CRE : Presentation Materials for the First Quarter of the Fiscal Year ending July 31, 2022

(Translated from the Japanese original)

CRE, Inc.	Code: 3458

Consolidated Results for First Quarter of Fiscal Year ending July 31, 2022 (August 1, 2021 to July 31, 2022)

December 13, 2021

P h o t o ： L o g i S q u a r e O s a k a K a t a n o

Contents

Fiscal 2022 First Quarter Highlights	P.2
Consolidated Summary of Fiscal 2022 First Quarter	P.3
Status of Business Profit and Segment Income Compared with Targets set at Beginning	of Year	P.4
Stock Business	P.5
Flow Business	P.7
Capital Increase	P.10
New Business	P.11
Measures to Support Sustainable Society	P.12
Revised Full-Year Targets for Fiscal 2022	P.13
Appendix	P.14

Copyright (C) 2021 CRE, Inc. All rights reserved.

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Fiscal 2022 First Quarter Highlights

Performance Highlights

• Taking favorable quarterly performance into consideration, full-year performance forecast upwardly revised
• Firmly maintaining ROE initially projected at beginning of term even after capital increase

Operating profit	¥8,600 million	→	¥8,800 million	(+¥200 million +2.3%)
Business profit	¥9,000 million	→	¥9,700 million	(+¥700 million	+7.8%)
Net income	¥5,000 million	→	¥5,600 million	(+¥600 million	+12.0% )
Net sales	¥30,743 million	(YOY +276.5％/Rate of progress*2	49.9％)
Business profit*1	¥6,447 million	(YOY +631.6％/Rate of progress 71.6％)

*1: Business profit = Operating profit + Equity in earnings of affiliates + Goodwill amortization (consolidated subsidiaries/equity method affiliates)+ Profit (loss) from business investments

*2: Progress ratio compared to the initial targets at the beginning of term

Business Highlights

• Achieved record-high net sales and income on a quarterly basis.
• Achieved higher sales in all segments, reflecting favorable business environment.
• To accelerate growth, procured about ¥4 billion through public offering and third-party allocation of shares.
• Logistics investment business: Sold LogiSquare Osaka Katano to CRE Logistics REIT.
• Asset management business: CRE Logistics REIT executed fifth public offering, with assets under management hitting ¥130 billion.

Copyright (C) 2021 CRE, Inc. All rights reserved.

2

(Millions of yen)

Consolidated Summary of Fiscal 2022 First Quarter

• Higher year-on-year sales for all segments. In addition, extraordinary income of ¥565 million, paralleling development, pushed sales to all-time high on quarterly basis.
• SG&A expenses up due to business expansion as well as change in provision for bonuses at fiscal year-end to

in-term allocation matched to business progress, effective from the first quarter of fiscal 2022.

	Fiscal 2021	Fiscal 2022	Fiscal 2022
	First Quarter	First Quarter
	Initial Plan
	Actual	Actual
Net sales	8,165	30,743	61,600
Gross profit	1,646	7,121	－
Selling, general			－
and administrative	949	1,333
expenses
Amortization of	59	64	－
goodwill
Operating profit	696	5,787	8,600
Business profit*1	881	6,447	9,000
Recurring profit	684	5,551	7,600
Net income	589	4,151	5,000
Earnings per share	¥21.57	¥150.38	¥182.05
(Yen)

	Fiscal 2021	Fiscal 2022	Fiscal 2022
	First Quarter	First Quarter
	Initial Plan
	Actual	Actual
Net sales	8,165	30,743	61,600
Real estate	7,147	7,944	28,850
management business
Logistics investment	768	22,439	31,650
business
Asset management	247	357	1,100
business
Other operations	1	2	―
Segment income	696	5,787	8,600
Real estate	708	949	1,940
management business
Logistics investment	130	4,997	7,650
business
Asset management	141	261	610
business
Other operations	０	0	―
Adjustment	(283)	(421)	(1,600)

Note: Sales for each reporting segment represent sales to external customers.

*1: Business profit = Operating profit + Equity in earnings of affiliates + Goodwill amortization (consolidated subsidiaries/equity method affiliates)+ Profit (loss) from business investments

Copyright (C) 2021 CRE, Inc. All rights reserved.

3

Status of Business Profit and Segment Income Compared with Targets Set at Beginning of Year

• Amid favorable business environment, business continues to progress in positive direction, leading to business profit of ¥6.4 billion and rate of progress toward target at 72%.

Consolidated

Results as of 1st quarter		Remainder

First quarter results

¥6,447 million

Business profit*

7 2 %

2 8 %

Full year target

¥9,000 million

0%

25%

50%

75%

100%

*1: Business profit = Operating profit + Equity in earnings of affiliates + Goodwill amortization (consolidated subsidiaries/equity method affiliates)+ Profit (loss) from business investments

*2: Progress ratio compared to the initial targets at the beginning of the fiscal year

Segment income

Real estate management business

Logistics investment business

Asset management business

0%

¥949 million

4 9 %	5 1 %
¥1,940 million
		¥4,997 million＋	Extraordinary
6 5 %	3 5 %	income
	¥565 million

¥7,650 million

¥261 million

4 3 %		5 7 %
		¥610 million
25%	50%	75%	100%

Copyright (C) 2021 CRE, Inc. All rights reserved.

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