#1一期一会| ICHIGO O Ichigo Inc. All rights reserved. ANGE LISTED E 第一部上場 JPX TOKYO STOCK JPX-NIKKEI 400 FY19/2 Full-Year Corporate Presentation Ichigo (2337) April 17, 2019 Ichigo ESG www.ichigo.gr.jp/en#2一期一会 Make The World More Sustainable ICHIGO O Ichigo Inc. All rights reserved.#3O Ichigo Inc. All rights reserved. 一期一会 ICHIGO ICHIGO Ichigo's World-Class Excellence ICHIGO 一期一会 Hiromi Miyake ICHIGO#4CO REDS CO ม ICHIGO ■ J.LEAGUE 一期一会 ICHIGO TOP PARTNER OLEAGUE Ichigo is a J.League Top Partner O Ichigo Inc. All rights reserved.#5Contents FY19/2 Earnings - FY19/2 Summary - Operating Profit +20%, Net Income +10%, EPS +11% (YOY) - Segment Earnings Details FY20/2 Full-Year Forecast - FY20/2 Full-Year Forecast - FY20/2 Full-Year Forecast Details Powerful Value-Add Business Model Underpins Growth - Business Model (1) Stock + Flow Earnings - Business Model (2) Embedded Forward Earnings - Business Model (3) Value-Add Drives Durable Value Growth - Business Model (4) Robust Cash Generation - Strong Financial Base Building a Foundation for Sustainable Growth - - Core Business Growth ✓ AM: Growth Support for TSE REITs & YieldCo ✓ Value-Add: Selective on Acquisitions & Sales ✓ Value-Add: Tax Shield Re-Classification to Fixed Assets ✓ Clean Energy: Scaling Rapidly (In-Development +91%) New Business Entry ✓ Ichigo Owners: Real Estate Built on Client Trust ✓ Smart Agriculture ✓ Supporting & Enhancing Urban Lifestyles ✓ Top Partner of J.League, Japan's Pro Soccer League Share Buyback (JPY 381) Power Up 2019 Mid-Term Plan Achievement - Power Up 2019 Achievement Details 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's Commitment to ESG 一期一会| ICHIGO O Ichigo Inc. All rights reserved. - Ichigo Sustainability Policy - Ichigo's ESG Appendix: Financial & Real Estate Data LO#6一期一会| ICHIGO O Ichigo Inc. All rights reserved. FY19/2 Earnings CO 6#7FY19/2 Summary Durable Earnings Model Stock Earnings/Fixed Expenses 240% Gross Profit Fixed Expenses JPY 7.07B Stock Earnings Growth +21% 16.9B Asset Management +10% (Gross Profit: JPY B) Value-Add Clean Energy +16% +106% doda 14.0B Flow Earnings JPY 15.19B JPY 32.13B Stock Earnings JPY 16.94B 2.0B 2.1B 11.1B 12.9B 0.9B 1.9B FY18/2 FY19/2 FY18/2 FY19/2 FY18/2 FY19/2 FY18/2 FY19/2 Power Up 2019 MTP Achievement Share Buybacks & Dividend Beat All KPI Targets Record FY19/2 OP, RP, and NI +60% (JPY B) +19% 26.3B 15.4B 12.9B 16.4B FY19/2 FY16/2 Operating Profit (OP) FY16/2 FY19/2 Net Income (NI) - Share Buyback in Oct-Dec 2018 Amount: JPY 3B (1.6% of shares) Average Share Price: JPY 381 Dividend +17%, 7th Consecutive Year of Dividend Growth DOE 3.7% (Policy: DOE >3%) Total Payout Ratio (Dividends + Buybacks) 41.8% J.League Top Partner - Became J.League Top Partner in January 2019 As the J.League's only real estate Top Partner, Ichigo will work on stadium renovations & upgrades & operating efficiencies Goal is to build stronger and healthier local communities in cooperation with local residents, businesses, and municipalities 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 7#8一期一会| ICHIGO Operating Profit +20%, Net Income +10%, EPS +11% (YOY) Record Operating Profit, Recurring Profit, and Net Income FY18/2 FY19/2 (JPY million) Full-Year YOY Forecast Operating Profit 21,919 26,279 +19.9% 25,000 Recurring Profit 19,185 23,076 +20.3% 22,000 Net Income EPS Dividend ROE DOE 14,018 15,373 +9.7% 15,000 JPY 28.12 JPY 31.14 +10.7% JPY 30.10 JPY 6 JPY 7 +16.7% 16.5% 16.3% 3.5% 3.7% JPY 7 15.7% Note: From FY19/2, SPC-related non-recourse loan interest expenses are accounted as Fixed Non-Operating Expenses rather than COGS. FY18/2 Operating Profit has been restated using this new accounting treatment to facilitate an accurate YOY comparison. O Ichigo Inc. All rights reserved.#9一期一会| ICHIGO Segment Earnings Details - - - Asset Management: Base AM Fees +10% YOY Value-Add: Rental Income +16% YOY Gains on Sale +23% YOY Clean Energy: Power Generation Revenues +106% YOY Operating Profit Segment FY18/2 FY19/2 YOY Full-Year Forecast vs. Full-Year Forecast (JPY million) Earnings Drivers (Parentheses show YOY change in Gross Profit) Base AM Fees 2,100 (+187) Acquisition/Disposition Fees 236 (+129) Asset Management 2,043 2,195 +7.5% 1,752 125.3% Ichigo Office Cash Flow Performance Fees 57 (-306) Value-Add Clean Energy Rental Income 12,867 (+1,795) 19,002 22,669 +19.3% 21,719 104.4% Gains on Value-Add Sales 14,893 (+2,796) 899 1,364 +51.7% 1,529 89.2% Power Generation Revenues 1,928 (+991) Gains on Power Plant Sales 0 (-467) Adjustment (including offsets of cross- -25 50 segment transactions) Total 21,919 26,279 +19.9% 25,000 105.1% Note: From FY19/2, SPC-related non-recourse loan interest expenses are accounted as Fixed Non-Operating Expenses rather than COGS. FY18/2 Operating Profit has been restated using this new accounting treatment to facilitate an accurate YOY comparison. O Ichigo Inc. All rights reserved. 9#10一期一会| ICHIGO O Ichigo Inc. All rights reserved. FY20/2 Full-Year Forecast 10#11FY20/2 Full-Year Forecast Forecast Flat to Record FY19/2 Levels - Growth investments will pull down Recurring Profit, Net Income, and EPS to -1% to -2% YOY (JPY million) FY20/2 (Forecast) FY19/2 vs. FY19/2 (Actual) Operating Profit 26,500 26,279 +0.8% Recurring Profit 22,800 23,076 -1.2% Net Income 15,000 15,373 -2.4% EPS Dividend JPY 30.39 JPY 31.14 -2.4% JPY 7 JPY 7 ROE 14.4% 16.3% | 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 11#12FY20/2 Full-Year Forecast Details - - Asset Management Forecast Conservatively with Stock Earnings Flat, Flow Earnings Down Clean Energy Also Forecast Conservatively Relative to Past Power Production Segment Asset Management Value-Add Clean Energy Adjustment (Inter-Segment Transaction Eliminations) Amount Recorded in Financial Statements (JPY million) Operating Profit FY20/2 (Forecast) FY19/2 (Actual) vs. FY19/2 1,821 2,195 -17.1% 23,312 22,669 +2.8% 1,367 1,364 +0.2% - 26,500 Note: Forecast assumes no Ichigo Office (8975), Ichigo Hotel (3463), or Ichigo Green (9282) public offerings. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 50 26,279 +0.8% 12#13Powerful Value-Add Business Model Underpins Growth 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 13#14Business Model (1) Stock + Flow Earnings Stock Earnings (Primarily Rental Income, Base AM Fees, and Power Generation Revenues) Flow Earnings (Primarily Gains on Value-Add Real Estate Sales) Fixed Expenses (Fixed SG&A + Interest Expenses) Gross Profit (JPY billion) 27.9 27.0 8.2 6.0 2.6 0.9 20.8 14.1 13.0 12.9 9.0 4.6 8.3 5.6 5.0 4.1 4.2 5.1 11.8 13.8 33.8 32.1 15.2 18.0 16.9 15.8 14.0 8.2 7.1 6.5 6.4 5.8 FY13/2 FY14/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 Note: From FY19/2, SPC-related non-recourse loan interest expenses are accounted as Fixed Non-Operating Expenses rather than COGS. Data from FY13/2 to FY18/2 has been restated using this new accounting treatment to facilitate accurate YOY comparisons. FY20/2 (Forecast) 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 14#15一期一会| ICHIGO 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 50.9 45.4 36.8 28.1 19.6 12.3 FY14/2 O Ichigo Inc. All rights reserved. FY15/2 FY16/2 FY17/2 Appraisal Value-Based Unrealized Gains FY18/2 FY19/2 (JPY billion) 15#16Business Model (3) Value-Add Drives Durable Value Growth Gains on Sales Consistently Exceed Appraisal Value-Based Unrealized Gains 4.4X Appraisal Value-Based Unrealized Gains 2.5X GPM 26% Gains on Sales (Gross Profit) 2.2X GPM Unrealized Gains 23% (vs. Book Value) 9% Unrealized Gains (vs. Book Value) 12% JPY 7.2B JPY 6.4B JPY 3.3B FY16/2 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 1.6X GPM 