FY Ending March 2024 Financial Results

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

1

Highlights for FY Ending March 2024 and Key Points for FY Ending March 2025
Highlights for FY Ending March 2024
01
02

Property sales progressed smoothly, significantly exceeding the initial plan (sales target of 90 billion yen, operating profit of 18 billion yen), with revenues
reaching approximately 94.3 billion yen (+4.7%) and operating profit about 22.8 billion yen (+26.8%). This marked the highest performance since thecompany's establishment in terms of sales, operating profit, ordinary profit, and net income attributable to parent company shareholders.
Purchasing activities also progressed well, with reserved forecast net sales reaching approximately 207.9 billion yen, an increase of about 47.3%
compared to the same period last year.

03

Despite the borrowing balance increasing by 12.1 billion yen (+28.2%) from the previous year, the equity ratio remained strong at 47.8%, ensuring a solidbalance sheet with substantial borrowing capacity for future needs.

04

The company's stock price, which was below a PBR of 1 at the end of the last fiscal year, strengthened to a PBR of 1.8 as of May 8, 2024. Total
shareholder return (TSR*) over the past year (May 9, 2023, to May 8, 2024) significantly outperformed the TOPIX, posting a gain of +180.8% compared to
the TOPIX's +31.9%.
*TSR=(End Date Stock Price+Cumulative Dividend Per Share During the Period) ÷ Stock Price the Day Before the Start Date05

A tender offer and a public offering were conducted during the fiscal year, keeping the total number of issued shares nearly unchanged, which prevented
share dilution and significantly improved the tradable share ratio.

06

The company conservatively recorded a special loss of approximately 4.8 billion yen primarily for restructuring costs in the Future Value Creation
Services during FY ending March 2024. This proactive approach aims to enhance future performance with very limited impairment risks beyond FY
ending March 2025.

Key Points for Fiscal Year March 2025
01
02

The target for consolidated operating income for FY ending March 2025 is set at 23 billion yen, consistent with the final year's target of the previously
announced medium-term management plan. This target closely aligns with the operating profit of approximately 22.8 billion yen recorded for FY ending
March 2024, and the aforementioned reserved forecast net sales level is also expected to continue strongly.
The minimum dividend per share for FY March 2025 will be maintained at 175 yen. With a projected dividend payout ratio of around 40%, if profit
attributable to parent shareholders reaches the planned 14 billion yen, the dividend per share would rise to 196 yen.

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

2Consolidated Financial Results
PL

FY Ending March 2023

FY Ending March 2024

Year-on-year

Year-on-year

ActualActualChange% Change

FY Ending March 2024
Initial plan

% Over Plan(in million yen)
Net sales

67,906

94,265+26,358+38.8%

90,000+4.7%

Gross profit

20,36829,730+9,362+46.0%

N/A

N/A

30.0%

31.5%

-

+1.5%

N/A

N/A

Operating profit

14,371

22,824+8,452+58.8%

18,000+26.8%

Operating profit margin

21.2%

24.2%

-

+3.0%

20.0%

+4.2%

Ordinary profit

12,851

21,878+9,027+70.2%

16,800+30.2%

Ordinary profit margin

18.9%

23.2%

-

+4.3%

18.7%

+4.5%

Net income

8,376

11,513+3,136+37.4%

11,000

+4.7%

12.3%

12.2%

-

-0.1%

12.2%

±0.0%

EPS

269.7

406.3

+136.6+50.6%

384.6

+5.6%

ROE *

15.8%

20.0%

+4.2%

+26.6%

15-20% or more

N/A

Gross profit margin

Net income margin
Capital efficiency

Financial highlights
The progression of property sales met initialexpectations. The profit margin significantly increased
due to numerous property sales being realized at
higher profit margins than initially anticipated.
Consequently, the company achieved its highest
performance since inception in nearly all key
metrics.

May 2024

EPS and ROE*, which are indicators representing capitalefficiency that our company focuses on, also progressedsmoothly.
*ROE(%)=Net Income ÷ Equity (average over two fiscal years) × 100

EPS has recorded an all-time high,and ROE has reached our target of 20%.

A conservative special loss of approximately 4.8 billion yen wasrecorded for restructuring in the Future Value Creation Services.
Although the net income for the current period slightly exceeded theinitial plan, the risk of incurring future special losses is extremely limited.

We are laying the groundwork to further enhance our
performance in the fiscal year 2025 and beyond.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

3

Consolidated Segment Performance Highlights
FY Ending March 2023

FY Ending March 2024

Year-on-year

Year-on-year

ActualActualChange% Change

FY Ending March 2024
Initial plan

% Over Plan

PL (in million yen)
Net sales

67,906

94,265+26,358+38.8%

90,000+4.7%

Value Creation
Services

61,41986,841+25,421+41.4%

82,500+5.3%

Value-Add Services

4,416

5,223

+806

+18.3%

4,500+16.1%

Future Value Creation
Services

2,071

2,201

+130

+6.3%

3,000

-26.6%

Operating profit

14,371

22,824+8,452+58.8%

18,000+26.8%

Value Creation
Services

16,65323,938+7,284+43.7%

19,000+26.0%

Value-Add Services

765

1,427

+662

+86.6%

900+58.6%

Future Value Creation
Services-2,302-1,485+816

NM-1,000

N/A

Head office overhead-745-1,056

-310

NM

-900

N/A

Key Points for Segment Highlights (See P23 for business details by segment)
In our core Asset Value Creation Services, large
property sales and higher-than-expected profit margins
have significantly boosted both revenue and operating
profit, strongly driving overall performance.

The Value-Add Services segment saw increased rental
income from acquiring revenue-generating real estate in the
Value Creation Services Segment. Additionally, as PM feesfrom managed real estate post-sale are accumulating,

The revenue and profit growth rates in the Value Creation
Services have significantly expanded,with an increase of over 40% compared to last year.

revenue grew by approximately 18% andoperating profit increased by 86%

May 2024

In the Future Value Creation Services segment,
revenue increased, and the losses were reduced.
Conservatively recorded a special loss ofapproximately 4.8 billion yen for restructuring.
Future Value Creation Services
laid the groundwork for expected improvements in the
coming fiscal year

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

4Consolidated Balance SheetFY EndingMarch 2023

FY EndingMarch 2024

Year-on-year

ActualActualChangeComments

Balance Sheet (in million yen)
Current assets

96,216

118,542+22,325

Cash and deposits

27,52435,728+8,204 Increased cash reserves for further inventory expansion.

