FY20/2 Q3 Corporate Presentation
January 10,11, 20202019
Ichigo (2337)
© Ichigo Inc. All rights reserved. | www.ichigo.gr.jp/en |
Make The World
More Sustainable
© Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
© Ichigo Inc. All rights reserved.
Contents
FY20/2 Q3 Earnings
- FY20/2 Q3 Summary
- Operating Profit +22%, Net Income +24%, EPS +26% (YOY)
- Segment Earnings Details
Powerful Value-Add Business Model Underpins Growth
- Business Model (1) Stock + FlowEarnings
- Business Model (2) Embedded Forward Earnings
- Business Model (3) Value-Add Drives Durable Value Growth
- Business Model (4) Robust Cash Generation
- Strong Financial Base
Sustainable Growth as a Sustainable Infrastructure Company
- SRE: Selective on Acquisitions & Sales
- SRE: Q3 Asset Sales
- SRE: Value-Add Case - Tradepia Odaiba
- AM: Growth Support for TSE REITs & YieldCo
- CE: Scaling Rapidly (In-Development Plants +66%)
- CE: FY18/2 - FY20/2 New Plant Development
- Sustainable Infrastructure Initiative: Hotel Business Expansion
- Sustainable Infrastructure Initiative: Working Closely with Local Communities
- Launch of Ichigo J.League Shareholder Program
- Share Buyback
Appendices
Ichigo's Sustainability Commitment (ESG)
- Ichigo Sustainability Policy
- Ichigo ESG - Environmental
- Ichigo ESG - Social
- Ichigo ESG - Governance
Financial & Real Estate Data
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
- Go for Growth
- Go Beyond Real Estate to Address Broad Needs
- KPI Targets
- Shareholder Return Policy
- FY20/2 Initiatives
Ichigo 2030: New Initiatives
- Top Partner of J.League, Japan's Professional Soccer League
- Hotel Operator Market Entry: Hakata Hotels
- Ichigo Animation: Anime + Real Estate Synergies
- Real-WorldAugmented Reality (AR) Game TSUBASA+
Power Up 2019Mid-Term Plan Achievement
© Ichigo Inc. All rights reserved. | 5 |
FY20/2 Q3 Earnings
© Ichigo Inc. All rights reserved. | 6 |
FY20/2 Q3 Summary
Durable Earnings Model
Robust Stock Earnings
Stock Earnings/Fixed Expenses
Depreciation | |
+4% | 1,800 |
1,180 | |
12,504 | 12,471 |
FY19/2 Q3 | FY20/2 Q3 |
Asset Management (AM)
1,543 | 1,599 |
FY19/2 Q3 FY20/2 Q3 |
Sustainable
Real Estate (SRE)
395 | 983 |
9,265 | 9,208 |
FY19/2 Q3 FY20/2 Q3 |
(Gross Profit: JPY M)
Clean
Energy (CE)
784 | 816 |
1,695 | 1,662 |
FY19/2 Q3 FY20/2 Q3 |
SRE: Strong Flow Earnings
- Q3 Asset Sales: JPY 58B
- Gains on Sales: +39% YOY & 2.8X Unrealized Gains
- GPM: 29%
Share Buyback
- Amount: JPY 3B
- No. of shares purchased: 7,081,200 shares (1.4% shares outstanding)
- Average share price: JPY 424
Hotel AI System: PROPERA
- AI-basedhotel revenue management system
- Non-assetbusiness contributing to stock earnings growth
- Started sales to third-party hotel operators
© Ichigo Inc. All rights reserved. | 7 |
Operating Profit +22%, Net Income +24%, EPS +26% (YOY)
Operating Profit
Recurring Profit
Net Income
EPS
FY19/2 Q3 | FY20/2 Q3 |
Cumulative | Cumulative |
(9M) | (9M) |
20,553 | 25,032 |
18,264 | 22,665 |
12,183 | 15,141 |
JPY 24.59 | JPY 31.09 |
(JPY million)
YOY Full-Year Forecast
+21.8% 26,500
+24.1% 22,800
+24.3% 15,000
+26.4% JPY 30.39
© Ichigo Inc. All rights reserved. | 8 |
Segment Earnings Details
- Asset Management: Base AM Fees +2% YOY
- Sustainable Real Estate: Rental Income -1% YOY (Pre-depreciation: +5%) Gains on Sales +39% YOY
- Clean Energy: Power Generation Revenue -2% YOY (Pre-depreciation: flat)
(JPY million) | |||||||||||
Operating Profit | Gross Profit | Earnings Drivers | |||||||||
Segment | FY19/2 Q3 | FY20/2 Q3 | FY19/2 Q3 | FY20/2 Q3 | |||||||
YOY | Full-Year | (Parentheses show YOY change in | |||||||||
Cumulative | Cumulative | Cumulative | Cumulative | ||||||||
Forecast | Gross Profit) | ||||||||||
(9M) | (9M) | (9M) | (9M) | ||||||||
Base AM Fees 1,530 (+54) | |||||||||||
Asset Management (AM) | 1,571 | 1,696 | +7.9% | 1,821 | 1,770 | 2,109 | Acquisition/Disposition Fees 402 (+232) | ||||
Ichigo Office Cash Flow Performance Fees 106 (+48) | |||||||||||
Ichigo Green Operator Fees 35 (-1) | |||||||||||
Rental Income 9,208* (-56) | |||||||||||
Sustainable Real Estate (SRE) | 17,761 | 22,232 | +25.2% | 23,312 | 21,483 | 26,558 | *Net of Depreciation 983 (+587) | ||||
Gains on Sales 16,977 (+4,758) | |||||||||||
Gains on Overseas Sales 373 (+373) | |||||||||||
Clean Energy (CE) | 1,253 | 1,131 | -9.7% | 1,367 | 1,695 | 1,662 | Power Generation Revenue 1,662* (-32) | ||||
*Net of Depreciation 817 (+33) | |||||||||||
Adjustment (including offsets of | -32 | -28 | - | - | - | - | |||||
cross-segment transactions) | |||||||||||
Total | 20,553 | 25,032 | +21.8% | 26,500 | 24,950 | 30,330 | |||||
© Ichigo Inc. All rights reserved. | 9 |
Powerful Value-Add Business Model Underpins Growth
© Ichigo Inc. All rights reserved. | 10 |
Business Model (1) Stock + FlowEarnings
Stock Earnings (Primarily Rental Income, Base AM Fees, and Power Generation Revenues) | 33.8 |
Flow Earnings (Primarily Gains on Value-Add Real Estate Sales ) | 32.1 |
Fixed Expenses (Fixed SG&A + Interest Expenses) | 30.3 |
Gross Profit | 27.9 | 27.0 | |||||||
(JPY billion) | |||||||||
15.3 | 18.0 | ||||||||
17.9 | |||||||||
20.8 | 14.1 | 13.0 | |||||||
9.0 | |||||||||
12.9 | |||||||||
4.6 | 16.9 | ||||||||
8.2 | 15.8 | ||||||||
6.0 | 2.6 | 13.8 | 14.0 | 12.5 | |||||
11.8 | |||||||||
0.9 | |||||||||
8.3 | 7.1 | 6.0 | 8.2 | ||||||
5.6 | 5.8 | 6.5 | 6.4 | ||||||
5.0 | 5.1 | ||||||||
4.1 | 4.2 | ||||||||
FY13/2 | FY14/2 | FY15/2 | FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 Q3 | FY20/2 | |
(Forecast) |
© Ichigo Inc. All rights reserved. | 11 |
Business Model (2) Embedded Forward Earnings
Full Economic Earnings from Value-Add Exceed Accounting Earnings Value- Add Thus Generates Significant Unrealized Gains that are an "Earnings Bank" for Future Periods
(JPY billion)
50.9 | |||||
36.8 | 45.4 | ||||
28.1 | |||||
12.3 | 19.6 | ||||
FY14/2 | FY15/2 | FY16/2 | FY17/2 | FY18/2 | FY19/2 |
Appraisal Value-Based Unrealized Gains
© Ichigo Inc. All rights reserved. | 12 |
Business Model (3) Value-Add Drives Durable Value Growth
Gains on Sales Consistently Exceed | 2.8X | |||
Appraisal Value-Based Unrealized Gains | 2.5X | |||
Appraisal Value-Based Unrealized Gains | ||||
Gains on Sales (Gross Profit) | ||||
4.4X | ||||
GPM = Gross Profit Margin | 1.6X | |||
2.2X | JPY 16.9B | |||
JPY 15.0B | ||||
JPY 12.0B | ||||
JPY 10.5B | ||||
JPY 7.2B | JPY 6.4B | JPY 6.1B | ||
JPY 5.9B | ||||
JPY 3.3B | JPY 2.7B | |||
FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 Q3 |
© Ichigo Inc. All rights reserved. | 13 |
Business Model (4) Robust Cash Generation
Economic Operating Cash FlowExceeds Net Income
Net Income | (JPY billion) |
Economic Operating Cash Flow
1.7X
1.4X | |||
1.3X | 1.2X | ||
25.5 | |||
21.5 | |||
17.1 | 14.9 | 16.7 | 15.4 |
12.9 | 14.0 | ||
FY16/2 | FY17/2 | FY18/2 | FY19/2 |
Note: Economic Operating Cash Flow = Cash Flows from Operations excluding net change in Real Estate and Power Plants for Sale
© Ichigo Inc. All rights reserved. | 14 |
Strong Financial Base
Average Interest Rate and Loan Term | Weighted Average Loan Period | |
(Interest Rate) | Weighted Average Remaining Loan Maturity | |
Weighted Average Interest Rate | (Loan Term, Years) | |
2.5% | 12 | ||||||
10.8 years | 10.2 years | 10.3 years | 10.0 years | ||||
2.0% | 1.96% | 9.0 years | 8.7 years | 9 | |||
9.6 years | |||||||
8.3 years | |||||||
7.8 years | 8.3 years | 7.6 years | 7.8 years | ||||
5.9 years | 1.71% | ||||||
1.5% | 6 | ||||||
5.5 years | 1.41% | ||||||
1.24% | |||||||
1.04% | 0.97% | ||||||
1.0% | 3 | ||||||
0.90% | |||||||
0.5% | 0 | ||||||
FY14/2 | FY15/2 | FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 Q3 |
Term Structure of Loans
Short-Term | 14% (JPY 4.1B) | 8% (JPY 4.9B) | 10% (JPY 10.3B) | 6% (JPY 6.1B) | 5% (JPY 5.6B) | 8% (JPY 11.3B) | 10% (JPY 16.8B) | ||||||
Long-Term | 92% | 92% | |||||||||||
90% | 94% | 95% | 90% | ||||||||||
86% | |||||||||||||
(JPY 26.1B) | (JPY 53.4B) | (JPY 94.4B) | (JPY 92.2B) | (JPY 112.8B) | (JPY 132.1B) | (JPY 154.9B) | |||||||
FY14/2 | FY15/2 | FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 Q3 |
© Ichigo Inc. All rights reserved. | 15 |
Sustainable Growth as a Sustainable Infrastructure Company
© Ichigo Inc. All rights reserved. | 16 |
Sustainable Real Estate
Selective on Acquisitions and Sales
- Continuing Sellers' Market - FY20/2 Q3 Cumulative GPM: 29% (H1 GPM also 29%)
- Ichigo Owners Continues High Level of Activity
Acquisitions: JPY 19.81B (36% of total); Sales: JPY 7.35B (13% of total)
FY20/2 Q3 Cumulative Net Sales: JPY 3.5B (Market-Value Basis)
(JPY million) | ||||||||||
Acquisitions | Sales | Difference | ||||||||
No. of Assets | Book Value (A) | No. of Assets | Sale Price (B) | (A) - (B) | ||||||
Office | 3 | 6,134 | 5 | 7,211 | -1,077 | |||||
Hotel | 2 | 12,446 | 8 | 18,010 | -5,564 | |||||
Retail | 2 | 8,550 | 2 | 7,182 | +1,368 | |||||
Residential | 28 | 22,623 | 26 | 25,089 | -2,466 | |||||
Logistics | 1 | 2,374 | - | - | +2,374 | |||||
Ground Lease | 2 | 255 | 1 | 159 | +96 | |||||
Other | 10 | 1,950 | 1 | 231 | +1,719 | |||||
Total | 48 | 54,333 | 43 | 57,882 | -3,549 | |||||
Note: Book value of asset sales is JPY 40,954 million | ||||||||||
© Ichigo Inc. All rights reserved. | 17 |
Sustainable Real Estate
Q3 Asset Sales
High Demand for Central Tokyo Residential Assets on Expected NOI Growth Ichigo Owners Growth Further Strengthening SRE Business
Ichigo Estate
Private Fund Business Growth
Ichigo Investment Advisors won long-term AM mandate for these assets
Assets | 9 Residential Assets |
Revenue | JPY 16.2B |
Buyer | Global Institutional |
Investor | |
Area | Central Tokyo |
Avg Holding Period | 4.9 years |
Gross Profit Margin | 37% |
Ichigo Owners
SRE Sales Channel Expansion
Capturing demand via detailed understanding of global institutional investor needs
Assets | 9 Residential Assets |
Revenue | JPY 6.9B |
Buyer | Global Institutional |
Investor | |
Area | Central Tokyo |
Avg Holding Period | 0.7 years |
Gross Profit Margin | 15% |
© Ichigo Inc. All rights reserved. | 18 |
Sustainable Real Estate
Value-Add Case - Tradepia Odaiba
Ongoing Tenant Satisfaction Activities
- Carried out 2nd tenant survey (c. 5,000 tenants) to identify tenant needs
- Conducted advanced first-aid training for tenants
- Joint training, seminars, and social events for employees of building maintenance (BM) companies
Ongoing Social Contribution Activities
- Provided open space for World Cup Rugby viewing
- Participating in environmental projects of Odaiba District Association
- Planted tulips for Flower Festival
- Participating in neighborhood clean-ups
© Ichigo Inc. All rights reserved. | 19 |
Asset Management
Growth Support for TSE REITs & YieldCo
Office | Hotel | Green Infrastructure |
Ichigo Office (8975)
IPO
October 12, 2005
Portfolio
85 Assets JPY 203.2B
Dividend Yield (as of 2020/1/6)
3.8%
- Entered FTSE Global REIT Index, a key benchmark for global investors
・Driving organic NOI growth via offering of tailored services and office spaces, drawing upon Ichigo's value-add capabilities
e.g., Ichigo Nogizaka Building: Forecast ROI 26.5%
Ichigo Hotel (3463)
IPO
November 30, 2015
Portfolio
22 Hotels JPY 50.8B
Dividend Yield (as of 2020/1/6)
5.5%
- Sold a hotel in Kyoto at 1.3x book value to diversify the portfolio and fund new growth acquisitions
- Acquired Valie Hotel Hiroshima, a hotel with value-add upside and potential for future rebranding
Ichigo Green (9282)
IPO
December 1, 2016
Portfolio
15 Plants JPY 11.4B
Dividend Yield (as of 2020/1/6)
5.4%
- Solar YieldCo focused on driving shareholder value via income stability and earnings growth and contributing to Japan's self-sufficiency in clean energy
- Portfolio of robust assets that have suffered no injuries or damages from natural disasters
Ichigo Growth Support | Ichigo Growth Support | Ichigo Growth Support |
Provided a high-quality Hakata office asset | Provided a hotel in prime location to drive | Operating all plants and providing ongoing |
NOI growth and diversify portfolio | performance guarantee | |
© Ichigo Inc. All rights reserved. | 20 |
Clean Energy
Scaling Rapidly (In-Development Plants +66%)
2 New Plants Began Operation this month
- Ichigo Minakami Aramaki ECO Power Plant (12MW, FIT: JPY 36) | 174MW | ||||||
- Ichigo Takashima Kutsuki ECO Power Plant (3.7MW, FIT: JPY 32) | |||||||
148.5MW | (+17%) | ||||||
Power Generation Growth | 126.1MW | (+18%) | |||||
Operating | (+18%) | 68.9 | |||||
In-Development | 43.4 | ||||||
Ichigo | 106.8 MW | 21.0 | (Wind 25.9) | ||||
(Wind 14.4) | |||||||
Operating Plants: 105.1MW | 83.6MW | (+28%) | (Wind 7.4) | ||||
In-Development Plants: 68.9MW (+66%) | 1.7 | ||||||
Total: 174.0MW | 72.3MW | (+16%) | |||||
(Ichigo Green (9282): 29.4MW ) | |||||||
(+155%) | |||||||
105.1 | |||||||
28.4MW | |||||||
