Annual Report
Fiscal Year Ending Dec. 31, 2018【English Summary】】

3452 TSE, First Section
Feb.14,2019

To Our Shareholders

We will continue to make rapid progress during
our next growth stage
We would like to take this opportunity to express our sincere gratitude to our shareholders.
We announced upward revisions to our financial forecast in December were able to exceed our initialprojections for net profit by 39%. Additionally, we have announced a large increase in dividends, raisingthem to 2.5 times what they were in FY12/17.
Although we faced some challenges while planning and meeting our targets, as both sales and profit for theyear were primarily supported by the sale of just over 20 real estate properties, we were able to continue ourtrend of exceeding our initial forecasts each term. As a result, we recorded year-on-year increases in bothrevenue and profit for the eight consecutive term in FY12/18.

B-Lot Co., Ltd.
President

Makoto Miyauchi

In FY2019, we will launch new businesses lines in addition to expanding our existing businesses utilizing ourgroup strengths of spirit of challenge, flexibility and creativity, as well as our network.
We look forward to receiving further support from our stakeholders as we strive to achieve our tasks.

Mid-term Business Plan Leading up to Our Next Growth Stage in 2020
Derivative increase in in-house expertise
Domestic
operations

Investment
development

Establishment of a new earnings structure▶ Focusing on regional cities and resorts withgrowing populations and an increasing numberof inbound tourists▶ Establishing expertise concerning
human resource diversification.

Overseas
expansion▶ Implementing overseas investment andexpanding overseas network of investors▶ Raising inbound investment into Japan anddeveloping channels to individuals of high net
worth▶ Holding medium- and long-term incomegenerating assets and developing new products.
▶ Investing in and collaborating with growing
companies.

IT
strategy▶Improving operational efficiency with IT.
▶Developing innovative products with Real
Tech. Reaching out to more buyers andinvestors through SNS.

Returns for Shareholders

Significant dividend increase for the third
consecutive year

Per share

11 %

*１

Dividend payout
ratio

FY12/18

shareholders than at the time of ourinitial public offering

3,878

3,500

Total yield*3 on purchaseof 100shares5.34%*1: Year-end dividend = adjusted for stock split in January 2018
*2: Dividends = To be discussed at the Ordinary General Meeting※３of Shareholders scheduled for March 2019
*3: Total Yield =(Amount equivalent to shareholder benefits + Annual
dividend)/(Closing price on December 28, 2018 x 100 shares)

FY12/16

number of Reached eight times moreshareholders

Shareholder Benefits
Record Date

December 31, 2018

Shares held

100 shares (one unit) or more

QUO card

1,000 yen

Stock Ownership Association

3,000
2,500
2,000
1,647

1,500

1,629

1,769

1,000
500

yen *２

FY12/17

Increase in the Number of Shareholders

4,000

50
20 %

19.5 yen
12 %8.5 yenYear-end
dividend

Dividend increase

487

0
14/12

15/12

16/12

17/12

18/12

Objectives▶Employee benefits and participation in management▶Stable, long-term growth in the number of employee
shareholders

Incentive

10% of contributions

Timing of first
Purchase

Scheduled for April 2019

Ⅰ. Company Profile

Ⅰ. Company Profile
Ⅱ. Performance Review
Ⅲ. Business Summary

P.05-13
P.15-18
P.20-29Company Profile ＝as of Dec. 31, 2018＝
Company Name

・・・FY12/18・・・
・・・
・・・

B-Lot Company Limited

Head Office

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

Establishment

October 10, 2008

CapitalJPY 1,024,017,683

President

Makoto Miyauchi

Number of
Employee

54 employees

Listed Date

Dec.11, 2014 （TSE Mothers Section : 3452)
Feb.02, 2018 （TSE, 1st Section : 3452)

Offices andSubsidiaries

Hokkaido, Fukuoka, Osaka
B-Lot Asset Management Co., Ltd（100％ Subsidiary）
B-Lot Singapore Pte., Ltd.（100％ Subsidiary）(201 as Consolidated)

Life Stage Corporation（100％ Subsidiary）
B-Lot Capital Link Co.,Ltd （100％ Subsidiary）
T&K Co.,Ltd.
B-Lot Co., Ltd. All rights reserved. 5

The three founders

・・・FY12/18・・・
・・・・・・

Makoto Miyauchi Representative Director and President （Born in February 1969)
Acquired BA in Political Science at Keio University, Tokyo and MBA at University of Washington, 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 of real estate value-up.
Held a number of seminars mainly about revitalization.
B-Lot Co., Ltd. All rights reserved. 6

History

・・・FY12/18・・・
・・・
・・・

The logo is ・・・
a symbol of our foundation.
Passion

Sincerity

Brightness

Total
harmonization

The rounded corners of the squares express flexibility and balance.

