FY20/2 Q3 Corporate Presentation

January 10,11, 20202019

Ichigo (2337)

© Ichigo Inc. All rights reserved.

www.ichigo.gr.jp/en

Make The World

More Sustainable

© Ichigo Inc. All rights reserved.

© Ichigo Inc. All rights reserved.

© Ichigo Inc. All rights reserved.

Contents

FY20/2 Q3 Earnings

  • FY20/2 Q3 Summary
  • Operating Profit +22%, Net Income +24%, EPS +26% (YOY)
  • Segment Earnings Details

Powerful Value-Add Business Model Underpins Growth

  • Business Model (1) Stock + FlowEarnings
  • Business Model (2) Embedded Forward Earnings
  • Business Model (3) Value-Add Drives Durable Value Growth
  • Business Model (4) Robust Cash Generation
  • Strong Financial Base

Sustainable Growth as a Sustainable Infrastructure Company

  • SRE: Selective on Acquisitions & Sales
  • SRE: Q3 Asset Sales
  • SRE: Value-Add Case - Tradepia Odaiba
  • AM: Growth Support for TSE REITs & YieldCo
  • CE: Scaling Rapidly (In-Development Plants +66%)
  • CE: FY18/2 - FY20/2 New Plant Development
  • Sustainable Infrastructure Initiative: Hotel Business Expansion
  • Sustainable Infrastructure Initiative: Working Closely with Local Communities
  • Launch of Ichigo J.League Shareholder Program
  • Share Buyback

Appendices

Ichigo's Sustainability Commitment (ESG)

  • Ichigo Sustainability Policy
  • Ichigo ESG - Environmental
  • Ichigo ESG - Social
  • Ichigo ESG - Governance

Financial & Real Estate Data

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 2030: New Initiatives

  • Top Partner of J.League, Japan's Professional Soccer League
  • Hotel Operator Market Entry: Hakata Hotels
  • Ichigo Animation: Anime + Real Estate Synergies
  • Real-WorldAugmented Reality (AR) Game TSUBASA+

Power Up 2019Mid-Term Plan Achievement

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5

FY20/2 Q3 Earnings

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6

FY20/2 Q3 Summary

Durable Earnings Model

Robust Stock Earnings

Stock Earnings/Fixed Expenses

Depreciation

+4%

1,800

1,180

12,504

12,471

FY19/2 Q3

FY20/2 Q3

Asset Management (AM)

1,543

1,599

FY19/2 Q3 FY20/2 Q3

Sustainable

Real Estate (SRE)

395

983

9,265

9,208

FY19/2 Q3 FY20/2 Q3

(Gross Profit: JPY M)

Clean

Energy (CE)

784

816

1,695

1,662

FY19/2 Q3 FY20/2 Q3

SRE: Strong Flow Earnings

  • Q3 Asset Sales: JPY 58B
  • Gains on Sales: +39% YOY & 2.8X Unrealized Gains
  • GPM: 29%

Share Buyback

  • Amount: JPY 3B
  • No. of shares purchased: 7,081,200 shares (1.4% shares outstanding)
  • Average share price: JPY 424

Hotel AI System: PROPERA

  • AI-basedhotel revenue management system
  • Non-assetbusiness contributing to stock earnings growth
  • Started sales to third-party hotel operators

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7

Operating Profit +22%, Net Income +24%, EPS +26% (YOY)

Operating Profit

Recurring Profit

Net Income

EPS

FY19/2 Q3

FY20/2 Q3

Cumulative

Cumulative

(9M)

(9M)

20,553

25,032

18,264

22,665

12,183

15,141

JPY 24.59

JPY 31.09

(JPY million)

YOY Full-Year Forecast

+21.8% 26,500

+24.1% 22,800

+24.3% 15,000

+26.4% JPY 30.39

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8

Segment Earnings Details

  • Asset Management: Base AM Fees +2% YOY
  • Sustainable Real Estate: Rental Income -1% YOY (Pre-depreciation: +5%) Gains on Sales +39% YOY
  • Clean Energy: Power Generation Revenue -2% YOY (Pre-depreciation: flat)

(JPY million)

Operating Profit

Gross Profit

Earnings Drivers

Segment

FY19/2 Q3

FY20/2 Q3

FY19/2 Q3

FY20/2 Q3

YOY

Full-Year

(Parentheses show YOY change in

Cumulative

Cumulative

Cumulative

Cumulative

Forecast

Gross Profit)

(9M)

(9M)

(9M)

(9M)

Base AM Fees 1,530 (+54)

Asset Management (AM)

1,571

1,696

+7.9%

1,821

1,770

2,109

Acquisition/Disposition Fees 402 (+232)

Ichigo Office Cash Flow Performance Fees 106 (+48)

Ichigo Green Operator Fees 35 (-1)

Rental Income 9,208* (-56)

Sustainable Real Estate (SRE)

17,761

22,232

+25.2%

23,312

21,483

26,558

*Net of Depreciation 983 (+587)

Gains on Sales 16,977 (+4,758)

Gains on Overseas Sales 373 (+373)

Clean Energy (CE)

1,253

1,131

-9.7%

1,367

1,695

1,662

Power Generation Revenue 1,662* (-32)

*Net of Depreciation 817 (+33)

Adjustment (including offsets of

-32

-28

-

-

-

-

cross-segment transactions)

Total

20,553

25,032

+21.8%

26,500

24,950

30,330

© Ichigo Inc. All rights reserved.

9

Powerful Value-Add Business Model Underpins Growth

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Business Model (1) Stock + FlowEarnings

Stock Earnings (Primarily Rental Income, Base AM Fees, and Power Generation Revenues)

33.8

Flow Earnings (Primarily Gains on Value-Add Real Estate Sales )

32.1

Fixed Expenses (Fixed SG&A + Interest Expenses)

30.3

Gross Profit

27.9

27.0

(JPY billion)

15.3

18.0

17.9

20.8

14.1

13.0

9.0

12.9

4.6

16.9

8.2

15.8

6.0

2.6

13.8

14.0

12.5

11.8

0.9

8.3

7.1

6.0

8.2

5.6

5.8

6.5

6.4

5.0

5.1

4.1

4.2

FY13/2

FY14/2

FY15/2

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 Q3

FY20/2

(Forecast)

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11

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

(JPY billion)

50.9

36.8

45.4

28.1

12.3

19.6

FY14/2

FY15/2

FY16/2

FY17/2

FY18/2

FY19/2

Appraisal Value-Based Unrealized Gains

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12

Business Model (3) Value-Add Drives Durable Value Growth

Gains on Sales Consistently Exceed

2.8X

Appraisal Value-Based Unrealized Gains

2.5X

Appraisal Value-Based Unrealized Gains

Gains on Sales (Gross Profit)

4.4X

GPM = Gross Profit Margin

1.6X

2.2X

JPY 16.9B

JPY 15.0B

JPY 12.0B

JPY 10.5B

JPY 7.2B

JPY 6.4B

JPY 6.1B

JPY 5.9B

JPY 3.3B

JPY 2.7B

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 Q3

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13

Business Model (4) Robust Cash Generation

Economic Operating Cash FlowExceeds Net Income

Net Income

(JPY billion)

Economic Operating Cash Flow

1.7X

1.4X

1.3X

1.2X

25.5

21.5

17.1

14.9

16.7

15.4

12.9

14.0

FY16/2

FY17/2

FY18/2

FY19/2

Note: Economic Operating Cash Flow = Cash Flows from Operations excluding net change in Real Estate and Power Plants for Sale

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14

Strong Financial Base

Average Interest Rate and Loan Term

Weighted Average Loan Period

(Interest Rate)

Weighted Average Remaining Loan Maturity

Weighted Average Interest Rate

(Loan Term, Years)

2.5%

12

10.8 years

10.2 years

10.3 years

10.0 years

2.0%

1.96%

9.0 years

8.7 years

9

9.6 years

8.3 years

7.8 years

8.3 years

7.6 years

7.8 years

5.9 years

1.71%

1.5%

6

5.5 years

1.41%

1.24%

1.04%

0.97%

1.0%

3

0.90%

0.5%

0

FY14/2

FY15/2

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 Q3

Term Structure of Loans

Short-Term

14% (JPY 4.1B)

8% (JPY 4.9B)

10% (JPY 10.3B)

6% (JPY 6.1B)

5% (JPY 5.6B)

8% (JPY 11.3B)

10% (JPY 16.8B)

Long-Term

92%

92%

90%

94%

95%

90%

86%

(JPY 26.1B)

(JPY 53.4B)

(JPY 94.4B)

(JPY 92.2B)

(JPY 112.8B)

(JPY 132.1B)

(JPY 154.9B)

FY14/2

FY15/2

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 Q3

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15

Sustainable Growth as a Sustainable Infrastructure Company

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16

Sustainable Real Estate

Selective on Acquisitions and Sales

  • Continuing Sellers' Market - FY20/2 Q3 Cumulative GPM: 29% (H1 GPM also 29%)
  • Ichigo Owners Continues High Level of Activity

Acquisitions: JPY 19.81B (36% of total); Sales: JPY 7.35B (13% of total)

FY20/2 Q3 Cumulative Net Sales: JPY 3.5B (Market-Value Basis)

(JPY million)

Acquisitions

Sales

Difference

No. of Assets

Book Value (A)

No. of Assets

Sale Price (B)

(A) - (B)

Office

3

6,134

5

7,211

-1,077

Hotel

2

12,446

8

18,010

-5,564

Retail

2

8,550

2

7,182

+1,368

Residential

28

22,623

26

25,089

-2,466

Logistics

1

2,374

－

－

+2,374

Ground Lease

2

255

1

159

+96

Other

10

1,950

1

231

+1,719

Total

48

54,333

43

57,882

-3,549

Note: Book value of asset sales is JPY 40,954 million

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17

Sustainable Real Estate

Q3 Asset Sales

High Demand for Central Tokyo Residential Assets on Expected NOI Growth Ichigo Owners Growth Further Strengthening SRE Business

Ichigo Estate

Private Fund Business Growth

Ichigo Investment Advisors won long-term AM mandate for these assets

Assets

9 Residential Assets

Revenue

JPY 16.2B

Buyer

Global Institutional

Investor

Area

Central Tokyo

Avg Holding Period

4.9 years

Gross Profit Margin

37%

Ichigo Owners

SRE Sales Channel Expansion

Capturing demand via detailed understanding of global institutional investor needs

