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

CRE, Inc.	Code: 3458

Consolidated Results for

First Two Quarters of Fiscal Year ending July 31, 2022

(August 1, 2021 to January 31, 2022)

March 14, 2022

P h o t o : LogiSquare Miyoshi II,

Contents

Fiscal 2022 First Two Quarters: Highlights	P.2
Fiscal 2022 First Two Quarters: Key Indicators	P.4
Consolidated Summary of Fiscal 2022 First Two Quarters	P.5
Status of Business Profit and Segment Income Compared	P.6
with Targets Set at Beginning of Year
Stock Business	P.7
Flow Business	P.12
Ripple Effect from Second Public Offering	P.16
New Domains	P.17
Measures to Support Sustainable Society	P.18
Revised Full-Year Targets for Fiscal 2022	P.19
Appendix	P.20

Copyright (C) 2022 CRE, Inc. All rights reserved.

1

Fiscal 2022 First Two Quarters ｜ Highlights

Performance Highlights: First Two Quarters

Net sales	¥37,194 million	(YOY +7.0％/Rate of progress*2	60.4％)
Business profit*1	¥6,836 million	(YOY +11.8％/Rate of progress*2	76.0％)

*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 of First Two Quarters

• Achieved record-high net sales and business profit on front-half basis.
• Achieved higher sales in all segments, reflecting favorable business environment.
• Logistics investment business: Agreement with Sankyu Inc., a logistics company, to promote joint development projects at Osaka Yumeshima
• Logistics investment business: Sale of LogiSquare Miyoshi II for core bridge fund (third quarter, March 1)
• Asset management business: Began formation of flagship fund (open-end core fund), to follow on from REIT

Copyright (C) 2022 CRE, Inc. All rights reserved.

2

Fiscal 2022 First Two Quarters ｜ Highlights

Performance Highlights: Full-Year Outlook

• Considering that currently favorable business results should continue going forward, management made another upward revision to the full-year performance forecast.
• Return-on-equity(ROE) and earnings per share (EPS) should rise even after the capital increase

	Disclosed at start of fiscal year	Previously revised	Newly revised
Operating profit	¥8,600 million* 1	→	¥8,800 million* 2	→	¥9,300 million	(+¥500 million +5.7% ）
E B I T D A	―		―		¥10,000 million
Business profit*3	¥9,000 million* 1	→	¥9,700 million* 2	→	¥10,400 million	(+¥700 million +7.2% ）
Net income	¥5,000 million* 1	→	¥5,600 million* 2	→	¥5,600 million
R O E	17.1％* 1	→	17.7％* 2	→	17.7%
E P S	¥182.05* 1	→	¥ 191.12* 2	→	¥190.82	(-¥0.3-0.2%)

*1:	Performance forecast at start of fiscal year, announced on September 9, 2021 *2: Revised performance forecast for full-year, announced on December 13, 2021
*3:	Business profit = Operating profit + Equity in earnings of affiliates + Goodwill amortization (consolidated subsidiaries/equity method affiliates)+ Profit (loss) from business investments

Copyright (C) 2022 CRE, Inc. All rights reserved.

3

Fiscal 2022 First Two Quarters ｜ Key Indicators

Stock Business

Real Estate Management Business		Asset Management Business
Master lease operating rate		Changes in Assets under Management (AUM)
99.2 %		¥225.1 billion
（YOY ＋1.0％）		（YOY +25.1 billion/ targets on fiscal 2026, ending July 31, 2026, ¥450 billion）

Flow Business		Finances

Logistics investment business

Pipeline noted in Second Medium-Term Management Plan

(includes sold and undisclosed amounts)

More than ¥200 billion

Of which, pipeline already disclosed

*From next fiscal year, sale of properties is estimated to be around 10% of gross profit

About ¥150 billion

* See page 13 for details

Net debt/equity ratio

(Upper limit at end of year: 2.5 times)

0.42 times

Interest-bearing debt

¥41.1 billion

Copyright (C) 2022 CRE, Inc. All rights reserved.

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