14% JPY 10.5B FY17/2 Unrealized Gains (vs. Book Value) 14% JPY 2.7B GPM 34% JPY 12.0B FY18/2 Unrealized Gains (vs. Book Value) 14% JPY 5.9B JPY 15.0B FY19/2 16#17Business Model (4) Robust Cash Generation Economic Operating Cash Flow Exceeds Net Income Net Income Economic Operating Cash Flow (JPY billion) +32% 17.1 14.9 12.9 +44% 21.5 +19% 16.7 15.4 14.0 FY16/2 FY17/2 FY18/2 Note: Economic Operating Cash Flow = Cash Flows from Operations +/- any changes in Real Estate and Power Plants for Sale 一期一会| ICHIGO O Ichigo Inc. All rights reserved. FY19/2 +66% 25.5 17#18Strong Financial Base Average Interest Rate and Loan Term (Interest Rate) 2.5% Weighted Average Loan Period Weighted Average Remaining Loan Maturity Weighted Average Interest Rate (Loan Term, Years) 12 10.8 years 10.3 years 10.2 years 9 9.0 years 8.7 years 1.96% 2.0% 9.6 years 8.3 years 8.3 years 7.6 years 7.8 years 6 5.9 years 1.71% 1.5% 5.5 years 1.41% 1.24% 1.04% 0.97% 3 1.0% 0.5% FY14/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 Term Structure of Loans Short-Term 14% (JPY 4.1B) 8% (JPY 4.9B) 6% (JPY 6.1B) 5% (JPY 5.6B) 10% (JPY 10.3B) 8% (JPY 11.3B) Long-Term 86% (JPY 26.1B) 92% (JPY 53.4B) 90% (JPY 94.4B) 94% (JPY 92.2B) 95% (JPY 112.8B) 92% (JPY 132.1B) 一期一会| FY14/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 ICHIGO O Ichigo Inc. All rights reserved. 18#19Building a Foundation for Sustainable Growth 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 19#20Core Business Growth Asset Management: Growth Support for TSE REITS & YieldCo 一期一会 Office Ichigo Office (8975) 一期一会 Hotel Ichigo Hotel (3463) 一期一会 Green Infrastructure Ichigo Green (9282) ICHIGO Listing Date October 12, 2005 Portfolio 85 Assets JPY 203.0B Current Yield (as of 2019/4/15) 4.2% Characteristics ⚫Specialized Office REIT focused on mid- size offices driving stable earnings growth and tenant satisfaction ⚫17 consecutive periods of dividend growth, No. 1 among all J-REITS ICHIGO Listing Date November 30, 2015 Portfolio 21 Hotels JPY 50.7B Current Yield (as of 2019/4/15) 4.8% Characteristics ⚫ Specialized Hotel REIT focused on stay- only hotels, a hotel type that is in high demand and has earnings potential, to drive income stability and earnings growth ⚫Became first J-REIT to adopt a no fixed- fee, performance fee-only structure ICHIGO Listing Date December 1, 2016 Portfolio 15 Plants JPY 11.4B Current Yield (as of 2019/4/15) 5.6% Characteristics Solar YieldCo focused on driving shareholder value via income stability and earnings growth and contributing to Japan's self-sufficiency in clean energy • Japan's first 10-year earnings forecast 一期一会| ICHIGO Growth Support Provided 2 high-quality, central Tokyo office assets Growth Support Provided 1 hotel to drive increased NOI and diversify portfolio Growth Support Provided power plant operations and performance guarantee O Ichigo Inc. All rights reserved. 20 20#21Core Business Growth Value-Add: Selective on Acquisitions and Sales - - - Continuing Sellers' Market – FY19/2 Gross Profit Margin: 26% Ichigo Owners Achieving High Asset Turnover ✓ Acquisitions: JPY 16.5B (32% of total); Sales: JPY 14.3B (24%) FY19/2 Net Sales of JPY 7.9B Acquisition Sale No. of Assets Book Value (A) No. of Assets Sale Price (B) Difference (A) - (B) Office 2 3,485 2 5,520 -2,035 Hotel 4 9,901 6 19,610 -9,709 Retail CO 6 13,482 2 5,366 +8,116 Mixed (Office/Retail) 4 9,065 +9,065 Residence 19 14,511 33 27,722 -13,211 Ground Lease 4 381 +381 Other 1 12 4 472 -472 40 50,840 47 58,693 -7,853 Total 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 21#22Core Business Growth Value-Add: Tax Shield Re-Classification to Fixed Assets Re-Classifying Real Estate as Fixed Assets Generates Depreciation Tax Shield to Fund Growth Investments Value-Add Real Estate for Sale & Fixed Assets 一期一会| ICHIGO Fixed Assets Real Estate for Sale (JPY billion) % Fixed Assets 30.1% 15.2% 12.8% 7.2% 140.2 162.3 164.9 169.4 13.1 FY16/2 24.3 FY17/2 29.1 FY18/2 Note: Amounts are Book Value. Excludes Ichigo Owners, Centro, and Storage Plus. O Ichigo Inc. All rights reserved. 60.4 FY19/2 22 22#23Core Business Growth Clean Energy: Scaling Rapidly (In-Development Plants +91%) Added 9 Solar Plants to Development Pipeline (18.7MW) Kanto: 5.48MW, Chubu: 4.80MW, Kansai: 2.95MW, Chugoku: 5.48MW Power Generation (MW) Growth Timeline Operating In-Development Ichigo Operating Plants: 83.6MW In-Development Plants: 76.2MW (+91%) Total: 159.8MW Ichigo Green (9282): 29.4MW 148.3 (+15%) 159.8 (+8%) 128.5 (+15%) 112.2 (+34%) 72.3 (+155%) 83.6 (+16%) 28.6 44.9 (Wind 7.4) 64.7 (Wind 14.4) 76.2 (Wind 25.9) 28.4 83.6 FY17/2 FY18/2 FY19/2 Average FIT JPY 37.3 JPY 36.4 JPY 35.3 FY20/2 JPY 33.7 Investment JPY 8.4B JPY 21.1B JPY 23.6B JPY 31.0B FY21/2 JPY 32.1 JPY 36.3B FY22/2 JPY 30.6 JPY 41.9B FY23/2 JPY 30.0 JPY 47.3B 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 23#24New Business Entry Ichigo Owners: Real Estate Built on Client Trust Strong Start During Phase 1 (First 2 Years since 2017/3/1 Founding): - - Cumulative Acquisitions: 35 Assets, JPY 25.9B (Book Value) Cumulative Sales: 20 Assets, JPY 16.8B Average Holding Period: 8.1 months Shift from Real Estate Sales (Flow Earnings) to Solutions & Services (Stock Earnings) Phase 1 Prioritize developing client relationships by providing client opportunities to acquire high- quality, long-term assets. Phase 2 Provide client services such as managing real estate assets, increasing asset value via value- add, and consulting Phase 3 Expand consulting and asset management services beyond real estate to other financial assets to meet clients' diverse needs Built Strong Base of Individual and Corporate Clients - Direct relationships expanded to 138 clients. Also transacting via other gatekeeper & broker introductions Sold JPY 8.3B of Assets to Private Equity Real Estate Fund Established on Behalf of Long-Term Investor - - Portfolio of high-quality, new residential assets in central Tokyo Ichigo Investment Advisors providing asset management services Gross Profit on Asset Sales (JPY million) 2,039 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 263 Year 1 FY18/2 Year 2 FY19/2 24#25New Business Entry Smart Agriculture Business Alliance with Organic Soil (OSMIC) - Create Technology & Business Synergies via Share Swap ✓ OSMIC provides high-microbe-density organic soil and climate-control greenhouses. ✓ It also purchases high-quality fruits and vegetables from farmers, which it then sells to major retailers, high-end supermarkets, restaurants, and e-commerce sites. ✓ Ichigo subsidiary Tenuto's CO2-control technology can be used in OSMIC's greenhouses, enabling higher productivity and quality ✓ Ichigo swapped its Tenuto shares to take an equity stake in OSMIC; Tenuto became subsidiary of OSMIC - Going Forward ✓ OSMIC's farm-themed recreational park development to make effective use of currently idle land will leverage Ichigo's real estate expertise ✓ Also new Ichigo business opportunities in creating and operating retail and lodging facilities and generating new synergies with Ichigo's sports business 一期一会| ICHIGO O Ichigo Inc. All rights reserved. MIC OSMIC By Ord G Soll Co..uld 25 25#26一期一会| ICHIGO New Business Entry Supporting & Enhancing Urban Lifestyles Stylish and Convenient Laundromats - - - Established Getter Lab JV with OKULAB Launched "Laundry OUT” laundry service to reduce household laundry burdens Laundromats with modern designs, latest laundry machines, and cafés serving fresh bread and coffee while you wait Changing How We Think about Self-Storage - - Storage Plus creates multi-purpose facilities that combine self-storage, laundry, and