Assets

9 Residential Assets

Revenue

JPY 6.9B

Buyer

Global Institutional

Investor

Area

Central Tokyo

Avg Holding Period

0.7 years

Gross Profit Margin

15%

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18

Sustainable Real Estate

Value-Add Case - Tradepia Odaiba

Ongoing Tenant Satisfaction Activities

  • Carried out 2nd tenant survey (c. 5,000 tenants) to identify tenant needs
  • Conducted advanced first-aid training for tenants
  • Joint training, seminars, and social events for employees of building maintenance (BM) companies

Ongoing Social Contribution Activities

  • Provided open space for World Cup Rugby viewing
  • Participating in environmental projects of Odaiba District Association
    • Planted tulips for Flower Festival
    • Participating in neighborhood clean-ups

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19

Asset Management

Growth Support for TSE REITs & YieldCo

Office

Hotel

Green Infrastructure

Ichigo Office (8975)

IPO

October 12, 2005

Portfolio

85 Assets JPY 203.2B

Dividend Yield (as of 2020/1/6)

3.8%

  • Entered FTSE Global REIT Index, a key benchmark for global investors

・Driving organic NOI growth via offering of tailored services and office spaces, drawing upon Ichigo's value-add capabilities

e.g., Ichigo Nogizaka Building: Forecast ROI 26.5%

Ichigo Hotel (3463)

IPO

November 30, 2015

Portfolio

22 Hotels JPY 50.8B

Dividend Yield (as of 2020/1/6)

5.5%

  • Sold a hotel in Kyoto at 1.3x book value to diversify the portfolio and fund new growth acquisitions
  • Acquired Valie Hotel Hiroshima, a hotel with value-add upside and potential for future rebranding

Ichigo Green (9282)

IPO

December 1, 2016

Portfolio

15 Plants JPY 11.4B

Dividend Yield (as of 2020/1/6)

5.4%

  • Solar YieldCo focused on driving shareholder value via income stability and earnings growth and contributing to Japan's self-sufficiency in clean energy
  • Portfolio of robust assets that have suffered no injuries or damages from natural disasters

Ichigo Growth Support

Ichigo Growth Support

Ichigo Growth Support

Provided a high-quality Hakata office asset

Provided a hotel in prime location to drive

Operating all plants and providing ongoing

NOI growth and diversify portfolio

performance guarantee

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20

Clean Energy

Scaling Rapidly (In-Development Plants +66%)

2 New Plants Began Operation this month

- Ichigo Minakami Aramaki ECO Power Plant (12MW, FIT: JPY 36)

174MW

- Ichigo Takashima Kutsuki ECO Power Plant (3.7MW, FIT: JPY 32)

148.5MW

(+17%)

Power Generation Growth

126.1MW

(+18%)

Operating

(+18%)

68.9

In-Development

43.4

Ichigo

106.8 MW

21.0

(Wind 25.9)

(Wind 14.4)

Operating Plants: 105.1MW

83.6MW

(+28%)

(Wind 7.4)

In-Development Plants: 68.9MW (+66%)

1.7

Total: 174.0MW

72.3MW

(+16%)

(Ichigo Green (9282): 29.4MW )

(+155%)

105.1

28.4MW

FY17/2

FY18/2

FY19/2

FY20/2

FY21/2

FY22/2

FY23/2 ~

Avg FIT

JPY 37.3

JPY 36.4

JPY 35.3

JPY 34.3

JPY 32.4

JPY 30.6

JPY 30.8

Ichigo Investment

JPY 8.4B

JPY 21.1B

JPY 23.6B

JPY 30.0B

JPY 36.0B

JPY 42.0B

JPY 51.6B

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21

Clean Energy

FY18/2 - FY20/2 New Plant Development

Total 5 New Plants (23MW) Online in FY20/2 (2X MW Growth YOY) New Plants Will Drive FY21/2 Growth & Contribute to Stock Earnings

FIT

Panel

Total Panel

Operation

Solar Power Plant

Output

Output

(JPY)

Start Date

(MW)

(MW)

Ichigo Sera Aomizu

32

2.87

Aug 11, 2017

FY18/2

47.54

Ichigo Showamura Ogose

36

43.34

Sep 2, 2017

Ichigo Memuro Nishi-Shikari

40

1.32

Feb 5, 2018

Ichigo Kure Yasuuracho Nakahata

36

2.90

Mar 2, 2018

Ichigo Tsu

24

2.94

Mar 6, 2018

FY19/2

11.28

Ichigo Kasaoka Iwanoike

24

2.64

Mar 20, 2018

Ichigo Toki Tsurusatocho Kakino

24

1.31

Apr 12, 2018

Ichigo Itoshima Iwara

36

1.48

Jan 7, 2019

Ichigo Sakahogi Fukagaya

21

2.89

May 17, 2019

Ichigo Sennan Kitsuneike

21

2.86

Jul 4, 2019

FY20/2

23.21

Ichigo Minakami Aramaki

36

12.02

Jan 2, 2020

Ichigo Takashima Kutsuki

32

3.74

Jan 2, 2020

Ichigo Toki Tsurusatocho Kakino Higashi

21

1.67

Feb 2020*

* Forecast

Note: Operation start date of Ichigo Hitachi Omiya ECO Power Plant has been pushed back one month from February 2020 to March 2020.

© Ichigo Inc. All rights reserved.

22

Sustainable Infrastructure Initiative - Real Estate x Tourism x IT

Hotel Business Expansion

Scaling Hotel Business Drawing upon Ichigo's Hotel Management Capabilities

  • Stock earnings growth via non-asset business
  • Synergies between Ichigo-owned and managed hotels

Asset + Non-Asset Business

Non-Asset Business

39 Hotel Platform

17 Ichigo Hotels

22 Ichigo Hotel (3463) Hotels

Hotel Operator

・Ichigo's first hotel operator

・Speeds up decision-making & reduces costs

・Operates 6 hotels, 700 guest rooms ・Advantages asset acquisitions due to

reduced operating costs

AI Revenue Management System

Driving Non-Asset

Stock Earnings

Responding

Nursing Care

to Diverse Child Care

Needs

Senior Business

Education

Medical Care

Tourism

・Increase customer satisfaction &

Entertainment

Agriculture

maximize revenue

・Generating 10 to 40% revenue

increases p.a. in deployment

Sports

Public Works

・No initial cost & no new system

THE KNOT

THE KNOT

deployment required

Culture

Other

→ Started sales to third-party hotel

Energy

TOKYO Shinjuku

YOKOHAMA

operators

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23

Sustainable Infrastructure Initiative - Real Estate x Agriculture x Tourism x Entertainment x Culture x Energy x Public Works

Working Closely with Local Communities

Selected as Operator of Yokosuka Port Market

  • Deploying Ichigo's value-add real estate capabilities to renovate a 30-year old building with partner companies
  • Public-privatepartnership to invigorate the community
  • Working closely with local community to create new employment
  • Renewal opening in Spring 2021

Agricultural Theme Park

  • Signed agreement in public-private partnership with Inagi (Tokyo), OSMIC, & NEC
  • Total area of 51 hectares
  • Hands-onfarming experience for guests

Nursing Care

Responding

to Diverse Child Care

Needs

Senior Business

Medical Care

Entertainment

Sports

Culture

Energy

Education

Tourism

Agriculture

Public Works

Other

© Ichigo Inc. All rights reserved.

24

Launch of Ichigo J.League Shareholder Program

Represents Two Firsts for a Shareholder Program in Japan

  • Ichigo is the first Japanese company to include not just its own shareholders, but also the shareholders of the REITs and YieldCo that it manages, in its shareholder program
  • Ichigo is the first company to offer shareholders free tickets to everyJ.League game at everyJ.League club (55 clubs in total)

Ichigo is deepening its partnership with the J.League and working to further Ichigo's mission of promoting local community developments.

Ichigo J.League Shareholder

Program Website Landing Page

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25

Share Buyback

Purpose: Grow Value for Ichigo's Shareholders

FY20/2 (Current Fiscal Year)

Number of Shares

7,081,200 (1.4% shares outstanding)

Average Share Price

JPY 424

Amount

JPY 3B

Reference

FY19/2

Number of Shares

7,869,700 (1.6% shares outstanding)

Average Share Price

JPY 381

Amount

JPY 3B

FY18/2

Number of Shares

8,436,500 (1.7% shares outstanding)

Average Share Price

JPY 355

Amount

JPY 3B

© Ichigo Inc. All rights reserved.

26

Appendix: Ichigo's Sustainability Commitment (ESG)

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27

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 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.

© Ichigo Inc. All rights reserved.

28

Ichigo ESG - Environmental

Sustainable Real Estate

Solar and Wind Energy: Safe and Clean

Preserve & EnhanceExisting 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

Lowest

Annual Power Generation

Annual CO2 Reduction

140,167,036 kWh

92,510,242 kg

Equivalent to annual

Equivalent to annual

CO2 emission of

energy consumption of

40,200 cars

46,700 households

Demolish

Impact

The Federation of Electric Power

Ministry of Environment

Companies of Japan

Annual CO2 emission per car c. 2,300kg

Highest

Efficiency

Annual energy consumption per household

(FY19/2 Actuals - Includes Ichigo Green)

3,000kWh

Environmental Certifications

No injuries or damages at any Ichigo asset or power plant from recent 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-typhoonpreventative 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

Environmental Certifications

Ichigo Office (8975)

Ichigo Kakyoin

Ichigo Hakata

Ichigo Hakata Meiji

Green Star (Highest Ranking)

Building

Ekimae Square

Dori Building

3 years in a row

CASBEE

CASBEE

CASBEE

Other Certifications:

Rank

Rank

Rank

CASBEE, BELS, DBJ Green

S

A

A

Building Certification

© Ichigo Inc. All rights reserved.

29

Ichigo ESG - Social

Sports & Arts

Support Outstanding,

World-Class Athletes

‒ Weightlifting

‒ Riflery

‒ Track & Field

Paralym Art Sponsor

‒ Support artists with

Weightlifting Athlete

disabilities

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

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

©J.LEAGUE

© Ichigo Inc. All rights reserved.

