Ichigo Group Holdings Co., Ltd. (2337)

Feb. 2012 Fiscal Year (March 2011 February 2012) Corporate Presentation Ichigo Group Holdings Co., Ltd. (2337) April 26, 2012 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. www.ichigo-holdings.co.jp/english

Secure Foundation for Growth - Feb. 2012 Full-Year Consolidated Financial Results - Feb. 2012 Assets under Management (AUM) - Structural Profitability - Solid Balance Sheet - Assets Marked-to-Market Market Execution of Forward Growth Strategy - Acceleration of Growth - Corporate Reorganization - REIT Business Development - Feb. 2013 Earnings Outlook - Building the Ichigo Brand Appendices: Financial & Real Estate Data 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 4

Feb. 2012 Full-Year Consolidated Financial Results Steady Growth that Outperformed Forecast (Million yen) Actual vs Forecast Revenues +16%, Net Profit +36% Feb. 2012 Financial Results Feb 11 Feb 12 Actual (Million yen) Feb 12 vs. Forecast Forecast Revenues 12,760 18,952 16,300 +16% Operating 1,351 1,050 1,000 +5% Profit Revenues 18,952 Revenues 16,300 Recurring Profit 1,616 979 700 +39% Net Profit 1,770 Net Profit 1,300 Net Profit 620 1,770 1,300 +36% Actual Feb 12 Full-Year Forecast Feb 12 Full-Year Upward Revision 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 6

Feb. 2012 Assets under Management (AUM) Total AUM Flat, but Profitability Improved - Net AUM increase from new private equity RE AM mandates - AM fees from private equity RE funds increased by 250 million yen Increased dam Fees from J-REIT M&A - J-REIT AUM decreased due to mark-to-market revaluation of acquired assets Other PE RE 6.2 (Billion yen) 385.33 PE RE fund asset sales 61.7 J-REIT asset Sales 1.9 J-REIT mark-to-market 29.3 J-REIT M&A 23.4 New PE RE Mandates 13.4 PE RE Rescue AM 44.2 379.6 Feb 11 Feb 12 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 7

Structural Profitability Fixed Revenues Now Exceed Fixed Costs - J-REIT and BM growth and new AM mandates have expanded fixed revenues - Target further improvement to120% Coverage Ratio this FY Fixed Revenues ( locked-in revenues, excludes transaction fees, capital gains, etc.) Fixed Costs (SG&A + Interest Expense) Coverage: 84.7% Coverage: 68.2% Interest 284 Interest 340 BM Fees 352 Dividends 124 Interest 8 (Million yen) Coverage: 103.5% BM Fees 470 Interest 300 Dividends 480 Interest 12 2,007 BM Fees 372 Interest 27 Rental Income 1,023 SG&A 2,603 2,943 2,673 Rental Income 936 SG&A 2,871 Rental Income 909 3,155 3,396 SG&A 3,280 2,980 AM Fees 585 AM Fees 1,253 AM Fees 1525 1,525 Feb 11 Feb 12 Feb 13 Forecast *Feb 11 and Feb 12 numbers are calculated as of beginning of each fiscal year. *Pro Forma base (definition on p. 18) 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 8

Solid Balance Sheet Balance Sheet Equity Ratio 64.4% Liabilities 14.2 Assets -1.9 Equity Ratio 68.9% Liabilities 11.8 (Billion yen) Assets 39.99 Net Assets 25.7 Assets 38.0 Net Assets 26.1 Interest-Bearing Debt Total Borrowings 10.8 Feb 11 Feb 12 Short-Term Debt Long-Term Debt 6.2-1.5 Total Borrowings 9.3 Short-Term Debt 1.9 (Billion yen) 4.6-2.7 Significant Strengthening of Debt Structure Have +1.2 Increased Long/Short-Term Long-Term Debt Debt Ratio from 57.6% to 7.4 79.3% *Pro Forma (definition on p.18) Feb 11 Feb 12 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 9

