Feb. 2013 Fiscal Year Q1 (March – May 2012)
CorporatepPresentation
July 19, 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 Significant Growth-Ichigo Growth Strategy
Feb. 2013 Q1 Consolidated Financial Results
Feb. 2013 Q1 Assets Under Management (AUM)
OOngoingi St
Structuralt l Profitability
P fit bilit
Sound Financial Base
New Business Developments
New Group Structure
Ichigo’s Hiromi Miyake Selected for 2012 London Olympics© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

4

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

5

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

Accelerated Growth Stage

Significant Expansion of Structural
Profitability
・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

100%
Coverage
Ratio

Increase Structural Profitability
・Increase real estate fee income
・M&A of J-REIT AM companies
・Value enhancement of assets
・M&A of stable/profitable companies
・SG&A cost-cutting

Target:Tokyo StockExchangeFirst Section
GrowthInvestments+Increased
Shareholder
Distributions

Structural Profitability

Feb 11
Feb 12* Beginning of each fiscal year.

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

6Feb. 2013 Q1 Consolidated Financial Results
Driven by Stable Profitability(Million yen)Feb 13 Q1 Actual vs Feb 13 Full-Year Forecast
Revenues 13.9%, Net Profit 26.4%

Feb. 2013 Q1 Financial Results(Million yen)Feb 13Q1

FY 13Forecastvs.
Forecast

2,362

17,00013.9%

Operating Profit

335

1,50022.3%

Recurringg Profit

307

1,20025.6%

Net Profit

264

1,00026.4%-200-RevenuesRevenues

17,000Net Profit

1,000

Revenues

2,362

Net Profit
264

ActualFeb 13 Q1((3 mos))

Forecast
Feb 13 Full-Year((12 mos))© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

Dividend per Share (Yen)7

Feb. 2013 Q1 Assets Under Management (AUM)
Slight Decrease in Total AUM, but Higher Profitability- AUM decreased due to asset dispositions- However,, AM fees from private
pequityq y RE funds increased byy ¥14MM pp.a.
[¥6MM decrease and ¥20MM increase]

Others 0.3

PE RE Fund
Asset Sales

New PE RE
Mandates

15.2
REIT AssetAt Sales
S l 1.3
13379.6

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

(Billion yen)

11.1

374 5
374.5

May 128

Ongoing Structural Profitability
Q1 Fixed Revenues at 122% of Fixed Costs
Fixed Revenues (“locked-in”( locked in revenues, excludes transaction fees, capital gains, etc.)
Fixed Costs (SG&A + Interest Expense)

Coverage： 121.5%(Million yen)
BM Fees 109

Dividends
259

Interest 71

Interest and Other 18

1,017

Rental Income254
SG&A766

837

Target further expansion offixed revenues and >120%
coverage ratio for this FY

AM Fees376

Feb 13 Q1（3 mos）
* Pro Forma base (definition on p. 15)© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

9Sound Financial Base
Balance Sheet
Shareholder Equity
Ratio 66.1%

Shareholder Equity
Ratio 68.9%(Billi yen))(Billion

Liabilities
11.8
AssetsAt
38.0

Assets+2.0

Liabilities
13.6
Assets40.0

Net Assets
26.1

Feb 12

Net Assets
26.5

May 12・ Assets & Liabilities
Increased with New
Warehousing Fund for Ichigo
REIT・ Healthy Shareholder Equity
Ratio

68 9% → 66.1%
68.9%
66 1%Interest-Bearing Debt
+1 8+1.8
Total Borrowings 9.3(Billion yen)

Short-Term Debt

1.9Long-Term Debt

7.4

Total Borrowings 11.1
Short-Term Debt

+0.3

2.2+1.5

Long-Term Debt

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

8.9

・ Debt Increased with New
Borrowings for Warehousing
Fund・ Healthy Long/Short-Term
Debt Ratio

79.3% → 79.8%
May 12* Pro Forma base (definition on p. 15)