FY17/2 | FY18/2 | FY19/2 | FY20/2 | FY21/2 | FY22/2 | FY23/2 ~ | |
Avg FIT | JPY 37.3 | JPY 36.4 | JPY 35.3 | JPY 34.3 | JPY 32.4 | JPY 30.6 | JPY 30.8 |
Ichigo Investment | JPY 8.4B | JPY 21.1B | JPY 23.6B | JPY 30.0B | JPY 36.0B | JPY 42.0B | JPY 51.6B |
© Ichigo Inc. All rights reserved. | 21 |
Clean Energy
FY18/2 - FY20/2 New Plant Development
Total 5 New Plants (23MW) Online in FY20/2 (2X MW Growth YOY) New Plants Will Drive FY21/2 Growth & Contribute to Stock Earnings
FIT | Panel | Total Panel | Operation | |||||||
Solar Power Plant | Output | Output | ||||||||
(JPY) | Start Date | |||||||||
(MW) | (MW) | |||||||||
Ichigo Sera Aomizu | 32 | 2.87 | Aug 11, 2017 | |||||||
FY18/2 | 47.54 | |||||||||
Ichigo Showamura Ogose | 36 | 43.34 | Sep 2, 2017 | |||||||
Ichigo Memuro Nishi-Shikari | 40 | 1.32 | Feb 5, 2018 | |||||||
Ichigo Kure Yasuuracho Nakahata | 36 | 2.90 | Mar 2, 2018 | |||||||
Ichigo Tsu | 24 | 2.94 | Mar 6, 2018 | |||||||
FY19/2 | 11.28 | |||||||||
Ichigo Kasaoka Iwanoike | 24 | 2.64 | Mar 20, 2018 | |||||||
Ichigo Toki Tsurusatocho Kakino | 24 | 1.31 | Apr 12, 2018 | |||||||
Ichigo Itoshima Iwara | 36 | 1.48 | Jan 7, 2019 | |||||||
Ichigo Sakahogi Fukagaya | 21 | 2.89 | May 17, 2019 | |||||||
Ichigo Sennan Kitsuneike | 21 | 2.86 | Jul 4, 2019 | |||||||
FY20/2 | 23.21 | |||||||||
Ichigo Minakami Aramaki | 36 | 12.02 | Jan 2, 2020 | |||||||
Ichigo Takashima Kutsuki | 32 | 3.74 | Jan 2, 2020 | |||||||
Ichigo Toki Tsurusatocho Kakino Higashi | 21 | 1.67 | Feb 2020* | |||||||
* Forecast
Note: Operation start date of Ichigo Hitachi Omiya ECO Power Plant has been pushed back one month from February 2020 to March 2020.
© Ichigo Inc. All rights reserved. | 22 |
Sustainable Infrastructure Initiative - Real Estate x Tourism x IT
Hotel Business Expansion
Scaling Hotel Business Drawing upon Ichigo's Hotel Management Capabilities
- Stock earnings growth via non-asset business
- Synergies between Ichigo-owned and managed hotels
Asset + Non-Asset Business | Non-Asset Business | |
39 Hotel Platform
17 Ichigo Hotels
22 Ichigo Hotel (3463) Hotels
Hotel Operator
・Ichigo's first hotel operator
・Speeds up decision-making & reduces costs
・Operates 6 hotels, 700 guest rooms ・Advantages asset acquisitions due to
reduced operating costs
AI Revenue Management System
Driving Non-Asset
Stock Earnings
Responding | |
Nursing Care | to Diverse Child Care |
Needs | |
Senior Business | Education |
Medical Care | Tourism |
・Increase customer satisfaction & | Entertainment | Agriculture | ||||
maximize revenue | ||||||
・Generating 10 to 40% revenue | ||||||
increases p.a. in deployment | Sports | Public Works | ||||
・No initial cost & no new system | ||||||
THE KNOT | THE KNOT | deployment required | Culture | Other | ||
→ Started sales to third-party hotel | Energy | |||||
TOKYO Shinjuku | YOKOHAMA | |||||
operators | ||||||
© Ichigo Inc. All rights reserved. | 23 |
Sustainable Infrastructure Initiative - Real Estate x Agriculture x Tourism x Entertainment x Culture x Energy x Public Works
Working Closely with Local Communities
Selected as Operator of Yokosuka Port Market
- Deploying Ichigo's value-add real estate capabilities to renovate a 30-year old building with partner companies
- Public-privatepartnership to invigorate the community
- Working closely with local community to create new employment
- Renewal opening in Spring 2021
Agricultural Theme Park
- Signed agreement in public-private partnership with Inagi (Tokyo), OSMIC, & NEC
- Total area of 51 hectares
- Hands-onfarming experience for guests
Nursing Care
Responding
to Diverse Child Care
Needs
Senior Business
Medical Care
Entertainment
Sports
Culture
Energy
Education
Tourism
Agriculture
Public Works
Other
© Ichigo Inc. All rights reserved. | 24 |
Launch of Ichigo J.League Shareholder Program
Represents Two Firsts for a Shareholder Program in Japan
- Ichigo is the first Japanese company to include not just its own shareholders, but also the shareholders of the REITs and YieldCo that it manages, in its shareholder program
- Ichigo is the first company to offer shareholders free tickets to everyJ.League game at everyJ.League club (55 clubs in total)
Ichigo is deepening its partnership with the J.League and working to further Ichigo's mission of promoting local community developments.
Ichigo J.League Shareholder
Program Website Landing Page
© Ichigo Inc. All rights reserved. | 25 |
Share Buyback
Purpose: Grow Value for Ichigo's Shareholders
FY20/2 (Current Fiscal Year)
Number of Shares | 7,081,200 (1.4% shares outstanding) |
Average Share Price | JPY 424 |
Amount | JPY 3B |
Reference | |
FY19/2 | |
Number of Shares | 7,869,700 (1.6% shares outstanding) |
Average Share Price | JPY 381 |
Amount | JPY 3B |
FY18/2 | |
Number of Shares | 8,436,500 (1.7% shares outstanding) |
Average Share Price | JPY 355 |
Amount | JPY 3B |
© Ichigo Inc. All rights reserved. | 26 |
Appendix: Ichigo's Sustainability Commitment (ESG)
© Ichigo Inc. All rights reserved. | 27 |
Ichigo Sustainability Policy
Harmony with the Environment
Ichigo actively monitors and minimizes the environmental impact of its business operations.
Energy Conservation, CO2 Reduction, and Recycling
Ichigo seeks to contribute to a low-carbon,low-waste society by reducing energy consumption, extending the useful life of assets, actively recycling, reducing waste production and water consumption, and implementing green procurement measures.
Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo's own independently established environmental rules. Ichigo also carefully monitors and complies with all applicable changes in laws and regulations.
Training and Awareness
Ichigo promotes understanding of its Sustainability Policy and works to increase sustainability awareness among all Ichigo employees.
Sustainability Performance Communication and Disclosure
Ichigo communicates its Sustainability Policy and Ichigo's sustainability initiatives to society at large. Ichigo also obtains certifications for its sustainability activities on an ongoing basis.
© Ichigo Inc. All rights reserved. | 28 |
Ichigo ESG - Environmental
Sustainable Real Estate | Solar and Wind Energy: Safe and Clean | |
Preserve & EnhanceExisting Buildings to End Wasteful Demolish & Rebuild
- Lengthen useful life of existing real estate
- Shrink footprint by reducing demolition waste and use of raw materials, energy, and human effort for construction
Lowest
Annual Power Generation | Annual CO2 Reduction |
140,167,036 kWh | 92,510,242 kg |
Equivalent to annual | Equivalent to annual |
CO2 emission of | |
energy consumption of | |
40,200 cars | |
46,700 households | |
Demolish
Impact
The Federation of Electric Power | Ministry of Environment |
Companies of Japan | Annual CO2 emission per car c. 2,300kg |
Highest
Efficiency
Annual energy consumption per household | (FY19/2 Actuals - Includes Ichigo Green) |
3,000kWh | |
Environmental Certifications
No injuries or damages at any Ichigo asset or power plant from recent natural disasters
Robust Assets
- Real estate: continuous improvements to safety & functionality via value-add capex
- Power plants: site selection and construction based on detailed specifications customized to local geography
Robust BCP & Realtime Response
- Pre-typhoonpreventative measures (water shielding, sandbags, etc.) & on-site checks
- Overwhelming priority is safety of tenants: on-the-ground confirmation & on-the-ground response
- Ichigo engineering team immediate response: same day on- site safety and engineering inspections to prevent secondary damage and losses
Environmental Certifications
Ichigo Office (8975)
Ichigo Kakyoin | Ichigo Hakata | Ichigo Hakata Meiji | Green Star (Highest Ranking) |
Building | Ekimae Square | Dori Building | 3 years in a row |
CASBEE | CASBEE | CASBEE | Other Certifications: |
Rank | Rank | Rank | |
CASBEE, BELS, DBJ Green | |||
S | A | A | |
Building Certification | |||
© Ichigo Inc. All rights reserved. | 29 |
Ichigo ESG - Social
Sports & Arts
Support Outstanding,
World-Class Athletes
‒ Weightlifting
‒ Riflery
‒ Track & Field
Paralym Art Sponsor
‒ Support artists with | Weightlifting Athlete |
disabilities | Hiromi Miyake |
Children's Cancer Treatment
Support University of Miyazaki Faculty of Medicine's Program for Children with Cancer
- Issued CSR bond & donated a portion of underwriter commission to the Cancer Program
- Sponsor volunteer activities in support of children with cancer
Local Communities
Promote Community Development via Sponsorship of J.League (Only Top Partner with Real Estate Expertise)
- Renovate and upgrade stadiums and help local governments reduce steep operating and maintenance costs
- Use real estate expertise to help build stronger and healthier local communities
Strengthen Local Communities, Create Jobs, and Boost Rural Economies via Smart Agriculture
- Collaborate with local farmers to increase agricultural output, improve quality, and raise rural incomes
- Increase Japan's food self-sufficiency
©J.LEAGUE
© Ichigo Inc. All rights reserved. | 30 |
Ichigo ESG - Governance
Early Adopter of Independent Three Committee (Nominating,
Audit, & Compensation) Corporate Governance Structure
- Adopted in 2006 to incorporate global best practice
- Exceeded legal requirements by establishing Compliance Committee in addition to Nominating, Audit, and Compensation Committees
- Nominating Committee: 5 members (3 Independent Directors)
- Audit Committee: 3 members (All Independent Directors)
- Compensation Committee: 5 members (3 Independent Directors)
- Compliance Committee: 4 members (2 Independent Directors)
Majority Independent Director Board Underpins Strong Governance
- Of 9 members of Ichigo's Board of Directors, 5 are Independent Directors
- Includes former CEOs of TSE First Section companies FY17/2
- Takashi Kawamura (former CEO of Hitachi; stepped down from Ichigo's board in May 2017 upon appointment as Chairman of TEPCO)
- Masatoshi Matsuzaki (former CEO of Konica Minolta)
- Kosuke Nishimoto (former CEO of Meitec) FY18/2 onward
- Masatoshi Matsuzaki (former CEO of Konica Minolta)
Nobuhide Nakaido (former CEO of SCSK)
- Kosuke Nishimoto (former CEO of Meitec; stepped down from Ichigo's board in May 2019 upon appointment as EVP of Misumi Group)
© Ichigo Inc. All rights reserved. | 31 |
Appendix: Financial & Real Estate Data
© Ichigo Inc. All rights reserved. | 32 |
Significant Unrealized Gains on Balance Sheet
JPY 47.8B (Appraisal Value Basis), -3.69% vs. FY19/2-end
Real Estate Directly Held by Ichigo | |||||
(JPY million) | |||||
Book Value as of | Appraisal NOI | Cap Rate | Appraisal Value | Unrealized | |
Location | November 30, 2019 | Gains | |||
(B) | (B)/(A) | (C) | |||
(A) | (C) - (A) | ||||
Tokyo | 95,242 | 5,056 | 5.3% | 121,706 | +26,463 |
Outside Tokyo | 105,804 | 6,630 | 6.3% | 127,193 | +21,389 |
Total | 201,046 | 11,686 | 5.8% | 248,899 | +47,853 |
Note: Excludes Ichigo Owners, Centro, and self-storage assets (book value JPY 40.8B)
© Ichigo Inc. All rights reserved. | 33 |
Net Consolidated Risk-Based Balance Sheet
Mark-to-Market Consolidated Balance Sheet: JPY 390.8B (Book Value JPY 340B + Unrealized Gains JPY 50.8B)
Cash & Cash Equivalents
JPY 34.0B
Non-Recourse Loans &
Related Assets
JPY 59.8B
Non-Recourse Loans &
Related Liabilities
JPY 44.8BNet Consolidated Risk-Based Balance Sheet:
JPY 311.9B
(Book Value JPY 261B + Unrealized Gains JPY 50.8B)
Operational Loan Investments
JPY 1.3B
Operational Securities Investments
JPY 8.7B
Real Estate for Sale
JPY 137.4B
Fixed Assets
JPY 84.3B
Securities Investments
JPY 4.8B
Other JPY 9.2B
Unrealized Gains
JPY 50.8B
Non-RecourseLoan-Related ICH Equity | ||||||||
Debt | JPY 14.9B | |||||||
Operational Loan Investments | ||||||||
Corporate Loans & Bonds | JPY 1.3B | |||||||
JPY | Operational Securities Investments | |||||||
JPY 171.8B | JPY 8.7B | |||||||
232.5B | ||||||||
Real Estate for Sale | ||||||||
JPY 137.4B | ||||||||
Security Deposits Received | ||||||||
JPY 5.4B | ||||||||
Other JPY 10.3B | ||||||||
Shareholder | ||||||||
Mark-to- | Fixed Assets | |||||||
Equity | Market | JPY 84.3B | ||||||
JPY 107.5B | Shareholder | |||||||
Equity Ratio | JPY 4.8B | |||||||
Securities Investments | ||||||||
36.5% | ||||||||
Other JPY 9.2B | ||||||||
Post-Tax Unrealized | Unrealized Gains | |||||||
Gains JPY 35.2B | ||||||||
JPY 50.8B | ||||||||
Tax JPY 15.5B* | *30.62% effective tax rate | |||||||
Corporate Loans & Bonds
JPY 137.7B
Security Deposits Received
JPY 5.4B
Other JPY 10.3B
Shareholder
Equity
JPY 107.5B
Post-Tax Unrealized
Gains JPY 35.2B
Tax JPY 15.5B*
Debt
JPY
153.5B
Net Risk-Based
Shareholder
Equity Ratio
45.8%
Note: Net Risk-Based Balance Sheet excludes client and non-recourse assets and liabilities and nets out Cash & Cash Equivalents.