Real estate for sale

45,16752,214+7,047

Real estate for sale in process

17,07929,237+12,157

Non-current assets

10,535

11,970+1,434

Total assets

106,752

130,513+23,760

8,230

9,932

+1,702Current portion of long-termborrowings

1,359

1,475

+115

Income taxes payable

4,052

4,222

+170

45,803

58,127+12,324

41,39752,353+10,955

Total liabilities

54,03368,060+14,027

Net assets

52,71862,452+9,733

Total liabilities and net assets

106,752

130,513+23,760

Current liabilities

Non-current liabilities
Long-term borrowings

May 2024

Steady trend of purchasing real estate

General borrowing terms: 10 year loan term with amortization over
20-30 years

Increased borrowing aligned with inventory growth.

Net income of approximately 11.5 billion yen; dividend payments ofapproximately 1.6 billion yen

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

5Consolidated Statement of Cash FlowsFY EndingMarch 2023
ActualFY EndingMarch 2024
ActualYear-on-year
ChangeComments

Cash flows (in million yen)

Cash flow from operating activities

8,706

1,490

Cash flows from investing activities

193-2,623

Cash flows from financing activities-9,666

9,227

56

104

-710

8,199

28,222

27,511

27,51135,710Exchange rate impact on cash andcash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at
beginning of year
Cash and cash equivalents at theend of year

May 2024

Approx. 86.8 billion yen of net sales in Value Creation Services;
approx. 67.1 billion yen in spend on real estate purchases;-7,215approx. 10.9 billion yen in spend on renovation work; approx.
6.3 billion yen in spend on corporate taxes, etc.
Approx. 1.1 billion yen spend for acquisition of shares in-2,817 affiliates; approx. 600 million yen spend on acquisition of noncurrent assets; lending of approx. 400 million yen
Approx. 9 billion yen for acquiring treasury stock; approx. 1.6
billion yen in dividend payments; approx. 11.6 billion yen raised+18,894
through new financing and repayment of borrowings; approx.
8.3 billion yen from issuing sharesThis document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

6

FY Ending March 2025 Consolidated Performance Forecast
Retaining the the medium-term management plan announced last year
Key Indicators and Targets
FY Ending March 2023
Actual(in million yen)

FY Ending March 2024
TargetFY Ending March 2024
ActualFY Ending March 2025
TargetPL
Net sales

67,90690,00094,265

115,000-0.7%+32.5%+38.8%+22.0%

Operating profit

14,371

18,00022,82423,000Operating profit margin

21.2%

20.0%

24.2%

20.0%

Ordinary profit

12,851

16,80021,87821,500

18.9%

18.7%

23.2%

18.7%

8,376

11,00011,51314,000

12.3%

12.2%

12.2%

12.2%

Dividend payout ratio

20%

Aim for 40%

43.1%

Aim for 40%

Dividend per share

55 yen

175 yen

175 yen

196 yen

Minimum dividend
per share

N/A

175 yen

175 yen

175 yen

ROE(Net Income ÷ Equity (average over two fiscal years)
15.8%
× 100)

15-20% or more

20.0%

15-20% or more

EPS

269.7

384.6

406.3

487.8

Net sales growth rate

Ordinary profit margin
Net income
Net income margin
Shareholder returns

Capital efficiency

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

7

FY Ending March 2025 Consolidated Performance Forecast (by Segment)
FY Ending March 2024

FY Ending March 2025

Year-on-year

Year-on-year

ActualForecast

Change% Change

PL (in million yen)
Net sales

94,265

115,000+20,734+22.0%

Value Creation Services

86,841

106,600+19,758+22.8%

Value-Add Services

5,223

5,400

+176

+3.4%

Future Value Creation Services

2,201

3,000

+798

+36.3%

22,82423,000

+175

+0.8%

Value Creation Services

23,93823,500

-438

-1.8%

Value-Add Services

1,427

1,500

+72

+5.1%

Future Value Creation Services-1,485

-900

+585

NM

Head office overhead-1,056-1,100-43

NM

Operating profit

Key Points for FY March 2025 Consolidated Performance Forecast
In the core Value Creation Services, while aiming for an approximate
20% increase in revenue, the profit margin is conservatively
estimated compared to the actual results of March 2024. Comparedto the same period last year, secured a +47.3% increase in reserved
forecast net sales (refer to P16),

In Value-Add Services, management income issteadily increasing. Additionally, rental income
from properties held in Value Creation
Services is also increasing. As a result,

In the Value Creation Services, a conservative operating
profit plan has been established that slightly falls short of
the actual results for March 2024

an increase in both revenue and profits
is expected for Value-Add Services

May 2024

After recording approximately 4.8 billion yen for special
restructuring costs in FY March 2024, the risk of future
impairments is considered very limited. The value creation
services have begun the fiscal year strongly, with

A clear strategy to
reduce deficit

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

8

Case study of property sold in FY Ending March 2024 (1/5)
Integrated development project involving multiple land parcels: Coordination/consolidation of land
rightsProperty Overview

Photo

Name

Kichijoji First District PJ

Principal value
improvement method

Coordinate/consolidate land rights

Other value improvement
methodNew construction development, etc.

Age (at time of purchase)

58 years

Land area

Approx. 200 tsubo (660m2)

Floor area

Approx. 100 tsubo (330m2)

Leasable area

Approx. 100 tsubo (330m2)

Floor area ratio

600%

Number of stories

11 floors above ground

Asset classCommercial

Month and year ofpurchase

April 2023

• Integrating previously acquired parcels and collaborating with partners for joint development,
the project significantly improved capital efficiency.

Month and year of sale

September 2023

• This project, an integrated development involving a partnership with a leading domestic
company, positions our firm to further strengthen collaboration with this partner in the future.

