Annual Report
Fiscal Year EndedDecember, 2016

B-Lot Co., Ltd.
Tokyo Stock Exchange, Mothers Section(Ticker Code. 3452)

February 21, 2017

Thanks to you

Message from the President~ Looking Toward Our 10th Anniversary ~This fiscal year, B-lot will celebrate its 10th anniversary.
In December 2014, B-Lot listed on the Tokyo Stock Exchange Mothers market.
In December 2016, we achieved a sixth consecutive year of revenue and profit growththanks to the support of our stakeholders. I would like to take this opportunity toexpress my sincere gratitude.

Makoto Miyauchi,The environment that surrounds us changes dramatically from day to day.
However, the founding resolution behind the B-lot name“to think hard and utilize our experience to create businesses that provide value to society”
remains unchanged.

President and Representative Director,
B-lot Co., Ltd.

Moving forward, we will continue to value “teamwork” and “partnership” in our dealings both inside and outside thecompany. We will adapt flexibly to the changing times and expand our business with a sense of urgency.
I hope that we can continue to count on your support and guidance.

Thanks to you

Performance Trend
800

16,000781

14,000700
2008.09

2011.032012.122013.09

2014.04

2014.102015.10Global Financial Crisis

The Great East Japan
Earthquake

The Second Abe
Cabinet Started

Tokyo was selected
as host city for 2020
Olympic

Consumption
tax raised

Additionalmonetary easing
by Bank of Japan

Start of “My Number”
notification

Market12,000
topics

10,000

売上高
Revenue

2016.4
Life Stage Corporationacquired
2016.9Osaka office opened

当期純利益
Net profit

600
5885002015.2
B-Lot Asset Management Co., Ltd.
established2015.5
B-lot Singapore Pte., Ltd.
established

8,000

16,154

400

400

6,000

300

11,6262014.12
Listed on Tokyo Stock
Exchange Mothers section

4,0002,000

2013.09
Fukuoka
office opened

2008.10
B-lot Co., Ltd.
established2011.04
Hokkaido
office opened

176

104
41

200
6,950

100

3,709

2,230

1,338

00

2009/12.

2010/12.

2011/12.

2012/12.

2013/12.

2014/12.

5

8

11

16

18

24

Number of Employees

2015/12.

2016/12.

35

134(Cons.)(Cons.)

2017/01.

2017/12.
Earnings
Forecast

Thanks to you

To Our Shareholders

B-Lot considers the return of profits to shareholders as an important management issue.
Our basic policy is to make shareholder returns that reflect our business performance, and we intend topursue a comprehensive shareholder return policy that also takes into account our future businessdevelopment and strengthening of our financial position.
This fiscal year, in accordance with the above policy, we plan to pay our first dividend, to meet
expectations for stable and continuous returns from shareholders who invest in our company in themedium and long term.

* This proposal will be put to the Ordinary General Meeting of Shareholders to be held in March 2017.

CONTENTSI.

Performance Review

P. 06-09

II.

Business SummaryP.10-16

III. Earnings Forecasts andPriority Measures

P.17-19

IV.

P.20-30

Company Profile

I. Performance Review

I-1. Summary…FY Dec. 2016

Achieved revenue and profit growth for the sixth consecutive year.
Consolidated net profit continued growing, up 47% year on year!!!
The balance of properties for sale reached 11,392 million yen!
Expecting to complete five development projects andstart receiving rental income from them in FY Dec. 2017.
Successful inbound strategy led to expansion in direct transactions
with the wealthy in Asia.
Singapore business and asset management initiatives contributed toperformance.
Number of B-lot Group consolidated subsidiaries increased to three.
Expanding in size, with total number of consolidated employees now
exceeding 130.

