,500 million (-51% YoY)¥599 million (24% of FY forecast)*SGA costs adjusted to remove allowance for bad accounts which are not on-going expenses

12Ａｐｐｅｎｄｉｘ： Pro Forma Financial Data

13

Improved Disclosure
Introduction of Pro Forma Financials
Under Japanese accounting rules, SPCs in which we are a greaterthan 50% investor or SPCs for which we are the asset manager andno single equity investor holds more than 50% of the total investment
must be consolidated onto our balance sheet.
As a result, because we must include client assets and liabilities fromthese consolidated SPCs, our statutory consolidated financials do notreflect the actual economic exposures of the firm.
In order to more accurately reflect the true economic exposures borneby our shareholders, from this quarter, in addition to our statutory
consolidated and parent financials, we disclose pro forma B/S andP&L financials that reflect direct economic exposures and results ofAsset Managers Holdings, Asset Managers, Asset Managers
International, Asset Investment Advisors, Asset Securities and AssetManagers (Asia).
.
14Balance Sheet (Pro Forma)（Million yen）

FY2/09FY2/10 Q1

Change46,78043,533-3,247

Cash and Cash Equivalents

5,395

4,543-852

Investment (Real Estate)

10,144

10,056-88

Investment (Domestic companies)

7,215

6,503-712

Investment (Overseas companies)

11,661

11,359-302

Real Estate Held for Sale

9,162

8,289-873

Other

3,203

2,783

-420

Liabilities

38,26733,348-4,919Interest-Bearing Debt

22,016

18,860-3,156CB

13,00012,030-970

Other3,251

2,458-793

Net Assets

8,513

10,184

1,671

Total Assets*Pro Forma Consolidated Basis: Asset Managers Holdings, Asset Managers, Asset Managers
International, Asset Investment Advisors, Asset Securities &Asset Managers (Asia)

Total assets
・Decreased on-balance investments
・Further progress on asset sales

Liabilities
・CB redemption: ¥100 million
・CB conversion: ¥870 million
・Amount of CB outstanding as of June30, 2009: ¥10,290 million

15

P&L (Pro Forma)（Million yen）

FY2/09
Sales
Cost of Sales
Gross Profit
SG&A
Operating Income (Loss)
Non-Operating Loss, net
Ordinary Income (Loss)
Extraordinary Gain (Loss), net
Pre-tax Income (Loss)
Tax
Minority Interests
Net Income (Loss)

FY2/10 Q1

10,59328,047-17,454
11,513

2,984
2,312
672
627

-28,967-108-29,075-16,445-45,520
2,785－-48,306

45
-42
3
289
292
106
41145

FY2/10
Forecast

12,700－
3,900
2,500
1,500

Progress

23.5%
－
17.2%
25.1%

－

3.0%
－
0.3%
－－－－－－－
13.2%

－
900

1,100

Extraordinary gain・Prior year adjustment ¥202 million・Gain on CB redemption ¥50 million*Pro Forma Consolidated Basis: Asset Managers, Asset Managers International, Asset Investment
Advisors, Asset Securities, Asset Managers (Asia) & Asset Managers Holdings
16

Ａｐｐｅｎｄｉｘ： Consolidated Financial Data

17

Balance Sheet (Consolidated)（Millions yen）

FY2/09FY2/10 Q1

Change140,875

122,038-18,837

Cash and Cash Equivalents

18,44915,169-3,280Operating Investments in Securities

11,77997,184

11,21978,895-560

Investments in Securities

3,500
6,500

3,460
7,829

1,329

Other

3,463

5,466

2,003

Liabilities

127,929

106,703-21,226Interest-Bearing Debts (excl. Non-Recours e Loans)

23,60820,596-3,012

Non-Recourse Loans

63,393
12,030-15,260

CB

78,65313,000Other

12,668

10,684-1,984

Net Assets

12,945

15,335

2,390

Shareholders Equity

8,724

11,5592,835

Minority Interests and Other

4,221

3,776

-445

Total Assets

Real Estate Held for Sale
Fixed assets-18,289

Real estate held for sale・Deconsolidated SPCs due toaccounting rule changes ¥15,234
million・Asset sales ¥3,372 million-40
Investments in securities
・Unrealized gains from equity marketrecovery ¥1,313 million-970
Borrowings
・CB redemption: ¥100 million
・CB conversion: ¥870 million
・Amount of CB outstanding: ¥10,290
million18