cafés Can clean non-seasonal items and then store them onsite in order to optimize home living space Optimizing Use of Parking Lots with Elevated Buildings Established Trophy JV with Phil Company - - While keeping the ground-floor parking lot, optimize use of space above with elevated buildings for retail & other purposes Synergies with Phil Company include sales to Ichigo Owners clients and deployment of Ichigo Land's expertise to acquire and develop new sites O Ichigo Inc. All rights reserved. Baluko Laundry Place Yoyogi Uehara Trunk Room Laundry & Cafe Baluko Laundry Place Grand Open Loundry SPL Baluko Lumary Poce Granad Storage Plus Koganei Maeharacho Phil Park Tokyo Sky Tree River Side 26#27New Business Entry 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 Richer and Healthier Lives J.League's 100-Year Vision: Promote Sports Development 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's Mission: Serve Important Social Needs 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 一期一会| ICHIGO J.LEAGUE LEAGUE ICHIGO ICHIGO TOP PARTNER Ichigo is a J.League Top Partner O Ichigo Inc. All rights reserved. アルティ いちご いち いちご いちご いちご いちご いちご 27#28Share Buyback (JPY 381) - - Purpose: Grow Value for Ichigo's Shareholders Share Type Buyback Method Common shares In-market purchases via trust bank October-December 2018 Share Buyback No. of Shares 7,869,700 shares (1.6% of total) Average Share Price JPY 381 Amount JPY 3B Reference: 2017 Share Buybacks April 2017 Share Buyback October 2017 Share Buyback Number of Shares 4,627,400 shares (0.9%) Number of Shares 3,809,100 shares (0.8%) Average Share Price JPY 324 Amount JPY 1.5B Average Share Price Amount JPY 394 JPY 1.5B 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 28#29Power Up 2019 Mid-Term Plan Achievement 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 29#30Power Up 2019 Achievement 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. (JPY million) FY16/2 (Actual) (Shift Up 2016) (A) FY19/2 (Actual) (Power Up 2019) (B) (B) - (A) FY19/2 (Plan) (Power Up 2019) vs. Plan Operating Profit 1 16,387 26,279 +60.4% 25,000 105.1% Recurring Profit 13,889 23,076 +66.1% 21,400 107.8% Net Income EPS Dividend ROE Stock Earnings/ Fixed Expenses 12,925 15,373 +18.9% 14,800 103.9% JPY 25.86 JPY 31.14 +20.4% JPY 29.00 107.4% JPY 3 JPY 7 +133.3% 21.0%² (Post-Tax) 16.3% 15.3% 223.3% 239.6% JPY 7 100.0% 15.6% 191.4% 1 From FY19/2, SPC-related non-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. - 2 At Ichigo's FY19/2's normalized 31.8% tax rate, FY16/2 ROE would have been 15.3%. ICHIGO O Ichigo Inc. All rights reserved. 30 50#31一期一会| ICHIGO Power Up 2019 Achievement Details (2) Profitability Sustainability Core Business Growth • New Business Creation Finance as a Strategic Measure High Capital Efficiency and Organic Growth • • • • 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 REtech businesses, fusing Ichigo's Real Estate and IT capabilities Grow both financial stability and earnings De-collateralize loans, lengthen loan maturities, lower debt costs, get credit ratings, and issue bonds to diversify funding profile ROE >15% Best Place to Work Support employee health and wellness Goal: Japan's number one company in providing opportunities for employees Global Best Practice Governance and Compliance ✓ ✓ ✓ • 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 Al 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 Former CEOs of TSE 1st Section companies serve as Independent Directors O Ichigo Inc. All rights reserved. 31#32Power Up 2019 Achievement Details (3) JPX-Nikkei 400 Index — - Selected for inclusion in the JPX-Nikkei 400 three years in a row (2016, 2017, 2018) Targeting Ranking within the Index's Top 200 Companies in August 2019 Ranking Calculation: JPX-NIKKEI 400 While the JPX-Nikkei 400 does not provide an official ranking of its 400 constituents, it 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: (a) 3-year average ROE (40% weighting) (b) 3-year cumulative operating profit (40% weighting) (c) Market capitalization (20% weighting) Total Score = 0.4 × (a) + 0.4 × (b) + 0.2 × (c) 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 32 32#33Ichigo 2030: Ichigo as a Sustainable Infrastructure Company 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 33 33#34Go for Growth Grow & Expand Ichigo's Core Businesses into New Areas, Creating New Earnings Streams and Increasing Both Earnings and Earnings Stability Sustainability 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 long- standing commitment to sustainability while developing new technologies to extend the lives of key social infrastructure beyond 100 years. Infrastructure 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 infrastructure environments. Being one of many is not enough. Ichigo needs to lead. Ichigo as a Sustainable Infrastructure Company 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 34#35Go Beyond Real Estate to Address Broad Needs Assets Needs Residence Live Office Work Nursing Care Responding to Diverse Needs Child Care Senior Business Medical Care Retail Buy, Dine HOTEL Hotel Stay, Travel Entertainment Solar Power Power Lives & Sports Plant Businesses Stadium 一期一会| ICHIGO O Ichigo Inc. All rights reserved. Entertainment, Recreation, & Health Education Tourism HOTEL Agriculture Public Works Other Culture Energy 55 35#36KPI 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 +/- any changes in Real Estate and Power Plants for Sale 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 36#37Shareholder 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 previous year's dividend becomes the floor for the current year's dividend. The dividend will be raised (or kept flat) but not cut, providing shareholders downside protection. 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 7 Consecutive Years of Dividend Growth Dividend growth via DOE 3% Policy JPY 7 JPY 7 JPY 6 JPY 5 JPY 3 JPY 1* JPY 1.1 JPY 1.3 FY12/2 一期一会| FY13/2 FY14/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 ICHIGO * Adjusted to reflect 200:1 stock split O Ichigo Inc. All rights reserved. FY20/2 (Forecast) 37#38FY20/2 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 asset database - Deploy BPA solutions - Streamline tasks and increase asset management business productivity HOTEL N 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 88 38#39一期一会| ICHIGO O Ichigo Inc. All rights reserved. Ichigo's Commitment to ESG 39#40一期一会| ICHIGO 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 ESG 8 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. O Ichigo Inc. All rights reserved. 