Sale value

Between 2-5 billion yen

May 2024

Project Highlights• Located in a prime area of Kichijoji, comprising a commercial facility with a land area of about
200 tsubo which is 58 years old. The project involved acquiring land situated behind anotherproperty purchased in 2018. By developing this entire area collectively, the project enhanced
the uniqueness of the location, thereby maximizing its overall value."

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

9Case study of property sold in FY Ending March 2024 (2/5)
Improving NOI in a vacant commercial building
Property Overview
Name

Musashi-Urawa office building PJ

Principal value
improvement method

Increase NOI

Other value improvement
methodLarge-scale renovation

Age (at time of purchase)

24 years

Land area

Approx. 3,100 tsubo (10,234m2)

Floor area

Approx. 4,000 tsubo (13,223m2)

Leasable area

Approx. 1,700 tsubo (5,613m2)

Floor area ratio

500%

Number of stories

7 floors above ground/1 basement
floor

Asset classCommercial

Month and year ofpurchase

February 2023

Month and year of sale

December 2023

Sale value

Between 5-10 billion yen

May 2024

Photo

Project Highlights• 24-year-old commercial facility located in Saitama city. Acquired from a corporation that previously
owned and left it vacant. Directly connected to Musashi-Urawa Station, the building was considereda viable option for tenancy upon commitment to substantial renovations, despite its age.
• Significant enhancements were made to the HVAC systems and interior spaces, completed withinapproximately six months. These renovations swiftly led to the leasing of most vacant spaces,
substantially improving the NOI.
• The property garnered interest from a private REIT looking for high-yield investments in suburban
central areas, leading to its sale driven by the enhanced NOI yield. Concurrently, in a strategic
move, a central city property with high development potential and lower current NOI yield was
acquired from the same private REIT.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

10Case study of property sold in FY Ending March 2024 (3/5)
Development Project Tailored to Tenant Needs from Initial Purchase
Property Overview
Name

Kottodori PJ

Principal value
improvement method

Increase NOI

Other value improvement
methodNew construction development

Age (at time of purchase)

N/A

Land area

Approx. 150 tsubo (495m2)

Floor area

Approx. 400 tsubo (1,320m2)

Leasable area

Approx. 350 tsubo (1,155m2)

Floor area ratio

500%

Number of stories

3 floors above ground/1 basement
floor

Asset classCommercial

Month and year ofpurchase

September 2022

Month and year of sale

March 2024

Sale value

Between 2-5 billion yen

May 2024

Photo

Project Highlights• Capitalizing on insights from previous projects, our company recognized a strong market demand forhigh-end furniture stores along Kottodori. This understanding facilitated the rapid acquisition of land,
aimed to cater to the needs of potential tenants.
• Early in the development phase, the plan was shared with prospective furniture manufacturer tenants,
securing multiple lease commitments well ahead of project completion. The development was
designed to align with the specific requirements of these tenants.
• Despite the project's complexity, particularly in managing ground rights—a task daunting to many—thedevelopment yielded high returns, drawing substantial interest from a variety of investors. A major trustbank, attracted not just by the yield but also by the property’s prime location, tenant credibility, andproperty quality, recognized the value created by our company and proceeded with the acquisition.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

11

Case study of property sold in FY Ending March 2024 (4/5)
Creation of a new office building in an area with limited office supply
Property Overview
NameShin-Yokohama PJ

Principal value
improvement method

New construction development

Other value improvement
methodN/AAge (at time of purchase)

N/A

Land area

Approx. 400 tsubo (1,320m2)

Floor area

Approx. 2,300 tsubo (7,590m2)

Leasable area

Approx. 1,800 tsubo (5,940m2)

Floor area ratio

600%

Number of stories

9 floors above ground

Asset class

OfficeMonth and year ofpurchase

March 2022

Month and year of sale

March 2024

Sale valueOver 10 billion yen

May 2024

Photo

Project Highlights• In Shin-Yokohama, where Over 10 billion yen, there has been almost no new supply since2009, our company acquired land from a major corporation during the COVID-19 pandemic.
This strategic purchase was made anticipating strong demand for office space, given the
improved access and upcoming new stations on the Sotetsu Main Line and Tokyu Toyoko Line.
• Strong demand for new office space in Shin-Yokohama was evident, with a leading chemical
manufacturer expressing early interest in leasing the entire building.
• The project was completed swiftly, attracting immediate interest from a major real estatecompany and leading to a successful sale. This project demonstrated our strengths, completingthe entire process of purchasing, developing, leasing, and selling a 2,300 tsubo scale officedevelopment in just two years.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

12

Case study of property sold in FY Ending March 2024 (5/5)
Improving NOI for a landmark property in ueno
Property Overview
Name

Ueno Okachimachi Commercial
Building

Principal value
improvement method

Increase NOI

Other value improvement
methodCreate land for development,
coordinate/consolidate land rights

Age (at time of purchase)

39 years

Land area

Approx. 400 tsubo (1,320m2)

Floor area

Approx. 2,100 tsubo (6,930m2)

Leasable area

Approx. 1,100 tsubo (3,636m2)

Floor area ratio

700%

Number of stories

5 floors above ground/1 basement
floor

Asset classCommercial

Month and year ofpurchase

October 2022

Month and year of sale

March 2024

Sale valueOver 10 billion yen

May 2024

Photo

Project Highlights• The landmark property in Ueno was acquired from a major foreign fund.
• The strategy focused on the potential to reduce management costs in a commercial complex hosting
approximately 100 tenants. Amidst rising electricity costs exacerbated by the COVID-19 pandemic,
we engaged in detailed discussions with tenants to clarify ambiguities in rental agreements,
significantly boosting the NOI. This initiative demonstrated the proficiency of our PM team.
• Ultimately, a major railway company expressed interest in purchasing the property, appreciating its
excellent visibility and the steady coordination of rights. The buyer highly valued the relationshipbetween our PM team and the tenants, and has entrusted us with ongoing management. This sale
involves our company retaining ownership of the building while continuing to manage it throughout
the term. This project confirmed our ongoing relationship with a major railway company.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

13

Expected Dividend per Share for This Fiscal Year: 196 Yen
Shareholder return policy designed to maximize corporate value
Based on the company's projected net income of 14 billion yen for the current fiscal year and a dividend payout ratio of 40%, the anticipated dividend

per share for this period is 196 yen.
2024/3
Shareholder
returnstrategy•

The annual dividend per share has been set with a minimum of 175•

yen, increased by 120 yen from the previous fiscal year to 175 yen
Targeted a dividend payout ratio of 40%, with the actual payout ratio
settling at 43.1%.