B-Lot Co., Ltd. All rights reserved. 7

I-2. Performance Highlights…FY Dec. 2016

Achieved significant growth in revenue and profit for the sixth consecutive year!
Revenue (¥: Million)

Ordinary Income (¥: Million)
11,626

12,000874

900

Net Profit for the Year (¥: Million)
588

600

800
10,000

500
700

655
400

8,000

400

600

6,950
500
6,000

300
400

4,000

3,709300

295200176

200
2,00010010000
2014/12.

2015/12.

2016/12.

0
2014/12.

2015/12.

2016/12.

2014/12.

2015/12.

2016/12.

Up 67.3% YoY

Up 33.4% YoY

Up 46.9% YoYRevenue 11,626 Million

Ordinary Income 874 Million

Net Profit 588 Million* Consolidated financial statements were created from FY ending Dec. 31, 2015. The figures for FY2014 are unconsolidated.
* In this presentation, net profit attributable to owners of the parent is shown as net profit.

B-Lot Co., Ltd. All rights reserved. 8

I-3. Consolidated P&L/BS Summary…FY Dec. 2016

Made upfront investments mainly in development projects.
Acquired 159,000 shares of treasury stock.
Consolidated P&L Summary(¥: Million)

Consolidated BS Summary

2015/12.

2016/12.

Revenue

6,950

11,62667.3%(1) Investment Business

6,137

9,977

62.6%

(2) Consulting Business

171767348.1%(3) Management Business

642

881

37.3%

Gross Profit

1,556

2,620

68.4%

Deferred Assets

SG&A expenses

756

1,445

91.2%

Operating Profit

800

1,175

46.9%

(1) Investment Business

839

989

17.8%

(2) Consulting Business

57345

496.9%(3) Management Business

283

458

Other Expenses-381

Ordinary Profit
Net Profit for the Period(¥: Million)

2015/12.

2016/12.

Assets

9,984

16,625

66.5%

Current Assets

8,343

14,105

69.1%

Fixed Assets

1,632

2,479

51.9%

941

347.3%

Liabilities

7,553

13,806

82.8%

Current Liabilities

1,836

4,978

171.1%

Fixed Liabilities

5,716

8,827

54.4%

61.6%

Net Assets

2,431

2,819

16.0%

-618

62.3%

9,984

16,625

66.5%

655

874

33.4%

Total Liabilities
and Equity

400588

YoY

46.9%

YoY

* Consolidated PL: Reflects contribution of Life Stage Corporation from the third quarter.
* Revenue figures do not include intersegment transactions.
B-Lot Co., Ltd. All rights reserved. 9

II. Business Summary

II-1. Real Estate Investment and Development…FY Dec. 2016

Sales: 3 J-REIT properties,3 overseas investor properties

Segment revenue increased 62.6% year on year.

(¥: Million)(¥: Million)

2015/12.

2016/12.

2015/12.

YoY

2016/12.

YoY

Revenue

6,137

9,977

62.6%

Number ofproperties sold1316－Segment Profit

839

989

17.8%

Average selling price(per property)

471

612

30.1%

* The above figures are actual results of B-lot (unconsolidated).

Breakdown of properties for sale (stock) by type2520Kansai
関西圏
Kyushu九州圏
Hokkaido
北海道圏
関東圏
Kanto
Total of18 properties

1115

Total of25 properties

2

介護施設
Senior housing
ホテル・宿泊関連
Hotel
住宅系
Residential
事務所・店舗Office土地（開発用地含む）
Land

6312,000118

1
1Including Life Stage stockof around 200 million yen(+87.7%)

Number in parentheses represents
year on year change.

8,000

6,069

8

Land fordevelop
ment

6,000

6

4,000

32,000(+78.3%)

3,403

1014
511,392
Properties held for sale
仕掛販売用不動産
販売用不動産Properties for sale

10,00036

Balance of Properties for Sale

2101202016/122015/121,690

126
2015/12(+101.3%)

2016/12* The above figures are actual results of B-lot (unconsolidated).