The company was established in October 2008, and all three founders had different areas of expertise and networks.
President Makoto Miyauchi has a strong background in finance, Deputy President Shinichi Hasegawa’s has extensive
expertise in consulting and customer development and Deputy President Masahiro Mochizuki is skilled in property
revitalization (acquisition and sales). Previously, they managed a real estate company listed on the TSE 1st Section.
In December 2014, B-Lot listed on the TSE Mothers market with 27 employees, just six years and two months after its
founding, which was faster than any other real estate company following the global financial crisis.
In February 2018, the company transferred its listing to the TSE 1st Section.
B-Lot Co., Ltd. All rights reserved. 7

Revenue and Profit Trends

・・・FY12/18・・・
・・・
・・・
2018.2

TSE 1st Section(Millions of yen)

2018.430,000T&K Group

Revenue
売上高

2018.4

B-Lot CL

Profit for the period
当期純利益26,3002,862

2017.1Company establishment and M&A

Viento creation

Branch establishment

20,2672,372

2016.4

Life stage

1,960

2016.92015.2

B-Lot AM

Osaka

B-Lot SG2014.12TSE Mothers IPO
2013.09
2011.04

B-Lot

Hokkaido

Earnings
forecast

1,250

6,950

3,709

Fukuoka2008.10

13,097

11,6262015.5

588
400
176

2009/12. 2010/12. 2011/12. 2012/12. 2013/12. 2014/12. 2015/12. 2016/12. 2017/12. 2018/12. 2019/12. 2020/12.

■Tokyo Residence■Tokyo RetailStarted renovation
business.

Started brand-new
business line.

■Tokyo Capsule■Tokyo Capsule

First conversion of office building into a
compact hotel.

■Hokkaido (Niseko) Condominium

Condominium sold to high-networth foreign individuals
B-Lot Co., Ltd. All rights reserved. 8

Business Outline

・・・FY12/18・・・
・・・
・・・

With 3 core businesses, B-Lot build close relationships
with high-net-worth clients.

B-Lot Co., Ltd. All rights reserved. 9

1. Real Estate Investment and Development Division

・・・FY12/18・・・
・・・
・・・

Acquire properties with profitability and regulatory issues→solve these issues, thereby increasing property value
using specialist
expertise
Acquisition of properties
with issues

Planning
andincreasing value- Raise revenue- Cut down expense- Correct infractions- Improve cap rate

Revitalization

B-Lot sees potential in buildings that are highly costly, have low value or have been used illegally or
maintained poorly. Our investment team will make those buildings shine again with creative planning basedon deep knowledge of and specialized expertise in real estate.

Development

B-Lot catches the latest trends in real estate and implements creative plans in developing products.
Even in a tough market, we develop sites with reasonable prices through our strong and solid networks.
B-Lot Co., Ltd. All rights reserved. 10

2. Real Estate Consulting Division

・・・FY12/18・・・
・・・・・・

Build close and long-term relationships with individuals of high net worth andcorporations, potential buyers in a competitive real estate market
Seller- Individuals of high net worth- Corporations- Real estate funds- Real estate firms- Financial institutions- Debt collect agencies- Lawyers

Brokerage

Buyer
Sellingdemands

Information
regarding sale

Information
regardingpurchase

Purchasedemands- Individuals of high net worth- Corporations- Property owners- Real estate funds- Real estate firms

Consulting

B-Lot offers comprehensive consulting services such as trust beneficiary interest transactions, brokerage of property sales, leasing,proposals for property exchanges and effective utilization of unused land and rent negotiation services.
Our consulting team always carefully listens to clients needs and concerns in order to provide optimal and unique solutions tailored tothem. This enables us to build life-long relationships with our clients.

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

3. Real Estate Management Division

・・・FY12/18・・・
・・・・・・

From property management to structured projects, B-lot offers
services tailored to each client
Owned properties

Asset management
Real estate securitization
B-Lot arranges and proposes structure for clients who want to set
up an SPC for real estate purchase.

Asset management
B-Lot uses its experience in brokerage and evaluating andmanaging properties, as well as its specialized knowledge in asset
finance and networks, to provide asset management services.