2025/3
Direction of
Shareholder
Returns•

The annual dividend per share will have a minimum of 175•

yen, with this fiscal year's dividend forecast increasing
by 21 yen from the previous period to 196 yen.
The dividend payout ratio is targeted at 40%.

Dividend per share(Unit: Yen)

250

196

200

175

Annual Minimum: 175 yen

150

100

55
50

37

0

2022/3

May 20242023/32024/32025/3 (Forecast)This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

14

For reference: An analysis of stock price and dividend yield
based on a dividend of 196 yen per share.
Implied stock price(Dividend Per Share of 196 Yen ÷ Dividend Yield)
Dividend Yield

Implied stock price (Unit: Yen)

2.00%

9,800

2.11% (Standard market average)

9,289

2.45% (Prime market average)

8,789

3.00%

6,533

4.00%

4,900

4.73% (Company’s recent level)

4,144

5.00%

3,920

6.00%

3,267

7.00%

2,800

Note: The averages for the Standard and Prime markets, as well as the company’s recent level, are all as of May 8, 2024.

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

15

Steady Build-up of Inventory
Significant Increase in Reserved Forecast Net Sales
In Value Creation Services, sales amount reached to 86.8 billion
yen for the FY ending March 2024, which exceeded plans.
Furthermore, reserved forecast revenue as of May 2023 was about
141.1 billion yen. This figure grew over one year to
approximately 207.9 billion yen. (+66.8 billion yen or+47% in about one year.)

For the FY ending March 2025, with a corporate plan targeting an operating profit of 23 billion
yen, the Value Creation Services contributed substantially to the operating profit for the fiscal
year ending March 2024, which was approximately 22.8 billion yen. With the company's plan set
nearly at the same level as last year, the reserved forecast net sales has significantly expanded,ensuring purchases are on track to fully achieve the company's
objectives.

Reserved forecast revenue based on current inventory status and revenues required to achieve target(Unit: million yen)
*Average gross profit margin for all deals(on a weighted average basis) over the
past five years from FY2020/3 toFY2024/3 is 29.9%, and 31.5% for the
FY ending March 2024.

250,000

200,000
Refer to P14 ofdisclosure materials for May 2023

150,000

49,379100,000

207,908

31,338
162,168

141,12250,00081,451

0
Reserved
forecastreserved
net salesrevenue
as disclosed
Estimatedin May 2023

disclosed in May 2023

RealReal
estateestates
for sale for+ forsale +inReal
processsaleestate (end-March)
for sale in process(as of March end)

May 2024

Amountbutproperties
unsettled
PlannedPlannedpurchase balance
for properties
Value ofofcontracted
contracted
purchaseof
to be contracted within the year
which hasproperties
not settled yet and scheduled
properties
tobecontracted
and estimated value improvement costs
estimated costs
for adding value
forwithin the year
to new/existing
properties
Estimatedspend on value
improvement

Total
estimated book
value
Total
expected
book
value

*Company
profit x 22.0%
Estimated
Reserved
revenue
Reserved forecast net sales
based on 22.0% gross profit
marginThis document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

16

Enhanced Operating Leverage with Upscaling of Projects
The personnel resources that are allocated to each real estate project

are not determined by the size of thetransaction

In our Value Creation and Value-Add Services, the shift towards larger properties
has resulted in operating leverage. Consequently, the real estate business hasachieved an average annual growth rate of approximately+14.4% in per capita operating profit over the past five years.

Changes in operating profit and operating profit per employee in the real estate business(Value Creation Services, Value-Add Services, head office costs)(Unit: million yen)

Operating profit (LHS)

Per capita operating profit (RHS)
24,30925,00020,000

250

200
204
16,67315,00013,423

12,888

150

159

133
10,000119*During FY2021/3, sales activities were scaled backdue to the COVID-19 pandemic

100

3,615
5,000

50

33
0

0
FY2020/3

FY2021/3

FY2022/3

FY2023/3

FY2024/3

Notes: Operating profit and employee numbers exclude Future Value Creation Services.

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

17

Maintaining a Strong Balance Sheet
As the business expanded, the borrowing balance
increased by approximately 12.1 billion yen (+28.2%)
compared to the same period last year, while a robust
equity ratio of about 47.8% was maintained,
ensuring a very strong balance sheet. The current
ratio is sustained at a high level of 11.9 times.

Interest expenses currently
amount to only about 600
million yen, and theanticipated impact of potential
interest rate increases is
expected to be minimal.

Balance Sheet for FY Ending March 2024
Current liabilities

This arrangement offers substantial flexibility for expansion andresilience against macroeconomic downturns.

Current Assets(Unit: million yen)

1,363
1%

9.9 billion yen

35,72830%

Non-current liabilities
Current assets

The terms of our bank loans have norestrictive covenants and primarily
consist of long-term loans.

58.1 billion yen

Cash and deposits

118.5 billion yen

Real estate for sale andReal estate for sale in process
OthersNet Assets

62.5 billion yen

81,45169%

Non-current assets

12 billion yen
May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

18

Customer base is expanding as a result of the utilization of smalllot products () with real estate trust beneficiary interests
At the end of 2021, welaunched RAYEX, a smalllot product with real estate
trust beneficiary interests
based on the concept ofmaking real estate
investment more accessible
at a price of approx. 50
million yen per unit.

••

The first series, (generating sales ofabout 6 billion yen with investment
units totaling about 3 billion yen,) andthe second series, (with sales of about
10 billion yen and investment units ofabout 5 billion yen,) have both sold out.
The third series is currently on themarket, (featuring sales of about 10
billion yen and investment units ofabout 5 billion yen,) and is progressing
smoothly.