(+193.1%)

0
2011/122012/122013/12

2014/122015/122016/12

B-Lot Co., Ltd. All rights reserved. 11

II-1. Real Estate Investment and Development…FY Dec. 2016

Expecting to complete five development projects andstart receiving rental income from them in FY Dec. 2017.

2016.12NISEKO2017.1SAPPORO
Video transmission ofdevelopment project

ComingSoon(Plan) 2017.3(Plan) 2017.7(Plan) 2017.9(Plan) 2018.3(Plan) 2018.2

SHINJUKU

SHINTOMIKYOTO GOJO

NAHAOTARU
B-Lot Co., Ltd. All rights reserved. 12

II-2. Real Estate Consulting…FY Dec. 2016

Segment profit increased significantly!

Actively conductedseminars and PR activities.
ああああ(¥: Million)

2015/12.

2016/12.

YoY

Seminar for investors
Japanese real estate
investment fair in Taiwan, 2016
(Sponsored by Nikkei BP)

Revenue

171

767

348.1%

Segment Profit

57345

496.9%

Industry seminar
Business strategy in response tosudden increase in inbound tourism
in JapanB-lot brokerage service revenue increased 92.7%
180160140(Sponsored by SOGO UNICOM Co., Ltd.
At Future Creation Business Meeting)

28
Brokerage revenue (¥: Million)
手数料売上（単位：百万円）

27

Number of deals
仲介件数

Newspaper advertising in Singapore
Laurel Court Shinjuku Natsumezaka

26(Owned by Kintetsu Real Estate Co., Ltd.)

120

25

100

177

80

24

27
2360
40

92

2223

Viewings for visitors to Japan
Showed wealthy visitors fromIndonesia around model rooms.

21

20
020
2015/122016/12* The above figures are the actual results of B-lot (unconsolidated) and exclude consulting fee, etc.

B-Lot Co., Ltd. All rights reserved. 13

II-2. Real Estate ConsultingOverseas
Strategy…FY Dec. 2016

Implemented sales scheme utilizing Group synergy!

B-LOT (from 2015 .1 to 2015.11)- Acquired vacant building itself- Carried out renovation work utilizing property
characteristics  Hostel

B-LOT SINGAPORE (Consulting)Strengthening trust
through business- Introduction of prime property to overseas
investors- FACE to FACE relationship

B-LOT (From 2015 .11 until sale)- Operation: Outsourced to partner enterprise- Working to ensure stable returns in the long term

B-LOT Asset Management (from 2016.12)【Buyer】

SiS International Holdings Limited- Arrangement of finance + support for fund creation- Performance of operation and management during
period, including returns, as AM- Long-term continuous follow-up of investors

IMANOTOKYO
video transmission
Vice-Chairman
Mr. Lim Kiah Meng
B-Lot Co., Ltd. All rights reserved. 14

II-3. Real Estate Management…FY Dec. 2016
PM fee incomeis increasing
ああああSegment profit increased 61.6%.
(¥: Million)

2015/12.

2016/12.

Revenue

642

881

37.3%

Segment profit

283

458

61.6%

Due to the increase in the numberof managed properties from 39 to43, PM fee income rose 34%.

YoY

Made a major contribution
to increase in thecompany’s income stability.
* Above figures are actual results excluding SL, ML and BM service fees.

Diversified client type,
ああああ
increase in sizeof managed properties

PM： Growing steadily; also starting to meetoverseas PM needs.
80,00070,0002)
総賃貸可能面積(㎡)
Renting space (m総テナント数(件)
No. of tenants

1,200

1,000

60,000800
50,00040,000600

30,000400
20,000200
10,00000

Residential buildingin Shinagawa-ku,
Tokyo

Residential buildingin Fukuoka City,Fukuoka PrefectureResidential building inSapporo, Hokkaido

B-Lot Co., Ltd. All rights reserved. 15

II-3. Real Estate Management
FundCreation…FY Dec. 2016

Created real estate fund through joint investment
and provided asset management services!
Godo Kaisha MB Investment

1

Joint investment

Two recently built residential apartment buildings in Osaka

Management during the period based on trust

Entrustment of asset
management services

One student dormitory building in Sapporo.
B-Lot Co., Ltd. All rights reserved. 16

III. Earnings Forecasts and Priority Measures

III-1. Full-Year Earnings Forecastsi.