30

Ichigo ESG - Governance

Early Adopter of Independent Three Committee (Nominating,

Audit, & Compensation) Corporate Governance Structure

  • Adopted in 2006 to incorporate global best practice
  • Exceeded legal requirements 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)

Majority Independent Director Board Underpins Strong Governance

  • Of 9 members of Ichigo's Board of Directors, 5 are Independent Directors
  • Includes former CEOs of TSE First Section companies FY17/2
  • Takashi Kawamura (former CEO of Hitachi; stepped down from Ichigo's board in May 2017 upon appointment as Chairman of TEPCO)
  • Masatoshi Matsuzaki (former CEO of Konica Minolta)
  • Kosuke Nishimoto (former CEO of Meitec) FY18/2 onward
  • Masatoshi Matsuzaki (former CEO of Konica Minolta)

Nobuhide Nakaido (former CEO of SCSK)

  • Kosuke Nishimoto (former CEO of Meitec; stepped down from Ichigo's board in May 2019 upon appointment as EVP of Misumi Group)

© Ichigo Inc. All rights reserved.

31

Appendix: Financial & Real Estate Data

© Ichigo Inc. All rights reserved.

32

Significant Unrealized Gains on Balance Sheet

JPY 47.8B (Appraisal Value Basis), -3.69% vs. FY19/2-end

Real Estate Directly Held by Ichigo

(JPY million)

Book Value as of

Appraisal NOI

Cap Rate

Appraisal Value

Unrealized

Location

November 30, 2019

Gains

(B)

(B)/(A)

(C)

(A)

(C) - (A)

Tokyo

95,242

5,056

5.3%

121,706

+26,463

Outside Tokyo

105,804

6,630

6.3%

127,193

+21,389

Total

201,046

11,686

5.8%

248,899

+47,853

Note: Excludes Ichigo Owners, Centro, and self-storage assets (book value JPY 40.8B)

© Ichigo Inc. All rights reserved.

33

Net Consolidated Risk-Based Balance Sheet

Mark-to-Market Consolidated Balance Sheet: JPY 390.8B (Book Value JPY 340B + Unrealized Gains JPY 50.8B)

Cash & Cash Equivalents

JPY 34.0B

Non-Recourse Loans &

Related Assets

JPY 59.8B

Non-Recourse Loans &

Related Liabilities

JPY 44.8BNet Consolidated Risk-Based Balance Sheet:

JPY 311.9B

(Book Value JPY 261B + Unrealized Gains JPY 50.8B)

Operational Loan Investments

JPY 1.3B

Operational Securities Investments

JPY 8.7B

Real Estate for Sale

JPY 137.4B

Fixed Assets

JPY 84.3B

Securities Investments

JPY 4.8B

Other JPY 9.2B

Unrealized Gains

JPY 50.8B

Non-RecourseLoan-Related ICH Equity

Debt

JPY 14.9B

Operational Loan Investments

Corporate Loans & Bonds

JPY 1.3B

JPY

Operational Securities Investments

JPY 171.8B

JPY 8.7B

232.5B

Real Estate for Sale

JPY 137.4B

Security Deposits Received

JPY 5.4B

Other JPY 10.3B

Shareholder

Mark-to-

Fixed Assets

Equity

Market

JPY 84.3B

JPY 107.5B

Shareholder

Equity Ratio

JPY 4.8B

Securities Investments

36.5%

Other JPY 9.2B

Post-Tax Unrealized

Unrealized Gains

Gains JPY 35.2B

JPY 50.8B

Tax JPY 15.5B*

*30.62% effective tax rate

Corporate Loans & Bonds

JPY 137.7B

Security Deposits Received

JPY 5.4B

Other JPY 10.3B

Shareholder

Equity

JPY 107.5B

Post-Tax Unrealized

Gains JPY 35.2B

Tax JPY 15.5B*

Debt

JPY

153.5B

Net Risk-Based

Shareholder

Equity Ratio

45.8%

Note: Net Risk-Based Balance Sheet excludes client and non-recourse assets and liabilities and nets out Cash & Cash Equivalents.

© Ichigo Inc. All rights reserved.

34

Business Segments

Asset Management

Sustainable

Real Estate

Clean Energy

Asset Management(AM) 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.

Sustainable Real Estate(SRE) preserves and improves real estate. Ichigo receives rental income during the period in which it carries out its value-add, along with earning gains on sales that reflect the real estate's higher value after the value-add is complete.

Clean Energy(CE) is utility-scale solar and wind power production that produces clean energy and brings productive use to idle land.

Note: The Sustainable Real Estate segment was formerly called Value-Add. In keeping with its recently announced Ichigo 2030vision, Ichigo is changing the segment name to Sustainable Real Estate from FY20/2 in order to put full focus on Ichigo's commitment to preserving and improving real estate as a sustainable infrastructure company.

© Ichigo Inc. All rights reserved.

35

Consolidated Balance Sheet: Segment Breakdown

(JPY million)

Segment

Cash and

Operational

Operational

Real Estate

Power

Fixed

Intangible

Securities

Other

Cash

Loan

Securities

Plants for

Total Assets

for Sale

Assets

Assets

Investments

Assets

Equivalents

Investments

Investments

Sale

Asset Management (AM)

-

-

-

-

-

-

789

162

1,163

2,114

Sustainable Real Estate (SRE)

16,089

1,324

8,743

172,001

-

75,370

1,280

2,921

4,413

282,146

Clean Energy (CE)

3,198

-

-

-

-

26,893

207

-

1,054

31,353

Company-Wide Assets

21,165

-

-

-

-

65

242

1,791

1,164

24,430

Total

40,453

1,324

8,743

172,001

-

102,330

2,519

4,875

7,796

340,045

© Ichigo Inc. All rights reserved.

36

Consolidated P&L: Segment Breakdown

(JPY million)

Gross Profit

Operating Profit

Segment

FY20/2

FY19/2 Q3

FY20/2 Q3

YOY Change

FY19/2 Q3

FY20/2 Q3

YOY Change

Full-Year

Forecast

Asset Management (AM)

1,770

2,109

+19.2%

1,571

1,696

+7.9%

1,821

Stock Earnings (Base AM Fees)

1,543

1,599

+3.6%

-

-

-

-

Flow Earnings (Acquisition/Disposition Fees)

227

509

+123.7%

-

-

-

-

Sustainable Real Estate (SRE)

21,483

26,558

+23.6%

17,761

22,232

+25.2%

23,312

Rental Income

9,265

9,208

-0.6%

-

-

-

-

Asset Sales

12,218

16,985

+39.0%

-

-

-

-

Other Flow Earnings

-

364

-

-

-

-

-

Clean Energy (CE)

1,695

1,662

-1.9%

1,253

1,131

-9.7%

1,367

Adjustment (including offsets of cross-

-

-

-

-33

-28

-

-

segment transactions)

Total

24,950

30,330

+21.6%

20,553

25,032

+21.8%

26,500

© Ichigo Inc. All rights reserved.

37

Asset Management AUM Detail

FY15/2

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 Q3

(12M)

(12M)

(12M)

(12M)

(12M)

(9M)

Ichigo Office

AUM (Fiscal Year End)

JPY 123.8B

JPY 165.1B

JPY 194.5B

JPY 196.9B

JPY 203.0B

JPY 203.2B

(8975)

Base AM Fee Gross Profit (Actual)

JPY 759M

JPY 1,016M

JPY 1,291M

JPY 1,373M

JPY 1,426M

JPY 1,072M

Ichigo Hotel

AUM (Fiscal Year End)

-

JPY 20.4B

JPY 47.6B

JPY 50.9B

JPY 50.7B

JPY 50.8B

(3463)

Base AM Fee Gross Profit (Actual)

-

JPY 30M

JPY 287M

JPY 450M

JPY 547M

JPY 349M

Ichigo Green

AUM (Fiscal Year End)

-

-

JPY 10.0B

JPY 11.4B

JPY 11.4B

JPY 11.4B

(9282)

Base AM Fee Gross Profit (Actual)

-

-

JPY 11M

JPY 77M

JPY 85M

JPY 68M

Private Equity

AUM (Fiscal Year End)

JPY 21.5B

JPY 15.4B

JPY 6.4B

JPY 12.3B

JPY 20.6B

JPY 36.8B

Real Estate Funds

(excluding

Base AM Fee Gross Profit (Actual)

JPY 114M

JPY 60M

JPY 27M

JPY 12M

JPY 41M

JPY 75M

consolidated funds)

Total

AUM (Fiscal Year End)

JPY 145.3B

JPY 200.9B

JPY 258.6B

JPY 271.7B

JPY 285.8B

JPY 302.4B

(excluding

JPY 872M

JPY 1,106M

JPY 1,617M

JPY 1,914M

JPY 2,014M

JPY 1,565M

consolidated funds)

Base AM Fee Gross Profit (Actual)

Ichigo Green Base AM Fee Gross Profit (Actual) includes operator fees.

© Ichigo Inc. All rights reserved.

38

Powerful Sustainable Real Estate Business Model

Significant Synergies Between Ichigo's Sustainable Real Estate and Asset Management Businesses

Green

Infrastructure

Ichigo Green (9282)

Office

Ichigo Office

(8975)

Hotel

Ichigo Hotel

(3463)

Sustainable Real Estate Business Model

Solar Plants

Buy

Sell

Third-

Real

Value-Add

Estate

Party

Real

Investors

不動産

Estate

Preserve &

Sell

Improve

Buy

© Ichigo Inc. All rights reserved.

39

Effective
Re-Useof
Key Social
Infrastructure
Sustainable
Value-Add

Sustainable Real Estate Social Significance

Sustainable Real Estate Serving a Sustainable Society

End Demolish and Rebuildand Embrace Sustainable Value-Add

  • Preserve and enhance high-function real estate
  • Lengthen useful life and improve quality of existing assets via Sustainable Value-Add

Demolish

and

Rebuild

Preserve & Improve

  • Higher-QualityTenant Services
  • Higher Functionality (Security, A/C)
  • Upgrade Exteriors/Interior Spaces
  • Seismic Reinforcements

Highest

Efficiency

Lowest

Impact

© Ichigo Inc. All rights reserved.

40

Ichigo Sustainable Real Estate Earnings Model Example

5.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.5% Interest Rate, JPY 50M Capex, 15% Increase in NOI, 3-YearValue-Add Period

Value-Add Steps: Improved exterior, interior, & tenant services; seismic strengthening; increased energy efficiency; new tenant leasing; etc.

Debt

Asset JPY1.5B

JPY 2.0B

Equity

JPY 0.5B

Value-Add (Capex JPY 50M )

NOI at Acquisition

(JPY 110M NOI/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

JPY 550M investment generates JPY 512M over 3 years → 31.1% p.a.

© Ichigo Inc. All rights reserved.