10

New Business Developments• Property
Pt Best-Use
B tU CConsultinglti andd Ad
Advisoryi(I(Ichigohi EEstatet t CCo., LtdLtd.))- Brought in a Major Supermarket on Behalf of a Tokyo Property Owner-Generating long-term stable rental income for owner
Ichigo Estate works for owner via a long-term service agreement- Diversifying Revenue Stream via Consulting and Advisory Business in Addition toExistingg Small-Sized Real Estate and Ground Lease Businesses• Standardize and Improve Quality of Service to Increase Tenant Satisfaction- Hands-On Approach to Deepen Understanding of Tenant needs-Building direct relationships with tenants to improve satisfaction
Establish Ichigo Quality Standard to improve quality of service- New Partnerships with Property Managers Who Meet Ichigo Quality Standard-Detailed evaluations and selection process of partner PMs
New PM partnerships start from September 2012Ichigo
g PM Strategygy Groupp set upp last yyear to drive this pprocess
Will also reduce PM costs© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

11

New Group Structure• On July 1, 2012, Reorganization Completed to Strengthen Ichigo’s Capabilities as aFull-Service Real Estate Asset Manager-Formed New Asset Management Company to Manage J-REIT and Private Equity RE Funds
CConcentratet t AssetAt Management
Mt Resources
Rtot Accelerate
Al t GrowthGthFull-Service Real Estate Asset Manager

Assets Under Management : c. 380 billion yen
Holding Company(Group Strategy, M&A)

Ichigo Group Holdings Co., Ltd.

AM for J-REIT and
private equity RE funds

Ichigo Real Estate Investment Advisors Co., Ltd.

Formed via merger of Ichigo REIT (8975) andprivate equity RE fund asset managers

A i iin S
ActiveSmall-Sized
ll Si d A
Assets& Ground Leases

Ichigo Estate Co., Ltd.

Formed viaia merger of old Ichigo Estate andIchigo Solutions, a financial services subsidiary

Property Management

Ichigo Marché Co., Ltd.

Operates Matsudo Nanbu Wholesale Marketin Chiba

Property Management

Miyako City Co., Ltd.

Operates Miyako City, large-scale shopping
mall in Miyazaki Prefecture, Kyushu

Building MaintenanceTakara Building Maintenance Co., Ltd.

Building Maintenance andSecurity Services

Nichibei Building Services Co., Ltd.
Nichibei Security Services Co., Ltd.

100%
subsidiaries• On July 2, 2012, Established Ichigo Global Capital Co., Ltd.
-Launch Venture Capital Fund for Asian Investors
Support Cross-Border M&A© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

12Ichigo’s Hiromi Miyake Selected for 2012 London Olympics
We are committed to fulfilling our Corporate Social Responsibilities with respect toall stakeholders, society, and the earth that we share. As part of our support for
excellence in all social activities, including
g athletics, Ichigo
g sponsors
pa weightlifting
gg
team.

Ichigo employee Hiromi Miyake will
represent Japan at the London OlympicsOlympics.
Profile of Hiromi MiyakeLondon Olympics Press Conference

Joined Ichigo in April 2008
Results of Major Tournaments- 2004 Athens Olympics, 48kg-Class 9th Place- 2008 Beijing Olympics, 48kg-Class 6th Place- 2010 Japan Weightlifting Championships,53kg-Class 1st Place- 2011 Japan Weightlifting Championships,53kg-Class 1st Place- 2011 World Weightlifting
gg Championships,
pp ,53kg-Class 6th Place
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_Group13

Appendix: Pro Forma Financial Data

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

14

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.