40#41Ichigo's ESG – Environmental - Solar and Wind Energy: Safe and Clean Annual Power Generation 140,167,036 kWh Annual CO2 Reduction 92,510,242 kg Equivalent to annual energy consumption of 38,900 households The Federation of Electric Power Companies of Japan Annual energy consumption per household 3,600kWh Equivalent to annual CO2 emission of 40,200 cars Ministry of Environment Annual CO2 emission per car c. 2,300kg (FY19/2 Actuals - Includes Ichigo Green) Ichigo ESG Environmental Environmental Certifications Ichigo Office (8975) Sustainable Real Estate Preserve & Enhance Existing 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 Ichigo Kakyoin Plaza Lowest Impact Demolish Hakata Ekimae Square CASBEE Rank Hakata MST Building CASBEE Rank Highest Efficiency S A A CASBEE Rank 一期一会| ICHIGO O Ichigo Inc. All rights reserved. GRES B ✰✰✰✰✰2018 Green Star (Highest Ranking) 2 years in a row Other Certifications: CASBEE, BELS, DBJ Green Building Certification 41#42一期一会| ICHIGO Ichigo's ESG - Social Sports & Arts Support Outstanding, World-Class Athletes - Weightlifting - Riflery - Track & Field – Soccer (J.League) Paralym Art Sponsor - Support artists with disabilities ICHIG Weightlifting Athlete 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 Ichigo ESG Social 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 ■ TM ICHIGO J.LEAGUE 一期一会 ICHIGO TOP PARTNER O Ichigo Inc. All rights reserved. OJ.LEAGUE 42#43Ichigo's ESG - Governance - - Early Adopter of Independent Three Committee (Nominating, Audit, & Compensation) Corporate Governance Structure Adopted in 2006 to incorporate global best practice Exceeded legal requirement 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) Ichigo ESG Governance Board = Majority Independent Directors to Support Strong Governance - - Of 9 members of Ichigo's Board of Directors, 6 are Independent Directors Include former CEOs of TSE First Section-listed companies 一期一会| ICHIGO February 2017 ✓ Takashi Kawamura (former CEO of Hitachi, Ltd., stepped down from Ichigo's board upon appointment as Chairman of Tokyo Electric Power Company) ✓ Masatoshi Matsuzaki (former CEO of Konica Minolta, Inc.) ✓ Kosuke Nishimoto (former CEO of Meitec Corp.) February 2018 – February 2019 ✓ Masatoshi Matsuzaki (former CEO of Konica Minolta, Inc.) ✓ Kosuke Nishimoto (former CEO of Meitec Corp.) ✓ Nobuhide Nakaido (former CEO of SCSK Corp.) O Ichigo Inc. All rights reserved. 43#44Appendix: Financial & Real Estate Data 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 44#45Significant Unrealized Gains on Balance Sheet JPY 50.9B (Appraisal Value Basis), +12.8% vs. FY18/2-end Real Estate Directly Held by Ichigo (JPY million) Location Book Value (FY19/2 Q4) Expected NOI Cap Rate (NOI/Book Value) Appraisal Value (FY19/2 Q4) Unrealized Gains Tokyo 125,752 7,213 5.7% 154,893 +29,142 Outside Tokyo 104,078 7,028 6.8% 125,852 +21,774 Total 229,829 14,241 6.2% 280,745 +50,916 * Excludes assets under development (c. JPY 124 million) not generating NOI 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 45#46Net Consolidated Risk-Based Balance Sheet Mark-to-Market Consolidated Balance Sheet: JPY 370.5B (Book Value JPY 319.5B + Unrealized Gains JPY 50.9B) Cash & Cash Equivalents JPY 41.6B Non-Recourse Loans & Related Liabilities JPY 57.2B Non-Recourse Loans & Related Assets JPY 78.5B Net Consolidated Risk-Based Balance Sheet: JPY 271.6B (Book Value JPY 220.7B + Unrealized Gains JPY 50.9B) Debt Operational Loan Investments JPY 1.3B Operational Securities Investments JPY 1.2B Corporate Loans JPY 143.3B JPY 220.8B Non-Recourse Loan-Related ICH Equity JPY 21.3B Operational Loan Investments JPY 1.3B Operational Securities Investments JPY 1.2B Real Estate for Sale JPY 110.9B Security Deposits Received JPY 5.5B Other JPY 14.7B Real Estate for Sale JPY 110.9B Corporate Loans JPY 101.7B Debt JPY 122.0B Security Deposits Received JPY 5.5B Other JPY 14.7B Fixed Assets JPY 76.5B Securities Investments JPY 2.4B Other JPY 6.9B Shareholder Equity JPY 98.7B Mark-to- Market Shareholder Equity Ratio 36.2% Fixed Assets JPY 76.5B Securities Investments JPY 2.4B Other JPY 6.9B Shareholder Equity JPY 98.7B Net Risk-Based Shareholder Equity Ratio 49.3% 一期一会| ICHIGO Unrealized Gains JPY 50.9B Post-Tax Unrealized Gains JPY 35.3B Tax JPY 15.5B Unrealized Gains JPY 50.9B Post-Tax Unrealized Gains JPY 35.3B Tax JPY 15.5B Note: Net Risk-Based Balance Sheet excludes client and non-recourse assets and liabilities and nets out Cash & Cash Equivalents. O Ichigo Inc. All rights reserved. 46#47Business Segments Asset Management Asset Management 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. Value-Add Clean Energy 一期一会| ICHIGO O Ichigo Inc. All rights reserved. Value-Add preserves and improves real estate. Ichigo earns rental income during the period in which it carries out its value-add, along with gains on sale that reflect the real estate's higher value after the value-add is complete. Clean Energy is utility-scale solar and wind power production that produces clean energy and brings productive use to idle land. 47#48Consolidated Balance Sheet: Segment Breakdown Segment Asset Management Value-Add Cash and Operational Operational Cash Equivalents Loan Securities Investments Investments (JPY million) Real Estate for Sale Power Plants for Sale Fixed Assets Intangible Assets Securities Investments Other Assets Total Assets 841 144 863 1,849 19,696 1,324 1,218 161,322 70,564 837 992 2,990 258,947 Clean Energy 3,244 Company-Wide Assets 27,285 Total 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 24,347 218 810 28,620 64 95 1,318 1,416 30,181 50,225 1,324 1,218 161,322 94,976 1,993 2,455 6,081 319,599 48#49Asset Management AUM Detail FY14/2 (12M) FY15/2 (12M) FY16/2 FY17/2 FY18/2 (12M) (12M) (12M) FY19/2 (12M) Ichigo Office (8975) AUM (Fiscal Year End) JPY 120.5B JPY 123.8B JPY 165.1B JPY 194.5B JPY 196.9B JPY 203.0B Base AM Fee Gross Profit (Actual) JPY 733M JPY 759M JPY 1,016M JPY 1,291M JPY 1,373M JPY 1,426M AUM (Fiscal Year End) JPY 20.4B JPY 47.6B JPY 50.9B JPY 50.7B Ichigo Hotel (3463) Base AM Fee Gross Profit (Actual) JPY 30M JPY 287M JPY 450M JPY 547M AUM (Fiscal Year End) JPY 10.0B JPY 11.4B JPY 11.4B Ichigo Green (9282) Base AM Fee Gross Profit (Actual) JPY 11M JPY 77M JPY 85M Private Equity AUM (Fiscal Year End) JPY 63.3B JPY 21.5B JPY 15.4B JPY 6.4B JPY 12.3B JPY 20.6B Real Estate Funds (excluding Base AM Fee Gross Profit (Actual) JPY 257M JPY 114M JPY 60M JPY 27M JPY 12M JPY 41M consolidated funds) Total AUM (Fiscal Year End) JPY 183.8B JPY 145.3B JPY 200.9B JPY 258.6B JPY 271.7B JPY 285.8B (excluding consolidated funds) Base AM Fee Gross Profit (Actual) JPY 989M JPY 872M JPY 1,106M JPY 1,617M JPY 1,914M JPY 2,100M Ichigo Green Base AM Fee Gross Profit (Actual) includes operator fees. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 49#50Powerful Value-Add Business Model Significant Synergies Between Ichigo's Value-Add and Asset Management Businesses 一期一会| ICHIGO Green Infrastructure 一期一会| ICHIGO Ichigo Green (9282) Office 一期一会| ICHIGO Ichigo Office (8975) Solar Plants Value-Add Business Model Buy 一期一会 ICHIGO Sell Value-Add Real Estate Third- Party Investors Real Hotel Estate 一期一会 ICHIGO Ichigo Hotel Preserve & Improve Sell (3463) Buy O Ichigo Inc. All rights reserved. 50 50#51Value-Add Social Significance Sustainable Real Estate Serving a Sustainable Society End Demolish and Rebuild and Embrace Value-Add - Preserve and enhance high-function real estate - Lengthen useful life and improve quality of existing assets via Value-Add Demolish and Rebuild Value-Add Effective Re-Use of Key Social Infrastructure Preserve & Improve ☐ ☐ Higher-Quality Tenant Services Higher Functionality (Security, A/C) Upgrade Exteriors/Interior Spaces · Seismic Reinforcements Highest Efficiency Lowest Impact 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 51#52Example of Ichigo's Value-Add Earnings Model 5.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.5% Interest Rate, JPY 50M Capex, 15% Increase in NOI, 3-Year Value-Add Period Value-Add Steps: Improved exterior & interior, tenant services and seismic strengthening; increased energy efficiency; found quality tenants; etc. Asset JPY 2.0B Debt JPY1.5B Equity JPY 0.5B NOI at Acquisition (JPY 110M NOI/year) - (JPY 22.5M interest/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 Value-Add (Capex JPY 50M) JPY 550M investment generates JPY 512M over 3 years -> 31.1% p.a. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 52 52#53一期一会| ICHIGO Ichigo-Owned Real Estate Portfolio By Asset Type Logistics 2% Ground Lease 1% Other 1% By Location Nagoya 1% Okinawa 1% Hokkaido 2% Sendai 3% Mixed Osaka 3% 9% Office 27% Residence 13% Retail 22% Hotel 25% By Asset Size >JPY 10B 13% <JPY 1B 19% JPY 5B-10B 16% Other 7% Tokyo Metro* 12% Tokyo 55% Tokyo 119.9 Fukuoka 16% *Excludes Tokyo Okinawa 2.2 (JPY billion) Hokkaido 4.6 Sendai 5.9 Other Nagoya Osaka 7.0 1.2 Tokyo Metro 15.7 (ex- Tokyo) Fukuoka 35.9 27.1 JPY 1B-5B 52% Total Ichigo-Owned Assets: JPY 219.4B Including Ichigo-Managed AUM: JPY 508.4B * Acquisition price basis. Ichigo-Managed AUM includes JPY 11.4B Ichigo Green assets. Total Ichigo-Owned Assets Book Value: JPY 227.6B O Ichigo Inc. All rights reserved. 53#54Value-Add Asset Breakdown (1) 162 Assets, JPY 219.4B, Forecast NOI JPY 13.9B (6.2% Book Value Yield) No. Asset Type Classification Location Acquisition Price Acquisition Building Date Age Expected NOI/Year Ichigo Equity Investment 1 Wholesale Market Fixed Asset Matsudo, Chiba JPY 2B-3B 2005/06 46 years 2 Retail Real Estate for Sale Minato-ku, Tokyo JPY 2B-3B 2005/10 49 years 3 Retail Fixed Asset Minato-ku, Tokyo ≥ JPY 3B 2006/03 33 years JPY 73M JPY 144M JPY 192M JPY 1,900M JPY 1,033M JPY 1,356M 4 Retail Fixed Asset Yokohama JPY 1B-2B 2006/09 14 years 5 Office Fixed Asset Sendai ≥JPY 3B 2006/10 10 years 6 Office Fixed Asset Fukuoka ≥ JPY 3B 2006/12 10 years JPY 78M JPY 317M JPY 414M JPY 1,157M JPY 1,042M JPY 1,339M 10 Retail Fixed Asset Chiyoda-ku, Tokyo <JPY 1B 2007/06 39 years 11 Retail Fixed Asset Chiyoda-ku, Tokyo <JPY 1B 2007/06 37 years JPY 83M JPY 126M JPY 240M JPY 233M 14 Ground Lease Fixed Asset Atsugi, Kanagawa JPY 1B-2B 2011/06 15 Mixed (Office/Retail) Fixed Asset 16 Retail Real Estate for Sale Hiratsuka, Kanagawa Yokohama <JPY 1B 2012/02 23 years <JPY 1B 2012/10 17 Retail Fixed Asset Toshima-ku, Tokyo ≥JPY 3B 2013/03 18 Retail Fixed Asset Shibuya-ku, Tokyo <JPY 1B 19 Mixed (Office/Retail) Fixed Asset 24 21 Residence Fixed Asset Chofu, Tokyo Minato-ku, Tokyo JPY 1B-2B <JPY 1B 2013/05 2013/06 2013/06 5 years 8 years 32 years 33 years 3 years JPY 175M JPY 85M JPY 30M JPY 235M JPY 47M JPY 127M JPY 47M JPY 147M JPY 172M JPY 171M JPY 340M JPY 154M JPY 310M JPY 203M Forecast Equity Forecast Multiple¹ IRR² ☐ I I | | | | | | 1 Forecast Equity Multiple is based on the business plan of each asset and is the forecast sum of rental income and gains on sale divided by Ichigo Investment. 2 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. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 54#55Value-Add Asset Breakdown (2) No. Asset Type Classification Location Acquisition Price Acquisition Building Date Age Expected NOI/Year Ichigo Equity Investment Forecast Equity Multiple Forecast IRR² 27 Retail 29 Ground Lease Fixed Asset Fixed Asset 30 Mixed (Office/Retail) 31 Office 32 Retail 35 Mixed (Office/Retail) 37 Retail Real Estate for Sale Real Estate for Sale Fixed Asset Real Estate for Sale Fixed Asset Tokorozawa, Saitama Fujisawa, Kanagawa Shibuya-ku, Tokyo Shibuya-ku, Tokyo Fukuoka JPY 1B-2B 2013/11 11 years JPY 1B-2B 2014/03 JPY 63M JPY 115M JPY 92M JPY 273M <JPY 1B JPY 1B-2B 2014/03 35 years 2014/04 8 years JPY 44M JPY 61M JPY 108M 6.95X 26.0% JPY 1,090M 1.25X 12.0% JPY 1B-2B 2014/04 12 years JPY 60M JPY 279M Minato-ku, Tokyo Minato-ku, Tokyo JPY 2B-3B 2014/05 10 years JPY 168M JPY 434M 3.08X 15.2% <JPY 1B 2014/07 46 years JPY 43M 38 Mixed (Office/Retail) 39 Retail Real Estate for Sale Fixed Asset Shinjuku-ku, Tokyo ≥ JPY 3B 2014/07 43 years JPY 172M JPY 77M JPY 645M 3.32X 21.1% Fukuoka <JPY 1B 2014/07 14 years JPY 48M JPY 213M 40 Retail 41 Hotel 42 43 2 4 4 4 Retail Retail 45 Retail 46 Residence Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale Fukuoka <JPY 1B 2014/09 33 years JPY 51M JPY 252M Utsunomiya, Tochigi Fukuoka Osaka Fukuoka JPY 1B-2B 2014/09 31 years JPY 190M JPY 400M 1.97X 28.3% <JPY 1B 2014/09 18 years JPY 53M JPY 177M 5.54X 26.2% JPY 1B-2B 2014/09 16 years JPY 105M JPY 301M 4.64X 24.3% Chiyoda-ku, Tokyo JPY 1B-2B JPY 2B-3B 2014/11 2014/12 16 years 15 years JPY 74M JPY 117M JPY 135M JPY 332M 10.70X 33.8% 2.18X 29.2% 1 Forecast Equity Multiple is based on the business plan of each asset and is the forecast sum of rental income and gains on sale divided by Ichigo Investment. 2 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. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 55#56Value-Add Asset Breakdown (3) No. Asset Type Classification Location Acquisition Price Acquisition Building Date Age Expected NOI/Year Ichigo Equity Investment Forecast Equity Forecast Multiple¹ IRR² 47 Residence 50 Residence 51 Residence Real Estate for Sale Real Estate for Sale Real Estate for Sale 53 Residence 55 Residence 56 Residence Real Estate for Sale Real Estate for Sale Real Estate for Sale Koto-ku, Tokyo Sumida-ku, Tokyo Ota-ku, Tokyo Chuo-ku, Tokyo Shinjuku-ku, Tokyo JPY 1B-2B 2014/12 12 years JPY 93M JPY 270M 1.56X 14.6% JPY 1B-2B 2014/12 13 years JPY 60M JPY 163M 1.55X 15.2% <JPY 1B 2014/12 17 years JPY 54M JPY 150M 2.21X 35.7% <JPY 1B 2014/12 15 years JPY 38M JPY 99M 2.96X 44.4% <JPY 1B 2014/12 14 years JPY 26M JPY 82M 2.05X 25.8% 57 Residence Real Estate for Sale 59 Residence 22233 23 60 Residence 61 Mixed (Office/Retail) 62 Retail 63 Retail 64 Retail Real Estate for Sale Real Estate for Sale Operational Loan Real Estate for Sale Fixed Asset Shibuya-ku, Tokyo Minato-ku, Tokyo Setagaya-ku, Tokyo Shinjuku-ku, Tokyo Shinjuku-ku, Tokyo Fukuoka JPY 1B-2B 2014/12 13 years JPY 88M JPY 270M 2.00X 23.2% JPY 1B-2B 2014/12 15 years JPY 54M JPY 186M 1.90X 21.0% <JPY 1B 2014/12 14 years JPY 40M JPY 117M 2.11X 27.2% <JPY 1B 2014/12 12 years JPY 19M JPY 55M 1.80X 21.1% JPY 1B-2B 2014/12 55 years JPY 128M JPY 57M 15.26X 51.7% <JPY 1B 2014/12 15 years JPY 46M 66 Retail 68 Retail Real Estate for Sale Real Estate for Sale Fixed Asset Meguro-ku, Tokyo Shinagawa-ku, Tokyo JPY 1B-2B 2014/12 12 years JPY 84M JPY 212M JPY 129M <JPY 1B 2015/01 64 years JPY 23M Sendai Shibuya-ku, Tokyo <JPY 1B <JPY 1B 2015/02 15 years JPY 48M 2015/04 17 years JPY 47M JPY 8M JPY 79M 42.58X 198.9% 1 Forecast Equity Multiple is based on the business plan of each asset and is the forecast sum of rental income and gains on sale divided by Ichigo Investment. 2 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. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 56#57Value-Add Asset Breakdown (4) No. Asset Type Classification Location Acquisition Price Acquisition Building Date Age Expected NOI/Year Ichigo Equity Investment Forecast Equity Forecast Multiple¹ IRR² 69 Hotel 70 Hotel 71 Retail 89 Office 92 Office Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale Osaka Aomori 93 Office Real Estate for Sale Fujisawa, Kanagawa Musashino, Tokyo Fukuoka Fukuoka JPY 2B-3B <JPY 1B JPY 1B-2B ≥ JPY 3B JPY 1B-2B 2015/05 2015/06 16 years JPY 195M JPY 633M 1.56X 58.3% 11 years JPY 51M JPY 113M 2.10X 20.2% 2015/07 3 years JPY 95M JPY 126M 6.80X 37.3% 2015/07 30 years JPY 147M JPY 670M 1.72X 13.3% 2015/07 11 years JPY 100M JPY 353M 1.82X 17.7% JPY 1B-2B 2015/07 16 years JPY 94M JPY 358M 1.92X 18.8% 105 Hotel Real Estate for Sale Kumamoto JPY 1B-2B 2015/12 34 years JPY 158M JPY 453M 1.61X 61.2% 110 Hotel Real Estate for Sale Fukuoka ≥ JPY 3B 2016/03 33 years JPY 288M JPY 905M 2.05X 104.5% 111 Hotel Fixed Asset Yokohama JPY 2B-3B 2016/03 35 years JPY 184M JPY 228M 112 Hotel Real Estate for Sale Yokohama ≥JPY 3B 2016/03 31 years JPY 260M JPY 354M 10.64X 36.2% 113 Hotel Real Estate for Sale Yokohama ≥ JPY 3B 2016/03 31 years JPY 213M JPY 344M 5.84X 25.5% 114 Hotel Real Estate for Sale 115 Hotel Real Estate for Sale 116 Retail Fixed Asset 118 Retail Real Estate for Sale Fukuoka Osaka Sendai Nagoya ≥ JPY 3B 2016/04 29 years JPY 223M JPY 550M 1.73X 72.6% JPY 2B-3B 2016/04 11 years JPY 111M <JPY 1B JPY 1B-2B 2016/04 2016/06 30 years 21 years JPY 47M JPY 86M JPY 274M JPY 86M JPY 102M 2.96X 30.7% 7.71X 32.6% 1 Forecast Equity Multiple is based on the business plan of each asset and is the forecast sum of rental income and gains on sale divided by Ichigo Investment. 