41

Sustainable Real Estate: Gross Profit Margin (GPM)

Ichigo Value-Add Supports Ongoing High GPM

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 Q3

GPM

23.0%

13.6%

33.7%

25.5%

29.2%

(vs. Revenue)

GPM

29.9%

15.8%

50.9%

34.3%

41.3%

(Vs. Book value)

Revenue

31,674

77,502

35,733

58,693

57,882

(JPY M)

Gross Profit

7,283

10,562

12,050

14,986

16,928

(JPY M)

© Ichigo Inc. All rights reserved.

42

Ichigo-Owned Real Estate Portfolio

By Asset Type

Ground Lease

1%

Other

Logistics

3%

2%

Residence

14%Retail

31%

Hotel

23%

Office

26%

By Asset Size

>JPY 10B

12%

18%

JPY 5B-10B

23%

By Location

Hokkaido 2%

Sendai 3%

Osaka 3%

Other

Nagoya 3%

5%

Tokyo

Metro*

11%

Fukuoka 21%

*Ex-Tokyo

Tokyo 52%

Fukuoka

50.7

(JPY billion)

Hokkaido

3.5

Tokyo 122.5

Sendai

5.9

Nagoya

Other

7.3

Tokyo

12.8

Osaka

Metro

7.0

(ex-

Tokyo)

26.5

JPY 1B-5B

Total Ichigo-Owned Assets: JPY 236.0B

47%

Including Ichigo-Managed AUM: JPY 538.5B

* Acquisition price basis

Ichigo-Managed AUM includes JPY 11.4B Ichigo Green assets.

Total Ichigo-Owned Assets Book Value: JPY 244.7B

© Ichigo Inc. All rights reserved.

43

Sustainable Real Estate Asset Breakdown (1)

171 Assets, JPY 236B, Forecast NOI JPY 11.6B (5.8% Yield)

No.

Asset Type

Classification

Location

Acquisition Price

Acquisition

Building

Expected

Ichigo Equity

Forecast Equity

Forecast

Date

Age

NOI/Year1

Investment

Multiple2

IRR3

1

Wholesale Market

Fixed Asset

Matsudo, Chiba

JPY 2B-3B

2005/06

47 years

-

JPY 1,900M

-

-

3

Retail

Fixed Asset

Minato-ku, Tokyo

>JPY 3B

2006/03

34 years

JPY 165M

JPY 1,356M

-

-

4

Retail

Fixed Asset

Yokohama

JPY 1B-2B

2006/09

14 years

JPY 60M

JPY 1,157M

-

-

5

Office

Fixed Asset

Sendai

>JPY 3B

2006/10

11 years

JPY 240M

JPY 1,042M

-

-

6

Office

Fixed Asset

Fukuoka

>JPY 3B

2006/12

11 years

JPY 350M

JPY 1,339M

-

-

10

Retail

Fixed Asset

Chiyoda-ku, Tokyo

2007/06

40 years

JPY 85M

JPY 240M

-

-

11

Retail

Fixed Asset

Chiyoda-ku, Tokyo

2007/06

38 years

JPY 125M

JPY 233M

-

-

14

Ground Lease

Fixed Asset

Atsugi, Kanagawa

JPY 1B-2B

2011/06

-

JPY 172M

JPY 147M

-

-

15

Retail

Fixed Asset

Hiratsuka, Kanagawa

2012/02

24 years

JPY 77M

JPY 172M

-

-

17

Retail

Fixed Asset

Toshima-ku, Tokyo

>JPY 3B

2013/03

8 years

JPY 244M

JPY 340M

-

-

18

Retail

Fixed Asset

Shibuya-ku, Tokyo

2013/05

33 years

JPY 57M

JPY 154M

-

-

19

Retail

Fixed Asset

Chofu, Tokyo

JPY 1B-2B

2013/06

34 years

JPY 135M

JPY 310M

-

-

21

Residential

Fixed Asset

Minato-ku, Tokyo

2013/06

4 years

JPY 47M

JPY 203M

-

-

27

Retail

Fixed Asset

Tokorozawa, Saitama

JPY 1B-2B

2013/11

12 years

JPY 76M

JPY 92M

-

-

29

Ground Lease

Fixed Asset

Fujisawa, Kanagawa

JPY 1B-2B

2014/03

-

JPY 114M

JPY 273M

-

-

Note: 5.8% yield excludes Ichigo Owners, Centro, and self-storage assets.

  • Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.

  • 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.

© Ichigo Inc. All rights reserved.

44

Sustainable Real Estate Asset Breakdown (2)

No.

Asset Type

Classification

Location

Acquisition Price

Acquisition

Building

Expected

Ichigo Equity

Forecast Equity

Forecast

Date

Age

NOI/Year1

Investment

Multiple2

IRR3

32

Retail

Fixed Asset

Fukuoka

JPY 1B-2B

2014/04

13 years

JPY 58M

JPY 279M

-

-

37

Retail

Fixed Asset

Minato-ku, Tokyo

2014/07

47 years

JPY 47M

JPY 77M

-

-

39

Retail

Fixed Asset

Fukuoka

2014/07

15 years

JPY 52M

JPY 213M

-

-

63

Retail

Fixed Asset

Meguro-ku, Tokyo

JPY 1B-2B

2014/12

13 years

JPY 85M

JPY 129M

-

-

64

Retail

Fixed Asset

Shinagawa-ku, Tokyo

2015/01

-

JPY 26M

-

-

-

68

Retail

Fixed Asset

Shibuya-ku, Tokyo

2015/04

18 years

JPY 46M

JPY 79M

-

-

111

Hotel

Fixed Asset

Yokohama

JPY 2B-3B

2016/03

35 years

JPY 207M

JPY 228M

-

-

116

Retail

Fixed Asset

Sendai

2016/04

31 years

JPY 63M

JPY 86M

-

-

120

Hotel

Fixed Asset

Shinjuku-ku, Tokyo

>JPY 3B

2016/09

40 years

JPY 554M

JPY 349M

-

-

146

Retail

Fixed Asset

Chuo-ku, Tokyo

JPY 1B-2B

2018/08

29 years

JPY 32M

-

-

-

149

Retail

Fixed Asset

Chiyoda-ku, Tokyo

>JPY 3B

2018/09

29 years

JPY 308M

JPY 2,269M

-

-

154

Residential

Fixed Asset

Kita Kyushu, Fukuoka

JPY 1B-2B

2019/03

5 years

JPY 83M

JPY 181M

-

-

157

Office

Fixed Asset

Chiyoda-ku, Tokyo

2019/04

36 years

JPY 52M

-

-

-

158

Other

Fixed Asset

Chuo-ku, Tokyo

JPY 1B-2B

2019/05

-

JPY 12M

-

-

-

29 Fixed Assets

JPY 61,033M

JPY 3,571M

JPY 12,848M

-

-

JPY 63,951M (Book Value)

  • Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.

  • 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.

© Ichigo Inc. All rights reserved.

45

Sustainable Real Estate Asset Breakdown (3)

No.

Asset Type

Classification

Location

Acquisition Price

Acquisition

Building

Expected

Ichigo Equity

Forecast Equity

Forecast

Date

Age

NOI/Year1

Investment

Multiple2

IRR3

2

Retail

Real Estate for Sale

Minato-ku, Tokyo

JPY 2B-3B

2005/10

50 years

JPY 136M

JPY 1,033M

-

-

16

Retail

Real Estate for Sale

Yokohama

2012/10

6 years

JPY 34M

JPY 171M

-

-

30

Retail

Real Estate for Sale

Shibuya-ku, Tokyo

2014/03

35 years

JPY 51M

JPY 108M

6.95X

26.0%

35

Retail

Real Estate for Sale

Minato-ku, Tokyo

JPY 2B-3B

2014/05

10 years

JPY 144M

JPY 434M

3.08X

15.2%

40

Retail

Real Estate for Sale

Fukuoka

2014/09

34 years

JPY 49M

JPY 252M

1.88X

14.7%

41

Hotel

Real Estate for Sale

Utsunomiya, Tochigi

JPY 1B-2B

2014/09

32 years

JPY 143M

JPY 400M

1.97X

28.3%

42

Retail

Real Estate for Sale

Fukuoka

2014/09

19 years

JPY 60M

JPY 177M

5.54X

26.2%

43

Retail

Real Estate for Sale

Osaka

JPY 1B-2B

2014/09

17 years

JPY 117M

JPY 301M

4.64X

24.3%

45

Retail

Real Estate for Sale

Fukuoka

JPY 1B-2B

2014/11

16 years

JPY 92M

JPY 135M

10.70X

33.8%

57

Residential

Real Estate for Sale

Minato-ku, Tokyo

JPY 1B-2B

2014/12

15 years

JPY 56M

JPY 186M

1.90X

21.0%

61

Retail

Operational Loan

Shinjuku-ku, Tokyo

JPY 1B-2B

2014/12

56 years

JPY 120M

JPY 57M

15.26X

51.7%

62

Retail

Real Estate for Sale

Fukuoka

2014/12

15 years

JPY 41M

JPY 212M

1.81X

14.4%

66

Retail

Real Estate for Sale

Sendai

2015/02

15 years

JPY 65M

JPY 8M

42.58X

198.9%

69

Hotel

Real Estate for Sale

Osaka

JPY 2B-3B

2015/05

17 years

JPY 170M

JPY 633M

1.56X

58.3%

71

Retail

Real Estate for Sale

Fujisawa, Kanagawa

JPY 1B-2B

2015/07

4 years

JPY 99M

JPY 126M

6.80X

37.3%

  • Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.

  • 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.

© Ichigo Inc. All rights reserved.

46

Sustainable Real Estate Asset Breakdown (4)

No.