© Ichigo Inc. All rights reserved. | 34 |
Business Segments
Asset Management
Sustainable
Real Estate
Clean Energy
Asset Management(AM) generates fee income via management of Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282), and real estate services related to real estate acquisition, operations, and disposition.
Sustainable Real Estate(SRE) preserves and improves real estate. Ichigo receives rental income during the period in which it carries out its value-add, along with earning gains on sales that reflect the real estate's higher value after the value-add is complete.
Clean Energy(CE) is utility-scale solar and wind power production that produces clean energy and brings productive use to idle land.
Note: The Sustainable Real Estate segment was formerly called Value-Add. In keeping with its recently announced Ichigo 2030vision, Ichigo is changing the segment name to Sustainable Real Estate from FY20/2 in order to put full focus on Ichigo's commitment to preserving and improving real estate as a sustainable infrastructure company.
© Ichigo Inc. All rights reserved. | 35 |
Consolidated Balance Sheet: Segment Breakdown
(JPY million) | ||||||||||||||||||||
Segment | Cash and | Operational | Operational | Real Estate | Power | Fixed | Intangible | Securities | Other | |||||||||||
Cash | Loan | Securities | Plants for | Total Assets | ||||||||||||||||
for Sale | Assets | Assets | Investments | Assets | ||||||||||||||||
Equivalents | Investments | Investments | Sale | |||||||||||||||||
Asset Management (AM) | - | - | - | - | - | - | 789 | 162 | 1,163 | |||||||||||
2,114 | ||||||||||||||||||||
Sustainable Real Estate (SRE) | 16,089 | 1,324 | 8,743 | 172,001 | - | 75,370 | 1,280 | 2,921 | 4,413 | 282,146 | ||||||||||
Clean Energy (CE) | 3,198 | - | - | - | - | 26,893 | 207 | - | 1,054 | 31,353 | ||||||||||
Company-Wide Assets | 21,165 | - | - | - | - | 65 | 242 | 1,791 | 1,164 | 24,430 | ||||||||||
Total | 40,453 | 1,324 | 8,743 | 172,001 | - | 102,330 | 2,519 | 4,875 | 7,796 | 340,045 | ||||||||||
© Ichigo Inc. All rights reserved. | 36 |
Consolidated P&L: Segment Breakdown
(JPY million) | ||||||||||
Gross Profit | Operating Profit | |||||||||
Segment | FY20/2 | |||||||||
FY19/2 Q3 | FY20/2 Q3 | YOY Change | FY19/2 Q3 | FY20/2 Q3 | YOY Change | Full-Year | ||||
Forecast | ||||||||||
Asset Management (AM) | 1,770 | 2,109 | +19.2% | 1,571 | 1,696 | +7.9% | 1,821 | |||
Stock Earnings (Base AM Fees) | 1,543 | 1,599 | +3.6% | - | - | - | - | |||
Flow Earnings (Acquisition/Disposition Fees) | 227 | 509 | +123.7% | - | - | - | - | |||
Sustainable Real Estate (SRE) | 21,483 | 26,558 | +23.6% | 17,761 | 22,232 | +25.2% | 23,312 | |||
Rental Income | 9,265 | 9,208 | -0.6% | - | - | - | - | |||
Asset Sales | 12,218 | 16,985 | +39.0% | - | - | - | - | |||
Other Flow Earnings | - | 364 | - | - | - | - | - | |||
Clean Energy (CE) | 1,695 | 1,662 | -1.9% | 1,253 | 1,131 | -9.7% | 1,367 | |||
Adjustment (including offsets of cross- | - | - | - | -33 | -28 | - | - | |||
segment transactions) | ||||||||||
Total | 24,950 | 30,330 | +21.6% | 20,553 | 25,032 | +21.8% | 26,500 | |||
© Ichigo Inc. All rights reserved. | 37 |
Asset Management AUM Detail
FY15/2 | FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 Q3 | |||||||||
(12M) | (12M) | (12M) | (12M) | (12M) | (9M) | |||||||||
Ichigo Office | AUM (Fiscal Year End) | JPY 123.8B | JPY 165.1B | JPY 194.5B | JPY 196.9B | JPY 203.0B | JPY 203.2B | |||||||
(8975) | Base AM Fee Gross Profit (Actual) | JPY 759M | JPY 1,016M | JPY 1,291M | JPY 1,373M | JPY 1,426M | JPY 1,072M | |||||||
Ichigo Hotel | AUM (Fiscal Year End) | - | JPY 20.4B | JPY 47.6B | JPY 50.9B | JPY 50.7B | JPY 50.8B | |||||||
(3463) | Base AM Fee Gross Profit (Actual) | - | JPY 30M | JPY 287M | JPY 450M | JPY 547M | JPY 349M | |||||||
Ichigo Green | AUM (Fiscal Year End) | - | - | JPY 10.0B | JPY 11.4B | JPY 11.4B | JPY 11.4B | |||||||
(9282) | Base AM Fee Gross Profit (Actual) | - | - | JPY 11M | JPY 77M | JPY 85M | JPY 68M | |||||||
Private Equity | AUM (Fiscal Year End) | JPY 21.5B | JPY 15.4B | JPY 6.4B | JPY 12.3B | JPY 20.6B | JPY 36.8B | |||||||
Real Estate Funds | ||||||||||||||
(excluding | Base AM Fee Gross Profit (Actual) | JPY 114M | JPY 60M | JPY 27M | JPY 12M | JPY 41M | JPY 75M | |||||||
consolidated funds) | ||||||||||||||
Total | AUM (Fiscal Year End) | JPY 145.3B | JPY 200.9B | JPY 258.6B | JPY 271.7B | JPY 285.8B | JPY 302.4B | |||||||
(excluding | JPY 872M | JPY 1,106M | JPY 1,617M | JPY 1,914M | JPY 2,014M | JPY 1,565M | ||||||||
consolidated funds) | Base AM Fee Gross Profit (Actual) | |||||||||||||
Ichigo Green Base AM Fee Gross Profit (Actual) includes operator fees.
© Ichigo Inc. All rights reserved. | 38 |
Powerful Sustainable Real Estate Business Model
Significant Synergies Between Ichigo's Sustainable Real Estate and Asset Management Businesses
Green
Infrastructure
Ichigo Green (9282)
Office
Ichigo Office
(8975)
Hotel
Ichigo Hotel
(3463)
Sustainable Real Estate Business Model
Solar Plants
Buy
Sell | Third- | ||
Real | |||
Value-Add | Estate | Party | |
Real | Investors | ||
不動産 | |||
Estate | Preserve & | Sell | |
Improve | |||
Buy |
© Ichigo Inc. All rights reserved. | 39 |
Sustainable Real Estate Social Significance
Sustainable Real Estate Serving a Sustainable Society
End Demolish and Rebuildand Embrace Sustainable Value-Add
- Preserve and enhance high-function real estate
- Lengthen useful life and improve quality of existing assets via Sustainable Value-Add
Demolish
and
Rebuild
Preserve & Improve
- Higher-QualityTenant Services
- Higher Functionality (Security, A/C)
- Upgrade Exteriors/Interior Spaces
- Seismic Reinforcements
Highest
Efficiency
Lowest
Impact
© Ichigo Inc. All rights reserved. | 40 |
Ichigo Sustainable Real Estate Earnings Model Example
5.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.5% Interest Rate, JPY 50M Capex, 15% Increase in NOI, 3-YearValue-Add Period
Value-Add Steps: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new tenant leasing; etc.
Debt
Asset JPY1.5B
JPY 2.0B
Equity
JPY 0.5B
Value-Add (Capex JPY 50M )
NOI at Acquisition
(JPY 110M NOI/year) - (JPY 22.5M interest/year) = JPY 87.5M NOI/year NOI÷ Initial Investment =17.5% NOI return during investment period
.
NOI after Value-Add
(JPY 126.5M NOI/year) - (JPY 22.5M interest/year) = JPY 104M NOI/year NOI ÷ Total Investment (JPY 500M + JPY 50M) =18.9% NOI return during investment period
.
Value-Add for Capital Gain
The 15% increase in NOI at an equivalent cap rate increases the exit price by 15%: JPY 2B * 115% = JPY 2.3B
JPY 2.3B - (JPY 2B + JPY 50M) = JPY 250M capital gain
.
Result
JPY 550M investment generates JPY 512M over 3 years → 31.1% p.a.