2 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. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 57#58Value-Add Asset Breakdown (5) No. Asset Type Classification Location Acquisition Price Acquisition Building Date Age Expected NOI/Year Ichigo Equity Investment Forecast Equity Forecast Multiple¹ IRR² 119 Retail 120 Hotel Real Estate for Sale Fixed Asset Shibuya-ku, Tokyo <JPY 1B Shinjuku-ku, Tokyo ≥ JPY 3B 2016/06 2016/09 31 years 39 years 121 Office Real Estate for Sale Minato-ku, Tokyo ≥ JPY 3B 2016/10 18 years JPY 37M JPY 845M JPY 1,600M JPY 136M 3.91X 17.4% JPY 349M JPY 3,450M 2.87X 43.5% 122 Hotel Real Estate for Sale Shima, Mie <JPY 1B 2017/01 21 years 123 Hotel Real Estate for Sale 124 Hotel Real Estate for Sale 126 Hotel Real Estate for Sale 127 Hotel Real Estate for Sale 128 Hotel 130 Retail 132 Residence 133 Hotel 134 Residence 135 Logistics Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale Real Estate for Sale 136 Logistics Real Estate for Sale Shibuya-ku, Tokyo Asahikawa, Hokkaido Fukuoka Ishigaki, Okinawa Mito, Ibaraki Taito-ku, Tokyo Minato-ku, Tokyo Minato-ku, Tokyo Chuo-ku, Tokyo Narashino, Chiba Narashino, Chiba ≥JPY 3B 2016/12 24 years JPY 54M JPY 202M JPY 73M 5.49X 43.1% JPY 1,123M 1.25X 25.4% <JPY 1B 2016/12 29 years JPY 78M JPY 593M 1.48X 48.5% JPY 1B-2B 2016/12 28 years JPY 91M JPY 505M 1.25X 25.4% JPY 2B-3B 2017/02 16 years JPY 168M JPY 544M 1.80X 80.2% JPY 1B-2B 2017/02 25 years JPY 150M JPY 602M 1.47X 47.0% JPY 1B-2B 2017/04 25 years JPY 94M JPY 297M 4.42X 21.1% <JPY 1B 2017/04 15 years JPY 51M JPY 190M 2.66X 38.3% <JPY 1B 2017/04 16 years JPY 32M JPY 152M 3.85X 32.7% JPY 1B-2B 2017/04 16 years JPY 48M JPY 197M 2.88X 26.2% JPY 1B-2B JPY 1B-2B 2017/04 2017/04 27 years 27 years JPY 98M JPY 160M JPY 188M JPY 203M 6.18X 25.8% 8.75X 32.8% 1 Forecast Equity Multiple is based on the business plan of each asset and is the forecast sum of rental income and gains on sale divided by Ichigo Investment. 2 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. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 58#59Value-Add Asset Breakdown (6) No. Asset Type Classification Location Acquisition Price Acquisition Date Building Age Expected NOI/Year Ichigo Equity Investment Forecast Equity Multiple¹ Forecast IRR² 138 Hotel 139 Office Real Estate for Sale Real Estate for Sale Ogaki, Gifu JPY 1B-2B 2017/05 29 years JPY 84M 142 Hotel Real Estate for Sale 143 Retail Real Estate for Sale Shibuya-ku, Tokyo Kanazawa Fukuoka <JPY 1B 2017/05 2 years JPY 28M JPY 600M 1.15X 15.1% JPY 1B-2B 2017/11 1 year JPY 92M JPY 372M 2.12X 54.2% JPY 1B-2B 2017/09 34 years JPY 97M JPY 223M 3.78X 19.9% 144 Office Real Estate for Sale Chiyoda-ku, Tokyo JPY 1B-2B 2018/02 30 years JPY 97M 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% 146 Retail Fixed Asset Chuo-ku, Tokyo JPY 1B-2B 2018/08 28 years 147 Hotel 148 Office 149 Retail Real Estate for Sale Real Estate for Sale Fixed Asset Kyoto ≥ JPY 3B 2018/08 1 year Chiyoda-ku, Tokyo <JPY 1B 2018/08 50 years 150 Mixed (Office/Retail) 151 Mixed (Office/Retail) Real Estate for Sale Real Estate for Sale 152 Office 153 Hotel Real Estate for Sale Real Estate for Sale Chiyoda-ku, Tokyo Chuo-ku, Tokyo Fukuoka Fukuoka Fukuoka ≥ JPY 3B 2018/09 28 years ≥ JPY 3B 2018/10 31 years <JPY 1B 2018/10 20 years JPY 2B-3B <JPY 1B 2019/02 2019/02 31 years 25 years JPY 31M JPY 328M JPY 54M JPY 308M JPY 354M JPY 37M JPY 174M JPY 110M JPY 375M JPY 1,666M JPY 166M JPY 2,269M JPY 1,161M 1.59X 27.2% 3.93X 104.4% - 6.17X 24.7% JPY 38M 5.08X 43.1% JPY 382M 5.07X 19.6% JPY 193,242M Sub-Total 89 Assets JPY 12,328M JPY 38,455M 2.94X 38.2% JPY 200,607M (Book Value) 1 Forecast Equity Multiple is based on the business plan of each asset and is the forecast sum of rental income and gains on sale divided by Ichigo Investment. 2 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. 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 59#60Value-Add Asset Breakdown (7) No. Asset Type A Ichigo Owners (Office & Residence) B Centro (Primarily Office & Residence) C Self-Storage Acquisition Price vs. FY18/2 Q4 Expected NOI/Year Ichigo Equity Investment Forecast Equity Forecast Multiple IRR 31 Assets JPY 17,129M 18 Assets JPY 7,060M 24 Assets JPY 1,996M +JPY 1,878M +JPY 2,117M +JPY 119M JPY 899M JPY 5,313M JPY 482M JPY 2,472M JPY 282M JPY 491M ☐ JPY 219,427M Total 162 Assets JPY 13,991M JPY 46,731M JPY 227,642M (Book Value) Assets acquired in FY19/2 Q1 (3M) Total 7 Assets JPY 6,927M Assets acquired in FY19/2 Q2 (3M) Total 14 Assets JPY 15,644M Assets acquired in FY19/2 Q3 (3M) Total 9 Assets JPY 18,979M Assets acquired in FY19/2 Q4 (3M) Total 10 Assets JPY 8,000M Assets acquired in FY19/2 (12M) Total 40 Assets JPY 49,550M Assets acquired and sold in FY19/2 Total 12 Assets JPY 9,156M * Sold 10 Ichigo Owners assets and 2 Centro assets 一期一会| ICHIGO O Ichigo Inc. All rights reserved. JPY 373M JPY 2,449M JPY 750M JPY 4,052M JPY 871M JPY 5,124M JPY 470M JPY 2,464M JPY 345M JPY 2,202M JPY 13,827M JPY 3,666M 60 I#61Ichigo Solar Power Plant Portfolio Ichigo (Operating) Ichigo (In-Development) Solar Power Plant Area Ichigo Tokushima Higashi-Okinosu Shikoku Panel Output (MW) 2.52 Panel Ichigo Fuchu Jogecho Yano Chugoku 0.99 FIT (Pre-tax) JPY 40 JPY 40 Operation Start Date Solar Power Plant Area Output FIT (Pre-tax) Operation Start Date (MW) Ichigo Yubetsu Barou Hokkaido 0.80 JPY 40 Aug 2013 Mar 2014 Apr 2014 Ichigo Sakahogi Fukagaya Ichigo Sennan Kitsuneike Chubu 2.89 JPY 21 May 2019 Kansai 2.86 JPY 21 Jun 2019 Ichigo Minakami Aramaki Kanto 12.02 JPY 36 Nov 2019 Ichigo Maebashi Naegashima Kanto 0.67 JPY 40 Apr 2014 Ichigo Hitachi Omiya Kanto 2.96 JPY 24 Nov 2019 Ichigo Betsukai Kawakamicho Hokkaido 0.88 Ichigo Toyokoro Sasadamachi Hokkaido 0.60 Ichigo Higashi-Hiroshima Saijocho Taguchi Chugoku 2.72 Ichigo Akkeshi Shirahama Hokkaido Ichigo Hamanaka Bokujo Tsurunokotai Ichigo Yonago Izumi Tohoku Chugoku 2.61 0.80 2.31 JPY 40 JPY 40 JPY 40 JPY 40 Oct 2014 Ichigo Takashima Kutsuki Kansai 3.74 JPY 32 Dec 2019 Oct 2014 Ichigo Toki Tsurusatocho Kakino Higashi Chubu 1.68 JPY 21 Jan 2020 Jan 2015 Ichigo Kasaoka Osakaike Chugoku 2.39 JPY 21 Jan 2020 Mar 2015 Ichigo Minokamo Hachiyacho Kamihachiya Chubu 1.30 JPY 18 Mar 2020 JPY 36 Dec 2015 Ichigo Hokota Aoyagi Kanto 2.48 JPY 24 Mar 2020 JPY 40 Jan 2016 Ichigo Seto Jokojicho Chubu 1.50 JPY 18 Aug 2020 Ichigo Kasaoka Takumicho Chugoku 1.11 JPY 32 Mar 2016 Ichigo Obu Yoshidamachi Chubu 0.98 JPY 18 Sep 2020 Ichigo Kijo Takajo Ichigo Toki Oroshicho Kyushu 0.89 JPY 40 May 2016 (Wind) Ichigo Yonezawa Itaya Tohoku 7.39 JPY 22 Sep 2020 Chubu 1.39 JPY 36 Jun 2016 Ichigo Kasaoka Idachiike Chugoku 2.66 Ichigo Toride Shimotakai Kita Kanto 1.03 JPY 32 Jul 2016 Ichigo Toride Shimotakai Nishi Kanto 2.99 JPY 18 JPY 18 Oct 2020 Apr 2021 Ichigo Toride Shimotakai Minami Kanto 0.54 JPY 32 Jul 2016 Ichigo Kobe Pompuike Kansai 2.95 JPY 18 Jul 2021 Ichigo Hamanaka Bokujo Kajibayashi Tohoku 2.31 JPY 36 Oct 2016 Ichigo Sera Shimotsuda Chugoku 2.81 JPY 18 Aug 2021 Ichigo Sera Tsukuchi Ichigo Sera Aomizu Ichigo Showamura Ogose Ichigo Memuro Nishishikari Ichigo Kure Yasuuracho Nakahata Ichigo Tsu Ichigo Kasaoka Iwanoike Ichigo Toki Tsurusatocho Kakino Ichigo Itoshima Iwara Chugoku 2.54 Chugoku 2.87 Kanto 43.34 Hokkaido 1.32 Chugoku 2.90 Chubu 2.94 Chugoku 