Asset Type

Classification

Location

Acquisition Price

Acquisition

Building

Expected

Ichigo Equity

Forecast Equity

Forecast

Date

Age

NOI/Year1

Investment

Multiple2

IRR3

89

Office

Real Estate for Sale

Musashino, Tokyo

>JPY 3B

2015/07

30 years

JPY 131M

JPY 670M

1.72X

13.3%

92

Office

Real Estate for Sale

Fukuoka

JPY 1B-2B

2015/07

12 years

JPY 85M

JPY 353M

1.82X

17.7%

110

Hotel

Real Estate for Sale

Fukuoka

>JPY 3B

2016/03

34 years

JPY 273M

JPY 905M

2.05X

104.5%

112

Hotel

Real Estate for Sale

Yokohama

>JPY 3B

2016/03

32 years

JPY 239M

JPY 354M

10.64X

36.2%

113

Hotel

Real Estate for Sale

Yokohama

>JPY 3B

2016/03

32 years

JPY 288M

JPY 344M

5.84X

25.5%

114

Hotel

Real Estate for Sale

Fukuoka

>JPY 3B

2016/04

29 years

JPY 183M

JPY 550M

1.73X

72.6%

115

Hotel

Real Estate for Sale

Osaka

JPY 2B-3B

2016/04

12 years

JPY 130M

JPY 274M

2.96X

30.7%

118

Retail

Real Estate for Sale

Nagoya

JPY 1B-2B

2016/06

22 years

JPY 83M

JPY 102M

7.71X

32.6%

119

Retail

Real Estate for Sale

Shibuya-ku, Tokyo

2016/06

32 years

JPY 42M

JPY 136M

3.91X

17.4%

121

Office

Real Estate for Sale

Minato-ku, Tokyo

>JPY 3B

2016/10

18 years

JPY 1,540M

JPY 3,450M

2.87X

43.5%

122

Hotel

Real Estate for Sale

Shima, Mie

2017/01

21 years

JPY 78M

JPY 73M

5.49X

43.1%

130

Retail

Real Estate for Sale

Taito-ku, Tokyo

JPY 1B-2B

2017/04

26 years

JPY 100M

JPY 297M

4.42X

21.1%

132

Residential

Real Estate for Sale

Minato-ku, Tokyo

2017/04

16 years

JPY 51M

JPY 190M

2.66X

38.3%

133

Hotel

Real Estate for Sale

Minato-ku, Tokyo

2017/04

17 years

JPY 46M

JPY 152M

3.85X

32.7%

134

Residential

Real Estate for Sale

Chuo-ku, Tokyo

JPY 1B-2B

2017/04

17 years

JPY 58M

JPY 197M

2.88X

26.2%

  • Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.

  • 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.

© Ichigo Inc. All rights reserved.

47

Sustainable Real Estate Asset Breakdown (5)

No.

Asset Type

Classification

Location

Acquisition Price

Acquisition

Building

Expected

Ichigo Equity

Forecast Equity

Forecast

Date

Age

NOI/Year1

Investment

Multiple2

IRR3

135

Logistics

Real Estate for Sale

Narashino, Chiba

JPY 1B-2B

2017/04

28 years

JPY 114M

JPY 188M

6.18X

25.8%

136

Logistics

Real Estate for Sale

Narashino, Chiba

JPY 1B-2B

2017/04

28 years

JPY 152M

JPY 203M

8.75X

32.8%

138

Hotel

Real Estate for Sale

Ogaki, Gifu

JPY 1B-2B

2017/05

30 years

JPY 116M

-

-

-

143

Retail

Real Estate for Sale

Fukuoka

JPY 1B-2B

2017/09

35 years

JPY 106M

JPY 223M

3.78X

19.9%

144

Office

Real Estate for Sale

Chiyoda-ku, Tokyo

JPY 1B-2B

2018/02

31 years

JPY 129M

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%

147

Hotel

Real Estate for Sale

Kyoto

>JPY 3B

2018/08

1 year

JPY 327M

JPY 1,666M

1.59X

27.2%

148

Office (Ground Lease)

Real Estate for Sale

Chiyoda-ku, Tokyo

2018/08

-

JPY 54M

JPY 166M

3.93X

104.4%

150

Retail

Real Estate for Sale

Chuo-ku, Tokyo

>JPY 3B

2018/10

32 years

JPY 359M

JPY 1,161M

6.17X

24.7%

151

Office

Real Estate for Sale

Fukuoka

2018/10

21 years

JPY 33M

JPY 38M

5.08X

43.1%

152

Office

Real Estate for Sale

Fukuoka

JPY 2B-3B

2019/02

32 years

JPY 174M

JPY 382M

5.07X

19.6%

153

Hotel

Real Estate for Sale

Fukuoka

2019/02

26 years

JPY 110M

-

-

-

155

Office

Real Estate for Sale

Shinagawa-ku, Tokyo

JPY 2B-3B

2019/03

34 years

JPY 169M

JPY 616M

3.44X

14.8%

156

Logistics

Real Estate for Sale

Fukuoka

JPY 2B-3B

2019/03

31 years

JPY 150M

JPY 651M

3.60X

30.0%

159

Retail

Real Estate for Sale

Shibuya-ku, Tokyo

JPY 2B-3B

2019/05

40 years

JPY 123M

JPY 210M

13.11X

44.3%

  • Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.

  • 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.

© Ichigo Inc. All rights reserved.

48

Sustainable Real Estate Asset Breakdown (6)

No.

Asset Type

Classification

Location

Acquisition

Acquisition

Building

Expected

Ichigo Equity

Forecast Equity

Forecast

Price

Date

Age

NOI/Year1

Investment

Multiple2

IRR3

160

Office

Real Estate for Sale

Fukuoka

JPY 2B-3B

2019/06

22 years

JPY 129M

JPY 248M

3.11X

39.6%

161

Hotel

Real Estate for Sale

Fukuoka

>JPY 3B

2019/07

25 years

JPY 368M

JPY 1,636M

2.88X

12.9%

162

Hotel

Real Estate for Sale

Fukuoka

>JPY 3B

2019/07

21 years

JPY 353M

JPY 1,170M

3.68X

15.8%

163

Retail

Real Estate for Sale

Nagoya

>JPY 3B

2019/08

22 years

JPY 479M

JPY 1,146M

3.47X

17.0%

49 Real Estate for Sale

JPY 135,468M

JPY 8,341M

JPY 22,554M

3.62X

38.1%

JPY 140,039M (Book Value)

Subtotal 78 Assets

JPY 196,502M

JPY 11,911M

JPY 35,401M

-

-

JPY 203,990M (Book Value)

  • Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

2 Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.

  • 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.

© Ichigo Inc. All rights reserved.

49

Sustainable Real Estate Asset Breakdown (7)

No.

Asset Type

Acquisition

vs. FY20/2 H1

Expected

Ichigo Equity

Forecast Equity

Forecast

Price

NOI/Year1

Investment

Multiple

IRR

A

Ichigo Owners (Office & Residential)

43 Assets

JPY 30,315M

+JPY 12,605M

JPY 1,441M

JPY 6,479M

-

-

B

Centro (Primarily Office & Residential)

22 Assets

JPY 6,894M

-JPY 165M

JPY 467M

JPY 1,881M

-

-

C

Self-Storage

28 Assets

JPY 2,349M

+JPY 353M

JPY 304M

JPY 686M

-

-

Total 171 Assets

JPY 236,060M

JPY 14,125M

JPY 44,448M

-

-

JPY 244,755M (Book Value)

Assets acquired in FY20/2 Q1 (3M)

Total 22 Assets

JPY 20,000M

JPY 964M

JPY 5,715M

-

-

Assets acquired in FY20/2 Q2 (3M)

Total 14 Assets

JPY 24,670M

JPY 1,532M

JPY 5,896M

-

-

Assets acquired in FY20/2 Q3 (3M)

Total 12 Assets

JPY 8,165M

JPY 357M

JPY 4,948M

-

-

Assets acquired in FY20/2 Q3 (9M)

Total 48 Assets

JPY 52,835M

JPY 2,853M

JPY 16,559M

-

-

Assets acquired and sold in FY20/2 *

Total 7 Assets

JPY 4,384M

JPY 192M

JPY 2,131M

-

-

* Acquired & Sold 7 Ichigo Owners assets

1 Expected NOI/ Year is based on the business plan of each asset and is the expected NOI after value-add is completed.

© Ichigo Inc. All rights reserved.

50

Ichigo Solar Power Plant Portfolio

Ichigo (Operating)

Panel

FIT

Operation

Solar Power Plant

Area

Output

(Pre-tax)

Start Date

(MW)

Ichigo Tokushima Higashi-Okinosu

Shikoku

2.52

JPY 40

Aug 2013

Ichigo Fuchu Jogecho Yano

Chugoku

0.99

JPY 40

Mar 2014

Ichigo Yubetsu Barou

Hokkaido

0.80

JPY 40

Apr 2014

Ichigo Maebashi Naegashima

Kanto

0.67

JPY 40

Apr 2014

Ichigo Betsukai Kawakamicho

Hokkaido

0.88

JPY 40

Oct 2014

Ichigo Toyokoro Sasadamachi

Hokkaido

0.60

JPY 40

Oct 2014

Ichigo Higashi-Hiroshima Saijocho Taguchi

Chugoku

2.72

JPY 40

Jan 2015

Ichigo Akkeshi Shirahama

Hokkaido

0.80

JPY 40

Mar 2015

Ichigo Hamanaka Bokujo Tsurunokotai

Tohoku

2.31

JPY 36

Dec 2015

Ichigo Yonago Izumi

Chugoku

2.61

JPY 40

Jan 2016

Ichigo Kasaoka Takumicho

Chugoku

1.11

JPY 32

Mar 2016

Ichigo Kijo Takajo

Kyushu

0.89

JPY 40

May 2016

Ichigo Toki Oroshicho

Chubu

1.39

JPY 36

Jun 2016

Ichigo Toride Shimotakai Kita

Kanto

1.03

JPY 32

Jul 2016

Ichigo Toride Shimotakai Minami

Kanto

0.54

JPY 32

Jul 2016

Ichigo Hamanaka Bokujo Kajibayashi

Tohoku

2.31

JPY 36

Oct 2016

Ichigo Sera Tsukuchi

Chugoku

2.54

JPY 32

Feb 2017

Ichigo Sera Aomizu

Chugoku

2.87

JPY 32

Aug 2017

Ichigo Showamura Ogose

Kanto

43.34

JPY 36

Sep 2017

Ichigo Memuro Nishi-Shikari

Hokkaido

1.32

JPY 40

Feb 2018

Ichigo Kure Yasuuracho Nakahata

Chugoku

2.90

JPY 36

Mar 2018

Ichigo Tsu

Chubu

2.94

JPY 24

Mar 2018

Ichigo Kasaoka Iwanoike

Chugoku

2.64

JPY 24

Mar 2018

Ichigo Toki Tsurusatocho Kakino

Chubu

1.31

JPY 24

Apr 2018

Ichigo Itoshima Iwara

Kyushu

1.48

JPY 36

Jan 2019

Ichigo Sakahogi Fukagaya

Chubu

2.89

JPY 21

May 2019

Ichigo Sennan Kitsuneike

Kansai

2.86

JPY 21

Jul 2019

Ichigo Minakami Aramaki

Kanto

12.02

JPY 36

Jan 2020

Ichigo Takashima Kutsuki

Kansai

3.74

JPY 32

Jan 2020

Total (Operating)

