#1♦ RELO GROUP FY2019/3 Relo Group Investor Presentation May 31, 2019#2RELO GROUF Overview 19th 10th consecutive Sales year of Growth consecutive year of Record Profit 1#3& RELO GROUP Business Environment Forecast of trends in the working population 6,648 6,404 6,149 5,880 5,587 5,268 4,942 4,640 4,382 4,157 3,946 Continuous decline of working population in Japan Strong demand for corporate fringe benefits 2016 20 25 30 35 40 45 (Source) Mizuho Research Institute Ltd. Report 50 55 60 65 Sustainable Growth in both Sales and Profits 2#4RELO GROUF Consolidated Results (Millions of yen) FY2019/3 Rounded down to the nearest million yen FY2018/3 YOY change Sales 250,864 225,437 + 11.3% Operating profit 17,867 15,359 + 16.3% Recurring profit 20,072 16,943 + 18.5% Net income 13,005 10,782 + 20.6% EPS (Yen) 87.20 71.91 + 21.2% 3#5RELO GROUF Dividends 16th consecutive year of Dividend amount (Yen/Share) dividend increases ¥0.75 ¥26 FY2003/3 FY2005/3 FY2007/3 FY2009/3 FY2011/3 FY2013/3 FY2015/3 FY2017/3 FY2019/3 4#6RELO GROUP Trends of Consolidated Results Recurring ¥20bn Profit Plas Achieve ment FY2011/3 The First Olympic ► The Second Olympic Plan FY2013/3 FY2015/3 FY2017/3 FY2019/3 5#7& RELO GROUP Listed Company RELO GROUP A Co. B CO. C Co. D CO. E co. F CO. G CO. H có. I CO. Total market capitalization of over 50 billion yen 10th consecutive year of record profit Double-digit YoY profit growth rate +15% YoY profit growth rate Total market capitalization of over 50 billion yen 10th consecutive year of record profit +Double-digit YoY profit growth rate Total market capitalization of over 50 billion yen 10th consecutive year of record profit 3 co. 1 co. 7 10 CO. 6#8RELO GROUP Results & Overview by Segment Domestic Business DOUSING DO2622 7#9RELO GROUF Sales Operating profit Domestic Business Overall Sales ¥210.3bn YoY change +13.2% Operating profit ¥16.3bn YoY change +22.9% FY2016/3 FY2017/3 FY2017/3 FY2018/3 FY2019/3 8#10RELO GROUP Domestic Business Corporate Housing Management Residential Property Management Corporate Fringe Benefits MAST 9#11RELO GROUP Domestic Business Domestic Relocation Fringe Benefits Corporate Housing Management Residential Property Management Corporate Fringe Benefits MAST 10#12RELO GROUP Domestic Relocation Overall Operating profit FY2016/3 FY2017/3 FY2017/3 FY2018/3 FY2019/3 Sales ¥182.0bn YoY change +11.2% Operating profit ¥7.5bn YoY change +15.2% 11#13RELO GROUP Corporate Housing Management Units under management Strong demand for sub- leasing system that reduces clients' workload 175,797 units YoY change +10.2% Steady business activities targeting medium and large companies FY2016/3 FY2017/3 FY2018/3 FY2019/3 12#14RELO GROUP Corporate Housing Management Collapse of balance of supply and demand for moves 規受注停止 Number of orders 長時間労働 received for moves up 27% year on year 人手不足 今春も「引越難民」発生か 績確 引越依和 が人 業材 ドライバー 界 カロ の All orders accepted 13#15RELO GROUP Corporate Housing Management Rental housing with furniture for relocated employees R+ Relo Group Furniture Units under management FY2019/3 2,000 units Annual contract number of units Property over 1,000 units By responding to all housing needs, climb to the clear No.1 position 14#16RELO GROUF Residential Property Management Growth of existing group companies + 7 block extension throughout Japan Units under management Profit base expands 65,574 units YoY change +15.5% FY2016/3 FY2017/3 FY2018/3 FY2019/3 15#17RELO GROUP Residential Property Management Consolidation of operations among Group companies Companies acquired until FY2018/3 Companies acquired during FY2019/3 Kent Corporation (Osaka) Miyagi Nakamichi Shinwa Shoji Hanazawa Homes | Tokyo (Tokyo) | Saitama Daiko Tohto Myrealty Chofu Housing Wako & Hukuoka Room Gloire Life Fudosan TOsaka Recrea Life Agent Chiba ➤ Yoshida Fudosan Promote improvement of operational