RAYEX is structured to enhance the asset value of real estateover an operational period of up to 10 years.Based on targeting
properties with significant NOI upside potential andleveraging our expertise in adding value to assets, we aim foran “increase in yield over the investment period” and a“capital gain upon exit.” A virtuous cycle is created whereby
investors who appreciate our ability to improve NOI become
interested in larger physical real estate assets.

Throughout the operational periodof each product (7-10 years), ourcompany performs AM duties.
Therefore, any capital gains that are
generated on exit are shared
between investors and theCompany. In this way, investors andRaysum collaborate in a win-win
relationship to increase asset value.

Attractions of RAYEX for buyers

Direct investment inlarge-scale real estateeligible forsecuritization
Leverage without theneed for borrowing(Raysum handles all
the complex issues)

Theme color makes
PPT moreconvenient toConvenience andpeace of mindchange.
since Raysum
manages the assets

May 2024

Benefit of attractive
yields and twice yearly
dividends(prospective capitalgains on NOI
improvement whenproperties are sold)This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

19

Recording Special Losses in the Future Value Creation Services-RayPower and We BaseIn the Future Value Creation Services, we recorded a total special loss of approximately 4.59 billion yen for the RayPower and We Base projects. These

losses, classified as proactive restructuring expenses, aim to stabilize future performance, with asignificant deficit reduction expected shortly after FY ending March 2025.
Business Details

Reasons for special losses recorded✓✓

RayPower(Emergency
Power
Generator
Business)✓

Production andsale of 3 kVA
and 50 kVA
emergency gas
enginegenerators
Operates undera fabless system✓✓✓

We Base/Etajima
Resort(Accommodati
on Business)

May 2024✓

Managing sevenaccommodation
facilities✓

Recorded approximately 3.05 billion yen in
restructuring losses and non-current assets inthe associated company and 0.21 billion yen of
impairment loss.
Sales of smaller units (3 kVA) have alreadybegun, and development and sales of the firstlarge unit (50 kVA) are complete.
A comprehensive overhaul of the production
and maintenance systems is deemednecessary to stabilize and significantly expand
sales.
Renovations were undertaken in anticipation ofdemand resurgence during the pandemic.
Occupancy rates are recovering, and revenue
is up year-over-year; however, due to delayed
profit recovery at some facilities, conservative
impairment losses of approximately 1.33 billion
yen were recorded for fixed assets.

Future Outlook

✓
✓
✓

✓
✓

Allocated about 1 billion yen for restructuring costs in FY ending
March 2023 and impaired all inventory and non-current assets in
FY 2024, resulting in very limited future impairment losses.
There is high demand for BCP solutions, with numerous inquiries
from major clients.
The goal is to build a robust business foundation to support
medical facilities, senior care facilities, and shelters nationwide for
emergency preparedness.

The aim is to attract both domestic guests and a growing numberof international visitors, which surpassed 3 million in March 2024
for the first time.
The continuation of an increasing ADR and a recovery trend in
occupancy rates almost ensures further revenue growth.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

20

Significant Improvement in Tradable Share Ratio
Through a Series of Corporate Actions Including Share Buyback and Public Offering
During the third quarter of the FY ending March 2024, we executed a Share
Buyback and a public offering. We acquired and canceled shares from Japan
Investment Inc., our second-largest shareholder, through a tender offer, followed
by a public offering, which significantly improved the tradable

The number of shares repurchased through the share buyback
was exactly offset by the number of shares issued during the
public offering, effectively preventing any dilutionof shares from these corporate actions.

share ratio.
Total number of shares issued and tradable share ratio after share buyback through tender offer and public offering (Note)

No increase in total number of shares in issue

As of 03/31/2023

After share buyback and cancellation ofshares acquired through tender offer
Total number of shares issued(LHS)

Post-public offering(Maximum)Tradable share ratio (RHS)
Note: Figures are based on our assumption

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

21

Appendix

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

22

Raysum Business Segments
Details

Operating Profit
FY Ending March 2024

Revenue
FY Ending March 2024
(Percentage of total)(Operating profit margin）

86,841

23,938

92.1%

27.6%

5,223

1,427

5.5%

27.3%

2,201

-1,485

2.3%(NM)Real estate sales business✓Our core business✓
We utilize the following methods to enhance value with a focus on increasing NOI. The methods used in 106 property sales over the
past 5 years are as follows. (For some cases, methods overlap or do not belong to any of the below categories)

Asset value
Value
Creation✓✓

Increase NOI

Change of use/
increase floor area
ratio

Large-scale
Renovation

Create land fordevelopment

New construction
development

Coordinate/consolidate
land rights

59 cases

6 cases

26 cases

19 cases

20 cases

23 cases

We pride ourselves as being one of the few listed players with the expertise to offer the optimal solution from a wide range ofoptions, including complex methods such as those outlined above
Our transactions have covered almost all asset classes over the past five years as shown below (measured by value).
Commercial 45%✓✓

Value-Add
Services

Future Value
Creation
Services

May 2024

Offices 28%

Residential 14%

By region, the majority of our projects are in major cities, with Tokyo accounting for about 60% of projects by value
At the end of 2021, we launched a scheme to commercialize multiple properties in small lots and sell units to individualReal estate leasing and building management✓
Rental income from Value Creation Services segment, management fees and other income from properties that the Company
manages✓
Real estate management services for clients who have purchased real estate from Value Creation Services segment and who retain
the Company to continue to manage their assets✓
As of the end of March 2023 we managed 182 Properties/ 1,960 Rooms

Various business activities leveraging our accumulated real estate expertise✓
Businesses include the operation of lodging facilities, the manufacture and sale of bread and confectionery, the development,
manufacture, and sale of gas engine generators, and support services for advanced medical care✓
Currently operating at a loss, there are signs of improvement, with very limited risk of future impairments. We expect to reduce
losses by the FY ending March 2025.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

23

Key Features of Properties Sold Over the Past Five Years
Office and commercial
projects account for about
70% of our projects.
The Tokyo Metropolitan area
accounts for about 60% of
our projects