2.64 Chubu 1.31 Kyushu 1.48 JPY 32 Feb 2017 Ichigo Ueda Yoshidaike Chubu JPY 32 JPY 36 JPY 40 JPY 36 JPY 24 JPY 24 JPY 24 JPY 36 Aug 2017 Sep 2017 Feb 2018 Ichigo Miyakonojo Takazakicho Tsumagirishima Total (In-Development) Kyushu Total (Operating & In-Development) 1.01 2.96 18 Plants 57.65MW 43 Plants 141.28MW JPY 18 Oct 2021 JPY 32 Nov 2021 Mar 2018 Mar 2018 Ichigo Green (9282) Mar 2018 Apr 2018 Area Panel Jan 2019 (Number of Output Total (Operating) Power Plants) FIT (Pre-tax) (MW) 25 Plants 83.63MW Hokkaido (7) 9.14 JPY 40 Kanto (1) 1.33 JPY 40 Total 170.7MW 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 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 61#62Ichigo Solar & Wind Power Plant Portfolio Serving Local Communities and the Environment Total Operating and In-Development Ichigo Power Plants 58 Plants (170MW) Currently Operating 40 Plants (113MW) Chugoku Hokkaido Ichigo Yonago Izumi Ichigo Kasaoka Takumicho 2.61MW 1.11MW Ichigo Fuchu Jogecho Yano 0.99MW Ichigo Yubetsu Barou Ichigo Betsukai Kawakamicho Ichigo Akkeshi Shirahama Ichigo Toyokoro Sasadamachi Ichigo Memuro Nishishikari 0.80MW 0.88MW 0.80MW 0.60MW 1.32MW Ichigo Sera Tsukuchi 2.54MW Ichigo Motomombetsu 1.40MW Ichigo Sera Aomizu 2.87MW Ichigo Engaru Higashimachi 1.24MW Ichigo Higashi-Hiroshima Saijocho Taguchi Ichigo Engaru Kiyokawa 1.12MW 2.72MW Ichigo Abira Toasa 1.16MW Ichigo Kasaoka Iwanoike 2.64MW Okinawa Ichigo Nago Futami Ichigo Muroran Hatchodaira 1.24MW Ichigo Kure Yasuuracho Nakahata 2.90MW 8.44MW Ichigo Toyokoro 1.02MW Ichigo Yamaguchi Aionishi 1.24MW Ichigo Nakashibetsu Midorigaoka 1.93MW Kyushu Ichigo Yamaguchi Sayama 2.35MW Total 13.57MW Ichigo Kijo Takajo 0.89MW Ichigo Kasaoka Osakaike 2.39MW Ichigo Itoshima Iwara 1.48MW Tohoku Ichigo Kasaoka Idachiike 2.66MW Ichigo Miyakonojo Yasuhisacho 1.44MW Ichigo Miyakonojo Takazakicho 2.96MW Ichigo Sera Shimotsuda Total 2.81MW 29.89MW Tsumagirishima Ichigo Hamanaka Bokujo Tsurunokotai Ichigo Hamanaka Bokujo Kajibayashi (Wind) Ichigo Yonezawa Itaya 2.31MW 2.31MW 7.39MW Total 6.79MW Total 12.01MW (Wind) Iwate (Wind) Fukushima Kanto 7.50MW 7.00MW Chubu Ichigo Ichigo Toki Oroshicho 1.39MW Ichigo Green (9282) Kansai Ichigo Tsu 2.94MW Ichigo Maebashi Naegashima 0.67MW In-Development Ichigo Sennan Kitsuneike 2.86MW Ichigo Toki Tsurusatocho Kakino 1.31MW Ichigo Takashima Kutsuki Ichigo Kobe Pompuike Total 3.74MW Ichigo Toyokawa Mitocho Sawakihama 1.80MW 2.95MW Ichigo Sakahogi Fukagaya 2.89MW 9.56MW Ichigo Toki Tsurusatocho Kakino Higashi 1.68MW Ichigo Showamura Ogose Ichigo Toride Shimotakai Kita Ichigo Toride Shimotakai Minami Ichigo Kiryu Okuzawa Ichigo Minakami Aramaki 43.34MW 1.03MW 0.54MW 1.33MW 12.02MW Ichigo Minokamo Hachiyacho Shikoku 1.30MW Kamihachiya Ichigo Hitachi Omiya 2.96MW Ichigo Tokushima Higashi-Okinosu Ichigo Takamatsu Kokubunjicho Nii 2.52MW 2.43MW Ichigo Seto Jokojicho Ichigo Obu Yoshidamachi 1.50MW Ichigo Hokota Aoyagi 2.48MW 0.98MW Ichigo Toride Shimotakai Nishi 2.99MW ICHIGO 一期一会| O Ichigo Inc. All rights reserved. Ichigo lyo Nakayamacho Izubuchi Total 1.23MW Ichigo Ueda Yoshidaike 6.19MW Total 1.01MW 16.84MW Total 67.39MW (Wind) Chiba 4.00MW 62#63Ichigo-Owned Solar Power Plant Details Total Operating and In-Development Ichigo-Owned Solar Power Plants: 42 Plants (133.89MW) By Customer (Electric Power Utility Co) Hokkaido 3% Shikoku 2% By Feed-In-Tariff Tohokų 4% Kyushu 4% Kansai 7% Chubu 11% Chugoku 20% By Output JPY 18 12% JPY 40 11% JPY 21 8% TEPCO 49% JPY 24 9% JPY 32 11% JPY 36 49% >10MW (In- <2MW Development) 9% 10% <2MW (In-Development)_ 5% 2-10MW (In-Development) 24% 一期一会| ICHIGO >10MW 32% O Ichigo Inc. All rights reserved. 2-10MW 20% By Solar Intensity C (In-Development). 5% B (In-Development) 16% A 38% A (In-Development) 17% 6% B 18% By Operating Timeline <6 months in operation 1% Starting operation after +6 months 22% Starting operation within 6 months 16% >1 year in operation 61% Rank Solar Intensity A ≥4.00 B ≥3.75, <4.00 C 3.50, <3.75 D <3.50 Unit: kWh/m² per day 63#64一期一会| ICHIGO 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 Wind Power FIT Solar Power FIT Contract Date FIT Guarantee Period Contract Date FIT Guarantee 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 FY2015 (7/1-3/31) JPY 27 20 years FY2019 FY2020 JPY 19 20 years JPY 18 20 years FY2016 JPY 24 20 years FY2017 JPY 211 20 years FY2018 JPY 18 1 20 years FY2019 JPY 142 20 years Source: METI, Agency for Natural Resources and Energy O Ichigo Inc. All rights reserved. FIT for >2MW non-residential solar power production determined via auction process 2 Forecast FIT >0.5MW non-residential solar power production to be determined via auction process 64#65Disaster Response & Recovery No injuries or damages at any Ichigo asset or power plant from 2018 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-typhoon preventative 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 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 65 59#66Consolidated Balance Sheet: Assets Assets Current Assets (JPY million) FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 vs. FY18/2 Cash and cash equivalents Trade notes and accounts receivable 19,383 519 28,779 691 47,678 45,510 50,225 +4,715 913 1,097 1,344 +247 Operational loan investments 2,330 1,324 1,324 1,324 1,324 Operational securities investments 1,965 1,784 1,433 2 1,218 +1,216 Real estate for sale 109,769 172,833 167,805 180,789 161,322 -19,467 Power plants for sale Deferred taxassets 1,200 1,766 516 342 397 +55 Other 2,657 3,966 3,125 2,643 2,156 -487 Less: allowance for doubtful accounts -484 -458 -453 -28 -2 +26 Total Current Assets 137,342 210,687 222,344 231,681 217,987 -13,694 Fixed Assets Property, Plant, and Equipment Buildings and structures (net) 4,021 3,830 7,375 10,600 20,338 +9,738 Solar power plant equipment (net) 9,168 12,256 7,246 19,773 19,058 -715 Land 12,142 12,192 18,627 26,993 49,924 +22,931 Other (net) 989 3,264 12,402 1,190 5,654 +4,464 Total Property, Plant, and Equipment 26,321 31,546 45,654 58,558 94,976 +36,418 Intangible Assets Goodwill 2,082 1,942 1,864 1,600 1,346 -254 Leasehold rights 392 392 62 135 316 +181 Other 27 38 29 233 331 +98 Total Intangible Assets 2,502 2,373 1,956 1,968 1,993 +25 Investments and Other Assets Securities investments 5,266 5,486 1,426 2,184 2,455 +271 Long-term loans receivable 12 12 10 10 10 Deferred tax assets 2 39 339 68 35 -33 Other 1,392 1,736 1,820 2,132 2,231 +99 Less: allowance for doubtful accounts -95 Total Investments and Other Assets 6,578 Total Fixed Assets 35,402 -124 7,149 41,069 -92 -91 Total Assets 172,744 251,757 3,504 51,115 273,459 4,303 64,831 -91 4,640 101,611 +337 +36,780 296,512 319,599 +23,087 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 99 66#67Consolidated Balance Sheet: Liabilities & Net Assets (JPY million) FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 vs. FY18/2 Liabilities Current Liabilities Trade notes and accounts payable Short-term loans 124 80 110 1,416 2,188 805 1,042 3,275 +2,233 Short-term non-recourse loans 48 79 611 Bonds (due within one year) 112 112 112 Long-term loans (due within one year) 3,488 8,161 5,209 4,449 7,881 +3,432 Long-term non-recourse loans (due within one year) 786 2,975 6,825 3,921 1,666 -2,255 Income taxes payable 284 631 1,655 1,609 3,760 +2,151 Deferred tax liabilities 30 53 62 494 375 -119 Accrued bonuses Other current liabilities Total Current Liabilities Long-Term Liabilities Bonds 16 13 36 34 31 -3 3,677 3,979 9,872 18,161 4,119 19,548 4,652 16,316 5,178 22,280 +526 +5,964 Non-recourse bonds 100 100 632 100 520 538 +18 Long-term loans 53,409 94,409 91,604 112,366 131,569 Long-term