Property management

Leasingmanagement

RetailOffice + Residence

Steady rent income for cash flow

Account
services

Building maintenanceConstruction management

Rent income from our own properties is a core revenue
for the Property Management division. All rent, including
rent acquired by the Investment division is booked in theProperty Management division.

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

Medium-Term Outlook

・・・FY12/18・・・
・・・
・・・

We maintain an earnings target of net income growth of 20% or higher,
fulfilling a long-held business indicator.
The B-Lot Group will continue working to achieve earnings targets so it canreturn profits to shareholders.
Enhancement of shareholders’ equity is also an important issue for long-term,
continued growth. The company aims to engage in capital-raising efforts andboost profits to meet the targets below.
◆ Medium-term management plan targets (FY12/19–FY12/20)
Previous year’s
results

Forecast period

FY ended Dec. 2018 FY ending Dec. 2019
Consolidated

revenue
Consolidated

operating profit
Consolidated

ordinary income
Consolidated

net profit(Millions of yen)

YoY change(%)

FY ending Dec. 2020

YoY change(%)

20,26726,30029.8

30,000

14.1

3,307

3,738

13.0

4,552

21.8

2,832

3,360

18.6

4,121

22.7

1,960

2,357

20.2

2,843

20.6

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

Ⅱ. Performance Review

Ⅰ. Company Profile
Ⅱ. Performance Review
Ⅲ. Business Summary

P.05-13
P.15-18
P.20-29

Ⅰ-１. Summary

・・・FY12/18・・・
・・・
・・・

Achieved eight consecutive years of growing sales and profits
Consolidated net income surged 56.8% year on year

Increases in project scale achieved over the past few years havemade a significant contribution to earnings.

A proven debt financing track record of more than 150 transactions
Disclose medium-term business plan in pursuit of continuous growthPlan to achieve consolidated net income of more than JPY2.8bn in FY2020.
Aiming for growth of 1.45 times over the next three fiscal years.

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

Ⅰ-２. Performance Highlights

・・・FY12/18・・・
・・・
・・・

Net profit and other KPI shows a sound growth
Ordinary
incomeRevenueUP¥20,267
Million(Millions of yen)

1.7 times in

20,00054.7％YoY

Net profitUP¥2,832

41.7％YOY

Million(Millions of yen)

20,267UP¥1,96056.8％YOY

Million(Millions of yen)

3.2 times

3,000

3 years

2,832

3.3 times

2,000

over 3 years

1,960

over 3 years

2,500
1,500

1,998

15,00013,097

1,250

2,000

11,6261,500

10,000

1,000

1,000

588

874
500

5,000
500

0

0

2016/12.

2017/12.

2018/12.

0

2016/12.

Note: In this presentation, net profit attributable to shareholders of parent is shown as net profit.

2017/12.

2018/12.

2016/12.

2017/12.

2018/12.

B-Lot Co., Ltd. All rights reserved. 16

Ⅰ-３. Consolidated PL/ BS Summary

・・・FY12/18・・・
・・・
・・・

1. With a substantial increase in net assets.
2. Borrowed with a long-term shift.
Consolidated P&L Summary(Millions of yen)Dec. 2017

Dec. 201813,097

20,26754.7％

10,98017,208

56.7％

1,277

1,037

△18.8％

838

2,021

141.0％

4,397

5,797

31.8％

2,031

2,490

22.6％

Operating income

2,365

3,307

39.8％

(1) Real Estate Investment
and Development business(2) Real EstateConsulting business(3) Real EstateManagement business
Other (company-wide
expenses)

2,316

3,039

31.2％

408

282

△30.7％

443

901

103.5％

△801

△917

14.4％

Ordinary income

1,998

2,832

41.7％

Net profit for the period

1,250

1,960

56.8％

Revenue(1) Real Estate Investment
and Development business(2) Real EstateConsulting business(3) Real EstateManagement business

Gross profit
SG&A

Consolidated BS Summary

YoY change(Millions of yen)Dec. 2017

Dec. 201819,10924,26827.0％

Current assets

16,761

21,726

29.6％

Fixed assets

2,317

2,507

8.2％

31

34

12.5％

15,10018,242

20.8％

Current liabilities

9,137

6,057

△33.7％

Fixed liabilities

5,962

12,185104.3％

4,009

6,025

50.3％

19,10924,26827.0％

AssetsDeferred assets

Liabilities

Net assets
Total liabilities
and net assets

YoY change

Notes: Consolidated P&L: T&K group is included in the P&L from Q3 FY2018.
The above revenue does not include internal transactions between segments.
B-Lot Co., Ltd. All rights reserved. 17