efficiency and governance#18( RELO GROUP Residential Property Management Immediate Stock Holding Relo Partners, Limited Company Unification リロの賃貸 of brand + Sharing of best practice Potential for growth of hundreds of millions of yen is not yet realized 17#19& RELO GROUP Residential Property Management HHOT HOUSE Co., Ltd. HOT HOUSE From an equity method affiliate to a consolidated subsidiary s Strength Brokerage in Tohoku area, assets Effective utilization of idle land at the roadside Spread the expertise to each company in the group 18#20RELO GROUP Domestic Business Domestic Relocation Fringe Benefits Corporate Housing Management Residential Property Management Corporate Fringe Benefits MAST 19#21RELO GROUP Corporate Fringe Benefits Operating profit FY2016/3 FY2017/3 FY2018/3 FY2019/3 Sales ¥28.2bn YoY change +27.9% Operating profit ¥8.8bn YoY change +30.4% 20#22RELO GROUF Corporate Fringe Benefits Strong new acquisitions Fringe benefit members No. of contracted companies Industry first 10,000 co.exceeds 6.72 million people YoY change +0.61 million people FY2016/3 FY2017/3 FY2018/3 FY2019/3 21#23(D RELO GROUP Corporate Fringe Benefits Promoting sales to large companies, SMEs and local companies Utsunomiya Office open The first office in the industry Okinawa Office open The first office in the industry Hokkaido Area Tohoku Area Niigata Office open The first office in the industry Koshinetsu Area Chubu Area Chugoku/Shikoku Area Kansai Area Kanto Area Kyushu/Okinawa Area Increase in admission of companies with more than 1,000 employees YoY +30% 22#24RELO GROUF Corporate Fringe Benefits E-magazine subscribers Number of App DL 2.4 million people +20.9% YoY change 0.48 million people YoY change +61.0% FY2016/3 FY2017/3 FY2018/3 FY2019/3 FY2016/4 FY2017/3 FY2018/3 FY2019/3 Usage-related indicators are increasing favorably 23#25RELO GROUF Corporate Fringe Benefits Accommodation Overriding commission Gourmet Commission for transportation of customers +21.3% YoY growth in commission revenue 24#26RELO GROUF Corporate Fringe Benefits Support for future life design Insurance seminar for members Annual attraction of 3,000 customers 47% YoY profit growth rate 25#27RELO GROUP Corporate Fringe Benefits Before & After Capital Improvements Renovation of corporate recreation facilities, etc. with professional know-how Smooth value-up cycle Stable contribution to consolidated performance 26#28RELO GROUP Results & Overview by Segment Global Business ༎༠༠༠༠ 27#29RELO GROUF Sales Operating profit Global Business Sales ¥34.4bn YoY change +0.4% Operating profit \3.2bn YoY change +8.0% FY2016/3 FY2017/3 FY2018/3 FY2019/3 28#30RELO GROUP Global Relocation Support Sales Operating profit Global Business Global Destination Support Vacant House Property Management FY2016/3 FY2017/3 FY2018/3 FY2019/3 Sales YoY change +11.6% Operating profit YoY change +28.7% 29#31RELO GROUF Market Climate Trade friction between the United States and China Uncertainty of BREXIT The trend of expanding business overseas continues 30#32RELO GROUP Vacant House Property Management Relocation House Rental Management Almost flat 1 In-house production of brokerage and mediation function 2 Intake of short-term lease needs 3 Meeting the demands of corporations Improvement of profitability by taking drastic measures 31#33RELO GROUF Global Relocation Support No. of completed overseas assignments 日本国 JAPA JAPAN PASSPORT FY2018/3 7,266 households FY2019/3 8,766 households YoY change +20.6% Profit growth from Global Relocation Support 32#34RELO GROUP Global Relocation Support AIRINC. WORKFORCE GLOBALIZATION Cost-of-living indices also sold in Japan Number of indices YoY change +46% Steady growth of AIRINC's share 33#35RELO GROUP Global Destination Support Growth mainly in North America as a result of: Housing brokerage Serviced apartment