Assets Marked-to-Market Continual Mark-to-Market of Assets in Conservative Balance Sheet Mark-to-Market Market as of Feb. 2012 - Real Estate (Million yen) Acquisition Value Book Value Appraisal Value (As of Feb 12) (As of Feb 12) Unrealized Gain Directly Owned on B/S 15,274 10,801 13,045 +2,244 Investment in IGH Funds 16,306 8,151 13,653 +5,502 Total 31,580 18,952 26,698 +7,746 - Private Equity Book Value (As of Feb 12) Market Value (As of Mar 12) (Million yen) Unrealized Gain Significant Unrealized Gains Domestic Securities 317 486 +169 Overseas Securities 960 1,139 +179 Total 1,277 1,626 +348 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 10

Acceleration of Growth Having Achieved Structural Profitability, Entering Accelerated Growth Stage 100% Coverage Ratio Building Structural Profitability Stable Financial Base Optimizing balance sheet Compressing and strengthening Optimizing interest-bearing debt Reduction and term extension Increase Structural Profitability Increase real estate fee income M&A of J-REIT AM companies Value enhancement of assets M&A of stable/profitable companies SG&A cost-cutting Accelerated Growth Stage Significant Expansion of Structural Profitability Growth in private equity RE fund AUM - Launch new private equity RE funds - Expand investor base - Rescue AM Organic growth of J-REIT Acquisition and warehousing for J-REIT Small-sized asset and ground lease products Value enhancement of retail assets Strengthening of BM business Target: Tokyo Stock Exchange First Section Growth Investments + Increased Shareholder Distributions Structural Profitability Feb 11 Feb 12 Feb 13 * Beginning of each fiscal year. 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 12

Corporate Reorganization Enhance Capability as Full-Service Real Estate Asset Manager - Strengthen mainstay AM business - Expansion of small-sized sized asset and ground lease businesses - Warehousing capability to support J-REIT growth Full-Service Real Estate Asset Manager Holding Company (Group Strategy, M&A) Ichigo Group Holdings Co., Ltd. Reorganization Becomes Pure Holding Company Private Equity RE Fund AM J-REIT AM (Ichigo REIT) Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo REIT Management Co., Ltd. Merge New Ichigo Real Estate Investment Advisors AM for J-REIT and private equity RE funds Strengthened sourcing and AM capabilities Subsidiaries Small-Sized Assets & Ground Leases Financial Solutions Ichigo Estate Co., Ltd. Ichigo Solutions Co., Ltd. Merge New Ichigo Estate Small-sized assets, ground leases, and warehousing PM: Wholesale Market, Chiba Ichigo Marché Co., Ltd. Focus on Value Enhancement PM: Mall,Miyazaki BM and Personnel Service BM and Security Service Miyako City Co., Ltd. Takara Building Maintenance Co., Ltd. Nichibei Building Services Co., Ltd. Nichibei Security Services Co., Ltd. Focus on Value Enhancement Pursue Synergies to Increase Profitability Maximize Growth 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 13

J-REIT Business Development Significant Expansion of J-REIT Business - Merged two J-REITs November 1, 2011 - Ichigo Real Estate Investment Corporation (8975) - Comprehensive J-REIT with stable profitability and steady growth - Deploy negative goodwill to support growth of portfolio Portfolio Improvement Post-Merger - Disposed of four regional assets - IGH warehousing fund acquired first Tokyo asset for J-REIT Reorganization to Enhance Sourcing & AM Capabilities - AM platform for both J-REIT and private equity RE funds - Share information and know-how - New Ichigo Estate will run warehousing platform 1 st Asset Acquired by Warehousing Fund - Office - Central Tokyo - Great Transport Access 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 14

Feb. 2013 Earnings Outlook Mainstay AM Business to Generate Stable Revenues - Less reliance on disposition of assets and capital gains - Significant organic growth in profitability Resumption of Dividend and Target Continuous Increases Going Forward Forecast for Feb 13 Actual Feb 12 (Million yen) Revenues 17,000 18,952 Operating Profit 1500 1,500 1050 1,050 Recurring Profit 1,200 979 Net Profit 1,000 1,770 Dividend per Share (Yen) 200 0 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 15