The B-lot Group will enter a stage of further growth.

ii. We aim to increase the company’s value through proactive businessdevelopment and sustainable growth.

Consolidated Earnings Forecasts(¥: Million)

Result of previous year
FY Dec. 2016

Plan Period
FY ending Dec. 2017

Compared toFY Dec. 2016

11,626

16,154

38.9%

Consolidated Operating Profit

1,175

1,492

27.0%

Consolidated Ordinary Income

874

1,175

34.4%

Consolidated Net Profit for the Year

588

781

32.8%

Consolidated Revenue* The above earnings forecasts are based on information available to the company as of the date of this announcement. The actual results for 2017 may differ from theprojection due to a variety of factors.
B-Lot Co., Ltd. All rights reserved. 18

III-2. Priority Measures

B-Lot Co., Ltd. All rights reserved. 19

Ⅳ. Company Profile

Ⅳ-1. Company Profile ＝as of June 30, 2016＝Company Name

B-Lot Company Limited

Head Office

2-19-10, Shimbashi, Minato-ku, Tokyo, 105-0041 Japan

Establishment

October 10, 2008

Capital

JPY 943,672,368

President

Makoto Miyauchi

Number ofEmployee

36 employees(133 as Consolidated)

Listed Date

December 11, 2014
（Japan Stock Exchange Mothers Section Ticker code:3452)

Offices andSubsidiaries

Licenses

Hokkaido, Fukuoka, Osaka
B-Lot Asset Management Co., Ltd（100％ Subsidiary）
B-Lot Singapore Pte., Ltd.（100％ Subsidiary）
Life Stage Corporation（100％ Subsidiary）

September 2016 open

Building Transaction License,
Registered Financial Instrument Business(Type 2 Financial Instrument Business, Advisor and Agency)
B-Lot Co., Ltd. All rights reserved. 21

Ⅳ-2. Board of Directors
Makoto Miyauchi Representative Director and President （Born in February 1969)
Acquired BA in Political Science at Keio University, Tokyo and MBA at University ofWashington, Seattle.
A former banker (at Sanwa Bank - currently MUFG) with expertise in project financing,property loans, and securitization.
Established B-Lot to start new real estate and financial businesses in 2008.
A well-known, influential business executive in Japan.

Shinichi Hasegawa Director and Deputy President （Born in July 1972)
Acquired BA in Commercial Science at Sapporo Gakuin University.
Has been responsible mainly for purchase and sales real estate brokerage business .
Made tremendous contribution for Sun Frontier Fudousan Co., Ltd.(TSE first section 8934)
to be listed in the JASDAQ Stock Exchange in 5 years and in the Tokyo Stock Exchange in 8 years
since its incorporation. Assumed the Deputy President of B-Lot in 2008.
Set up new branches in Singapore & Hokkaido by himself and creates new investment networks.

Masahiro Mochizuki Director and Deputy President （Born in October 1972)
Acquired BA in Real Estate at Meikai University.
Established a new business field in real estate value-up called “Re-planning” in 2001,
responsible for purchasing, improving value, selling, and securitizing properties.
Specialized in ‘revitalization and conversion business on real estate’.
Has dealt more than 150 transactions, becoming a most recognized authority in the field ofreal estate value-up. Held a number of seminars mainly about revitalization.
B-Lot Co., Ltd. All rights reserved. 22

Ⅳ-3. Management Policies
We at B-Lot shall contribute to society by creating businesses that provide value to society in the fields of realestate and finance. In these activities, while following social norms, we shall pursue profit and realize longterm sustainable growth for all stakeholders as a “company needed by society.”