operation Mobility Management Service Auto lease Residential / Automobile insurance Favorable growth of services for employees relocated to North America 34#36RELO GROUF Global Destination Support REDAC GATEWAY HOTEL Redac Gateway Hotel in Torrance REDAC GATEWAY HOTEL Serviced Apartments/Hotels Occupancy Rate 89.4% 35#37RELO GROUF Global Destination Support Ó REDAC リダック Establishment of a local affiliated company in Singapore (planned) Global Destination Support Number of housing 2,284 units +5.5% brokerages 36#38& RELO GROUP Cross-Selling Activated Group Synergy Corporate Housing Management Corporate Fringe Benefit ✓ Global Relocation Support Selling ratio of introduced services From the fiscal year ended March 2015 2.3 times Doubling Cross- selling Ratio 37#39RELO GROUP FY2020/3 Plan LISOSOLO LI །།། 38#40& RELO GROUF FY2020/3 Overview Consideration of IFRS disclosure plan in profit before taxes (Amounts less than ¥1M rounded off) Actual FY2019/3 Plan FY2020/3 YOY Sales 250,864 280,000 +11.6% Operating profit 17,868 20,200 +13.1% Profit before 19,076 income taxes 22,500 +17.9% Annual dividend per 26.00 29.00 +\3.00 share (¥) Aiming for the 20th consecutive year of sales growth and the 11th consecutive year of record profit 39#41RELO GROUF FY2020/3 New Segments Domestic Relocation Business Fringe Benefit Business Relocation Support Business Global Business Tourism Business Other Business 40#42& RELO GROUP FY2020/3 Domestic Relocation Business Domestic Relocation Business (Leased Corporate Housing Management Business + Residential Property Management Business) Sales 226.0bn Operating profit 10.4bn YoY +19.5% 41#43& RELO GROUP FY2020/3 Fringe Benefit Business Fringe Benefit Business Sales 20.5bn Operating profit 8.0bn YoY +20.5% 42#44RELO GROUP FY2020/3 Relocation Support Business Relocation Support Business Sales 6.9bn Operating profit 1.4bn YoY +13.8% 43#45& RELO GROUP FY2020/3 Global Business Global Business Sales 12.0bn Operating profit 0.9bn YoY +11.0% 44#46& RELO GROUP FY2020/3 Tourism Business Tourism Business Sales 9.0bn Operating profit 2.4bn YoY -20.6% 45#47& RELO GROUP FY2020/3 Tourism Business Tourism Business Sales 9.0bn Operating profit 2.4bn YoY +31.8% *Excluding profit from sales of facilities in the fiscal year ended March 2019 46#48Q RELO GROUP FY2020/3 Key Performance Indicators Leased Corporate Housing Management Property Management Fringe Benefit Membership Global Relocation Support MOST 200,000 units 72,000 units 8.00 million people 10,000 households 47#49RELO GROUF Dividend amount (Yen/Share) Dividends Dividend increases are expected for 17 consecutive years Ranked 20th in terms of dividend increases for consecutive years among listed companies FY2020/3 (Plan) ¥29 ¥0.75 FY2003/3 FY2005/3 FY2007/3 FY2009/3 FY2011/3 FY2013/3 FY2015/3 FY2017/3 FY2019/3 48#50R RELO GROUP FY2019/3 Relo Group Investor Presentation May 31, 2019#51RELO GROUF The Second Olympic Plan Recurring profit 5.2bn FY2019/3 Recurring profit plan 2 Total win 20.1bn FY2011/3 FY2013/3 FY2015/3 FY2017/3 FY2019/3 50#52RELO GROUP The Second Start-Up Period The Third Olympic Plan started The First Olympic Plan The Second Olympic Plan Global Initiation The Third Olympic Plan FY2012/3 The Second Initiation ~FY2015/3 ~FY2019/3 ~FY2023/3 Start to Take on the Challenge of Becoming the Top Global Relocation Company 5 51#53RELO GROUF The Third Olympic Plan Global Relocation Company BGRS BGRS will join our group *Closing scheduled for June 52#54RELO GROUF The Third Olympic Plan - The Third Olympic Plan priority challenges - Be No.1 for Domestic Core Business Build a footing for reaching the Global Market 53#55RELO GROUF The Third Olympic Plan The Second "Start-Up" Stage: First 12 years ~FY2019/3 ~FY2015/3 The First OP ~FY2023/3 The Second OP The Third OP The Second "Start-Up" Stage: Second 12 years