15

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

Total Assets

F b 13 Q1
Feb

ChChange(Q(QoQ)Q)

37,98040,0382,058

Cash and Cash Equivalents

5,713

5,730

17

Investment (Real Estate)

8,151

8,447

296

Investment (Domestic companies)

600

551

-49

Investment (Overseas companies)

4,598

4,573

-25

Real Estate Held for Sale

3,785

5,890

2,105Fixed Assets

10,10910,073-36

Intangible Assets

2,105

2,075-30

Other2 919
2,919

2 699
2,699-220
220

Liabilities

11,831

13,557

1,726Interest-Bearing Debt

9,351

11,189

1,838

Other

2 480
2,480

2 368
2,368-112
112

Net Assets

26,14926,481332© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

16

P&L (Pro Forma)

Breakdown
Feb 12Revenues

Feb 13 Q1

Feb 13 Q1

7,927

1,736

4 101
4,101

663

Gross Profit

3,826

1,073

SG&A

2,871

766

954

306

-70-28Other884

278

Gross Profit

997

01,881Tax
Minority Interests

Cost of Revenues

Operating Profit
Non-Operating Gain (Loss), net

Recurring Profit
Extraordinary Gain (Loss), net

Pre-tax Profit

Net Profit(Million yen)

Revenues
Real Estate ManagementgFees

1,736
467

Advisory Fees

6

Rental Income

468

Real Estate Sales / Dividends

259

Securities Sales / Dividends

15

Building Maintenance Fees

517

Real Estate Management Fees

4
1,073
430

Advisory Fees

6279

Rental Income

254

159

16

Real Estate Sales / Dividends

259-48-2

Securities Sales / Dividends

15

Building Maintenance Fees

109

1,770264© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

Other017

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

Appraisal Value(As of Feb 12)

Unrealized Gain

Directly Owned on B/S

17,392

12,88915,275+2,384

Investment in IGH Funds

16,406

8,448

14,121+5,674

Total

33,79821,33729,396+8,0588,058- Private Equity(Million yen)Book Value(As of May 12)

Market Value(As of Jun 12)

Unrealized Gain

Domestic Securities

323483+160

Overseas Securities

960

982+21IPO (Overseas) Jun 13

49

368+61

1,332

1,833+242

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

18

Appendix： Consolidated Financial Data

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

19

Balance Sheet (Consolidated)(Million yen)Feb 12

Total Assets

Feb 13 Q1

QoQ change

82,17084,0101,840

Cash and Cash Equivalents

9,791

9,944

153

Operating Investments in Securities

4,226

4,281

55

Real Estate Held for Sale

49,674

51,8382,164

Fixed Assets

10,10910,073-36

Intangible Assets

2,105

2,075-30

IInvestmentstt iin SSecurities
iti

3 589
3,589

3 478
3,478-111
111

Other

2,676

2,321-355

Liabilities

53,982

55,462

1,480Interest-Bearing
Interest
Bearing Debts (excl(excl. Non-Recourse
Non Recourse Loans)

9 351
9,351

11 18911,189

1 838
1,838

Non-Recourse Loans

37,69437,392-302

Other

6,937

6,881-56

Net Assets

28,187,28,548,

361

Shareholders Equity

25,972

26,202230

Minority Interests and Other

2,215

2,346

131

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

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

OutsideInvestors'
Interests

TheCompany's
Interests--

Amount

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

55

2,254

0

2,254

2,273

0

2,273

19

Listed Domestic Companies

0000000

Unlisted Domestic Companies

420

42

37037-5
5

Listed Overseas Companies

1,019

01,019

1,061

0

1,061

42

Unlisted Overseas Companies

9110911

910

0910

-1

Domestic Real Estate

9,944

OutsideInvestors'
Interests

Reference: Allow ance for Bad Debts forOperating Investments in Securities-288--288-286

--286

2

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

3,938

-

3,938

3,995

-

3,995

57

Real Estate Held for Sale

49,67440,066

9,608

51,83840,058

11,7802,172

Investments in Securities

3,589

0

3,589

3,478

0

3,478

-111

Domestic Companies

529

0529

514

0514

-15

Overseas Companies

2,955

0

2,955

2,889

02,889-66

105

0105

75

075-30Others
Reference: Allow ance for Bad Debts for
Investments in Securities-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

-111

Fixed Assets

10,109--10,073---

Intangible Assets

2,105--

2,075---

Other Assets

3,038--

2,681---

Total Assets

82,170-17,06184,010-19,179© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

2,11821

P&L (Consolidated)