We use various
methods of valueenhancement toincrease the value ofour properties

Value improvement
method (by value)

RegionAge

Buyer base(by value)(by value)(by value)(By value)

4%

23%

14%

15%

22%

2%
6%
1%

38%

32%

Increase NOI

23%

20%
19%

45%
OfficeChange of use/increase floor area ratio

Commercial
Large-scale renovation
Create land for development

3%

17%

6%
19%

10%

4%

9%

11%

25%
Tokyo 5 central wards
Tokyo (excl. 5 central wards)
SaitamaResidential

New construction development

Warehouse
Coordinate/consolidate land rights

May 2024

9%

13%
28%

1%

OthersDomestic investors accountfor about 85% of our property
buyers (of which around 23%
are individual buyers and 64%
are corporate buyers)

Asset class

8%

10%

In particular, the Company specializes
in properties that are older than 20
years old. 70% of our projects,
excluding development projects basedon land or leasehold land, are properties
that are over 20 years old

Less than 5 years

Domestic individuals

5-10 years
10-20 years

Domestic corporates

Kanagawa

Osaka

20-30 years

Kyoto

30-40 years

FukuokaHotel

64%*Excluding development projects starting fromland or land with leasehold interest

Others

40 years or more

Overseas individuals

Overseas corporates

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

24

Strong Purchase and Sales Structure, Securing Sufficient Profits
Even During the COVID-19 Pandemic Over the Past Five Years
Over the past five years in the Value
Creation Services segment which is ourcore driver of earnings, we have sold

106 properties
Gross profit margin of
properties sold in past 5 years(Cases)Less than 0%20% or more
Less than 5%1

5% or more
Less than 0%2

10% or more
Less than 15%

106 properties

Average (%)

By number oftransactions

25.6%

By value

29.9%

Gross profit margin of properties
sold in past 5 years by price range

1-2 bn yen

Sale price range of properties soldover past 5 years(by transaction value)
7%

4%
37%

26%

16%

22%

30%

23.2%

27%
31.2%

22
17

5-10 bn yen

33.6%

Less than 1bn yen

1-2 bn yen

Less than 1bn yen

1-2 bn yen

2-5 bn yen

5-10 bn yen

2-5 bn yen

5-10 bn yen

21
10 bn yen or more

30% or more

about 80% of the total.

21.4%

9

15% or more
Less than20%

25% or more
Less than 30%

By value, deals of 2 billion yen or more account for25%

2-5 bn yen

20% or more
Less than 25%

total properties sold were valued under 2 billion yen.

Sale price range of properties soldover past 5 years(by number of properties)
8%

Less than 1bn yen

By number of transactions, approximately 65% of

The average gross margin is 29.9%,with gross profitability tending to be higher
for larger projects

31.3%

10 bn yen or more

10 bn yen or more

32
Note: Excluding minor transactions. All bulk transactions and separately
settled land and buildings transactions are each counted as one case.

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

25

Emphasizing Not Only Gross Margin but Also Property TurnoverRate, Achieving High IRR
We are especially proud of our high median IRR on
transactions over the past 5 years: The median IRR is

Within the product mix, smaller projects tend to have higher unlevered IRR due tohigher turnover, while larger projects tend to have higher levered IRR because theyuse more debt and less equity capital (See P.35 for the definition of each IRR)

45.4% (unlevered) and 77.9% (levered)
Unlevered IRR for Properties Sold
Over the Past Five Years

Less than 0%

14

10% or more
Less than20%

15

106properties
Median45.4%

20% or more
Less than 40%

20

Levered IRR for Properties Sold Overthe Past Five Years

Less than 0%8

10% or more
Less than20%

7

106properties
Median77.9%

Unlevered IRR for Properties Sold Under
2 Billion Yen Over the Past Five Years

Less than 0%

10

10% or more
Less than20%

1068properties
Median57.5%

Levered IRR for Properties Sold Over 2
Billion Yen Over the Past Five Years

Less than 0%

3

10% or more
Less than20%

3

20% or more
Less than 40%

1220% or more
Less than 40%

720% or more
Less than 40%

3

13

40% or more
Less than 60%

1340% or more
Less than 60%

840% or more
Less than 60%

360% or more
Less than 80%

1360% or more
Less than 80%

1460% or more
Less than 80%

960% or more
Less than 80%

380% or more
Less than 100%3

100% or more

80% or more
Less than 100%4

27

80% or more
Less than 100%5100% or more

47

100% or more222

100% or more

properties
Median102.8%

40% or more
Less than 60%

80% or more
Less than 100%38

20

*Includes 41 projects without borrowing.

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

26

Forecast for Record-High Profits
Having fully recovered from the GFC, FY ending March 2024 has marked our company's highest profits ever.
As we enter the final year of our current medium-term plan, we expect to surpass these record earnings again in FY March 2025.

(Unit: 1 billion yen)

Net sales (LHS)

Operating profit (RHS)

140

30

23
120

18
15

100
80

5

7

11

10

8

1

58

60

32
23

May 2024

2

3

6

39

11

14

12

11

7
55

2

17

16

9

8

15

20

28

34

20

94

115

15

68

68

5
0

44
31

25

10

59

40

-14
0

0

1

6

49

40
20

23

32

-5
-10
-15
-20

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

27

Achieved ROE Exceeding Target of Over 20%
Our ROE and EPS growth rate, key metrics for our company, have far exceeded the 8% ROE target set by the Ito Report for Japanesecompanies. Currently, our ROE is at 20.0%, with an average annual EPS growth rate of approximately 23% since FY
ending March 2014. We are committed to driving further growth.