FY2024/3 FY2035/3 The Global "Start-Up" Stage Leap to 12 years of The Global “Start-Up" Stage 54#56RELO GROUF The Third Olympic Plan The Second "Start-Up" Stage: First 12 years ~FY2015/3 ~FY2019/3 The First OP The Second OP FY2020/3 FY2023/3 The Third Olympic Plan ~FY2035/3 The Global "Start-Up" Stage Four turbulent years Clear population decline 55#57RELO GROUF Mission The Third Olympic Plan - Our Mission - Support the non-core businesses Support the global expansion of Japanese companies Be essential to the paradigm shift of the Japanese economy 56#58& RELO GROUP The Third Olympic Plan Increase in outsourcing of non-core functions Declining population Corporate Housing Management Corporate Fringe Benefits Increased utilization due to improved usability Improve operation efficiency 57#59RELO GROUF The Third Olympic Plan Corporate Housing Management Corporate Fringe Benefits Increased utilization due to improved usability Improve operation efficiency No.1 in terms of profit scale and market share 58#60RELO GROUF Domestic Business Corporate Housing Management Full operation of the system Improve operation efficiency Improve profit margin Support for finding an increasing amount of corporate housing Provide leased housing with furniture "R+” to workers from overseas Transfer Vacant House Property Management to Corporate Housing Management 59#61RELO GROUF Domestic Business Vacant House Property Management Corporate Housing Management Synergy from Integration The only slumping core business Expansion of business The same divisions of companies are in charge Property information can be posted on Relonet Housing-related operations are transferred to a comprehensive business 60 00#62RELO GROUF Domestic Business Corporate Housing Management Operating profit FY2015/3 FY2019/3 FY2023/3 Actual FY2019/3 5.6bn Plan FY2023/3 10.5bn 19 61#63RELO GROUF Corporate Fringe Benefits The Second Olympic Plan 1 2 3 "The Second Growth Curve" by system investment gets on track Service that responds to needs for transferring part-time workers to full-time workers Aggressive sales activities in local areas that are affected by the population decline 62 62#64RELO GROUP Corporate Fringe Benefits About 15% of small to medium-sized companies have introduced outsourcing for fringe benefits Fill in the gap in fringe benefits between large companies and SMEs Fill in the gap in fringe benefits between companies in the Tokyo metropolitan area and local companies Continue to strengthen strategies for local areas 63#65RELO GROUP Corporate Fringe Benefits Decline in the Japanese Market ■福利厚生倶楽部 FUKURI KOSEI CLUB More than Further Monopolize the Customer Base 10,000 corporate customers • More than 6.7 million members Active deployment of CRM business 64#66RELO GROUF Corporate Fringe Benefits Hotel Management Contribution to revival of recreation facility/supplier support 65#67RELO GROUP Corporate Fringe Benefits Separation of segments Corporate Fringe Benefits Fringe Benefits Outsourcing On-site support for housing - Tourism Business Hotel Management Timeshare Business The Third Olympic Plan - Corporate Fringe Benefits Aim for the largest profit 99 66#68RELO GROUF Corporate Fringe Benefits Corporate Fringe Benefits Operating profit FY2015/3 FY2019/3 FY2023/3 Actual FY2019/3 Plan 6.6bn FY2023/3 13.5bn 67#69RELO GROUF Relocation Support Business Panasonic X RELO GROUP Leverage the reputation and know-how of Relo Panasonic Excel Strengthen the inbound relocation business To the stage where a synergic effect from completed integration is achieved 68#70RELO GROUF Global Business AIRINC. WORKFORCE GLOBALIZATION Start to disseminate to a customer operating globally 69#71( RELO GROUF Twenty Seven Global Business REDAC GATEWAY HOTEL Mobility Management Service 24-hr. telephone interpreter Tenant insurance & automobile insurance