29 Plants

105.16MW

Total

185MW

Ichigo (In-Development)

Panel

FIT

Operation

Solar Power Plant

Area

Output

(Pre-tax)

Start Date

(MW)

Ichigo Toki Tsurusatocho Kakino Higashi

Chubu

1.67

JPY 21

Feb 2020

Ichigo Hitachi Omiya

Kanto

2.99

JPY 24

Mar 2020

Ichigo Kasaoka Osakaike

Chugoku

2.66

JPY 21

Mar 2020

Ichigo Minokamo Hachiyacho Kamihachiya

Chubu

1.30

JPY 18

Apr 2020

Ichigo Hokota Aoyagi

Kanto

2.48

JPY 24

Apr 2020

Ichigo Seto Jokojicho

Chubu

1.50

JPY 18

Aug 2020

Ichigo Obu Yoshidamachi

Chubu

0.98

JPY 18

Sep 2020

(Wind) Ichigo Yonezawa Itaya

Tohoku

7.39

JPY 22

Dec 2020

Ichigo Toride Shimotakai Nishi

Kanto

2.99

JPY 18

Apr 2021

Ichigo Kobe Pompuike

Kansai

2.95

JPY 18

Jul 2021

Ichigo Sera Shimotsuda

Chugoku

2.81

JPY 18

Aug 2021

Ichigo Ueda Yoshidaike

Chubu

1.01

JPY 18

Oct 2021

Ichigo Kasaoka Idachiike

Chugoku

2.66

JPY 18

Nov 2021

Ichigo Miyakonojo Takazakicho Tsumagirishima

Kyushu

2.96

JPY 32

Feb 2022

Ichigo Ebino Suenaga

Kyushu

14.00

JPY 40

Jun 2023

Total (In-Development)

15 Plants

50.41MW

Total (Operating & In-Development)

44 Plants 155.58MW

* Excludes wind power plants under development (18.5MW)

Ichigo Green (9282)

Area

Panel

FIT

(Number of

Output

(Pre-tax)

Power Plants)

(MW)

Hokkaido (7)

9.14

JPY 40

Kanto (1)

1.33

JPY 40

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

© Ichigo Inc. All rights reserved.

51

Ichigo Solar & Wind Power Plant Portfolio

Serving Local Communities and the Environment

Total Operating and In-Development

Chugoku

Ichigo Yonago Izumi

2.61MW

Ichigo Power Plants

Ichigo Kasaoka Takumicho

1.11MW

59 Plants (185MW*)

Ichigo Fuchu Jogecho Yano

0.99MW

Currently Operating

Ichigo Sera Tsukuchi

2.54MW

Ichigo Sera Aomizu

2.87MW

44 Plants (134MW)

Taguchi

2.72MW

Ichigo Higashi-Hiroshima Saijocho

Okinawa

Ichigo Kasaoka Iwanoike

2.64MW

Ichigo Nago Futami

8.44MW

Ichigo Kure Yasuuracho Nakahata

2.90MW

Kyushu

Ichigo Yamaguchi Aionishi

1.24MW

Ichigo Yamaguchi Sayama

2.35MW

Ichigo Kijo Takajo

0.89MW

Ichigo Kasaoka Osakaike

2.66MW

Ichigo Itoshima Iwara

1.48MW

Ichigo Kasaoka

Idachiike

2.66MW

Ichigo Miyakonojo Yasuhisacho

1.44MW

Ichigo Sera Shimotsuda

2.81MW

Ichigo Miyakonojo

2.96MW

Total

30.16MW

Takazakicho Tsumagirishima

Ichigo Ebino Suenaga

14.00MW

Total

20.79MW

Chubu

* Excludes wind power

Ichigo Toki Oroshicho

1.39MW

plants under

Kansai

Ichigo Tsu

2.94MW

development (18.5MW)

Ichigo Sennan Kitsuneike

2.86MW

Ichigo Toki Tsurusatocho Kakino

1.31MW

Ichigo

Ichigo Takashima Kutsuki

3.74MW

Ichigo Sakahogi Fukagaya

2.89MW

Ichigo Green (9282)

Ichigo Kobe Pompuike

2.95MW

Ichigo Toyokawa Mitocho Sawakihama

1.80MW

Total

9.56MW

Ichigo Toki Tsurusatocho

1.67MW

In-Development

Kakino Higashi

Shikoku

Ichigo Minokamo Hachiyacho

1.30MW

Kamihachiya

Ichigo Tokushima Higashi-Okinosu

2.52MW

Ichigo Seto Jokojicho

1.50MW

Ichigo Takamatsu Kokubunjicho Nii

2.43MW

Ichigo Obu Yoshidamachi

0.98MW

Ichigo Iyo Nakayamacho Izubuchi

1.23MW

Ichigo Ueda Yoshidaike

1.01MW

Total

6.19MW

Total

16.84MW

Hokkaido

Ichigo Yubetsu Barou

0.80MW

Ichigo Betsukai Kawakamicho

0.88MW

Ichigo Akkeshi Shirahama

0.80MW

Ichigo Toyokoro Sasadamachi

0.60MW

Ichigo Memuro Nishi-Shikari

1.32MW

Ichigo Motomombetsu

1.40MW

Ichigo Engaru Higashimachi

1.24MW

Ichigo Engaru Kiyokawa

1.12MW

Ichigo Abira Toasa

1.16MW

Ichigo Muroran Hatchodaira

1.24MW

Ichigo Toyokoro

1.02MW

Ichigo Nakashibetsu Midorigaoka

1.93MW

Total

13.57MW

Tohoku

Ichigo Hamanaka Bokujo Tsurunokotai

2.31MW

Ichigo Hamanaka Bokujo Kajibayashi

2.31MW

(Wind) Ichigo Yonezawa Itaya

7.39MW

Total

12.01MW

(Wind - Pipeline) Iwate

7.50MW

(Wind - Pipeline) Fukushima

7.00MW

Kanto

Ichigo Maebashi Naegashima

0.67MW

Ichigo Showamura Ogose

43.34MW

Ichigo Toride Shimotakai Kita

1.03MW

Ichigo Toride Shimotakai Minami

0.54MW

Ichigo Minakami Aramaki

12.02MW

Ichigo Kiryu Okuzawa

1.33MW

Ichigo Hitachi Omiya

2.99MW

Ichigo Hokota Aoyagi

2.48MW

Ichigo Toride Shimotakai Nishi

2.99MW

Total

67.43MW

(Wind - Pipeline) Chiba

4.00MW

© Ichigo Inc. All rights reserved.

52

Ichigo-Owned Solar Power Plant Details

Total Operating and In-Development

Ichigo-Owned Solar Power Plants: 43 Plants (148MW)

By Customer

By Feed-In Tariff

(Electric Power Utility Co)

Hokkaido

Shikoku

3%

2%

Tohoku

3%

JPY 18

JPY 40

Kyushu

JPY 21 11%

7%

20%

13%

Kansai

TEPCO

JPY 24

45%

8%

6%

Chubu

JPY 32

JPY 36

10%

10%

44%

Chugoku

18%

By Output

By Solar Intensity

C

(In-Development)

4%

>10MW (In-

<2MW

Development)

9%

10%

B

A

2-10MW

(In-Development)

<2MW

(In-Development)

2-10MW

22%

36%

15%

24%

(In-Development)

A

5%

(In-Development)

>10MW

13%

B

C

37%

19%

6%

By Operating Timeline

Starting

operation after

+6 months

Starting

20%

>1 year in

operation within

6 months

operation

9%

56%

<6 months in operation 11%

0.5-1 year in operation 4%

Rank

Solar Intensity

  • ≧4.00
  • ≧3.75, <4.00
    C ≧3.50, <3.75
    D <3.50

Unit: kWh/m² per day

© Ichigo Inc. All rights reserved.

53

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

Solar Power FIT

Wind Power FIT

Contract Date

FIT

Guarantee

Contract Date

FIT

Guarantee

Period

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

FY2019

JPY 19

20 years

FY2015 (7/1~3/31)

JPY 27

20 years

FY2020

JPY 18

20 years

FY2016

JPY 24

20 years

FY2017

JPY 21 1

20 years

FY2018

JPY 18 1

20 years

FY2019

JPY 14 2

20 years

Source: METI, Agency for Natural Resources and Energy

1 FIT for >2MW non-residential solar power production determined via auction process

2 FIT for >0.5MW non-residential solar power production determined via auction process

© Ichigo Inc. All rights reserved.

54

Consolidated Balance Sheet: Assets

(JPY million)

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 H1

FY20/2 Q3

vs. FY20/2 H1

Assets

Current Assets

+5

Cash and cash equivalents

28,779

47,678

45,510

50,225

40,448

40,453

Trade notes and accounts receivable

691

913

1,097

1,344

1,582

1,924

+342

Operational loan investments

1,324

1,324

1,324

1,324

1,324

1,324

-

Operational securities investments

1,784

1,433

2

1,218

4,654

8,743

+4,089

Real estate for sale

172,833

167,805

180,789

161,322

181,264

172,001

-9,263

Deferred tax assets

1,766

516

342

-

-

-

-

Other

3,966

3,125

2,643

2,156

3,522

3,056

-466

Less: allowance for doubtful accounts

-458

-453

-28

-2

-3

-5

-2

Total Current Assets

210,687

222,344

231,681

217,590

232,793

227,499

-5,294

Fixed Assets

Property, Plant, and Equipment

+203

Buildings and structures (net)

3,830

7,375

10,600

20,338

22,126

22,329

Solar power plant equipment (net)

12,256

7,246

19,773

19,058

19,421

19,212

-209

Land

12,192

18,627

26,993

49,924

52,255

52,871

+616

Other (net)

3,264

12,402

1,190

5,655

6,756

7,915

+1,159

Total Property, Plant, and Equipment

31,546

45,654

58,558

94,976

100,560

102,330

+1,770

Intangible Assets

-43

Goodwill

1,942

1,864

1,600

1,346

1,493

1,450

Leasehold rights

392

62

135

316

403

435

+32

Other

38

29

233

331

575

634

+59

Total Intangible Assets

2,373

1,956

1,968

1,993

2,471

2,519

+48

Investments and Other Assets

+628

Securities investments

5,486

1,426

2,184

2,455

4,247

4,875

Long-term loans receivable

12

10

10

10

10

510

+500

Deferred tax assets

39

339

68

177

188

152

-36

Other

1,736

1,820

2,132

2,231

2,157

2,249

+92

Less: allowance for doubtful accounts

-124

-92

-91

-91

-91

-91

-

Total Investments and Other Assets

7,149

3,504

4,303

4,782

6,511

7,695

+1,184

Total Fixed Assets

41,069

51,115

64,831

101,752

109,543

112,545

+3,002

Total Assets

251,757

273,459

296,512

319,343

342,337

340,045

-2,292

© Ichigo Inc. All rights reserved.