© Ichigo Inc. All rights reserved. | 41 |
Sustainable Real Estate: Gross Profit Margin (GPM)
Ichigo Value-Add Supports Ongoing High GPM | ||||||||||
FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 Q3 | ||||||
GPM | 23.0% | 13.6% | 33.7% | 25.5% | 29.2% | |||||
(vs. Revenue) | ||||||||||
GPM | 29.9% | 15.8% | 50.9% | 34.3% | 41.3% | |||||
(Vs. Book value) | ||||||||||
Revenue | 31,674 | 77,502 | 35,733 | 58,693 | 57,882 | |||||
(JPY M) | ||||||||||
Gross Profit | 7,283 | 10,562 | 12,050 | 14,986 | 16,928 | |||||
(JPY M) | ||||||||||
© Ichigo Inc. All rights reserved. | 42 |
Ichigo-Owned Real Estate Portfolio
By Asset Type
Ground Lease | 1% | Other |
Logistics | 3% | |
2% |
Residence
14%Retail
31%
Hotel
23%
Office
26%
By Asset Size
>JPY 10B
12%
18%
JPY 5B-10B
23%
By Location | ||
Hokkaido 2% | ||
Sendai 3% | ||
Osaka 3% | Other | |
Nagoya 3% | 5% |
Tokyo
Metro*
11%
Fukuoka 21%
*Ex-Tokyo
Tokyo 52%
Fukuoka
50.7
(JPY billion)
Hokkaido
3.5
Tokyo 122.5
Sendai | ||||||||
5.9 | ||||||||
Nagoya | ||||||||
Other | ||||||||
7.3 | Tokyo | |||||||
12.8 | ||||||||
Osaka | ||||||||
Metro | ||||||||
7.0 | (ex- | |||||||
Tokyo) | ||||||||
26.5 |
JPY 1B-5B | Total Ichigo-Owned Assets: JPY 236.0B |
47% | Including Ichigo-Managed AUM: JPY 538.5B |
* Acquisition price basis | |
Ichigo-Managed AUM includes JPY 11.4B Ichigo Green assets. | |
Total Ichigo-Owned Assets Book Value: JPY 244.7B | |
© Ichigo Inc. All rights reserved. | 43 |
Sustainable Real Estate Asset Breakdown (1)
171 Assets, JPY 236B, Forecast NOI JPY 11.6B (5.8% Yield)
No. | Asset Type | Classification | Location | Acquisition Price | Acquisition | Building | Expected | Ichigo Equity | Forecast Equity | Forecast | ||||||||||
Date | Age | NOI/Year1 | Investment | Multiple2 | IRR3 | |||||||||||||||
1 | Wholesale Market | Fixed Asset | Matsudo, Chiba | JPY 2B-3B | 2005/06 | 47 years | - | JPY 1,900M | - | - | ||||||||||
3 | Retail | Fixed Asset | Minato-ku, Tokyo | >JPY 3B | 2006/03 | 34 years | JPY 165M | JPY 1,356M | - | - | ||||||||||
4 | Retail | Fixed Asset | Yokohama | JPY 1B-2B | 2006/09 | 14 years | JPY 60M | JPY 1,157M | - | - | ||||||||||
5 | Office | Fixed Asset | Sendai | >JPY 3B | 2006/10 | 11 years | JPY 240M | JPY 1,042M | - | - | ||||||||||
6 | Office | Fixed Asset | Fukuoka | >JPY 3B | 2006/12 | 11 years | JPY 350M | JPY 1,339M | - | - | ||||||||||
10 | Retail | Fixed Asset | Chiyoda-ku, Tokyo | 2007/06 | 40 years | JPY 85M | JPY 240M | - | - | |||||||||||
11 | Retail | Fixed Asset | Chiyoda-ku, Tokyo | 2007/06 | 38 years | JPY 125M | JPY 233M | - | - | |||||||||||
14 | Ground Lease | Fixed Asset | Atsugi, Kanagawa | JPY 1B-2B | 2011/06 | - | JPY 172M | JPY 147M | - | - | ||||||||||
15 | Retail | Fixed Asset | Hiratsuka, Kanagawa | 2012/02 | 24 years | JPY 77M | JPY 172M | - | - | |||||||||||
17 | Retail | Fixed Asset | Toshima-ku, Tokyo | >JPY 3B | 2013/03 | 8 years | JPY 244M | JPY 340M | - | - | ||||||||||
18 | Retail | Fixed Asset | Shibuya-ku, Tokyo | 2013/05 | 33 years | JPY 57M | JPY 154M | - | - | |||||||||||
19 | Retail | Fixed Asset | Chofu, Tokyo | JPY 1B-2B | 2013/06 | 34 years | JPY 135M | JPY 310M | - | - | ||||||||||
21 | Residential | Fixed Asset | Minato-ku, Tokyo | 2013/06 | 4 years | JPY 47M | JPY 203M | - | - | |||||||||||
27 | Retail | Fixed Asset | Tokorozawa, Saitama | JPY 1B-2B | 2013/11 | 12 years | JPY 76M | JPY 92M | - | - | ||||||||||
29 | Ground Lease | Fixed Asset | Fujisawa, Kanagawa | JPY 1B-2B | 2014/03 | - | JPY 114M | JPY 273M | - | - |
Note: 5.8% yield excludes Ichigo Owners, Centro, and self-storage assets.
- Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
- Forecast IRR is the forecast internal rate of return based on each asset's actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estate for Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
© Ichigo Inc. All rights reserved. | 44 |
Sustainable Real Estate Asset Breakdown (2)
No. | Asset Type | Classification | Location | Acquisition Price | Acquisition | Building | Expected | Ichigo Equity | Forecast Equity | Forecast | |||||||||||
Date | Age | NOI/Year1 | Investment | Multiple2 | IRR3 | ||||||||||||||||
32 | Retail | Fixed Asset | Fukuoka | JPY 1B-2B | 2014/04 | 13 years | JPY 58M | JPY 279M | - | - | |||||||||||
37 | Retail | Fixed Asset | Minato-ku, Tokyo | 2014/07 | 47 years | JPY 47M | JPY 77M | - | - | ||||||||||||
39 | Retail | Fixed Asset | Fukuoka | 2014/07 | 15 years | JPY 52M | JPY 213M | - | - | ||||||||||||
63 | Retail | Fixed Asset | Meguro-ku, Tokyo | JPY 1B-2B | 2014/12 | 13 years | JPY 85M | JPY 129M | - | - | |||||||||||
64 | Retail | Fixed Asset | Shinagawa-ku, Tokyo | 2015/01 | - | JPY 26M | - | - | - | ||||||||||||
68 | Retail | Fixed Asset | Shibuya-ku, Tokyo | 2015/04 | 18 years | JPY 46M | JPY 79M | - | - | ||||||||||||
111 | Hotel | Fixed Asset | Yokohama | JPY 2B-3B | 2016/03 | 35 years | JPY 207M | JPY 228M | - | - | |||||||||||
116 | Retail | Fixed Asset | Sendai | 2016/04 | 31 years | JPY 63M | JPY 86M | - | - | ||||||||||||
120 | Hotel | Fixed Asset | Shinjuku-ku, Tokyo | >JPY 3B | 2016/09 | 40 years | JPY 554M | JPY 349M | - | - | |||||||||||
146 | Retail | Fixed Asset | Chuo-ku, Tokyo | JPY 1B-2B | 2018/08 | 29 years | JPY 32M | - | - | - | |||||||||||
149 | Retail | Fixed Asset | Chiyoda-ku, Tokyo | >JPY 3B | 2018/09 | 29 years | JPY 308M | JPY 2,269M | - | - | |||||||||||
154 | Residential | Fixed Asset | Kita Kyushu, Fukuoka | JPY 1B-2B | 2019/03 | 5 years | JPY 83M | JPY 181M | - | - | |||||||||||
157 | Office | Fixed Asset | Chiyoda-ku, Tokyo | 2019/04 | 36 years | JPY 52M | - | - | - | ||||||||||||
158 | Other | Fixed Asset | Chuo-ku, Tokyo | JPY 1B-2B | 2019/05 | - | JPY 12M | - | - | - | |||||||||||
29 Fixed Assets | JPY 61,033M | JPY 3,571M | JPY 12,848M | - | - | ||||||||||||||||
JPY 63,951M (Book Value)
- Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
- Forecast IRR is the forecast internal rate of return based on each asset's actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estate for Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
© Ichigo Inc. All rights reserved. | 45 |
Sustainable Real Estate Asset Breakdown (3)
No. | Asset Type | Classification | Location | Acquisition Price | Acquisition | Building | Expected | Ichigo Equity | Forecast Equity | Forecast | ||||||||||
Date | Age | NOI/Year1 | Investment | Multiple2 | IRR3 | |||||||||||||||
2 | Retail | Real Estate for Sale | Minato-ku, Tokyo | JPY 2B-3B | 2005/10 | 50 years | JPY 136M | JPY 1,033M | - | - | ||||||||||
16 | Retail | Real Estate for Sale | Yokohama | 2012/10 | 6 years | JPY 34M | JPY 171M | - | - | |||||||||||
30 | Retail | Real Estate for Sale | Shibuya-ku, Tokyo | 2014/03 | 35 years | JPY 51M | JPY 108M | 6.95X | 26.0% | |||||||||||
35 | Retail | Real Estate for Sale | Minato-ku, Tokyo | JPY 2B-3B | 2014/05 | 10 years | JPY 144M | JPY 434M | 3.08X | 15.2% | ||||||||||
40 | Retail | Real Estate for Sale | Fukuoka | 2014/09 | 34 years | JPY 49M | JPY 252M | 1.88X | 14.7% | |||||||||||
41 | Hotel | Real Estate for Sale | Utsunomiya, Tochigi | JPY 1B-2B | 2014/09 | 32 years | JPY 143M | JPY 400M | 1.97X | 28.3% | ||||||||||
42 | Retail | Real Estate for Sale | Fukuoka | 2014/09 | 19 years | JPY 60M | JPY 177M | 5.54X | 26.2% | |||||||||||
43 | Retail | Real Estate for Sale | Osaka | JPY 1B-2B | 2014/09 | 17 years | JPY 117M | JPY 301M | 4.64X | 24.3% | ||||||||||
45 | Retail | Real Estate for Sale | Fukuoka | JPY 1B-2B | 2014/11 | 16 years | JPY 92M | JPY 135M | 10.70X | 33.8% | ||||||||||
57 | Residential | Real Estate for Sale | Minato-ku, Tokyo | JPY 1B-2B | 2014/12 | 15 years | JPY 56M | JPY 186M | 1.90X | 21.0% | ||||||||||
61 | Retail | Operational Loan | Shinjuku-ku, Tokyo | JPY 1B-2B | 2014/12 | 56 years | JPY 120M | JPY 57M | 15.26X | 51.7% | ||||||||||
62 | Retail | Real Estate for Sale | Fukuoka | 2014/12 | 15 years | JPY 41M | JPY 212M | 1.81X | 14.4% | |||||||||||
66 | Retail | Real Estate for Sale | Sendai | 2015/02 | 15 years | JPY 65M | JPY 8M | 42.58X | 198.9% | |||||||||||
69 | Hotel | Real Estate for Sale | Osaka | JPY 2B-3B | 2015/05 | 17 years | JPY 170M | JPY 633M | 1.56X | 58.3% | ||||||||||
71 | Retail | Real Estate for Sale | Fujisawa, Kanagawa | JPY 1B-2B | 2015/07 | 4 years | JPY 99M | JPY 126M | 6.80X | 37.3% |
- Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
- Forecast IRR is the forecast internal rate of return based on each asset's actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estate for Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
© Ichigo Inc. All rights reserved. | 46 |
Sustainable Real Estate Asset Breakdown (4)
No. | Asset Type | Classification | Location | Acquisition Price | Acquisition | Building | Expected | Ichigo Equity | Forecast Equity | Forecast | ||||||||||
Date | Age | NOI/Year1 | Investment | Multiple2 | IRR3 | |||||||||||||||
89 | Office | Real Estate for Sale | Musashino, Tokyo | >JPY 3B | 2015/07 | 30 years | JPY 131M | JPY 670M | 1.72X | 13.3% | ||||||||||
92 | Office | Real Estate for Sale | Fukuoka | JPY 1B-2B | 2015/07 | 12 years | JPY 85M | JPY 353M | 1.82X | 17.7% | ||||||||||
110 | Hotel | Real Estate for Sale | Fukuoka | >JPY 3B | 2016/03 | 34 years | JPY 273M | JPY 905M | 2.05X | 104.5% | ||||||||||
112 | Hotel | Real Estate for Sale | Yokohama | >JPY 3B | 2016/03 | 32 years | JPY 239M | JPY 354M | 10.64X | 36.2% | ||||||||||
113 | Hotel | Real Estate for Sale | Yokohama | >JPY 3B | 2016/03 | 32 years | JPY 288M | JPY 344M | 5.84X | 25.5% | ||||||||||
114 | Hotel | Real Estate for Sale | Fukuoka | >JPY 3B | 2016/04 | 29 years | JPY 183M | JPY 550M | 1.73X | 72.6% | ||||||||||
115 | Hotel | Real Estate for Sale | Osaka | JPY 2B-3B | 2016/04 | 12 years | JPY 130M | JPY 274M | 2.96X | 30.7% | ||||||||||
118 | Retail | Real Estate for Sale | Nagoya | JPY 1B-2B | 2016/06 | 22 years | JPY 83M | JPY 102M | 7.71X | 32.6% | ||||||||||
119 | Retail | Real Estate for Sale | Shibuya-ku, Tokyo | 2016/06 | 32 years | JPY 42M | JPY 136M | 3.91X | 17.4% | |||||||||||
121 | Office | Real Estate for Sale | Minato-ku, Tokyo | >JPY 3B | 2016/10 | 18 years | JPY 1,540M | JPY 3,450M | 2.87X | 43.5% | ||||||||||
122 | Hotel | Real Estate for Sale | Shima, Mie | 2017/01 | 21 years | JPY 78M | JPY 73M | 5.49X | 43.1% | |||||||||||
130 | Retail | Real Estate for Sale | Taito-ku, Tokyo | JPY 1B-2B | 2017/04 | 26 years | JPY 100M | JPY 297M | 4.42X | 21.1% | ||||||||||
132 | Residential | Real Estate for Sale | Minato-ku, Tokyo | 2017/04 | 16 years | JPY 51M | JPY 190M | 2.66X | 38.3% | |||||||||||
133 | Hotel | Real Estate for Sale | Minato-ku, Tokyo | 2017/04 | 17 years | JPY 46M | JPY 152M | 3.85X | 32.7% | |||||||||||
134 | Residential | Real Estate for Sale | Chuo-ku, Tokyo | JPY 1B-2B | 2017/04 | 17 years | JPY 58M | JPY 197M | 2.88X | 26.2% |
- Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
- Forecast IRR is the forecast internal rate of return based on each asset's actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estate for Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
© Ichigo Inc. All rights reserved. | 47 |
Sustainable Real Estate Asset Breakdown (5)
No. | Asset Type | Classification | Location | Acquisition Price | Acquisition | Building | Expected | Ichigo Equity | Forecast Equity | Forecast | ||||||||||
Date | Age | NOI/Year1 | Investment | Multiple2 | IRR3 | |||||||||||||||
135 | Logistics | Real Estate for Sale | Narashino, Chiba | JPY 1B-2B | 2017/04 | 28 years | JPY 114M | JPY 188M | 6.18X | 25.8% | ||||||||||
136 | Logistics | Real Estate for Sale | Narashino, Chiba | JPY 1B-2B | 2017/04 | 28 years | JPY 152M | JPY 203M | 8.75X | 32.8% | ||||||||||
138 | Hotel | Real Estate for Sale | Ogaki, Gifu | JPY 1B-2B | 2017/05 | 30 years | JPY 116M | - | - | - | ||||||||||
143 | Retail | Real Estate for Sale | Fukuoka | JPY 1B-2B | 2017/09 | 35 years | JPY 106M | JPY 223M | 3.78X | 19.9% | ||||||||||
144 | Office | Real Estate for Sale | Chiyoda-ku, Tokyo | JPY 1B-2B | 2018/02 | 31 years | JPY 129M | JPY 268M | 8.00X | 34.7% | ||||||||||
145 | Hotel | Real Estate for Sale | Fukuoka | JPY 2B-3B | 2018/03 | 1 year | JPY 194M | JPY 301M | 3.37X | 102.4% | ||||||||||
147 | Hotel | Real Estate for Sale | Kyoto | >JPY 3B | 2018/08 | 1 year | JPY 327M | JPY 1,666M | 1.59X | 27.2% | ||||||||||
148 | Office (Ground Lease) | Real Estate for Sale | Chiyoda-ku, Tokyo | 2018/08 | - | JPY 54M | JPY 166M | 3.93X | 104.4% | |||||||||||
150 | Retail | Real Estate for Sale | Chuo-ku, Tokyo | >JPY 3B | 2018/10 | 32 years | JPY 359M | JPY 1,161M | 6.17X | 24.7% | ||||||||||
151 | Office | Real Estate for Sale | Fukuoka | 2018/10 | 21 years | JPY 33M | JPY 38M | 5.08X | 43.1% | |||||||||||
152 | Office | Real Estate for Sale | Fukuoka | JPY 2B-3B | 2019/02 | 32 years | JPY 174M | JPY 382M | 5.07X | 19.6% | ||||||||||
153 | Hotel | Real Estate for Sale | Fukuoka | 2019/02 | 26 years | JPY 110M | - | - | - | |||||||||||
155 | Office | Real Estate for Sale | Shinagawa-ku, Tokyo | JPY 2B-3B | 2019/03 | 34 years | JPY 169M | JPY 616M | 3.44X | 14.8% | ||||||||||
156 | Logistics | Real Estate for Sale | Fukuoka | JPY 2B-3B | 2019/03 | 31 years | JPY 150M | JPY 651M | 3.60X | 30.0% | ||||||||||
159 | Retail | Real Estate for Sale | Shibuya-ku, Tokyo | JPY 2B-3B | 2019/05 | 40 years | JPY 123M | JPY 210M | 13.11X | 44.3% |
- Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
- Forecast IRR is the forecast internal rate of return based on each asset's actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estate for Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
© Ichigo Inc. All rights reserved. | 48 |
Sustainable Real Estate Asset Breakdown (6)
No. | Asset Type | Classification | Location | Acquisition | Acquisition | Building | Expected | Ichigo Equity | Forecast Equity | Forecast | ||||||||||
Price | Date | Age | NOI/Year1 | Investment | Multiple2 | IRR3 | ||||||||||||||
160 | Office | Real Estate for Sale | Fukuoka | JPY 2B-3B | 2019/06 | 22 years | JPY 129M | JPY 248M | 3.11X | 39.6% | ||||||||||
161 | Hotel | Real Estate for Sale | Fukuoka | >JPY 3B | 2019/07 | 25 years | JPY 368M | JPY 1,636M | 2.88X | 12.9% | ||||||||||
162 | Hotel | Real Estate for Sale | Fukuoka | >JPY 3B | 2019/07 | 21 years | JPY 353M | JPY 1,170M | 3.68X | 15.8% | ||||||||||
163 | Retail | Real Estate for Sale | Nagoya | >JPY 3B | 2019/08 | 22 years | JPY 479M | JPY 1,146M | 3.47X | 17.0% | ||||||||||
49 Real Estate for Sale | JPY 135,468M | JPY 8,341M | JPY 22,554M | 3.62X | 38.1% | |||||||||||||||
JPY 140,039M (Book Value) | ||||||||||||||||||||
Subtotal 78 Assets | JPY 196,502M | JPY 11,911M | JPY 35,401M | - | - | |||||||||||||||
JPY 203,990M (Book Value)
- Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
- Forecast IRR is the forecast internal rate of return based on each asset's actual cash flow. The total Forecast Equity Multiple and Forecast IRR are for Real Estate for Sale assets acquired from FY15/2 onward and exclude Fixed Assets.