Ⅰ-４. Data (Reference Material)

・・・FY12/18・・・
・・・
・・・

EPS & BPS

ROE, ROA

800

756.83
EPS (JPY)

700

BPS (JPY)

ROE（％）ROA（％）

40.0

12.0

39.3
36.6

35.0

10.0

32.3
600

30.0

9.0

520.55500
366.89400

20.0

313.26300
200

162.77148.87
95.84

100

34.48

40.59

2013/12

2014/12

56.30

75.29

2015/122016/12

23.5

5.6

7.0

22.4

18.6

6.0

5.3

15.0

251.65

8.0

25.3

25.0

4.5

4.4

Average ROEof competitors

10.0

4.0
2.0

5.0

0

0.0
2017/122018/120.0
2013/12

2014/122015/122016/122017/122018/12*Average of competitors is calculated by B-lot using six listed companies that conduct real estate
revitalization as their main businesses and have ROEs of over 10%* ROA and ROE have been partially modified from figures included in the previous annual report.

Profit Ratio

Capital to Asset Ratio
7,000

30.0

Net worth
Worth(Millions of yen)Net
CapitalAsset ratio
RationCapital toto asset
(%)

6,000

20.0

25.0

5,000

24.3

4,000
16.4

18.6

15.0

3,000

9.8

10.2

8.2

8.0

2,430

1,000
417

2013/12

2014/12

9.4
10.0

4,008

5.0

977

0

0.0
2013/12

2014/122015/122016/12

7.5

5.0

2,818

14.0

10.1

10.0

5,974

2,000

15.3

11.5

20.0

17.0

16.3

OrdinaryProfit
profit ratio
Ordinary
Ratio(%)

15.0

21.0

18.1

NOIRatio
ratio（％）
NOI

24.6

2017/122018/120.0
2015/122016/122017/122018/12

B-Lot Co., Ltd. All rights reserved. 18

Ⅲ. Business Summary

Ⅰ. Company Profile
Ⅱ. Performance Review
Ⅲ. Business Summary

P.05-13
P.15-18
P.20-29

Ⅱ-1.Real Estate Investment and Development Division

・・・FY12/18・・・
・・・
・・・

Segment profit was JPY3.0bn (+31.2% YoY).
Revenue
売上高
Operating profit
営業利益17,208

9,977(Millions of yen)

10,980 3,039
Value of Inventory

6,137

2,316

3,236

310

839

loss

1,896

989

464
2013/12.

2014/12.

2015/12.

2016/12.

2017/12.

2018/12.

An increase in equity capital led to
an increase in real estate for sale.
自己資本
Equity capital (Millions of yen)

14.5

販売用不動産残高
Real estate for（仕掛含む）
sale

4,008

1 billion

１

Sound growth in sales and inventory

2

Strong pipeline in debt financing

billion

5,974

Publicoffering

Segment Summary

2,819

Approx 1.2 million
shares inunexercised stock
subscription rights

・An increase in equity capital led to an increase in real estate for sale.

・Have good relations with financial institutions.
・Debt coverage ratio 93.7% (non-consolidated).

3 Unit price per transaction up 4.2 times
・Average sales price increased significantly compared to 2014.

2014/12.

2015/12.

2016/12.

2017/12.

2018/12.

B-Lot Co., Ltd. All rights reserved. 20

NAHA HOTEL ProjectFirst development project in Okinawa.

Epoch
Making!

・・・ Project summary・・・
・・・

１ Purchased development site.

２

Working with local partners.

Our strong relationship with partners isa key to the success of this remotely
located project
Gained significant attention in local
３business society in Okinawa

Access by car
Expand synergistic projects

from Naha Airport.
Leverage the experience fromthis project to further grow ourbusiness in Okinawa

B-Lot Co., Ltd. All rights reserved. 21

Prime and unique location

Residential building into
vacation rental accommodation
on website

Page views

District 1
Tokyo

And more...
Purchase inquiries comebefore sales activities begin.
Create attractive products a few steps
ahead of competitors.
Fukuokaholding period
after completion

B-Lot Co., Ltd. All rights reserved. 22

Upcoming properties for sale
Create attractive products ahead of the changing Needs of clients2017.92017.122018.32018.42018.6

Kyoto

Tokyo

Otaru

Tokyo

Kyoto

CapsuleHostelCapsuleHotel

2019.2

2019.32019.72019.12

FukuokaOsaka

Fukuoka

Kyoto

Hotel

and more…

Coming Soon
2020〜
ResidenceTokyo
HostelFukuokaResidence

HostelResidence

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

Ⅱ-2. Real Estate Consulting Division
Segment profit was JPY283mn (-30.7% YoY).
1,277

Revenue
売上高
Operating profit
営業利益(Millions of yen)

408

767

1,037

・・・FY12/18・・・
・・・
・・・
Segment summary
１ Expanded to include new services
Made progress and exhibited the advantages of cross-group
Synergies (e.g. M&A Brokerage, etc.)