55

Consolidated Balance Sheet: Liabilities & Net Assets

(JPY million)

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 H1

FY20/2 Q3

vs. FY20/2 H1

Liabilities

Current Liabilities

Trade notes and accounts payable

80

110

-

-

-

-

-

Short-term loans

2,188

805

1,042

3,275

5,115

4,244

-871

Short-termnon-recourse loans

79

611

-

-

-

-

-

Bonds (due within one year)

-

112

112

112

274

274

-

Long-term loans (due within one year)

8,161

5,209

4,449

7,881

10,179

12,317

+2,138

Long-termnon-recourse loans (due within one year)

2,975

6,825

3,921

1,666

1,696

1,171

-525

Income taxes payable

631

1,655

1,609

3,760

2,174

3,111

+937

Deferred tax liabilities

53

62

494

-

-

-

-

Accrued bonuses

13

36

34

31

279

504

+225

Other current liabilities

3,979

4,119

4,652

5,178

3,741

3,921

+180

Total Current Liabilities

18,161

19,548

16,316

21,905

23,461

25,545

+2,084

Long-Term Liabilities

+2,960

Bonds

-

632

520

538

3,219

6,179

Non-recourse bonds

100

100

-

-

-

-

-

Long-term loans

94,409

91,604

112,366

131,569

151,869

148,798

-3,071

Long-termnon-recourse loans

56,193

68,319

63,588

51,068

48,069

39,674

-8,395

Deferred tax liabilities

1,543

1,147

1,744

2,164

2,168

2,035

-133

Long-term security deposits received

8,707

8,038

8,492

8,292

8,253

8,188

-65

Other long-term liabilities

475

624

758

946

1,087

932

-155

Total Long-Term Liabilities

161,430

170,467

187,470

194,579

214,667

205,809

-8,858

Total Liabilities

179,591

190,015

203,787

216,484

238,128

231,355

-6,773

Net Assets

Shareholders' Equity

+19

Capital

26,575

26,650

26,723

26,820

26,822

26,841

Capital reserve

10,968

11,056

11,113

11,207

11,208

11,228

+20

Retained earnings

29,454

42,840

54,324

66,730

71,916

78,445

+6,529

Treasury shares

-41

-15

-2,995

-5,988

-6,755

-8,988

-2,233

Total Shareholders' Equity

66,956

80,532

89,165

98,769

103,192

107,526

+4,334

Accumulated Other Comprehensive Income

+98

Valuation gains (losses) on other securities

761

117

543

386

314

412

Deferred gains (losses) on long-term interest rate

-251

-365

-372

-408

-437

-438

-1

hedges

Foreign currency translation adjustment

23

55

-

-

-

-

-

Total Accumulated Other Comprehensive Income

533

-192

171

-21

-122

-26

+96

Stock Options

319

491

666

827

951

1,004

+53

Minority Interests

4,357

2,612

2,722

3,283

187

185

-2

Total Net Assets

72,166

83,443

92,725

102,859

104,208

108,690

+4,482

Total Liabilities and Net Assets

251,757

273,459

296,512

319,343

342,337

340,045

-2,292

© Ichigo Inc. All rights reserved.

56

Consolidated P&L

(JPY million)

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2 Q3

FY19/2 Q3

Change

FY20/2

vs.

Full-Year

(12M)

(12M)

(12M)

(12M)

(9M)

(9M)

(YOY)

Forecast

Forecast

Revenue

49,699

109,253

57,846

83,540

58,282

+19,871

-

-

78,153

Cost of Goods Sold

28,865

81,327

30,860

51,413

47,823

33,332

+14,491

-

-

Gross Profit

20,833

27,925

26,986

32,126

30,330

24,950

+5,380

-

-

SG&A

4,446

5,025

5,067

5,847

5,298

4,396

+902

-

-

Operating Profit

16,387

22,900

21,919

26,279

25,032

20,553

+4,479

26,500

94.5%

Non-Operating Income

+2

-

-

Interest income

2

-

3

3

4

2

Dividend income

79

85

57

68

74

62

+12

-

-

Negative goodwill amortization

90

-

-

-

-

-

-

-

-

Mark-to-market gains on long-term interest

-

-

-

5

53

5

+48

-

-

rate hedges

80

-51

-

-

Other

43

32

100

70

29

Total Non-Operating Income

215

118

161

147

162

151

+11

-

-

Non-Operating Expenses

1,742

-8

-

-

Interest expenses

2,234

2,278

2,249

2,328

1,734

Mark-to-market losses on long-term interest

-

53

270

491

55

220

-165

-

-

rate hedges

+227

-

-

Debt financing-related fees

98

714

207

327

522

295

Other

380

217

168

203

215

183

+32

-

-

Total Non-Operating Expenses

2,713

3,263

2,895

3,350

2,529

2,441

+88

-

-

Recurring Profit

13,889

19,755

19,185

23,076

22,665

18,264

+4,401

22,800

99.4%

Extraordinary Gains

+9

-

-

Gains on sales of securities investments

223

2,466

-

2

11

2

Gains on sales of shares in affiliates

-

-

1,221

-

-

-

-

-

-

Gains on sales of subsidiary shares

-

-

-

-

169

-

+169

-

-

Other

-

-

41

-

35

-

+35

-

-

Total Extraordinary Gains

223

2,466

1,263

2

215

2

+213

-

-

Extraordinary Losses

-

-

11

-

27

-

+27

-

-

Losses on sales/disposal of fixed assets

Valuation losses on securities investments

49

-

-

-

-

-

-

-

-

Office move expenses

9

31

-

-

-

-

-

-

-

Impairment loss

-

1,090

327

-

-

-

-

-

-

Earthquake-related damages

-

244

-

-

-

-

-

-

-

Other

31

224

-

-

-

-

-

-

-

Total Extraordinary Losses

89

1,590

339

-

27

-

+27

-

-

Pre-Tax Net Income

14,022

20,630

20,109

23,079

22,853

18,266

+4,587

-

-

Income Taxes

960

5,436

5,923

7,333

6,775

5,700

+1,075

-

-

Pre-Minority Interest Net Income

13,062

15,194

14,185

15,746

16,077

12,566

+3,511

-

-

Net Income Attributable to Minority Interests

136

299

167

373

936

383

+553

-

-

Net Income

12,925

14,894

14,018

15,373

15,141

12,183

+2,958

15,000

100.9%

© Ichigo Inc. All rights reserved.

57

Consolidated Cash Flows from Operations

(JPY million)

FY16/2 (12M)

FY17/2 (12M)

FY18/2 (12M)

FY19/2 (12M)

FY20/2 Q3 (9M)

Cash Flows from Operations

Pre-tax net income

14,022

20,630

20,109

23,079

22,853

Depreciation

792

778

1,015

1,696

1,888

Share-based compensation expenses

174

223

215

213

187

Amortization of goodwill

139

141

111

254

130

Amortization of negative goodwill

-90

-

-

-

-

Increase (decrease) in accrued bonuses

-3

23

32

-3

473

Increase (decrease) in allowance for doubtful accounts

3

-3

-355

-26

2

Interest and dividend income

-81

-85

-61

-71

-79

Interest expenses

1,277

1,303

2,249

2,328

1,734

Gains on sales of subsidiary shares

-

-

-

-

-169

Losses (gains) on sales of shares in affiliates

-

-

-1,221

-

-

Losses (gains) on sales of securities investments

-223

-2,466

-

-2

-11

Impairment loss

-

1,090

327

-

-

Valuation losses on securities investments

49

-

-

-

-

Decrease (increase) in trading notes and receivables

-172

-367

-468

-247

-519

Decrease (increase) in operational loans receivable

1,006

-

-

-

-

Decrease (increase) in operational securities investments

1,239

2,727

1,663

3,509

3,842

Valuation loss on operational securities investments

19

-

-

-

-

Decrease (increase) in real estate for sale

-63,070

-6,303

-8,112

-3,163

-10,046

Decrease (increase) in power plant for sale

-

7,251

996

-

-

Valuation losses on SPC capital contributions

11

16

-

-

-

Decrease (increase) in advances paid

-990

-190

871

-333

136

Decrease (increase) in accounts receivable

-1,140

-193

-10

-399

9

Increase (decrease) in accounts payable

535

204

573

-332

-675

Increase (decrease) in accrued expenses

42

92

-47

25

83

Increase (decrease) in advances received

317

-49

30

269

-

Increase (decrease) in security deposits received

2,380

-667

125

-264

-99

Other

435

1,304

585

1,887

224

Sub-Total

-43,324

25,460

18,628

28,420

19,965

Interest and dividend income received

81

85

61

71

79

Interest expenses paid

-1,226

-1,146

-2,231

-2,118

-1,524

Income taxes paid and refunded

-186

-2,852

-5,854

-4,610

-7,548

Net Cash from (Used for) Operations

-44,654

21,547

10,603

21,762

10,970

© Ichigo Inc. All rights reserved.