Be professional
We shall always make decisions rapidly with sound judgment based on insight and expert knowledge.
To ensure this professionalism, we shall give ample attention to gaining expert knowledge, collecting market
information, and devoting ourselves to the study of our field.

Enjoy

We shall make the uninteresting fascinating.
We shall genuinely enjoy work and proactively conduct business with creativity and flexibility. To ensure thisspirit of enjoyment, every member of the B-Lot shall place emphasis on partnership and teamwork in ourrelationships with each other and with everyone else.

Beat our brains“Think hard” and “utilize our experience”
Our resolution is “to think hard and utilize our experience to bring joy to customers and contribute to thebetterment of society.”
The logo is a symbol of our foundation. The red symbolizes “passion and a fighting spirit,” the yellow
symbolizes “brightness and a smile,” the blue symbolizes “sincerity and a spirit of fairness,” and the green
symbolizes “total harmonization and originality.” The rounded corners of the squares express flexibility andbalance and the way they interlink with each other expresses the person-to-person bonds that make up thepartnerships and teamwork that the B-Lot cherishes more than anything.

B-Lot Co., Ltd. All rights reserved. 23

Ⅳ-4. Business Outline
Our businesses are grouped into three main segments.

We have built intensive relationships with high-quality investors.
B-Lot Co., Ltd. All rights reserved. 24

＝Business Area＝Expanding Business Area to all over Japan,
especially focusing on Kansai Area
Hotel Development/Conversion
Office/Residential Building

ＮEW！
KYOTO

Rental Building(Long term investment)

KansaiNEW！
OKINAWANEW！
NAGOYAKyusyu

NISEKOManaged Building

Hokkaido

OkinawaNEW！
Nursing FacilityChubu

Kanto*The buildings above include invested properties, managed properties and rental buildings as of February 10, 2016

B-Lot Co., Ltd. All rights reserved. 25

Ⅳ-5. Our Strengths
We have various ‘revitalization plans’ in many property types.
① Search for and find undervalued properties② Provide the ‘maximum value plan’③ Fulfill its process as plannedplans Ⅳ
plans ⅢNote!
We are able to buy properties at higher prices
because of our more various and sophisticated revitalization plans.

plans Ⅱ

plans Ⅰ

Loyal customers
Repeaters

Partners

REPEATINGORDER
SYSTEM !

The maximum
future value priceDevelopment

Most Suitable
UseLegalization

Add hotelconversion
project
Inbound andour network
In overseas

ProfitImprovement

RealEstate

Expense

Rival companies

NOI

Buyingprice※

Thepresentprice※NOI＝Net Operating Income

B-Lot Co., Ltd. All rights reserved. 26

Ⅳ-7. Our strengths
We provide multiple solutions to succeed assets to next generation
Consultation
for AssetThewealthy

Family officeSpecialty

Succession

Consultation

Expertise&knowledge ofincome property

For nextgeneration

Set up asset
management company
Specialist

Further prosperity
for next generation

Children

For permanent prosperity
for next generation

Creativity

NetworkOriginality
based onexperience

Networks ofthe wealthy&professionals

Strictly
ConfidentialGrandchildren

Asset inherited scheme
B-Lot Co., Ltd. All rights reserved. 27

2011
2016

2008
2013
Thank you for reading this to the end.

2015

For more information

Contact to: IR
TEL: 03-6891-2525
EMAIL: ir@b-lot.co.jp

DISCLAIMER
Except for historical facts, all plans, forecasts, strategies and other information contained herein are forward-looking statements. Forward-looking statements include
but are not limited to descriptions of performance containing words such as or similar to “believe,” “expect,” “plan,” “strategy,” “anticipate,” “forecast,” and“estimate,” and are based on judgments derived from the information available to the Company at the time of publication. Various factors could cause results to differ
materially from any projections presented herein. The Company reserves the right to maintain or change its projections regardless of any new information, conditions
or changes in performance. These materials are for informational purposes only, and should not be construed as a recommendation to invest in the Company.