345

282
169

２ Analyzing the results
Revenue was down 18.8% due to booking delays on contract sales

197

162

and brokerage projects.

78
2014/12.

2015/12.

2016/12.

2017/12.

2018/12.

Acquired large projects thanks to our strong
track record as a sales agent

Breakdown of sales(Millions of yen)

FY2017FY2018Brokerage
売買仲介

Increased
outsourcing demand
from developers

業務受託
Consulting

329
883

M&A Brokerage
M&A仲介

236
65

693

Units handled as
sales agent

販売受託
Sales agent

56
52
NEW！
B-Lot Co., Ltd. All rights reserved. 24

Ⅱ-3. Real Estate Management Division
Segment revenue was JPY2.0bn (+141.0% YoY)
2,021

Revenue
売上高
営業利益
Operating profit(Millions of yen)

275

881

838

458

443

2016/12.

2017/12.

Segment summary
１ Both revenue and profit doubled
Subsidiary company, T&K, contributed to Q3 sales.
Rent income increased due to the completion of a hotel

901
639

・・・FY12/18・・・
・・・・・・

Buildings undermanagement

397

Rental income from
owned properties

88
2014/12.

2015/12.

2018/12.

Number of tenants and total floor area
1,600

総賃貸可能面積
Total leasable(㎡)floor area (m2)

1,400
Total no. of
tenants
総テナント数(件)

120,000
100,000

1,200
1,000
800
600

80,000PM

Received multiple orders fromrepeat clients in Fukuoka.

60,00040,000400
200
020,0000
14/1 14/7 15/1 15/7 16/1 16/7 17/1 17/7 18/1 18/7 18/12
B-Lot Co., Ltd. All rights reserved. 25

Next growth stage

Diversifying service and products

Providing One-Stop Investment Opportunities
for Affluent Customers Overseas
１

Seeds
Asset
Created by B-Lot

ALL in One package

ALL inOne
package

Select a prime seed asset.

１ Select partner companies.
HNWI
overseas

Imano Tokyo

Ginza
２
SPC

Assetstranscends boundaries andcultures３
B-Lot
Singapore Pte. Ltd.

Debt

４

(real
estate)４

Continuous follow-up
Conducted by B-Lot
expert groups

We enable secure real estate
investments in Japan

B-Lot. Co., Ltd.
CapitalFormation of special
purpose company
Financing and organization

３ Close investor follow-up that

B-Lot
Asset Management Co., Ltd.
Lenders２

TenantInvestment
HNWI = high net-worth individuals

B-Lot Co., Ltd. All rights reserved. 27

Activating foreign clients to invest in JapanEntered into the 4rd year, Singapore subsidiary has been contributing more strongly to the group profits. Build strong clientsbase and close deals with repeat clients.

Private Event at SG

Viewing

Sold out ！
NisekoViewing

Sales
Proposal

B-Lot Co., Ltd. All rights reserved. 28

EpochSpectacular Re-Development Plan

Making!

Mt. Fuji↓

Enoshima↓▶Senior housing located on a hilltop
in Kamakura with over 7,100 square
meters of land
▶Built in 1969
▶Unique and excellent view of
Mt. Fuji and Enoshima island

Rebuild a brand-new, safe and comfortable home for more seniors From 44 beds to 88 beds (planned)

Enoshima

Artist rendering

Mt. Fuji

Artist rendering

B-Lot Co., Ltd. All rights reserved. 29

・・・・・ Contact us ・・・・・
Corporate Planning Department
Tel ：+81 3-6891-2524
Fax：+81 3-6891-2522
E-mail ir@b-lot.co.jp
URL : https://en.b-lot.co.jp/

DISCLAIMER
Except for historical facts, all plans, forecasts, strategies and other information contained herein are forward-looking statements. Forwardlooking 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 thetime of publication. Various factors could cause results to differ materially from any projections presented herein. The Company reserves theright 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.