Trends in the Company’s ROE and EPS since the FY ending March 2014
ROE (LHS)
25%

CAGR since FY March 2014:
20.9%

EPS (RHS)

22.5%

500

20.7%

20.0%

20%

400
17.3%

17.1%

406.3

17.2%
15.8%

14.9%
15%

300

13.2%
269.7

10.3%
181.0

10%
200.6

188.1

141.6

128.0

5%

207.9

200

*During FY2021/3, sales
activities were scaled
back due to the COVID19 pandemic

100

108.0
1.4%
53.5

18.1

0%
2014/3

May 2024

2015/3

2016/32017/3

2018/3

2019/32020/32021/302022/32023/32024/3This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

28

Our Commitment to Value Creation
1

A real estate company
that has been focusedon “Creating Value for
Customers”
since its founding, andhas a value as one andonly platformthat solves issues
faced by customers
and society

May 2024

2

Ability to solve issues,
gained by continuously engaging head-on with the value creation for customers•

The ability to source properties and to “transform properties”, nurtured throughour experience handling highly complex projects (coordinating and consolidating
land rights, and/or resolving the mismatch between tenants and the property)
which are hard for peers to engage with•

Our property management capabilities, continuously enhancing the intrinsic valueof properties, as a result of our track record of directly managing and operating
various properties•

By continuously engaging in leasing activities that are not bound by comparable
properties nearby and precedents, attained the ability to secure high levels ofrent that last into the future. The ability to increase NOI through synergies with
our property management expertise

Strong balance sheet supporting our business, as well as
our funding capability backed by long-term relationshipwith financial institutions, and future expectations forbusiness expansion

3

Strong relationship of trust withcustomers, built up by providing themwith high scarcity properties.
Distinct from companies that deal in realestate as a commodity

Strong senior management team, rich in experienceand the will to take on challenges, that serves as thefoundation for our value creation ability
overwhelming peers

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

29

A Unique Platform with the Capability to Increase Real Estate NOI
Hypothesis

Price aftervalue
creation

Value Enhancement

Sale

Pursuit of essential
customer value

Further valueenhancement
after sale to thecustomer

Added value creation
unconstrained byconventional wisdom

Value enhancement methods ×
Diverse asset experience

Creative
Value

Increase
NOI
Purchasing
capability
that
discoverslatent value

Generalmarketprice

Inherent
value
that ispresent
but not
realized
Value

Large-scale
Renovations

New
construction
development

PM
ProposalCapability tomeet
Customer
Needs
Stabilityproducing
PMcapabilities

Creation, planning, andleasing capabilities
Change ofuse/
Increase of
Floor area
ratio

Coordinate/c
onsolidate
land rights

Additional
value after
sale to thecustomer

Added value fromvalue
enhancement

Customer

Customer Needs & Customer Value

We have the “ability totransform properties”
thinking back from theneeds of customers
and tenants, andmaking full use ofvarious value creation
methods

Purchase

Create landfordevelopment

The power to transform
real estate

Exit schemes
anticipating
future value
Additional costs

Purchaseprice

Our purchase
price

Potential
Properties

The power to transform real estate

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

30

Mission and Vision : Creating Value for Our Customers
What constitutes value and quality assets for our customers

The source of Raysum's value creation(Customer Value)(Our Value)11Long-Term Stability

The succession of assets is inherently a long-term plan. Therefore, the real estate ourcustomers own must generate stable, long-term income. We focus on identifying properties
that can yield stable, long-term profits. By enhancing and transforming initially unstableproperties, Raysum ensures that these assets provide enduring stability for our customers
post-acquisition.

2

High Liquidity

Real estate is typically viewed as a highly illiquid asset under tax laws, yet incorporating it strategicallyinto asset succession plans can prove beneficial. Properties developed by Raysum undergo meticulous
renovations, conversions, and new developments to optimize tenant compatibility, thereby enhancing
their marketability and liquidity. This transformation repositions these assets as vibrant social assets,adding substantial value for our customers.

3

Uniqueness

Each property possesses its own unique characteristics. However, those that are universally admired
not only retain a high rarity value but also enrich the surrounding community, evolving into valuable
social capital. Like diamonds, the more these properties are retained and cared for, the more theirinherent value shines through, making them uniquely valuable assets for our customers.

May 2024

Unmatched Individual Strength (Challenge)

Many of our projects originate from the foresight and spirit of challenge exhibited by individual
employees. Our team members embrace changing times not as obstacles but as significant
opportunities to unearth value. This culture fosters a strong ability to tackle and overcome
challenges independently, unlocking Raysum's greatest potential.

2

Unified Diversity (Teamwork)

The creation and maintenance of high-quality real estate assets demand a broad spectrum ofexperiences, knowledge, and execution capabilities—too complex for any one person to
manage alone. At Raysum, the synergy of diverse individual strengths through teamwork is
not just instrumental but essential. Each member contributes their best, earnestly leveraging
one another’s capabilities to maximize the collective potential of our company.

3

Overwhelming Speed (Speed)

To keep pace with rapid external changes, we adopt a proactive approach that emphasizes"speed" in all our operations, surpassing the rate of external fluctuations. This agility in action
leads to swift market responses. This maximizes the business value of Raysum created by Unified
Diversity, facilitating new encounters with customers and partners, and expanding the horizons of
new business areas.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

31

The Source of Our Power to Transform Real Estate

Due diligence andsourcing capability
accumulated throughthe acquisition of nonperforming assets.

Post-IPO to Lehman
Shock 2001-2011

We capitalized on recognizing
and unlocking inherent but
unrealized property values,
generating profit through value
recovery.

We capitalized on recognizing
and unlocking on inherent values
while pioneering creative
approaches to value creation.
Enhanced our purchasing
capabilities by identifying latentvalues overlooked by others.

Built a track record with a broad
range of value-enhancement
methods and assets.

Accumulation of Strengths

Experience and trackrecord of providing
tailor-made Added
Value to high-net-worth
individuals

Foundation to IPO
1992-2001

2012-2018
Built the power to transform
real estate.
(expansion of creative value)
Grew our scale and developed
relationships with institutional
investors and businesscorporations.

New Management Structure
2018-2023

Strengthened our partnerships
with financial institutions andbusiness partners.
Expanded our reach to overseas
corporates and affluent individuals
Transactions with overseas
corporates and affluent international
individuals

Flexible exit schemes
anticipating future value
Corporate Customer Base (Personal expertise elevated to serve
corporate clients.)