Property search and contract administration CHI Furniture rental Car leasing Cell phone and buying 70#72RELO GROUF Relocation Support Business Global Business RRELLO RELO RELO CROUP RELO GROUP RELO GROUP RELO GROUP RELO GROUP RELO GR RELO CROUP RELO GROUP RELO GROUP RELO GROUP Support base for employees who are relocated 24 bases in 7 countries 71#73Relocation Support Business RELO GROUF Global Business Accelerate Globalization of Japanese Companies Increase to integrate global companies into own group through M&A A support function is required not only for Japanese employees who are relocated, but also for those who work for global companies 72#74RELO GROUP BGRS Base Network (2 Support for Japanese companies' global operations ཐོ)་མྱ་ RELO GROUP RELO GRO RELO GROUP RE P BGRS RE ¿ ¿ RELO GROUP POUP LO GROUP Global support bases 14 bases in 8 countries RELO GROUP 73#75RELO GROUF Establish ment ROYAL LEPAGE 1964 BGRS History M&A Prudential RELO GROUP 2019 Join our group 2008 M&A GMAC Global Relocation Services 2011 2016 BGRS Name change 74#76RELO GROUF BGRS Industry Ranking Relocation industry Third place in the world 75#77& BGRS Base RELO GROUP Number of global companies as customers 130 Share of Fortune 500 *Only outsourcing companies 20% Number of relocations (per year) 60,000 76#78RELO GROUF BGRS Concept ROYAL LEPAGE XI Prudential Prudential X GMAC System Integration Global Relocation Services Operations Efficiency Project Concept of a profit increase of 1.5 billion yen several times 77#79RELO GROUF Relocation Support Business Global Business Relocation Support Business Relo Excel International, Inc. IT systems investment Sales method BGRS Improvement in efficiency of operations, etc. Improve operation efficiency Absorption of know-how Become No.1 in relocation support 78#80RELO GROUF Relocation Support Business Global Business To the only Group that has a company with a global relocation function in Japan Strongly support Japanese companies' global operations 79#81RELO GROUP Relocation Support Business Relocation Support Business Actual FY2019/3 Operating profit FY2015/3 FY2019/3 FY2023/3 1.2bn Plan FY2023/3 2.0bn 80 00#82RELO GROUF Global Business Global Business Operating profit FY2015/3 FY2019/3 FY2023/3 Actual FY2019/3 0.8bn Plan FY2023/3 1.5bn 81#83RELO GROUP Corporate Fringe Benefits "The Second Growth Curve" by System Investment Horizontal Expansion to All Other Core Businesses FY2000/3 Operating profit FY2004/3 FY2008/3 FY2012/3 FY2016/3 FY2019/3 The successful regrowth of the mature business is a major advantage 82#84& RELO GROUF Corporate Fringe Benefits Relo Club, Ltd. Decision on large system investment Improve usability Increase users Improve efficiency of back office operations Reduce back office operations Improve utilization ratio Successfully win a large company Increase price liberalization Increase profits Improve profit margin#85& RELO GROUF Corporate Fringe Benefits Relo Club, Ltd. Increase profits Successfully win a large company Increase price liberalization Improve profit margin Increase profits Local specialty journal, menu development Enhance sales forces in regional areas Winning competitions in local areas Visualization and sharing in all the core businesses 84#86( RELO GROUP Mainstay Businesses Mainstay Businesses Assignment of a supervisory Relocation Support Business Corporate Fringe Benefits Management Corporate Housing Management Residential Property manager in core businesses Acceleration of information sharing among businesses Assignment of a chief executive for information systems Spread of "The Second Growth Curve" to core businesses 85#87RELO GROUP Residential Property Management Tourism Business <Japan's Issues > Declining population Impact on suppliers Services launched by Japanese face the issue of business succession The Group's