© Ichigo Inc. All rights reserved. | 49 |
Sustainable Real Estate Asset Breakdown (7)
No. | Asset Type | Acquisition | vs. FY20/2 H1 | Expected | Ichigo Equity | Forecast Equity | Forecast | ||||||||
Price | NOI/Year1 | Investment | Multiple | IRR | |||||||||||
A | Ichigo Owners (Office & Residential) | 43 Assets | JPY 30,315M | +JPY 12,605M | JPY 1,441M | JPY 6,479M | - | - | |||||||
B | Centro (Primarily Office & Residential) | 22 Assets | JPY 6,894M | -JPY 165M | JPY 467M | JPY 1,881M | - | - | |||||||
C | Self-Storage | 28 Assets | JPY 2,349M | +JPY 353M | JPY 304M | JPY 686M | - | - | |||||||
Total 171 Assets | JPY 236,060M | JPY 14,125M | JPY 44,448M | - | - | ||||||||||
JPY 244,755M (Book Value) | |||||||||||||||
Assets acquired in FY20/2 Q1 (3M) | Total 22 Assets | JPY 20,000M | JPY 964M | JPY 5,715M | - | - | |||||||||
Assets acquired in FY20/2 Q2 (3M) | Total 14 Assets | JPY 24,670M | JPY 1,532M | JPY 5,896M | - | - | |||||||||
Assets acquired in FY20/2 Q3 (3M) | Total 12 Assets | JPY 8,165M | JPY 357M | JPY 4,948M | - | - | |||||||||
Assets acquired in FY20/2 Q3 (9M) | Total 48 Assets | JPY 52,835M | JPY 2,853M | JPY 16,559M | - | - | |||||||||
Assets acquired and sold in FY20/2 * | Total 7 Assets | JPY 4,384M | JPY 192M | JPY 2,131M | - | - |
* Acquired & Sold 7 Ichigo Owners assets
1 Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.
© Ichigo Inc. All rights reserved. | 50 |
Ichigo Solar Power Plant Portfolio
Ichigo (Operating)
Panel | FIT | Operation | ||
Solar Power Plant | Area | Output | ||
(Pre-tax) | Start Date | |||
(MW) | ||||
Ichigo Tokushima Higashi-Okinosu | Shikoku | 2.52 | JPY 40 | Aug 2013 |
Ichigo Fuchu Jogecho Yano | Chugoku | 0.99 | JPY 40 | Mar 2014 |
Ichigo Yubetsu Barou | Hokkaido | 0.80 | JPY 40 | Apr 2014 |
Ichigo Maebashi Naegashima | Kanto | 0.67 | JPY 40 | Apr 2014 |
Ichigo Betsukai Kawakamicho | Hokkaido | 0.88 | JPY 40 | Oct 2014 |
Ichigo Toyokoro Sasadamachi | Hokkaido | 0.60 | JPY 40 | Oct 2014 |
Ichigo Higashi-Hiroshima Saijocho Taguchi | Chugoku | 2.72 | JPY 40 | Jan 2015 |
Ichigo Akkeshi Shirahama | Hokkaido | 0.80 | JPY 40 | Mar 2015 |
Ichigo Hamanaka Bokujo Tsurunokotai | Tohoku | 2.31 | JPY 36 | Dec 2015 |
Ichigo Yonago Izumi | Chugoku | 2.61 | JPY 40 | Jan 2016 |
Ichigo Kasaoka Takumicho | Chugoku | 1.11 | JPY 32 | Mar 2016 |
Ichigo Kijo Takajo | Kyushu | 0.89 | JPY 40 | May 2016 |
Ichigo Toki Oroshicho | Chubu | 1.39 | JPY 36 | Jun 2016 |
Ichigo Toride Shimotakai Kita | Kanto | 1.03 | JPY 32 | Jul 2016 |
Ichigo Toride Shimotakai Minami | Kanto | 0.54 | JPY 32 | Jul 2016 |
Ichigo Hamanaka Bokujo Kajibayashi | Tohoku | 2.31 | JPY 36 | Oct 2016 |
Ichigo Sera Tsukuchi | Chugoku | 2.54 | JPY 32 | Feb 2017 |
Ichigo Sera Aomizu | Chugoku | 2.87 | JPY 32 | Aug 2017 |
Ichigo Showamura Ogose | Kanto | 43.34 | JPY 36 | Sep 2017 |
Ichigo Memuro Nishi-Shikari | Hokkaido | 1.32 | JPY 40 | Feb 2018 |
Ichigo Kure Yasuuracho Nakahata | Chugoku | 2.90 | JPY 36 | Mar 2018 |
Ichigo Tsu | Chubu | 2.94 | JPY 24 | Mar 2018 |
Ichigo Kasaoka Iwanoike | Chugoku | 2.64 | JPY 24 | Mar 2018 |
Ichigo Toki Tsurusatocho Kakino | Chubu | 1.31 | JPY 24 | Apr 2018 |
Ichigo Itoshima Iwara | Kyushu | 1.48 | JPY 36 | Jan 2019 |
Ichigo Sakahogi Fukagaya | Chubu | 2.89 | JPY 21 | May 2019 |
Ichigo Sennan Kitsuneike | Kansai | 2.86 | JPY 21 | Jul 2019 |
Ichigo Minakami Aramaki | Kanto | 12.02 | JPY 36 | Jan 2020 |
Ichigo Takashima Kutsuki | Kansai | 3.74 | JPY 32 | Jan 2020 |
Total (Operating) | 29 Plants | 105.16MW |
Total
185MW
Ichigo (In-Development)
Panel | FIT | Operation | ||
Solar Power Plant | Area | Output | ||
(Pre-tax) | Start Date | |||
(MW) | ||||
Ichigo Toki Tsurusatocho Kakino Higashi | Chubu | 1.67 | JPY 21 | Feb 2020 |
Ichigo Hitachi Omiya | Kanto | 2.99 | JPY 24 | Mar 2020 |
Ichigo Kasaoka Osakaike | Chugoku | 2.66 | JPY 21 | Mar 2020 |
Ichigo Minokamo Hachiyacho Kamihachiya | Chubu | 1.30 | JPY 18 | Apr 2020 |
Ichigo Hokota Aoyagi | Kanto | 2.48 | JPY 24 | Apr 2020 |
Ichigo Seto Jokojicho | Chubu | 1.50 | JPY 18 | Aug 2020 |
Ichigo Obu Yoshidamachi | Chubu | 0.98 | JPY 18 | Sep 2020 |
(Wind) Ichigo Yonezawa Itaya | Tohoku | 7.39 | JPY 22 | Dec 2020 |
Ichigo Toride Shimotakai Nishi | Kanto | 2.99 | JPY 18 | Apr 2021 |
Ichigo Kobe Pompuike | Kansai | 2.95 | JPY 18 | Jul 2021 |
Ichigo Sera Shimotsuda | Chugoku | 2.81 | JPY 18 | Aug 2021 |
Ichigo Ueda Yoshidaike | Chubu | 1.01 | JPY 18 | Oct 2021 |
Ichigo Kasaoka Idachiike | Chugoku | 2.66 | JPY 18 | Nov 2021 |
Ichigo Miyakonojo Takazakicho Tsumagirishima | Kyushu | 2.96 | JPY 32 | Feb 2022 |
Ichigo Ebino Suenaga | Kyushu | 14.00 | JPY 40 | Jun 2023 |
Total (In-Development) | 15 Plants | 50.41MW | ||
Total (Operating & In-Development) | 44 Plants 155.58MW |
* Excludes wind power plants under development (18.5MW)
Ichigo Green (9282)
Area | Panel | FIT |
(Number of | Output | |
(Pre-tax) | ||
Power Plants) | (MW) | |
Hokkaido (7) | 9.14 | JPY 40 |
Kanto (1) | 1.33 | JPY 40 |
Chubu (1) | 1.80 | JPY 32 |
Chugoku (2) | 3.60 | JPY 36, JPY40 |
Shikoku (2) | 3.67 | JPY 36, JPY40 |
Kyushu (1) | 1.44 | JPY 36 |
Okinawa (1) | 8.44 | JPY 40 |
Total | 15 Plants | 29.43MW |
© Ichigo Inc. All rights reserved. | 51 |
Ichigo Solar & Wind Power Plant Portfolio
Serving Local Communities and the Environment
Total Operating and In-Development | Chugoku | |||||
Ichigo Yonago Izumi | 2.61MW | |||||
Ichigo Power Plants | ||||||
Ichigo Kasaoka Takumicho | 1.11MW | |||||
59 Plants (185MW*) | ||||||
Ichigo Fuchu Jogecho Yano | 0.99MW | |||||
Currently Operating | Ichigo Sera Tsukuchi | 2.54MW | ||||
Ichigo Sera Aomizu | 2.87MW | |||||
44 Plants (134MW) | ||||||
Taguchi | 2.72MW | |||||
Ichigo Higashi-Hiroshima Saijocho | ||||||
Okinawa | Ichigo Kasaoka Iwanoike | 2.64MW | ||||
Ichigo Nago Futami | 8.44MW | Ichigo Kure Yasuuracho Nakahata | 2.90MW | |||
Kyushu | Ichigo Yamaguchi Aionishi | 1.24MW | ||||
Ichigo Yamaguchi Sayama | 2.35MW | |||||
Ichigo Kijo Takajo | 0.89MW | |||||
Ichigo Kasaoka Osakaike | 2.66MW | |||||
Ichigo Itoshima Iwara | 1.48MW | |||||
Ichigo Kasaoka | Idachiike | 2.66MW | ||||
Ichigo Miyakonojo Yasuhisacho | 1.44MW | |||||
Ichigo Sera Shimotsuda | 2.81MW | |||||
Ichigo Miyakonojo | 2.96MW | |||||
Total | 30.16MW | |||||
Takazakicho Tsumagirishima | ||||||
Ichigo Ebino Suenaga | 14.00MW | |||||
Total | 20.79MW | Chubu | ||||
* Excludes wind power | ||||||
Ichigo Toki Oroshicho | 1.39MW | |||||
plants under | ||||||
Kansai | Ichigo Tsu | 2.94MW | ||||
development (18.5MW) | ||||||
Ichigo Sennan Kitsuneike | 2.86MW | Ichigo Toki Tsurusatocho Kakino | 1.31MW | |||
Ichigo | Ichigo Takashima Kutsuki | 3.74MW | Ichigo Sakahogi Fukagaya | 2.89MW | ||
Ichigo Green (9282) | Ichigo Kobe Pompuike | 2.95MW | Ichigo Toyokawa Mitocho Sawakihama | 1.80MW | ||
Total | 9.56MW | Ichigo Toki Tsurusatocho | 1.67MW | |||
In-Development | ||||||
Kakino Higashi | ||||||
Shikoku | Ichigo Minokamo Hachiyacho | 1.30MW | ||||
Kamihachiya | ||||||
Ichigo Tokushima Higashi-Okinosu | 2.52MW | Ichigo Seto Jokojicho | 1.50MW | |
Ichigo Takamatsu Kokubunjicho Nii | 2.43MW | Ichigo Obu Yoshidamachi | 0.98MW | |
Ichigo Iyo Nakayamacho Izubuchi | 1.23MW | Ichigo Ueda Yoshidaike | 1.01MW | |
Total | 6.19MW | |||
Total | 16.84MW | |||
Hokkaido
Ichigo Yubetsu Barou | 0.80MW |
Ichigo Betsukai Kawakamicho | 0.88MW |
Ichigo Akkeshi Shirahama | 0.80MW |
Ichigo Toyokoro Sasadamachi | 0.60MW |
Ichigo Memuro Nishi-Shikari | 1.32MW |
Ichigo Motomombetsu | 1.40MW |
Ichigo Engaru Higashimachi | 1.24MW |
Ichigo Engaru Kiyokawa | 1.12MW |
Ichigo Abira Toasa | 1.16MW |
Ichigo Muroran Hatchodaira | 1.24MW |
Ichigo Toyokoro | 1.02MW |
Ichigo Nakashibetsu Midorigaoka | 1.93MW |
Total | 13.57MW |
Tohoku
Ichigo Hamanaka Bokujo Tsurunokotai | 2.31MW |
Ichigo Hamanaka Bokujo Kajibayashi | 2.31MW |
(Wind) Ichigo Yonezawa Itaya | 7.39MW |
Total | 12.01MW |
(Wind - Pipeline) Iwate | 7.50MW |
(Wind - Pipeline) Fukushima | 7.00MW |
Kanto
Ichigo Maebashi Naegashima | 0.67MW |
Ichigo Showamura Ogose | 43.34MW |
Ichigo Toride Shimotakai Kita | 1.03MW |
Ichigo Toride Shimotakai Minami | 0.54MW |
Ichigo Minakami Aramaki | 12.02MW |
Ichigo Kiryu Okuzawa | 1.33MW |
Ichigo Hitachi Omiya | 2.99MW |
Ichigo Hokota Aoyagi | 2.48MW |
Ichigo Toride Shimotakai Nishi | 2.99MW |
Total | 67.43MW |
(Wind - Pipeline) Chiba | 4.00MW |
© Ichigo Inc. All rights reserved. | 52 |
Ichigo-Owned Solar Power Plant Details
Total Operating and In-Development
Ichigo-Owned Solar Power Plants: 43 Plants (148MW)
By Customer | By Feed-In Tariff | ||
(Electric Power Utility Co) | |||
Hokkaido | Shikoku | ||
3% | 2% | ||
Tohoku | |||
3% | |||
JPY 18 | JPY 40 | ||
Kyushu | JPY 21 11% | ||
7% | 20% | ||
13% | |||
Kansai | TEPCO | JPY 24 | |
45% | 8% | ||
6% | |||
Chubu | JPY 32 | JPY 36 | |
10% |
10% | 44% |
Chugoku | |
18% |
By Output | By Solar Intensity | ||||
C | |||||
(In-Development) | |||||
4% | |||||
>10MW (In- | <2MW | ||||
Development) | 9% | ||||
10% | B | A | |||
2-10MW | (In-Development) | ||||
<2MW | (In-Development) | 2-10MW | 22% | 36% | |
15% | 24% | ||||
(In-Development) | A | ||||
5% | |||||
(In-Development) | |||||
>10MW | 13% | B | |||
C | |||||
37% | 19% | ||||
6% | |||||
By Operating Timeline
Starting | |
operation after | |
+6 months | |
Starting | 20% |