non-recourse loans 43,004 56,193 68,319 63,588 51,068 +19,203 -12,520 Deferred tax liabilities 1,402 1,543 1,147 1,744 2,043 Long-term security deposits received 6,391 8,707 8,038 8,492 8,292 -200 Negative goodwill 90 Other long-term liabilities 96 475 624 758 946 +188 Total Long-Term Liabilities 104,494 161,430 170,467 187,470 114,367 179,591 190,015 203,787 194,458 216,739 +6,988 +12,952 Total Liabilities Net Assets Shareholders' Equity Capital Capital reserve Retained earnings Treasury shares Total Shareholders' Equity 26,499 26,575 26,650 26,723 26,820 +97 10,873 10,968 11,056 11,113 11,207 +94 17,201 29,454 42,840 54,324 66,730 +12,406 -78 -41 -15 -2,995 -5,988 -2,993 54,496 66,956 80,532 89,165 98,769 +9,604 Accumulated Other Comprehensive Income Valuation gain (loss) on other securities 1,208 761 117 543 386 -157 Deferred gain (loss) on long-term interest rate -36 -251 -365 -372 -408 -36 Foreign currency translation adjustment 6 23 55 Total Accumulated Other Comprehensive Income Stock Options 1,177 533 -192 171 -21 -192 198 319 491 666 827 +161 Minority Interests 2,505 Total Net Assets 58,377 一期一会| Total Liabilities and Net Assets 172,744 4,357 72,166 251,757 2,612 2,722 3,283 +561 83,443 273,459 92,725 296,512 102,859 +10,134 319,599 +23,087 ICHIGO O Ichigo Inc. All rights reserved. 67#68Consolidated P&L Revenue Cost of Goods Sold Gross Profit SG&A Operating Profit Non-Operating Income Interest income Dividend income Amortization of negative goodwill Mark-to-market gain on long-term interest (JPY million) Change FY19/2 FY15/2 FY16/2 FY17/2 FY18/2 FY19/2 (YOY) Forecast VS. Forecast 42,705 49,699 109,253 57,846 83,540 +25,694 29,811 28,865 81,327 30,860 51,413 +20,553 12,893 20,833 27,925 26,986 32,126 3,977 4,446 5,025 5,067 5,847 8,916 16,387 22,900 21,919 26,279 +5,140 +780 +4,360 31,200 103.0% 25,000 105.1% 500 2 3 78 79 90 1220 85 57 68 38 +11 90 | | | L I LO 5 +5 rate hedges Other 39 Total Non-Operating Income Non-Operating Expenses 213 13 43 32 215 118 28 100 70 161 147 ༷s -30 -14 Interest expense 1,641 2,234 2,278 2,249 2,328 +79 | | | Mark-to-market loss on long-term interest 53 270 491 +221 I rate hedges Debt financing-related fees 28 98 714 207 327 +120 Other 204 380 217 168 203 +35 Total Non-Operating Expenses 1,874 2,713 3,263 2,895 3,350 Recurring Profit Extraordinary Gains 7,255 13,889 19,755 19,185 23,076 +455 +3,891 22,000 104.9% Gains on sale of fixed assets Gains on sale of securities investments Gains on sale of shares in affiliates Other 57 Total Extraordinary Gains 57 ཁྲཁྲ| | | 223 2,466 1,221 41 223 2,466 1,263 12 1 12 +2 -1,221 Extraordinary Losses Loss on sale/disposal of fixed assets 11 -41 -1,261 -11 Valuation loss on securities investments 49 Office move expenses 9 31 Impairment loss 1,090 327 -327 Earthquake-related damages 244 | | | | | Other Total Extraordinary Losses 91 93 31 224 89 1,590 Pre-Tax Net Income 7,220 14,022 Income Taxes 343 960 Pre-Minority Interest Net Income 6,876 Net Income Attributable to Minority Interests 115 13,062 136 Net Income 6,761 12,925 20,630 5,436 15,194 299 14,894 339 20,109 5,923 14,185 167 14,018 -339 23,079 +2,970 7,333 +1,410 15,746 +1,561 373 +206 15,373 +1,355 15,000 102.5% 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 68#69Consolidated Cash Flows from Operations FY15/2 FY16/2 FY17/2 FY18/2 (JPY million) FY19/2 Cash Flows from Operations Pre-tax net income Depreciation 7,220 14,022 20,630 20,109 23,079 565 792 778 1,015 1,696 Share-based compensation expenses 112 174 223 215 213 Amortization of goodwill 139 139 141 111 254 Amortization of negative goodwill -90 -90 Increase (decrease) in accrued bonuses 1 -3 23 32 -3 Increase (decrease) in allowance for doubtful accounts 65 3 -3 -355 -26 Interest and dividend income -83 -81 -85 -61 -71 Interest expense 943 1,277 1,303 2,249 2,328 Loss (gain) on sale of shares in affiliates -1,221 Loss (gain) on sale of securities investments Impairment loss -223 -2,466 -2 1,090 327 Valuation loss on securities investments 49 Decrease (increase) in trading notes and receivables -68 -172 -367 -468 -247 Decrease (increase) in operational loans receivable -1,230 1,006 Decrease (increase) in operational securities investments 1,110 1,239 2,727 1,663 3,509 Valuation loss on operational securities investments Decrease (increase) in real estate for sale Decrease (increase) in power plant for sale Valuation loss on SPC capital contributions Decrease (increase) in advances paid Decrease (increase) in accounts receivable Increase (decrease) in accounts payable 19 -42,991 -63,070 -6,303 -8,112 -3,163 - 7,251 996 91 11 16 -990 -190 871 -333 -1,079 -1,140 -193 -10 -399 388 535 204 573 -332 Increase (decrease) in accrued expenses 16 42 92 -47 25 Increase (decrease) in advances received 211 317 -49 30 269 Increase (decrease) in security deposits received 1,391 2,380 -667 125 -264 Other -407 435 1,304 585 1,887 Sub-total -33,693 -43,324 25,460 18,628 28,420 Interest and dividend income received 83 81 85 61 71 Interest expense paid -843 -1,226 -1,146 -2,231 -2,118 Income taxes paid and refunded 161 -186 -2,852 -5,854 -4,610 Net Cash from (Used for) Operations -34,292 -44,654 21,547 10,603 21,762 一期一会| ICHIGO O Ichigo Inc. All rights reserved. 69#70一期一会| ICHIGO Consolidated Cash Flows from Investments & Financing FY15/2 FY16/2 FY17/2 FY18/2 (JPY million) FY19/2 Cash Flows from Investments Payments into time deposits Redemptions of time deposits Payments for securities investments Proceeds from sale of securities investments -325 -6,100 -6 325 201 -118 1,060 -210 -671 -300 -140 -539 296 6,136 32 Proceeds from redemptions of securities investments 3 Acquisition of property, plant, and equipment -10,769 -6,628 -11,719 -4,796 -15,440 Acquisition of intangible assets -23 -21 -1 -83 -425 Payments of SPC capital contributions -10 -9 -63 -28 -6 Redemptions of SPC capital contributions 6 32 Payments of security deposits -127 -37 -5 -36 -16 Acquisition of subsidiary shares resulting in change of -93 -2,619 consolidation scope Sale of subsidiary shares resulting in change of 2,096 consolidation scope Payments for acquisitions of newly consolidated subsidiaries Other -1,349 4 Net Cash from (Used for) Investments -12,485 -7,052 162 9 11 -32 -11,933 -5,645 -181 -15,602 Cash Flows from Financing Net increase (decrease) in short-term loans Net increase (decrease) in short-term non-recourse loans 466 48 771 31 -1,383 -306 2,232 532 -611 Proceeds from bond issuance 785 129 Repayment of maturing bond principal to bondholders -56 -112 -112 Redemption of non-recourse bonds Proceeds from long-term loans Repayment of long-term loans Proceeds from long-term non-recourse loans -100 47,203 64,866 55,674 32,660 43,062 -19,557 -19,192 -61,221 -13,402 -20,352 19,900 18,150 30,850 3,518 3,500 Payments to non-controlling shareholders for redemption of Repayment of long-term non-recourse loans Proceeds from employee exercise of stock options Share buyback Proceeds from share issuance to non-controlling shareholders common shares Sale of subsidiary shares resulting in no change of consolidation scope Dividends paid Dividends paid to minority interests -5,958 -2,772 -15,400 -22,366 -18,473 99 153 137 110 143 -2,999 -2,999 2,000 90 -2,000 Net Cash from (Used for) Financing O Ichigo Inc. All rights reserved. 100 -543 -646 -1,501 -2,513 -2,972 -43 -39 41,658 63,318 6,377 -6,124 4,346 70#71These 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. 一期一会 ICHIGO Ichigo Inc. All rights reserved. Contact: Ichigo (TSE First 2337) Investor Relations TEL: +81-3-3502-4818 E-mail: [email protected] 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. 71