Ichigo Inc.

Hi, everybody. I'm Scott Callan, chairman of Ichigo. Thank you so much for joining today's presentation. I'm joined on my right by Dan Morisaku, who is a senior member of the finance team and the global head of IR. We're going off of the FY26-2 Q1 corporate presentation. Thank you so much, everyone, for joining us today.

It's just a single quarter.

And if we're all lucky, I will speak shorter rather than longer today because it's just three months. The quarter itself was light, all in OP and cash EPS. Those are the two major KPIs you should be monitoring us for. We're down 20% and down 12% respectively. Nonetheless, things are very good. We're on track for record full year earnings. You can see the progress better in our stock earnings that are up plus 12% year-on-year. We expect record stock earnings this year. That's 26% progress versus the full-year forecast. Full earnings were down 45% year-on-year. Nonetheless, we expect to have record earnings in the flow area also on accelerated asset sales from Q2 onwards. Hotels continue to be very strong. All in OP is up 40%, 47% year on year, despite having two hotels closed for rebounding as the not as you know, that is our boutique lifestyle hotel that that will drive a significant increase in earnings at that hostels also so a lot of things in progress going to be very positive. In clean energy we're preparing battery storage entry, we expect to do that within the next year. And we've got a share buyback of 5 billion yen in progress, right now we completed about 60% of it, if we do the maximum amount of shares will be 4% of shares outstanding. Again, headline is OP all in OP down 20% cash ups down 12. As you know, we do have cash earnings, rather than accounting earnings or cash earnings or 1.6 times accounting earnings. You see on the right hand side, we expect fully OP all in OP to be up 14% and for your cash ups to be up 10%. That's not the forecast. Of course, our goal is always to beat the forecast. We have done some work that hopefully is useful for all of you to try to get give better clarity on our various businesses there. We have a variety of them. In fact, we have five operating segments. They have a joint Underlying a deliverable, which is a significant value add and sustainability. We think the two are interlinked. You do things as a business is sustainable. You do things for society. It's sustainable. That is, that is a durable source of value and activity also. And so across the five different segments, very different outcomes in the first quarter. So asset management hotel are both up about 50% year on year, say no real estate SRE is down 29% each owners almost deliver nothing is down 99%. That's going to change very, very dramatically. So a portfolio of businesses that offer diversification and earning streams but time to a core capability of each of those ability to deliver value add on a sustainable basis over the long term and growing value for our shareholders, of course, and all stakeholders. So from this quarter, we're trying to give you a very specific view on what's happening in all of our segments on an all in OP basis is what I'm not going to go through in a lot of detail, but this is this is meant to give you more more transparency. Not only when we have four segments, we also have diversity with those segments in terms of activity and so am we got stock earnings up 11% phone rings up 151% because we had each office performance fees and also some private fund fees. Stainable Real Estate SRE that's down 29% stock earnings up 11 floor earnings are down 45% we expect to have a significant uplift from that on q2 onwards. hotels, there were no flow earnings and hotels last last year in the same quarter, there are none in this quarter. But hotels are very, very, very strong. It's a combination of kind of inbound activity that's very strong and are continuing work to improve hotel services for our customers.