>1 year in | |
operation within | |
6 months | operation |
9% | 56% |
<6 months in operation 11%
0.5-1 year in operation 4%
Rank | Solar Intensity | |
- ≧4.00
- ≧3.75, <4.00
C ≧3.50, <3.75
D <3.50
Unit: kWh/m² per day
© Ichigo Inc. All rights reserved. | 53 |
Reference: Japan's Feed-In Tariff (FIT)
What is a FIT?
- A policy mechanism to encourage investment in renewable energies by guaranteeing a fixed price for electricity over a 20-year contract period
- The fixed price for new contracts is adjusted every year, but locked in for the duration of the contract period
Solar Power FIT | Wind Power FIT | |||||||||||
Contract Date | FIT | Guarantee | Contract Date | FIT | Guarantee | |||||||
Period | Period | |||||||||||
FY2012 | JPY 40 | 20 years | FY2017 (4/1~9/30) | JPY 22 | 20 years | |||||||
FY2013 | JPY 36 | 20 years | FY2017 (10/1~3/31) | JPY 21 | 20 years | |||||||
FY2014 | JPY 32 | 20 years | FY2018 | JPY 20 | 20 years | |||||||
FY2015 (4/1~6/30) | JPY 29 | 20 years | FY2019 | JPY 19 | 20 years | |||||||
FY2015 (7/1~3/31) | JPY 27 | 20 years | FY2020 | JPY 18 | 20 years | |||||||
FY2016 | JPY 24 | 20 years | ||||||||||
FY2017 | JPY 21 1 | 20 years | ||||||||||
FY2018 | JPY 18 1 | 20 years | ||||||||||
FY2019 | JPY 14 2 | 20 years | ||||||||||
Source: METI, Agency for Natural Resources and Energy | 1 FIT for >2MW non-residential solar power production determined via auction process | |||||||||||
2 FIT for >0.5MW non-residential solar power production determined via auction process |
© Ichigo Inc. All rights reserved. | 54 |
Consolidated Balance Sheet: Assets
(JPY million) | ||||||||||||||
FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 H1 | FY20/2 Q3 | vs. FY20/2 H1 | ||||||||
Assets | ||||||||||||||
Current Assets | +5 | |||||||||||||
Cash and cash equivalents | 28,779 | 47,678 | 45,510 | 50,225 | 40,448 | 40,453 | ||||||||
Trade notes and accounts receivable | 691 | 913 | 1,097 | 1,344 | 1,582 | 1,924 | +342 | |||||||
Operational loan investments | 1,324 | 1,324 | 1,324 | 1,324 | 1,324 | 1,324 | - | |||||||
Operational securities investments | 1,784 | 1,433 | 2 | 1,218 | 4,654 | 8,743 | +4,089 | |||||||
Real estate for sale | 172,833 | 167,805 | 180,789 | 161,322 | 181,264 | 172,001 | -9,263 | |||||||
Deferred tax assets | 1,766 | 516 | 342 | - | - | - | - | |||||||
Other | 3,966 | 3,125 | 2,643 | 2,156 | 3,522 | 3,056 | -466 | |||||||
Less: allowance for doubtful accounts | -458 | -453 | -28 | -2 | -3 | -5 | -2 | |||||||
Total Current Assets | 210,687 | 222,344 | 231,681 | 217,590 | 232,793 | 227,499 | -5,294 | |||||||
Fixed Assets | ||||||||||||||
Property, Plant, and Equipment | +203 | |||||||||||||
Buildings and structures (net) | 3,830 | 7,375 | 10,600 | 20,338 | 22,126 | 22,329 | ||||||||
Solar power plant equipment (net) | 12,256 | 7,246 | 19,773 | 19,058 | 19,421 | 19,212 | -209 | |||||||
Land | 12,192 | 18,627 | 26,993 | 49,924 | 52,255 | 52,871 | +616 | |||||||
Other (net) | 3,264 | 12,402 | 1,190 | 5,655 | 6,756 | 7,915 | +1,159 | |||||||
Total Property, Plant, and Equipment | 31,546 | 45,654 | 58,558 | 94,976 | 100,560 | 102,330 | +1,770 | |||||||
Intangible Assets | -43 | |||||||||||||
Goodwill | 1,942 | 1,864 | 1,600 | 1,346 | 1,493 | 1,450 | ||||||||
Leasehold rights | 392 | 62 | 135 | 316 | 403 | 435 | +32 | |||||||
Other | 38 | 29 | 233 | 331 | 575 | 634 | +59 | |||||||
Total Intangible Assets | 2,373 | 1,956 | 1,968 | 1,993 | 2,471 | 2,519 | +48 | |||||||
Investments and Other Assets | +628 | |||||||||||||
Securities investments | 5,486 | 1,426 | 2,184 | 2,455 | 4,247 | 4,875 | ||||||||
Long-term loans receivable | 12 | 10 | 10 | 10 | 10 | 510 | +500 | |||||||
Deferred tax assets | 39 | 339 | 68 | 177 | 188 | 152 | -36 | |||||||
Other | 1,736 | 1,820 | 2,132 | 2,231 | 2,157 | 2,249 | +92 | |||||||
Less: allowance for doubtful accounts | -124 | -92 | -91 | -91 | -91 | -91 | - | |||||||
Total Investments and Other Assets | 7,149 | 3,504 | 4,303 | 4,782 | 6,511 | 7,695 | +1,184 | |||||||
Total Fixed Assets | 41,069 | 51,115 | 64,831 | 101,752 | 109,543 | 112,545 | +3,002 | |||||||
Total Assets | 251,757 | 273,459 | 296,512 | 319,343 | 342,337 | 340,045 | -2,292 |
© Ichigo Inc. All rights reserved. | 55 |
Consolidated Balance Sheet: Liabilities & Net Assets
(JPY million) | ||||||||||||||
FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 H1 | FY20/2 Q3 | vs. FY20/2 H1 | ||||||||
Liabilities | ||||||||||||||
Current Liabilities | ||||||||||||||
Trade notes and accounts payable | 80 | 110 | - | - | - | - | - | |||||||
Short-term loans | 2,188 | 805 | 1,042 | 3,275 | 5,115 | 4,244 | -871 | |||||||
Short-termnon-recourse loans | 79 | 611 | - | - | - | - | - | |||||||
Bonds (due within one year) | - | 112 | 112 | 112 | 274 | 274 | - | |||||||
Long-term loans (due within one year) | 8,161 | 5,209 | 4,449 | 7,881 | 10,179 | 12,317 | +2,138 | |||||||
Long-termnon-recourse loans (due within one year) | 2,975 | 6,825 | 3,921 | 1,666 | 1,696 | 1,171 | -525 | |||||||
Income taxes payable | 631 | 1,655 | 1,609 | 3,760 | 2,174 | 3,111 | +937 | |||||||
Deferred tax liabilities | 53 | 62 | 494 | - | - | - | - | |||||||
Accrued bonuses | 13 | 36 | 34 | 31 | 279 | 504 | +225 | |||||||
Other current liabilities | 3,979 | 4,119 | 4,652 | 5,178 | 3,741 | 3,921 | +180 | |||||||
Total Current Liabilities | 18,161 | 19,548 | 16,316 | 21,905 | 23,461 | 25,545 | +2,084 | |||||||
Long-Term Liabilities | +2,960 | |||||||||||||
Bonds | - | 632 | 520 | 538 | 3,219 | 6,179 | ||||||||
Non-recourse bonds | 100 | 100 | - | - | - | - | - | |||||||
Long-term loans | 94,409 | 91,604 | 112,366 | 131,569 | 151,869 | 148,798 | -3,071 | |||||||
Long-termnon-recourse loans | 56,193 | 68,319 | 63,588 | 51,068 | 48,069 | 39,674 | -8,395 | |||||||
Deferred tax liabilities | 1,543 | 1,147 | 1,744 | 2,164 | 2,168 | 2,035 | -133 | |||||||
Long-term security deposits received | 8,707 | 8,038 | 8,492 | 8,292 | 8,253 | 8,188 | -65 | |||||||
Other long-term liabilities | 475 | 624 | 758 | 946 | 1,087 | 932 | -155 | |||||||
Total Long-Term Liabilities | 161,430 | 170,467 | 187,470 | 194,579 | 214,667 | 205,809 | -8,858 | |||||||
Total Liabilities | 179,591 | 190,015 | 203,787 | 216,484 | 238,128 | 231,355 | -6,773 | |||||||
Net Assets | ||||||||||||||
Shareholders' Equity | +19 | |||||||||||||
Capital | 26,575 | 26,650 | 26,723 | 26,820 | 26,822 | 26,841 | ||||||||
Capital reserve | 10,968 | 11,056 | 11,113 | 11,207 | 11,208 | 11,228 | +20 | |||||||
Retained earnings | 29,454 | 42,840 | 54,324 | 66,730 | 71,916 | 78,445 | +6,529 | |||||||
Treasury shares | -41 | -15 | -2,995 | -5,988 | -6,755 | -8,988 | -2,233 | |||||||
Total Shareholders' Equity | 66,956 | 80,532 | 89,165 | 98,769 | 103,192 | 107,526 | +4,334 | |||||||
Accumulated Other Comprehensive Income | +98 | |||||||||||||
Valuation gains (losses) on other securities | 761 | 117 | 543 | 386 | 314 | 412 | ||||||||
Deferred gains (losses) on long-term interest rate | -251 | -365 | -372 | -408 | -437 | -438 | -1 | |||||||
hedges | ||||||||||||||
Foreign currency translation adjustment | 23 | 55 | - | - | - | - | - | |||||||
Total Accumulated Other Comprehensive Income | 533 | -192 | 171 | -21 | -122 | -26 | +96 | |||||||
Stock Options | 319 | 491 | 666 | 827 | 951 | 1,004 | +53 | |||||||
Minority Interests | 4,357 | 2,612 | 2,722 | 3,283 | 187 | 185 | -2 | |||||||
Total Net Assets | 72,166 | 83,443 | 92,725 | 102,859 | 104,208 | 108,690 | +4,482 | |||||||
Total Liabilities and Net Assets | 251,757 | 273,459 | 296,512 | 319,343 | 342,337 | 340,045 | -2,292 |
© Ichigo Inc. All rights reserved. | 56 |
Consolidated P&L
(JPY million) | |||||||||||||||||||||
FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 Q3 | FY19/2 Q3 | Change | FY20/2 | vs. | |||||||||||||
Full-Year | |||||||||||||||||||||
(12M) | (12M) | (12M) | (12M) | (9M) | (9M) | (YOY) | Forecast | ||||||||||||||
Forecast | |||||||||||||||||||||
Revenue | 49,699 | 109,253 | 57,846 | 83,540 | 58,282 | +19,871 | - | - | |||||||||||||
78,153 | |||||||||||||||||||||
Cost of Goods Sold | 28,865 | 81,327 | 30,860 | 51,413 | 47,823 | 33,332 | +14,491 | - | - | ||||||||||||
Gross Profit | 20,833 | 27,925 | 26,986 | 32,126 | 30,330 | 24,950 | +5,380 | - | - | ||||||||||||
SG&A | 4,446 | 5,025 | 5,067 | 5,847 | 5,298 | 4,396 | +902 | - | - | ||||||||||||
Operating Profit | 16,387 | 22,900 | 21,919 | 26,279 | 25,032 | 20,553 | +4,479 | 26,500 | 94.5% | ||||||||||||
Non-Operating Income | +2 | - | - | ||||||||||||||||||
Interest income | 2 | - | 3 | 3 | 4 | 2 | |||||||||||||||
Dividend income | 79 | 85 | 57 | 68 | 74 | 62 | +12 | - | - | ||||||||||||
Negative goodwill amortization | 90 | - | - | - | - | - | - | - | - | ||||||||||||
Mark-to-market gains on long-term interest | - | - | - | 5 | 53 | 5 | +48 | - | - | ||||||||||||
rate hedges | |||||||||||||||||||||
80 | -51 | - | - | ||||||||||||||||||
Other | 43 | 32 | 100 | 70 | 29 | ||||||||||||||||
Total Non-Operating Income | 215 | 118 | 161 | 147 | 162 | 151 | +11 | - | - | ||||||||||||
Non-Operating Expenses | 1,742 | -8 | - | - | |||||||||||||||||
Interest expenses | 2,234 | 2,278 | 2,249 | 2,328 | 1,734 | ||||||||||||||||
Mark-to-market losses on long-term interest | - | 53 | 270 | 491 | 55 | 220 | -165 | - | - | ||||||||||||
