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

CRE, Inc.	Code: 3458

Consolidated Results for

First Three Quarters of Fiscal Year ending July 31, 2022

(August 1, 2021 to April 30, 2022)

J u n e 10, 2022

P h o t o : LogiSquare Miyoshi II,

Contents

Fiscal 2022 First Three Quarters: Highlights	P.2
Fiscal 2022 First Three Quarters: Key Indicators	P.3
Consolidated Summary of Fiscal 2022 First Three Quarters	P.4
Status of Business Profit and Segment Income Compared	P.5
with Revised Targets
Stock Business	P.6
Flow Business	P.11
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.

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Fiscal 2022 First Three Quarters ｜ Highlights

Performance Highlights: First Three Quarters

Net sales	¥50,706 million	(YOY +23.9%/Rate of progress*2 82.3%)
Business profit*1	¥9,799 million	(YOY +51.4%/Rate of progress*2 94.2%)

*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 revised targets on March 14, 2022.

Business Highlights of First Two Quarters

• Achieved record-high net sales and business profit on first three quarters basis.
• Achieved higher sales in all segments, reflecting favorable business environment.
• Logistics investment business: Sale of LogiSquare Miyoshi II for core bridge fund (March 1)
• Overseas business: CRE Asia established joint venture with Warburg Pincus subsidiary in Indonesia specializing in logistics real estate. Has started developing BTS-type logistics facilities for world's leading 3PL companies in suburbs of Jakarta.
• Overseas business: Sembcorp Logistics Park (Hai Phong)-fourth in northern Vietnam-completed (April 24)

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

2

Fiscal 2022 First Three Quarters ｜ Key Indicators

Stock Business

Real Estate Management Business		Asset Management Business
Master lease operating rate		Changes in Assets under Management (AUM)
99.0 %		¥232.0 billion
（YOY ＋0.8pt）		（YOY +32 billion/ targets on fiscal 2026, ending July 31, 2026, ¥450 billion）

Flow Business		Finances

Logistics investment business	Net debt/equity ratio
Pipeline noted in Second Medium-Term Management Plan	(Upper limit at end of year: 2.5 times)
(includes sold and undisclosed amounts)
More than ¥200 billion	0.40 times

Of which, pipeline already disclosed	Interest-bearing debt
*From next fiscal year, sale of properties is estimated to be around 10% of
gross profit	¥42.5 billion
About ¥150 billion
* See page 12 for details

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

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Consolidated Summary of Fiscal 2022 First Three Quarters

• Higher year-on-year sales and profits for all segments. Record high profit on an aggregate first three-quarter 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

(Millions of yen)

	Fiscal 2021	Fiscal 2022	Revised
	First three	First three	forecast
	quarters	quarters	（Mar. 14,
	Actual	Actual	2022)
Net sales	40,933	50,706	61,600
Gross profit	9,034	13,010	－
Selling, general and	2,959	3,918	－
administrative expenses
(Amortization of goodwill)	177	193	－
Operating profit	6,074	9,092	9,300
EBITDA	6,455	9,498	10,000
Business profit*1	6,472	9,799	10,400
Recurring profit	5,825	8,339	8,200
Net income	4,144	5,964	5,600

Earnings per share (Yen)

¥151.27

¥204.71

¥190.82

	Fiscal 2021	Fiscal 2022	Revised
	First three	First three	forecast
	quarters	quarters	（Mar. 14,
	Actual	Actual	2022)
Net sales	40,933	50,706	61,600
Real estate management business	18,383	20,183	27,600
Logistics investment business	21,815	29,431	32,650
Asset management business	732	1,084	1,350
Other operations	3	5	―
Segment income	6,074	9,092	9,300
Real estate management business	1,822	2,247	2,100
Logistics investment business	4,628	7,491	7,760
Asset management business	441	746	840
Other operations	3	2	―
Adjustment	(820)	(1,397)	(1,400)

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) 2022 CRE, Inc. All rights reserved.

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