Building the Ichigo Brand Strengthening Ichigo Brand - Consistent Ichigo signage for tenant directories and buildings - Ichigo logo billboards on Ichigo buildings - Ichigo-branded promotional gifts Ichigo Tenant and Building Signage Corporate Social Responsibility (CSR) - Moving forward on environmental protection efforts Ichigo was Japan's first zero carbon public real estate company Member of Challenge 25 Campaign Working on Ichigo Environmental Standards - Sports sponsorship in weightlifting Ichigo employee to represent Japan in 2012 London Olympics - Collaborative project with Tokyo University of Arts showcasing students creative works in Ichigo-managed buildings Ichigo Gift Card Ichigo/Tokyo University of Arts Creative Project 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 16

Pro Forma Disclosure to Improve Transparency Under Japanese accounting rules, SPCs in which Ichigo Group Holdings ( IGH ) is a greater than 50% investor or SPCs for which IGH is the asset manager and no single equity investor holds more than 50% of the total investment must be consolidated onto IGH s balance sheet. Our statutory consolidated and parent financial statements thus include clientrelated assets and liabilities and P&L which do not belong to IGH. In order to more accurately reflect the true economic exposures borne by our shareholders, we disclose Pro Forma financials which are intended to better reflect IGH s actual corporate financial position. 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 18

Balance Sheet (Pro Forma) Feb 11 Feb 12 (Million yen) Change (YoY) Total Assets 39,915 37,980-1,935 Cash and Cash Equivalents 7,093 5,713-1,380 Investment (Real Estate) 6,419 8,151 1,732 Investment (Domestic companies) 984 600-384 Investment (Overseas companies) 7,198 4,598-2,600 Real Estate Held for Sale 11,177 3,785-7,392 Fixed Assets 3,178 10,109 6,931 Intangible Assets 2,009 2,105 96 Other 1,857 2,919 1,062 Reclassified assets worth JPY 7 billion from Real Estate Held for Sale to Fixed Assets due to extension in holding period Liabilities 14,205 11,831-2,374 Interest-Bearing Debt 10,782 9351 9,351-1431 1,431 Other 3,423 2,480-943 Net Assets 25,709 26,149 440 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 19

P&L (Pro Forma) Breakdown (Million yen) Feb 11 Feb 12 Feb 12 Revenues 7,842 7,927 Cost of Revenues 4,102 4,101 Gross Profit 3,740 3,826 SG&A 2,603 2,871 Operating Profit 1,137137 954 Non-Operating Gain (Loss), net 265-70 Recurring Profit 1,402 884 Extraordinary Gain (Loss), net 1,273 997 Pre-tax Profit 2,675 1,881 Tax 42 159 Minority Interests 2,013-48 Net Profit 620 1,770 Revenues 7,927 Real Estate Management Fees 2,276 Advisory Fees 10 Rental Income 1,764 Real Estate Sales / Dividends 1,691 Securities Sales / Dividends 614 Building Maintenance Fees 1,500 Other 72 Gross Profit 3,826 Real Estate Management Fees 2,113 Advisory Fees -8 Rental Income 967 Real Estate Sales / Dividends 806 Securities Sales / Dividends 426 Building Maintenance Fees 352 Other -832 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 20