rate hedges | |||||||||||||||||||||
+227 | - | - | |||||||||||||||||||
Debt financing-related fees | 98 | 714 | 207 | 327 | 522 | 295 | |||||||||||||||
Other | 380 | 217 | 168 | 203 | 215 | 183 | +32 | - | - | ||||||||||||
Total Non-Operating Expenses | 2,713 | 3,263 | 2,895 | 3,350 | 2,529 | 2,441 | +88 | - | - | ||||||||||||
Recurring Profit | 13,889 | 19,755 | 19,185 | 23,076 | 22,665 | 18,264 | +4,401 | 22,800 | 99.4% | ||||||||||||
Extraordinary Gains | +9 | - | - | ||||||||||||||||||
Gains on sales of securities investments | 223 | 2,466 | - | 2 | 11 | 2 | |||||||||||||||
Gains on sales of shares in affiliates | - | - | 1,221 | - | - | - | - | - | - | ||||||||||||
Gains on sales of subsidiary shares | - | - | - | - | 169 | - | +169 | - | - | ||||||||||||
Other | - | - | 41 | - | 35 | - | +35 | - | - | ||||||||||||
Total Extraordinary Gains | 223 | 2,466 | 1,263 | 2 | 215 | 2 | +213 | - | - | ||||||||||||
Extraordinary Losses | - | - | 11 | - | 27 | - | +27 | - | - | ||||||||||||
Losses on sales/disposal of fixed assets | |||||||||||||||||||||
Valuation losses on securities investments | 49 | - | - | - | - | - | - | - | - | ||||||||||||
Office move expenses | 9 | 31 | - | - | - | - | - | - | - | ||||||||||||
Impairment loss | - | 1,090 | 327 | - | - | - | - | - | - | ||||||||||||
Earthquake-related damages | - | 244 | - | - | - | - | - | - | - | ||||||||||||
Other | 31 | 224 | - | - | - | - | - | - | - | ||||||||||||
Total Extraordinary Losses | 89 | 1,590 | 339 | - | 27 | - | +27 | - | - | ||||||||||||
Pre-Tax Net Income | 14,022 | 20,630 | 20,109 | 23,079 | 22,853 | 18,266 | +4,587 | - | - | ||||||||||||
Income Taxes | 960 | 5,436 | 5,923 | 7,333 | 6,775 | 5,700 | +1,075 | - | - | ||||||||||||
Pre-Minority Interest Net Income | 13,062 | 15,194 | 14,185 | 15,746 | 16,077 | 12,566 | +3,511 | - | - | ||||||||||||
Net Income Attributable to Minority Interests | 136 | 299 | 167 | 373 | 936 | 383 | +553 | - | - | ||||||||||||
Net Income | 12,925 | 14,894 | 14,018 | 15,373 | 15,141 | 12,183 | +2,958 | 15,000 | 100.9% | ||||||||||||
© Ichigo Inc. All rights reserved. | 57 |
Consolidated Cash Flows from Operations
(JPY million) | ||||||||||
FY16/2 (12M) | FY17/2 (12M) | FY18/2 (12M) | FY19/2 (12M) | FY20/2 Q3 (9M) | ||||||
Cash Flows from Operations | ||||||||||
Pre-tax net income | 14,022 | 20,630 | 20,109 | 23,079 | 22,853 | |||||
Depreciation | 792 | 778 | 1,015 | 1,696 | 1,888 | |||||
Share-based compensation expenses | 174 | 223 | 215 | 213 | 187 | |||||
Amortization of goodwill | 139 | 141 | 111 | 254 | 130 | |||||
Amortization of negative goodwill | -90 | - | - | - | - | |||||
Increase (decrease) in accrued bonuses | -3 | 23 | 32 | -3 | 473 | |||||
Increase (decrease) in allowance for doubtful accounts | 3 | -3 | -355 | -26 | 2 | |||||
Interest and dividend income | -81 | -85 | -61 | -71 | -79 | |||||
Interest expenses | 1,277 | 1,303 | 2,249 | 2,328 | 1,734 | |||||
Gains on sales of subsidiary shares | - | - | - | - | -169 | |||||
Losses (gains) on sales of shares in affiliates | - | - | -1,221 | - | - | |||||
Losses (gains) on sales of securities investments | -223 | -2,466 | - | -2 | -11 | |||||
Impairment loss | - | 1,090 | 327 | - | - | |||||
Valuation losses on securities investments | 49 | - | - | - | - | |||||
Decrease (increase) in trading notes and receivables | -172 | -367 | -468 | -247 | -519 | |||||
Decrease (increase) in operational loans receivable | 1,006 | - | - | - | - | |||||
Decrease (increase) in operational securities investments | 1,239 | 2,727 | 1,663 | 3,509 | 3,842 | |||||
Valuation loss on operational securities investments | 19 | - | - | - | - | |||||
Decrease (increase) in real estate for sale | -63,070 | -6,303 | -8,112 | -3,163 | -10,046 | |||||
Decrease (increase) in power plant for sale | - | 7,251 | 996 | - | - | |||||
Valuation losses on SPC capital contributions | 11 | 16 | - | - | - | |||||
Decrease (increase) in advances paid | -990 | -190 | 871 | -333 | 136 | |||||
Decrease (increase) in accounts receivable | -1,140 | -193 | -10 | -399 | 9 | |||||
Increase (decrease) in accounts payable | 535 | 204 | 573 | -332 | -675 | |||||
Increase (decrease) in accrued expenses | 42 | 92 | -47 | 25 | 83 | |||||
Increase (decrease) in advances received | 317 | -49 | 30 | 269 | - | |||||
Increase (decrease) in security deposits received | 2,380 | -667 | 125 | -264 | -99 | |||||
Other | 435 | 1,304 | 585 | 1,887 | 224 | |||||
Sub-Total | -43,324 | 25,460 | 18,628 | 28,420 | 19,965 | |||||
Interest and dividend income received | 81 | 85 | 61 | 71 | 79 | |||||
Interest expenses paid | -1,226 | -1,146 | -2,231 | -2,118 | -1,524 | |||||
Income taxes paid and refunded | -186 | -2,852 | -5,854 | -4,610 | -7,548 | |||||
Net Cash from (Used for) Operations | -44,654 | 21,547 | 10,603 | 21,762 | 10,970 |
© Ichigo Inc. All rights reserved. | 58 |
Consolidated Cash Flows from Investments & Financing
(JPY million) | ||||||||||||
FY16/2 (12M) | FY17/2 (12M) | FY18/2 (12M) | FY19/2 (12M) | FY20/2 Q3 (9M) | ||||||||
Cash Flows from Investments | ||||||||||||
Payments into time deposits | - | -6,100 | -6 | -118 | -111 | |||||||
Proceeds from withdrawal from time deposits | - | 201 | - | 1,060 | 5,033 | |||||||
Payments for securities investments | -671 | -300 | -140 | -539 | -2,332 | |||||||
Proceeds from sales of securities investments | 296 | 6,136 | - | 32 | 111 | |||||||
Proceeds from redemptions of securities investments | 3 | - | - | - | - | |||||||
Acquisitions of property, plant, and equipment | -6,628 | -11,719 | -4,796 | -15,440 | -10,306 | |||||||
Acquisitions of intangible assets | -21 | -1 | -83 | -425 | -464 | |||||||
Payments of SPC capital contributions | -9 | -63 | -28 | -6 | -2 | |||||||
Redemptions of SPC capital contributions | 6 | - | - | 32 | - | |||||||
Payments of security deposits | -37 | -5 | -36 | -16 | -34 | |||||||
Acquisitions of subsidiary shares resulting in change of | - | -93 | -2,619 | - | - | |||||||
consolidation scope | ||||||||||||
Sales of subsidiary shares resulting in change of | - | - | 2,096 | - | - | |||||||
consolidation scope | ||||||||||||
Acquisitions of consolidated subsidiary | - | - | - | - | -187 | |||||||
Other | 9 | 11 | -32 | -181 | -720 | |||||||
Net Cash from (Used for ) Investments | -7,052 | -11,933 | -5,645 | -15,602 | -9,015 | |||||||
Cash Flows from Financing | ||||||||||||
Net increase (decrease) in short-term loans | 771 | -1,383 | -306 | 2,232 | 969 | |||||||
Net increase (decrease) in short-termnon-recourse loans | 31 | 532 | -611 | - | - | |||||||
Proceeds from bond issuance | - | 785 | - | 129 | 5,828 | |||||||
Repayment of maturing bond principal to bondholders | - | -56 | -112 | -112 | -96 | |||||||
Redemption of non-recourse bonds | - | - | -100 | - | - | |||||||
Proceeds from long-term loans | 64,866 | 55,674 | 32,660 | 43,062 | 44,898 | |||||||
Repayment of long-term loans | -19,192 | -61,221 | -13,402 | -20,352 | -23,445 | |||||||
Proceeds from long-termnon-recourse loans | 18,150 | 30,850 | 3,518 | 3,500 | 5,300 | |||||||
Repayment of long-termnon-recourse loans | -2,772 | -15,400 | -22,366 | -18,473 | -17,188 | |||||||
Proceeds from employee exercise of stock options | 153 | 137 | 110 | 143 | 31 | |||||||
Share buyback | - | - | -2,999 | -2,999 | -2,999 | |||||||
Proceeds from minority interests | 2,000 | - | - | 90 | - | |||||||
Payments to minority interests | - | -2,000 | - | - | -1,276 | |||||||
Sales of subsidiary shares resulting in no change of | - | - | - | 100 | - | |||||||
consolidation scope | ||||||||||||
Dividends paid to minority interests | -43 | -39 | - | - | -5 | |||||||
Dividends paid | -646 | -1,501 | -2,513 | -2,972 | -3,415 | |||||||
Net Cash from (Used for ) Financing | 63,318 | 6,377 | -6,124 | 4,346 | 8,598 | |||||||
© Ichigo Inc. All rights reserved. | 59 |
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
© Ichigo Inc. All rights reserved. | 60 |
Go for Growth
Grow & Expand Ichigo's Core Businesses into New Areas, Creating New Earnings Streams and Increasing Both Earnings and Earnings Stability
Sustainability | Infrastructure |
Sustainability is integral to the health and development of people, society, and the environment.
Ichigo's current core business of preserving and improving real estate is a highly sustainable business model that combines high efficiency with low environmental impact.
Under Ichigo 2030, Ichigo will continue its longstanding commitment to sustainability while developing new technologies to extend the lives of key social infrastructure beyond 100 years.
Ichigo has a direct and critically important role in preserving and improving the social infrastructure that supports the quality of people's lives.
By expanding its current real estate and clean energy businesses into other infrastructure areas, Ichigo will integrate the "hard" physical elements and "soft" service elements of infrastructure to serve broad client needs.
Critical to success will be unifying Ichigo's Value-Add and IT capabilities. Ichigo will work to deliver first-in- class and best-in-class solutions to drive significant value for clients and society across a diverse set of infrastructures. Being one of many is not enough. Ichigo needs to lead.