Purchasing capability to discover further potential value.
Diverse value-enhancement practices and experiences due to the increasing variety of handled property types

PM capabilities that ensure stability while continuously working to enhance value.
A solid customer base of individual high-net-worth clients
Property evaluation (DD) skills developed through the ancestral non-performing loan acquisition business
Proposal Capability to meet Customer Needs

Individual Needs
Affluent
Individuals

Business Succession(Inheritance)
Incomegenerating
assets
Personal use

May 2024

OthersOur Company

Increase NOI
Large-scale renovation
We have continuously met theneeds of individual high-netNew construction
Change of use/increase
worth clients and established afloor area ratio
development
foundation for value
Coordinate/consolidate
Create land forland rights
development
enhancement methods.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

32

Our Market Share of the Real Estate Industry is Still Small
The Japanese real estate market is said to be worth
approx. 2,900 trillion yen. We can satisfy the needsof all types of clients, including individuals,
public institutions and corporations

In FY2023/3, our revenue in the Value Creation Services segment were 61.4 billion
yen, and the value of transactions in the real estate market in 2020 was 4.363 trillion
yen. On this basis, our revenue only accounted for 1.4% of the real estatetransaction market. Therefore, we see significant upside potential

Japanese real estate market 2,900 trillion yen
Nationwide real estate

1,350 trillion yen

280 trillion yen

1,000 trillion yen

J-REIT, private real estate, etc.

550 trillion yen

45 trillion yen
Tokyo

Approx. 50%
Individually owned

Publicly owned

150 trillion yen

Corporate owned

Commercialization invarious fields
Source: Compiled by Raysum from the Ministry of Land, Infrastructure, Transport and Tourism's "National Accounts 2020", NLI Research Institute's "Japanese Real Estate Investment Market", and Mitsui Trust's "Survey on Private Real
Estate Funds."
This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
May 2024
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

33

Our Specialty Area is Old and Small/Medium-Size Properties.
This is the fastest-growing segment in the real estate industry
The market for leased office space is worth more than 20 trillion

yen. Offices of less than 5,000 tsubo (16,500m2) in buildings that are 20
years old or more account for more than 80% of the total officespace in the five central wards of Tokyo. This market will continue to growas the buildings age

Although we handle a wide range of projects, 70% of our transactions interms of value are for properties over 20 years old, making us thestrongest and most established player in this growing market. We have an
unrivaled track record of accumulated expertise and are well-placed tocapitalize on growth opportunities

Age Pyramid of Offices in the Five Central Wards of Tokyo (Total 6,862 Buildings)
Small and medium-sized(Floor area: 300-5,000 tsubo)(990-16,500m2)
6,310 properties

Old earthquake standards:
1,659 properties (26%）
Over 20 years old：
5,371 properties (85%）

Less than 20 years old:939 properties (15%）

Large-scale(Floor area: 5,000 tsubo or more)(16,500m 2)552 properties

Old earthquake standards:
101 properties (18%)
Over 20 years old:Age
330 properties (60%）(No. of years
since construction)Less than 20 years old:222 properties (40%）

Number of properties (buildings)
Source: Compiled by Raysum from XYMAX REAL ESTATE INSTITUTE Corporation materials.
This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
May 2024
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

34

Definitions of Unlevered IRR and Levered IRR
Unlevered IRR
A metric that assesses the total return on a real estate
investment without taking account of borrowings orborrowing costs
Example 1

Example 2

Example 1

Sell a property at 100 in one year at a gross profit margin of 15%

2022/1/1 2023/1/1(100.0)115.0(100.0)
115.0

Purchase cost
Sale value
Total CF

Gross profit
No. of days owned
Unlevered IRR

15.0
366
15.0%

Invest 20 to increase the value of a property valued at 100 and sell in six
months with a gross profit margin of 15%

Purchase cost
Investment in enhancing value
Sale value
Total CF2022/1/1 2022/2/1 2022/7/1(100.0)(20.0)
138.0(100.0)(20.0)
138.0

Gross profit
No. of days owned
Unlevered IRR

18.0
182
33.6%

We have a policy of not making investments based on the rental
income generated by properties, and we do not include rental
income in our IRR calculation (we believe this is more conservative
than calculation of actual IRR)
May 2024

Levered IRR
A metric that assesses the return on a real estate
investment based on funds available taking into accountthe leverage effect of debt
Purchase a property for 100 utilizing 70% debt. Sell the property within
one year of purchase with an interest rate of 2% per annum and a grossprofit margin of 15%

Purchase cost
Borrowing
Interest
Sale value
Repayment of borrowings
Total CF

Example 2

2022/1/1 2022/7/1 2023/1/1(100.0)
70.0
(0.7)
(0.7)
115.0
(70.0)(30.0)(0.7)
44.3

Gross profit
No. of days owned
Levered IRR

13.6
366
44.9%

Purchase property for 100 utilizing 70% debt. Invest 20 to increase thevalue. The interest rate on the loan is 2% per annum, gross profit margin is15%, and the property is sold within six months of purchase

Purchase cost
Borrowing
Investment in enhancing value
Interest
Sale value
Repayment of borrowings
Total CF2022/1/1 2022/2/1 2022/7/1(100.0)70.0(20.0)(0.7)
138.0(70.0)(30.0)(20.0)
67.3

Gross profit
No. of days owned
Levered IRR

17.3
182
90.1%

Notes: All monthly cash flows are assumed to occur on the last day of the month.

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

35

This document was prepared to provide information related to the business overview and management strategies ofRaysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual.
Any opinions, forecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information.
Furthermore, the information is subject to change without notice.

Contact Information
Administration Division,
Public Relations Division
Raysum Co., Ltd.
TEL 03-5157-8881
http://www.raysum.co.jp

May 2024

This document was prepared to provide information related to the business overview and management strategies of Raysum Co., Ltd. and related entities and does not constitute a solicitation to purchase any securities issued by
Raysum. Choosing shares and making final investment decisions should be done at the discretion of the individual. Any opinions, for ecasts, etc. contained in this document are based on the views of Raysum at the time it was
prepared, and Raysum does not promise or guarantee the accuracy or completeness of such information. Furthermore, the information is subject to ch ange without notice.

36