Feb 12Full-Year
Forecast

Feb 13 Q1vs.
Forecast

Breakdown(Million yen)F b 13 Q1
Feb

18,952

2,362

17,00013.9%

15,0301,260－－

3,921

1,102－－

2,871766－－

Real Estate Sales / Dividends

18

1,050

335

1,500

22.3%

Securities Sales / Dividends

15-70-28－－

Building Maintenance Fees

506

979

307

1,200

25.6%

997

0－

－

1,976

308－

－Tax

159

16－

－

Mi
Minority
it IInterests
tt

47

26－

－

1,770

264

1,000

26.4%

Revenues
Cost of Revenues
Gross Profit
SG&A
Operating Profit
Non-Operating Gain (Loss), net

Recurring Profit
Extraordinaryy Gain ((Loss),) net

Pre-tax Profit

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

Revenues
Real Estate Management Fees

2,362394

Advisory Fees

6Rental Income

1,421

OtherGross Profit
Real Estate Management Fees

21,102356

Advisory Fees

6Rental Income

628Real Estate Sales / Dividends

18

Securities Sales / Dividends

15

Building Maintenance Fees

98

Other-1922

Appendix： Real Estate Data

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

23

Assets Under Management (AUM)
Net AUM Decreased by ¥ 5 Billion – Decrease of ¥16.4 Billion from Disposition of Assets andIncrease of ¥11.4 Billion from Launching New Funds and New Rescue AM Mandate(As of May 2012)(Billion yen)
600

530.1

Development
500

REIT
28%

Operating

62.0

496 0
496.0

Operating
72%

REIT

426.5
400

330 6
330.6

257.0

385.3

379.6

374.5

113.8

106.1

104.8

335 9
335.9
335.0

56.0

300

320.7

Breakdown of Equity Investors
123.4

200

263.2

66.4
100

265.2

269.6

Company
12%

211.1

78.8
32.7

Domestic Financial
Institution Domestic
4% Operating

312.1

166.4

151.2
100.0

105.9

46.1
0Domestic Insurance
Company1%IGH30%

161.023.8

8.3

8.3

Overseas Fund
17%

OverseasPension Fund
30%

Overseas Financial
Institution
7%© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

24

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 May 2012)# of Properties by Type
(Unit: # of buildings)

Residential
16%

Other
10

Other2%

Of f ice
59%

Mixed13%(Unit: # of buildings)

AUM by Location

Land withGround
Lease
1%

Land with
Ground Lease56Office77

Other
5%
Fukuoka
Sendai
5%2%
Nagoya
5%

Kanto
6%

Tokyo62%
Residential
44

Retail9%Mixed
17Retail16

Osaka
15%

Tokyo

100
Sendai 3

AUM by Size

# of Properties by Size

Kanto

15

(Unit: # of buildings)

10 bn yen~
20%

Land
with
GroundLeases&Others

Osaka

17
Nagoya1~5 bn yen
30%

5~10 bn yen
40%

10 bn yen~
110~1 bn yen
10%

5~10 bn yen
59

Fukuoka

0～ 1 bn yen
111

10756
Others121～ 5 bn yen
39© 2012 Ichigo Group Holdings Co., Ltd. All rights reserved.

25

Real Estate Cap Rates•••

Conservative assessment of cap rates, generally more conservative than market
Continually mark assets to market
Unrealized gains in both client and IGH assets(As of May 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

150,494

134,139

6,768

5.3%

6.0%

135,396+1,257

Outside Tokyo

83,43164,214

4,200

5.4%

7.0%

73,459+9,245

Total233 925
233,925198 353
198,353

10 968
10,968

5 3%
5.3%

6 4%
6.4%

208 855
208,855+10 503+10,503(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

7,647

6,754

467

6.6%

7.1%

7,961

+1,207

Outside Tokyo

7,462

5,428

587

6.2%

9.7%

6,607

+1,179

Total

15,10912,182

1,0546.4%

8.4%

14,568+2,386(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.

26

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
gy 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 Companymay
y 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’s
pfirst zero carbon listed real estate company.
p y
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.
© 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/english27