Ichigo as a Sustainable Infrastructure Company
© Ichigo Inc. All rights reserved. | 61 |
Go Beyond Real Estate to Address Broad Needs
Assets
Residential
Office
Retail
Hotel
Solar Power
Plant
Stadium
Needs
Live
Work
Buy, Dine
Stay, Travel
Power Lives &
Businesses
Entertainment, Recreation, & Health
Responding | ||
Nursing Care | to Diverse | Child Care |
Needs | ||
Senior Business | Education | |
Medical Care | Tourism | |
Agriculture | ||
Entertainment | ||
Public Works | ||
Sports | ||
Culture | Energy | Other |
© Ichigo Inc. All rights reserved. | 62 |
KPI Targets
1. High Capital Efficiency
- FY20/2~FY30/2 Average ROE >15%
- Increase long-term ROE by driving higher capital efficiency and earnings stability
- Via high ROE, grow long-term EPS as a key driver of shareholder value
- FY20/2~FY30/2 Continuous JPX-Nikkei 400 Index Inclusion
- Target 11 consecutive years of inclusion
2. High Cash Flow Generation
- FY20/2~FY30/2 Continuous Economic Operating Cash Flow > Net Income
- Ichigo's robust cash flows fund both growth investments and shareholder returns
- Target 11 consecutive years of EOCF > NI
3. High Earnings Stability
- FY30/2 Stock Earnings Ratio >60%
- Raise Stock Earnings ratio from FY19/2's 53%
- Concurrently, increase and diversify Flow Earnings, which are currently centered on Value-Add Gains on Sales
Note: Economic Operating Cash Flow = Cash Flows from Operations excluding net investment in Real Estate and Power Plants for Sale
© Ichigo Inc. All rights reserved. | 63 |
Shareholder Return Policy
Ichigo Dividend Policy: Growth, Certainty, and Stability
- Progressive Dividend Policy
- Ichigo's progressive dividend policy underscores our commitment to driving continued organic earnings and dividend growth for shareholders. Under this policy, the dividend is maintained or raised every year (but not cut), providing shareholders with the security of a durable dividend.
- DOE (Dividend on Equity) Payout Ratio of >3%
- Stable and growing dividend unaffected by short-term earnings volatility
- Flexible Deployment of Share Buybacks (New)
- Conduct share buybacks to optimize capital structure and drive shareholder value
Dividend growth via
DOE > 3% Policy
7 Consecutive Years of | ||||||||
Dividend Growth | JPY 7 | JPY 7 | ||||||
JPY 6 | ||||||||
JPY 5 | ||||||||
JPY 1.3 | JPY 3 | |||||||
JPY 1* | JPY 1.1 | |||||||
FY12/2 | FY13/2 | FY14/2 | FY15/2 | FY16/2 | FY17/2 | FY18/2 | FY19/2 | FY20/2 |
* Adjusted to reflect 200:1 stock split | (Forecast) |
© Ichigo Inc. All rights reserved. | 64 |
FY20/2 Initiatives
Deepen Capabilities in Sustainable Real Estate
- Expand into new asset types (e.g., dormitories, sports facilities)
- Seek to be "Best Partner" to tenants via continually improving tenant services and solutions
- Strengthen group operating structure to deliver best-in-class outcomes
Accelerate Creation of New Businesses
- Further develop Ichigo Sustainable Lab
- Develop first-in-class and best-in-class Ichigo apps and other software solutions to address client needs and launch new businesses
Pro-Actively Deploy IT to Drive Higher Productivity
- Build integrated SRE asset database
- Deploy BPA solutions
- Streamline tasks and increase asset management business productivity
© Ichigo Inc. All rights reserved. | 65 |
Ichigo 2030: New Initiatives
© Ichigo Inc. All rights reserved. | 66 |
Real Estate x Sports
Top Partner of J.League, Japan's Professional Soccer League
Partner with J.League to Promote Community Development, Revitalize Local Economies, and Help People Enjoy Fuller and Healthier Lives
J.League's 100-Year Vision: | Ichigo's Mission: | |
Promote Sports Development | Serve Important Social Needs |
J.League's mission is to establish sports clubs rooted in local communities, cooperating with local residents, businesses, and municipalities to promote community development
Ichigo believes that companies exist to serve society, and seeks to contribute to local communities as a sustainable infrastructure company
Ichigo's role as the only real estate company that is a J.League Top Partner:
- Renovate and upgrade stadiums and help local governments find solutions for the rising costs of operating stadiums
- Work to build stronger and healthier communities in cooperation with local residents, businesses, and municipalities
© Ichigo Inc. All rights reserved. | 67 |
Real Estate x Tourism
Hotel Operator Market Entry: Hakata Hotels
Hotel Operator in Kyushu/Yamaguchi Region Seeing Inbound Tourism Growth
- Started operations at 3 hotels on June 1, 2019 and 7 hotels in August
Deploying Propera, Ichigo's AI-based Hotel Revenue Management System
- Increasing employee productivity via IT systems to automate administrative tasks so employees can focus on hospitality & service
- Sales of Propera to non-Ichigo hotel operators expected to drive Ichigo non-asset revenue stream
Ichigo's Hotel Il Palazzo in Fukuoka was the first building outside the U.S. to win an American Institute of Architects Honor Award in 1991
Responding | |
Nursing Care | to Diverse Child Care |
Needs |
The Hakata Hotels logo features hakata-ori woven silk textiles that are a local Fukuoka craft, including the koukou shima weaving pattern in which a thick vertical line is surrounded by thin vertical lines. The thin lines represent children, and the thick lines parents, expressing the sense of care shown within families. The multiple colors reflect Ichigo's values of respect for diversity. The values represented in the logo are also resonant with Ichigo's philosophy of Ichigo Ichie, literally meaning "One lifetime, one encounter."
Senior Business | Education | |
Medical Care | Tourism | |
Entertainment | Agriculture | |
Sports | Public Works | |
Culture | Energy | Other |
© Ichigo Inc. All rights reserved. | 68 |
Real Estate x Entertainment x Culture X Tourism
Ichigo Animation: Anime + Real Estate Synergies
Production of New Anime Series VLADLOVEWritten & Directed by Mamoru Oshii, with Co-Director Junji Nishimura
- Established Ichigo Animation in April 2019
- Introducing tenant collaboration initiatives that go beyond typical owner/tenant, hands-off leasing relationships
- Collaborating across multiple industries to drive new synergies with Ichigo's existing businesses
New Earnings via Anime Content Streaming & Sales of DVDs, CDs, and Goods
Promote Ichigo's AKIBA CULTURES ZONE (ACZ) as Global Anime Landmark
- Increase ACZ's value by integrating anime content & events (anime, dance, music, entertainment, retail, tourism, etc.)
Anime-related events and sales of goods at ACZ will drive | Nursing Care |
both customer traffic & higher earnings | Senior Business |
Responding
to Diverse Child Care
Needs
Education
Medical Care | Tourism | ||||
Entertainment | Agriculture | ||||
× | |||||
Sports | Public Works | ||||
AKIBA CULTURES ZONE | Culture | Energy | Other | ||
© Ichigo Inc. All rights reserved. | 69 |
Real Estate x Entertainment x Sports x Tourism
Real-World Augmented Reality (AR) Game TSUBASA+
Investing in TSUBASA+, an AR Game that Uses Smartphone GPS
Japanese soccer manga, Captain Tsubasa×avatars of world-class soccer players
Game Features
Business
Opportunity
Integrates real-world stadiums around the world
Users can play on-line with professional soccer players
Scheduled for global release in 2020, starting in Europe, Asia, &
South America
Sales royalties
Build virtual stadiums at Ichigo assets to drive customer traffic &
activity | Development by MIRAIRE Inc. |
Increase value of Ichigo assets, collaborate with hotels and retailers, | Responding | ||
promote community development, & support sports | |||
Nursing Care | to Diverse Child Care | ||
Needs | Education | ||
Senior Business | |||
Medical Care | Tourism | ||
Entertainment | Agriculture | ||
Sports | Public Works | ||
Culture | Energy | Other | |
Development by MIRAIRE Inc. | |||
© Ichigo Inc. All rights reserved. | 70 |
Power Up 2019Mid-Term Plan Achievement
© Ichigo Inc. All rights reserved. | 71 |
Power Up 2019Achievement Details (1)
Beat All KPI Targets
3-Year Growth: OP +60%, RP +66%, NI +19%*
* Ichigo's effective tax rate normalized from FY16/2's 6.9% to FY19/2's 31.8%, so NI grew less than OP.
FY16/2 (Actual) | FY19/2 (Actual) | (B) - (A) | FY19/2 (Plan) | |||
(Shift Up 2016) (A) | (Power Up 2019) (B) | (Power Up 2019) | ||||
(JPY million)
vs. Plan
Operating Profit
Recurring Profit
Net Income
EPS
Dividend
ROE
Stock Earnings/ Fixed Expenses
16,3871 | 26,279 | +60.4% | 25,000 |
13,889 | 23,076 | +66.1% | 21,400 |
12,925 | 15,373 | +18.9% | 14,800 |
JPY 25.86 | JPY 31.14 | +20.4% | JPY 29.00 |
JPY 3 | JPY 7 | +133.3% | JPY 7 |
21.0% | 16.3% | - | 15.6% |
(15.3%)2 | |||
223.3% | 239.6% | - | 191.4% |
105.1%
107.8%
103.9%
107.4%
100.0%
-
-
- From FY19/2, SPC-relatednon-recourse loan interest expenses are accounted as Fixed Non-Operating Expenses rather than COGS. FY16/2 Operating Profit has been restated using this new accounting treatment to facilitate an accurate YOY comparison.
- At Ichigo's FY19/2's normalized 31.8% tax rate, FY16/2 ROE would have been 15.3%.
© Ichigo Inc. All rights reserved. | 72 |
Power Up 2019Achievement Details (2)
Profitability
Sustainability
Core Business
Growth
New Business
Creation
Finance as a
Strategic
Measure
High Capital
Efficiency and
Organic Growth
Best Place to
Work
- List Ichigo's solar assets on the TSE's new Infrastructure Market
- Support the ongoing growth of Ichigo Office (8975) and Ichigo Hotel (3463)
- Expand the architecture and structural engineering team to deliver real estate that is high-function, safe, secure, and environmentally friendly
- Spin out a dedicated leasing team to drive tenant acquisitions and rental income
- Extend Ichigo's REIT-focused asset management business into the much larger physical real estate market
- Grow Ichigo's hotel business synergistically with Ichigo Hotel
- Launch one or more REtechbusinesses, fusing Ichigo's Real Estateand ITcapabilities
- Grow both financial stability and earnings
- De-collateralizeloans, lengthen loan maturities, lower debt costs, get credit ratings, and issue bonds to diversify funding profile
- ROE >15%
- Support employee health and wellness
- Goal: Japan's number one company in providing opportunities for employees
• Listing of Ichigo Green (9282) on Dec 1, 2016 | ||
• Asset sales to Ichigo Office (8975) and Ichigo Hotel | ||
(3463) | ||
✓ | • Created a long-term private fund (JPY 8.3B) | |
• | Expanded the engineering team | |
• Spun out a dedicated leasing team and strengthened | ||
marketing functions to drive asset acquisitions and | ||
value-add | ||
• Launched Ichigo Owners & Ichigo Land businesses | ||
• Launched 2 THE KNOT lifestyle hotels | ||
• Developed AI hotel revenue management system | ||
✓ | • | Launched new real estate content businesses (storage, |
laundry, & study spaces) | ||
• Entered business alliance with Phil Company | ||
• Established Sports & Entertainment group | ||
• Launched Community Lab and 100-Year Real Estate Lab | ||
• 24% of corporate loans are uncollateralized via | ||
✓ | commitment lines and other credit lines (JPY 32.5B total) | |
• | Average Loan Period: 10.3 years, Average Interest Rate: | |
0.97%, Long-Term Loan Ratio: 92% | ||
✓ | • | Achieved ROE >15% for all 3 MTP years |
• 100% return rate for employees who take child leave | ||
✓ | • Annual stock option grants (fully expensed) to all | |
employees to align their interests with Ichigo | ||
shareholders | ||
• Launched Incubation Lab to support internal startups | ||
• 6 of 9 Board Members are Independent Directors | ||
Global Best Practice Governance and Compliance
✓ • Former CEOs of TSE 1st Section companies serve as |
Independent Directors |
© Ichigo Inc. All rights reserved. | 73 |
Power Up 2019Achievement Details (3) JPX-Nikkei 400 Index
- Included in the JPX-Nikkei 400 All Three Years of Power Up 2019(2016, 2017, 2018)
- Ranked within the Index's Top 200 Companies in August 2019
Ranking Calculation:
While the JPX-Nikkei 400 does not provide an official ranking of its 400 constituents, the ranking can be calculated based upon the JPX-Nikkei 400's publically-available quantitative ranking formula, which rank orders the top 1,000 companies from the joint set of the 1,200 highest market capitalization and 1,200 highest value-traded Japanese companies by:
- 3-yearaverage ROE (40% weighting)
- 3-yearcumulative operating profit (40% weighting)
- Market capitalization (20% weighting)
Total Score = 0.4×(a) + 0.4×(b) + 0.2×(c)
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These materials were prepared to explain Ichigo's businesses and are not for the purpose of soliciting investment in marketable securities issued by Ichigo. Ichigo does not guarantee the accuracy of the figures, information, estimates, or other statements included herein, and accepts no responsibility for damages or losses arising through the use of the figures, information, estimates, or other statements contained herein.
These materials are based upon information available as of the publication date, and may contain forward-looking statements pertaining to Ichigo's expectations, targets, plans, and strategies. Such forward-looking statements are not facts, but are the result of management's judgment based on information currently available. Actual operating results or developments concerning Ichigo may differ substantially from those indicated by forward-looking statements. The information enclosed is subject to revision without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.
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Contact:
Ichigo (TSE First Section 2337)
Investor Relations
TEL: +81-3-3502-4818
E-mail: ir@ichigo.gr.jp
www.ichigo.gr.jp/en
Ichigo is Japan's first zero-carbon listed real estate company. We are taking responsibility for our environmental footprint by offsetting our carbon emissions and investing in low-carbon technologies such as solar energy.
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Ichigo Inc. published this content on 10 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2020 07:02:08 UTC