58

Consolidated Cash Flows from Investments & Financing

(JPY million)

FY16/2 (12M)

FY17/2 (12M)

FY18/2 (12M)

FY19/2 (12M)

FY20/2 Q3 (9M)

Cash Flows from Investments

Payments into time deposits

-

-6,100

-6

-118

-111

Proceeds from withdrawal from time deposits

-

201

-

1,060

5,033

Payments for securities investments

-671

-300

-140

-539

-2,332

Proceeds from sales of securities investments

296

6,136

-

32

111

Proceeds from redemptions of securities investments

3

-

-

-

-

Acquisitions of property, plant, and equipment

-6,628

-11,719

-4,796

-15,440

-10,306

Acquisitions of intangible assets

-21

-1

-83

-425

-464

Payments of SPC capital contributions

-9

-63

-28

-6

-2

Redemptions of SPC capital contributions

6

-

-

32

-

Payments of security deposits

-37

-5

-36

-16

-34

Acquisitions of subsidiary shares resulting in change of

-

-93

-2,619

-

-

consolidation scope

Sales of subsidiary shares resulting in change of

-

-

2,096

-

-

consolidation scope

Acquisitions of consolidated subsidiary

-

-

-

-

-187

Other

9

11

-32

-181

-720

Net Cash from (Used for ) Investments

-7,052

-11,933

-5,645

-15,602

-9,015

Cash Flows from Financing

Net increase (decrease) in short-term loans

771

-1,383

-306

2,232

969

Net increase (decrease) in short-termnon-recourse loans

31

532

-611

-

-

Proceeds from bond issuance

-

785

-

129

5,828

Repayment of maturing bond principal to bondholders

-

-56

-112

-112

-96

Redemption of non-recourse bonds

-

-

-100

-

-

Proceeds from long-term loans

64,866

55,674

32,660

43,062

44,898

Repayment of long-term loans

-19,192

-61,221

-13,402

-20,352

-23,445

Proceeds from long-termnon-recourse loans

18,150

30,850

3,518

3,500

5,300

Repayment of long-termnon-recourse loans

-2,772

-15,400

-22,366

-18,473

-17,188

Proceeds from employee exercise of stock options

153

137

110

143

31

Share buyback

-

-

-2,999

-2,999

-2,999

Proceeds from minority interests

2,000

-

-

90

-

Payments to minority interests

-

-2,000

-

-

-1,276

Sales of subsidiary shares resulting in no change of

-

-

-

100

-

consolidation scope

Dividends paid to minority interests

-43

-39

-

-

-5

Dividends paid

-646

-1,501

-2,513

-2,972

-3,415

Net Cash from (Used for ) Financing

63,318

6,377

-6,124

4,346

8,598

© Ichigo Inc. All rights reserved.

59

Ichigo 2030: Ichigo as a Sustainable Infrastructure Company

© Ichigo Inc. All rights reserved.

60

Go for Growth

Grow & Expand Ichigo's Core Businesses into New Areas, Creating New Earnings Streams and Increasing Both Earnings and Earnings Stability

Sustainability

Infrastructure

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 longstanding commitment to sustainability while developing new technologies to extend the lives of key social infrastructure beyond 100 years.

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 infrastructures. Being one of many is not enough. Ichigo needs to lead.

Ichigo as a Sustainable Infrastructure Company

© Ichigo Inc. All rights reserved.

61

Go Beyond Real Estate to Address Broad Needs

Assets

Residential

Office

Retail

Hotel

Solar Power

Plant

Stadium

Needs

Live

Work

Buy, Dine

Stay, Travel

Power Lives &

Businesses

Entertainment, Recreation, & Health

Responding

Nursing Care

to Diverse

Child Care

Needs

Senior Business

Education

Medical Care

Tourism

Agriculture

Entertainment

Public Works

Sports

Culture

Energy

Other

© Ichigo Inc. All rights reserved.

62

KPI 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 excluding net investment in Real Estate and Power Plants for Sale

© Ichigo Inc. All rights reserved.

63

Shareholder 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 dividend is maintained or raised every year (but not cut), providing shareholders with the security of a durable dividend.
  • 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

Dividend growth via

DOE > 3% Policy

7 Consecutive Years of

Dividend Growth

JPY 7

JPY 7

JPY 6

JPY 5

JPY 1.3

JPY 3

JPY 1*

JPY 1.1

FY12/2

FY13/2

FY14/2

FY15/2

FY16/2

FY17/2

FY18/2

FY19/2

FY20/2

* Adjusted to reflect 200:1 stock split

(Forecast)

© Ichigo Inc. All rights reserved.

64

FY20/2 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 SRE asset database
  • Deploy BPA solutions
  • Streamline tasks and increase asset management business productivity

© Ichigo Inc. All rights reserved.

65

Ichigo 2030: New Initiatives

© Ichigo Inc. All rights reserved.

66

Real Estate x Sports

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 Fuller and Healthier Lives

J.League's 100-Year Vision:

Ichigo's Mission:

Promote Sports Development

Serve Important Social Needs

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 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

© Ichigo Inc. All rights reserved.

67

Real Estate x Tourism

Hotel Operator Market Entry: Hakata Hotels

Hotel Operator in Kyushu/Yamaguchi Region Seeing Inbound Tourism Growth

  • Started operations at 3 hotels on June 1, 2019 and 7 hotels in August

Deploying Propera, Ichigo's AI-based Hotel Revenue Management System

  • Increasing employee productivity via IT systems to automate administrative tasks so employees can focus on hospitality & service
  • Sales of Propera to non-Ichigo hotel operators expected to drive Ichigo non-asset revenue stream

Ichigo's Hotel Il Palazzo in Fukuoka was the first building outside the U.S. to win an American Institute of Architects Honor Award in 1991

Responding

Nursing Care

to Diverse Child Care

Needs

The Hakata Hotels logo features hakata-ori woven silk textiles that are a local Fukuoka craft, including the koukou shima weaving pattern in which a thick vertical line is surrounded by thin vertical lines. The thin lines represent children, and the thick lines parents, expressing the sense of care shown within families. The multiple colors reflect Ichigo's values of respect for diversity. The values represented in the logo are also resonant with Ichigo's philosophy of Ichigo Ichie, literally meaning "One lifetime, one encounter."

Senior Business

Education

Medical Care

Tourism

Entertainment

Agriculture

Sports

Public Works

Culture

Energy

Other

© Ichigo Inc. All rights reserved.

68

Real Estate x Entertainment x Culture X Tourism

Ichigo Animation: Anime + Real Estate Synergies

Production of New Anime Series VLADLOVEWritten & Directed by Mamoru Oshii, with Co-Director Junji Nishimura

  • Established Ichigo Animation in April 2019
  • Introducing tenant collaboration initiatives that go beyond typical owner/tenant, hands-off leasing relationships
  • Collaborating across multiple industries to drive new synergies with Ichigo's existing businesses

New Earnings via Anime Content Streaming & Sales of DVDs, CDs, and Goods

Promote Ichigo's AKIBA CULTURES ZONE (ACZ) as Global Anime Landmark

  • Increase ACZ's value by integrating anime content & events (anime, dance, music, entertainment, retail, tourism, etc.)

Anime-related events and sales of goods at ACZ will drive

Nursing Care

both customer traffic & higher earnings

Senior Business

Responding

to Diverse Child Care

Needs

Education

Medical Care

Tourism

Entertainment

Agriculture

×

Sports

Public Works

AKIBA CULTURES ZONE

Culture

Energy

Other

© Ichigo Inc. All rights reserved.

69

Real Estate x Entertainment x Sports x Tourism

Real-World Augmented Reality (AR) Game TSUBASA+

Investing in TSUBASA+, an AR Game that Uses Smartphone GPS

Japanese soccer manga, Captain Tsubasa×avatars of world-class soccer players

Game Features

Business

Opportunity

Integrates real-world stadiums around the world

Users can play on-line with professional soccer players

Scheduled for global release in 2020, starting in Europe, Asia, &

South America

Sales royalties

Build virtual stadiums at Ichigo assets to drive customer traffic &

activity

Development by MIRAIRE Inc.

Increase value of Ichigo assets, collaborate with hotels and retailers,

Responding

promote community development, & support sports

Nursing Care

to Diverse Child Care

Needs

Education

Senior Business

Medical Care

Tourism

Entertainment

Agriculture

Sports

Public Works

Culture

Energy

Other

Development by MIRAIRE Inc.

© Ichigo Inc. All rights reserved.

70

Power Up 2019Mid-Term Plan Achievement

© Ichigo Inc. All rights reserved.

71

Power Up 2019Achievement 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.

FY16/2 (Actual)

FY19/2 (Actual)

(B) - (A)

FY19/2 (Plan)

(Shift Up 2016) (A)

(Power Up 2019) (B)

(Power Up 2019)

(JPY million)

vs. Plan

Operating Profit

Recurring Profit

Net Income

EPS

Dividend

ROE

Stock Earnings/ Fixed Expenses

16,3871

26,279

+60.4%

25,000

13,889

23,076

+66.1%

21,400

12,925

15,373

+18.9%

14,800

JPY 25.86

JPY 31.14

+20.4%

JPY 29.00

JPY 3

JPY 7

+133.3%

JPY 7

21.0%

16.3%

-

15.6%

(15.3%)2

223.3%

239.6%

-

191.4%

105.1%

107.8%

103.9%

107.4%

100.0%

-

-

  • From FY19/2, SPC-relatednon-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.
  • At Ichigo's FY19/2's normalized 31.8% tax rate, FY16/2 ROE would have been 15.3%.

© Ichigo Inc. All rights reserved.

72

Power Up 2019Achievement Details (2)

Profitability

Sustainability

Core Business

Growth

New Business

Creation

Finance as a

Strategic

Measure

High Capital

Efficiency and

Organic Growth

Best Place to

Work

  • 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 REtechbusinesses, fusing Ichigo's Real Estateand ITcapabilities
  • Grow both financial stability and earnings
  • De-collateralizeloans, lengthen loan maturities, lower debt costs, get credit ratings, and issue bonds to diversify funding profile
  • ROE >15%
  • Support employee health and wellness
  • Goal: Japan's number one company in providing opportunities for employees

• 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 AI 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

Global Best Practice Governance and Compliance

✓ • Former CEOs of TSE 1st Section companies serve as

Independent Directors

© Ichigo Inc. All rights reserved.

73

Power Up 2019Achievement Details (3) JPX-Nikkei 400 Index

  • Included in the JPX-Nikkei 400 All Three Years of Power Up 2019(2016, 2017, 2018)
  • Ranked within the Index's Top 200 Companies in August 2019

Ranking Calculation:

While the JPX-Nikkei 400 does not provide an official ranking of its 400 constituents, the ranking 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:

  1. 3-yearaverage ROE (40% weighting)
  2. 3-yearcumulative operating profit (40% weighting)
  3. Market capitalization (20% weighting)

Total Score = 0.4×(a) + 0.4×(b) + 0.2×(c)

© Ichigo Inc. All rights reserved.

74

These 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.

Make The World More Sustainable

Contact:

Ichigo (TSE First Section 2337)

Investor Relations

TEL: +81-3-3502-4818

E-mail： ir@ichigo.gr.jp

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.

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Ichigo Inc. published this content on 10 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2020 07:02:08 UTC