nationwide leased housing network There are numerous Relonet members 86#88RELO GROUP Residential Property Management • Increased performance of leased housing management company • Track record of 30 M&As Operating profit FY2011/3 FY2013/3 FY2015/3 FY2017/3 FY2019/3 87#89RELO GROUF Residential Property Management <Japan's Issues > Declining population National debt Major shift of Japan Global flow of people, money, & goods into Japan 88 88#90૨. RELO GROUP - Residential Property Management 1 Completion of 7 block deployment 2 Establishment of "Relo no Chintai" brand 3 Enhancement of support system for workers from overseas Rental Property Management Vision - Becoming Japan's largest Residential Rental Management institution 89#91RELO GROUF Residential Property Management Residential Property Management Actual Operating profit FY2015/3 FY2019/3 FY2023/3 FY2019/3 3.0bn Plan FY2023/3 8.0bn 90 00#92RELO GROUF Domestic Business Corporate Housing Management Residential Property Management - Domestic Business mission- Ascertaining transfer needs in the Leased Corporate Housing Management Business to support it with the nationwide leased housing network Actual FY2019/3 8.7bn Plan FY2023/3 18.5bn 91#93RELO GROUF Tourism Business Timeshare Business Hotel Management Fusion Start as Tourism Business 92#94RELO GROUF Tourism Business <Japan aims to be a tourism-oriented country> Activity Large business hotel Large resort hotel Successor Small to medium-sized problem hotels in local areas 吋 93#95RELO GROUF Tourism Business Corporate Fringe Benefits Timeshare Business ゆくゆく 福利厚生倶楽部 内定者倶楽部 Relo リロ FUKURI KOS ET CLUB NAITEISHA CLUB ❖ Club Off Alliance Point Vacation 倶楽部 On our customer base Track record of revival of small to medium-sized recreational facilities 94#96RELO GROUP Tourism Business No. of hotels managed FY2019/3 50 hotels Revival of small to medium- sized hotels/Japanese-style hotels in local areas Actual Operating profit FY2019/3 1.8bn *Excluding profits from sales of facilities Plan FY2023/3 Operating profit 3.5bn 95#97RELO GROUF The Third Olympic Plan Profit before income taxes Profit before income taxes plan FY2023/3 35.5bn FY2015/3 FY2019/3 FY2023/3 96#98& RELO GROUF Partnership Management Enhance partnership management for ownership of the company's stock Employee stock ownership Major shareholder (9th largest) + Number of employees / officers holding Major shareholder (2nd largest) 46 97#99RELO GROUF Partnership Management Success of the Third Olympic Plan Grant stock options The number of shares held by the Relo Group's employees/officers is more than 10% of the total number of issued shares#100( RELO GROUP Partnership Management Colleagues who understand the power of shares Success of the Third Olympic Plan Leap to the Global "Start-Up" Stage Grouping of companies facing business succession issues Increase the number of colleagues to achieve the mission#101( - RELO GROUP The Third Olympic Plan The Third Olympic Plan priority challenges - Be No.1 for Domestic Core Business Build a footing for reaching the Global Market Leap to The Global "Start-Up" Stage#102RELO GROUF Contact Planning and IR Group, Relo Group, Inc. TEL: 03-5312-8704 E-Mail: [email protected] URL: http://www.relo.jp/ The information contained in this presentation is provided for information purposes only and should not be construed as a solicitation to invest in our securities. This material has been prepared based on currently available information as of March 2019 and contains forward-looking statements that reflect Relo's plans and expectations at the abovementioned time. Relo shall bear no responsibility or liability for the accuracy of the information, or for any actions arising from the use of information in this presentation. Moreover, the contents of this material are subject to change without notice. 101