Balance Sheet (Consolidated) (Million yen) Feb 11 Feb 12 YoY change Total Assets 98,653 82,170-16,483 Cash and Cash Equivalents 12,343 9,791-2,552 Operating Investments in Securities 8,035 4,226-3,809 Real Estate Held for Sale 68,823 49,674-19,149 Fixed Assets 3,178 10,109 6,931 Intangible Assets 2,009 2,105 96 Investments in Securities 5,682 3,589-2,093 Other -1,417 2,676 4,093 Liabilities 70,881 53,982-16,899 Interest-Bearing Debts (excl. Non-Recourse Loans) 10,782 9,351-1,431 Non-Recourse Loans 51,913 37,694-14,219 Other 8,186 6,937-1,249 Reclassified assets worth JPY 7 billion from Real Estate Held for Sale to Fixed Assets due to extension in holding period Net Assets 27,771771 28,187 416 Shareholders Equity 25,514 25,972 458 Minority Interests and Other 2,257 2,215-42 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 22

Breakdown of Assets (Consolidated) Amount Feb 11 Outside Investors' Interests The Company's Interests Amount Feb 12 Outside Investors' Interests The Company's Interests YoY Change in the Company's Interests (Million yen) Cash and Cash Equivalents 12,343 - - 9,791 - - - Operating Investments in Securities 8,035 0 8,035 4,226 0 4,226-3,809 Domestic Real Estate 2,684 0 2,684 2,254 0 2,254-430 Listed Domestic Companies 0 0 0 0 0 0 0 Unlisted Domestic Companies 2,701 0 2,701 42 0 42-2,659 Listed Overseas Companies 1,448 0 1,448 1,019 0 1,019-429 Unlisted Overseas Companies 1,201 0 1,201 911 0 911-290 Reference: Allow ance for Bad Debts for Operating Investments in Securities Operating Investments in Securities less Allowance for Bad Debts for Operating Investments in Securities -3,358 - -3,358-288 - -288 3,070 4,677-4,677 3,938-3,938-739 Real Estate Held for Sale 68,823 53,948 14,875 49,674 40,066 9,608-5,267 Investments in Securities 5,682 0 5,682 3,589 0 3,589-2,093 Domestic Companies 523 0 523 529 0 529 6 Overseas Companies 4,842 0 4,842 2,955 0 2,955-1,887 Others 317 0 317 105 0 105-212 Reference: Allow ance for Bad Debts for Investments in Securities Investments in Securities less Allowance for Bad Debts for Investments in Securities Fixed Assets -115 - -115-75 - -75 40 5,567-5,567 3,515-3,515-2,052 3,178 - - 10,109 - - - Intangible Assets 2,009 - - 2,105 - - - Reclassified assets worth JPY 7 billion from Real Estate Held for Sale to Fixed Assets due to extension in holding period Other Assets 2,056 - - 3,038 - - - Total Assets 98,653-25,119 82,170-17,061-8,058 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 23

P&L (Consolidated) Feb 11 Feb 12 Full-Year Forecast vs. Forecast Breakdown (Million yen) Feb 12 Revenues 12,760 18,952 16,300 +16% Cost of Revenues 8,805 15,030 - - Gross Profit 3,954 3,921 - - SG&A 2,603 2,871 - - Operating Profit 1,351 1,050 1,000 +5% Non-Operating Gain (Loss), net 265-70 - - Recurring Profit 1,616 979 700 +39% Extraordinary Gain (Loss), net 1,273 997 - - Pre-tax Profit 2,889 1,976 - - Tax 41 159 - - Minority Interests 2,227 47 - - Net Profit 620 1,770 1,300 +36% Revenues 18,952 Real Estate Management Fees 1,989 Advisory Fees 10 Rental Income 5,558 Real Estate Sales / Dividends 9,305 Securities Sales / Dividends 615 Building Maintenance Fees 1,454 Other 21 Gross Profit 3,921 Real Estate Management Fees 1827 1,827 Advisory Fees 10 Rental Income 1,872 Real Estate Sales / Dividends 517 Securities Sales / Dividends 426 Building Maintenance Fees 306 Other -1,037 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 24