Breakdown of Assets (Consolidated)（Million yen）

FY2/09AmountFY2/10 Q1

OutsideInvestors'
Interests

TheCompany's
Interests (A)--15,169AmountChange in

OutsideInvestors'
Interests

TheCompany'sInterests (B)the Company's
Interests (B-A)---

Cash and Cash Equivalents

18,449Operating Investments in Securities

11,779011,779

11,219011,219

-560

1,592

0

1,592

2,373

0

2,373

7 81Domestic Real Estate
Liste d Domestic Companies

4660466

466

0466

0

Unlisted Domestic Companies

3,921

0

3,921

2,970

02,970-9 51

Liste d Overseas Companies

1,683

0

1,683

2,756

0

2,756

1,0 73

Unlisted Overseas Companies

4,118

0

4,118

2,655

0

2,655

-1,4 63

Reference: All owance for Bad Debts for
Op erating Investments in Securities-2,847--2,847-2,827--2,827

20

Real Estate Assets for Sale

97,18478,04019,14478,89561,48017,415-1,729

Domestic Real Estate

94,40475,746

18,65875,80358,929

16,874-1,7 84

Overseas Real Estate

2,780

2,293

486

3,092

2,551

541

55

Investments in Securities

6,500

0

6,500

7,829

0

7,829

1,329

Domestic Companies

593

0593

1,098

0

1,098

5 06

Overseas Companies

5,668

0

5,668

6,457

0

6,457

7 89

Others2400240

273

0273

33

Other Assets

6,962--

Total Assets

140,875-

37,424

8,926--

122,038-

36,463-961

19

P&L (Consolidated)（Million yen）

FY2/09
Sales
Cost of Sales
Gross Profit (Loss)
SG&A
Operating Income (Loss)
Non-Operating Loss, net

Ordinary Income (Loss)
Extraordinary Gain (Loss), net
Pre-tax Income (Loss)
Tax
Minority Interests
Net Income (Loss)

FY2/10 Q150,44480,408-29,963
16,207

8,722
7,547
1,174
872

-46,170-7,945301-184-54,115-5,090-59,205
2,882

117
120
237
107

-13,916-48,171-79
209

FY2/10 H1
Forecast

Progress

FY2/10
Forecast

Progress

12,30070.9%

18,200

47.9%

－－－－－
800
－
400－

－
37.6%
－
29.3%
－－
5,600
3,400－
21.0%
25.6%

2,200
－
1,400
－

13.7%
－
8.4%
－－－－－－－300－－
69.7%

－－
1,000－－
20.9%

Extraordinary gain
・Gain on CB redemption ¥50 million*Changes in accounting principles:
Started accounting for SPC expenses as part of Cost of Sales from this fiscal year

20

Ａｐｐｅｎｄｉｘ： Real Estate21

Assets Under Management (Domestic Real Estate)

Assets Under Management(billion yen)

2/20042/20052/20062/20072/20082/20095/2009Development

64.6

111.7

151.3

211.1

161.0

105.8

40.7

Completed

32.6

66.3

123.3

257.0

335.0

320.7

317.3

T otal

97.2

178.0

274.6

468.1

496.0

426.5

358.0

(billion yen)

500
450
400
350
300
Completed
Development250200150
1005002/2004

2/20052/20062/20072/20082/20095/2009Assets Under Management:
AUM includes commingled funds in which Asset Managers Holdings has invested, but does not include Asset Managers Holdings’ own direct real estate investments).

22

Domestic Real Estate Funds by Property Type（As of May 2009）2009）

By Number of Properties

By Value

Other, 3.0%
Nursing homes, 1.8%
Residential, 11.7%
Office, 37.8%
Mixed, 14.9%
Commercial
16.5％

Development, 14.2%

OfficeDevelopment
Commercial
Mixed
Residential
Nursing homes
OtherNursing homes, 8

Other, 6Office, 41

Residential, 32Mixed, 13Development, 7Commercial
89 Primary focus on office, but considerable experience across all property categories
9 Strong track record of returns for clients23

Domestic Real Estate Funds by Location（As of May 2009）2009）

By AUMBy Number of Properties(# of buildings)

Sendai, 2.5%
Kanto, 1.9%
Nagoya, 1.9%
Fukuoka, 6.6%

Other, 6.6%

Tokyo, 70.7%

Osaka, 9.8%

Tokyo
Osaka
Fukuoka
NagoyaKanto
SendaiOtherSendai 3Tokyo 63
Kanto 8Nagoya 4
Osaka 9Fukuoka 15Other 1624

These materials were prepared to explain the Company’s businesses and are not for the purpose of soliciting
investment in marketable securities issued by the Company. The Company does not guarantee the accuracyof the figures, information, estimates or other statements included herein, and accepts no responsibility fordamages or losses arising through the use of the figures, information, estimates or other statements
contained herein.
These materials are also based upon information available as of May 31, 2009, and 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 available as ofthis date. Actual operating results or developments concerning the Company may differ substantially fromthose indicated by forward-looking statements. The information enclosed is also subject to revision without
prior notice.

【Contact】
Asset Managers Holdings Co., Ltd.
Strategic Planning & Investor Relations Department
TEL：+81-3-3502-4818 FAX：+81-3-3502-4801
E-mail： mail@assetmanagers.co.jp
www.assetmanagers.co.jp

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