Assets Under Management (AUM) Private equity RE funds Slight increase YoY due to new AM mandates J-REIT Slight decrease YoY due to mark-to-market revaluation (As of February 2012) 600 (billion yen) Development 2% Development 500 Operating REIT 400 530.1 62.0 496.0 426.5 385.3 379.6 REIT 28% Operating 70% 300 330.6 56.0 257.0 335.0 335.9 113.8 106.1 200 100 0 78.8 32.7 46.1 166.4 66.4 100.0 123.4 151.2 211.1 161.0 320.7 105.9 312.1 263.2 265.2 23.8 8.3 8.3 Breakdown of Equity Investors IGH 26% Domestic Financial Institution 3% Domestic Operating Company 7% Domestic Insurance Company 1% Overseas Pension Fund 29% Overseas Fund 26% Overseas Financial i Institution 7% 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 26

Real Estate Portfolio Mainly office, although significant track record across a wide variety of asset types Strong in mid-sized assets in Tokyo, which are highly liquid and have stable cashflows AUM by Type Residential 15% Mixed 13% Retail 7% Development 2% Land with Ground Leases 1% Other 4% Office 58% # of Properties by Type (Unit: # of buildings) Land with Ground Leases 56 Residential 44 Other 11 Mixed 19 Retail 15 Office 80 Development 1 AUM by Location Other Kanto 5% 4% Sendai 2% Nagoya 5% Fukuoka 5% Osaka 16% Tokyo 63% (As of February 2012) (Unit: # of buildings) AUM by Size # of Properties by Size (Unit: # of buildings) Tokyo 103 Sendai 3 10 bn yen~ 21% 5~10 bn yen 39% 0~1 bn yen 11% 1~5 bn yen 29% 5~10 bn yen 59 10 bn yen~ 12 1~5 bn yen 39 0~1 bn yen 116 Fukuoka 10 Osaka 18 Nagoya 7 Kanto 15 Others 14 Land with Ground Leases & Others 56 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 27

Real Estate Cap Rates Conservative assessment of cap rates, generally more conservative than market Continually mark assets to market Unrealized gains in both client and IGH assets Location Real Estate Investments held by Funds (SPCs) Acquisition Value Book Value NOI Cap rate (at Acquisition) Cap Rate (current) Appraisal Value (af ter write-down) (current) NOI / Acquisition Value NOI / Book Value af ter write-down as of February 2012 (As of February 2012) (Million yen, except for percentage data) Unrealized Gain Tokyo 154,258 137,995 6,910 5.3% 6.0% 138,293 +298 Outside Tokyo 76,743 57,877 3,813 5.7% 7.3% 65,887 +8,010 Total 231,001 195,873 10,723 5.5% 6.6% 204,180 +8,308 Real Estate Investments directly held by IGH Location Acquisition Value (Million yen, except for percentage data) Book Value NOI Cap rate (at Acquisition) Cap Rate (current) Appraisal Value Unrealized Gain (af ter write-down) (current) NOI / Acquisition Value NOI / Book Value af ter write-down as of February 2012 Tokyo 5,553 4,671 352 6.8% 7.4% 5,731 +1,060 Outside Tokyo 7,438 5,423 587 6.3% 9.7% 6,607 +1,184 Total 12,991 10,094 940 6.5% 8.7% 12,338 +2,244 *Excludes one development asset (c. 700M) which is not currently generating NOI 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. 28

These materials were prepared to explain the Company s businesses and are not for the purpose of soliciting investment in marketable securities issued by the Company. The Company 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 the Company 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 the Company may differ substantially from those indicated by forward-looking statements. The information enclosed is also subject to revision without prior notice. Contact: Ichigo Group Holdings Co., Ltd. Investor Relations Ichigo Group Holdings is Japan s first zero carbon listed real estate company. We are taking responsibility for the carbon emissions we create, such as via this presentation material, by taking measures to create offsets to our carbon emissions and working with organizations to invest in low-carbon technologies. 2012 Ichigo Group Holdings Co., Ltd. All rights reserved. TEL: +81-3-3502-4818 FAX:+81-3-3502-4801 E-mail: IR@ichigo-holdings.co.jp www.ichigo-holdings.co.jp/english 31