Fiscal Year March 2018

Explanatory Materials on

Financial Results

Hoosiers Holdings (3284)

Company overview

Group structure

History

Area expansion

Sales status

CCRC

Real Estate Investment

Asset Management

Rights offering

Summary of results

Income statement (consolidated)

Net sales by segment

Balance sheet (consolidated)

Dividends and total dividends

Purchase of treasury shares

Returns from earnings

Policies on dividends and returns

from earnings

1. Company information

2. FY3/18 highlights

3. FY3/18 topics

5. Dividends plan

P3

P4

P5

P7

P8

P9

P12

P17

P19

P32

P33

P14

P16

Condominium Apartments for

Families and Singles

Delivery plan

Sales status

Healthcare business

Energy business

4. Future prospects

P22

P27

P24

P25

6. Medium-Term Management Plan and beyond

P20

P29

P34

Medium-Term Management Plan

Profit return

Creation of new profit structure

P37

P38

P39

P10

P35

Agenda

2

1. Company information

Name Hoosiers Holdings

Representative Tetsuya Hirooka, CEO and President

Address Marunouchi-Nakadori Building, 2-2-3 Marunouchi,

Chiyoda-ku, Tokyo, Japan

Employees 600 (consolidated) (approx. 40% of employees are women)

Established April 2013

Branches Hokkaido, Tohoku, Nagoya, Kyoto, Osaka, Kyushu,

Singapore, Portland

Listed on First Section, Tokyo Stock Exchange (securities code: 3284)

Main

businesses

Real estate development (including nationwide urban

redevelopment), continuing care retirement communities

(CCRCs), real estate investment, international businesses,

healthcare businesses, etc. 3

Hoosiers founded December 1994

Company overview

Condominium Apartments

for Families and Singles Hoosiers Corporation

Houses and Flats Hoosiers Avenue

Real Estate Investment Hoosiers Asset Management

CCRC Hoosiers Care Design

H

old

ing

co

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y

Ho

osie

rs H

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ing

s

Other businesses ■ Private finance initiative (PFI) business

Ideal Environment Advisers Co., Ltd.

Property Management and Related Services

■ Condominium management

Hoosiers Living Service

Operation of sports clubs Hoosiers Wellness & Sports

International businesses Hoosiers Asia Pacific Pte. Ltd. Hoosiers，Inc.

Group structure

Asset management Vermilion Capital Management

4

2014 Number of units managed surpassed 10,000 unitsSecured top position in number of condominium units supplied in the

Tohoku/Sendai area

Jan. AM31 added to Group

(Now Hoosiers Asset Management)

Began real estate investment business

April Hokkaido Branch opened

2015

April Osaka Branch opened; Nagoya Branch opened

Ideal Environment Advisers Co., Ltd. established

July Hoosiers Care Design established

2016Secured top position in number of condominium units supplied in the

north Kanto area

April SPORTS ACADEMY Co., Ltd. added to Group

May Kyushu Branch opened

Aug. Miyanomori Sports Co., Ltd. added to Group

Dec. Crystal Sports Club added to Group

2017 Number of condominium units surpassed 20,000 unitsMay Hoosiers Asia Pacific Pte. Ltd. established in Singapore

Began overseas business

Sept. Vermilion Capital Management added to Group.

Oct. Hoosiers, Inc. established in Oregon, US.

2018

MarchIntegrated SPORTS ACADEMY Co., Ltd., Miyanomori Sports Co.,

Ltd. and Crystal Sports Club Co., Ltd. and changed the name to

Hoosiers Wellness & Sports.

Executed Japan's first partial-commitment-type rights offering to

increase capital to \15.8 billion

5

History 1994

Dec. Hoosiers Y.K. established

1995

Jan.Began real estate sales contracting business (planning/solutions

sales agent)

June Reorganized from limited liability company to joint-stock company

Renamed Hoosiers Corporation

2000 Number of condominium units surpassed 1000 units2002

Oct.Shares listed on JASDAQ market (seven years, 10 months after

establishment)

Hoosiers Living Service established

2003

Oct.Shares listed on Second Section of Tokyo Stock Exchange (eight

years, 10 months after establishment)

2004Secured top position in number of condominium units supplied in

Saitama Prefecture

Sept.Shares listed on First Section of Tokyo Stock Exchange (nine years,

nine months after establishment)

2005 Number of condominium units surpassed 5000 unitsSecured top position in number of condominium units supplied in

Chiba Prefecture

2007 Number of units managed surpassed 5000 units2008 Number of condominium units surpassed 10,000 units

Secured top position in number of condominium units supplied in

Chiba Prefecture

2012

April Tohoku Branch opened

Oct. Kyoto Branch opened

2013

April Hoosiers Holdings established

Hoosiers Avenue established

6

2. FY3/18 highlights

FY3/19

full-year

performance

forecasts

Net sales: ¥88,000 million Increase: 38.9%

Operating income: ¥9,160 million Increase: 25.7%

Ordinary income: ¥8,000 million Increase: 15.3%

Topics

✓ On pace to exceed Medium-Term Management Plan targets

✓ Achieved record high profits

✓ Equity ratio of 31.4% by capital reinforcement

Consolidated

business

performance

Net sales: ¥63,364 million YoY: 120.2%

Operating income: ¥7,289 million YoY: 130.4%

Ordinary income: ¥6,936 million YoY: 130.3%

Net income: ¥4,564 million YoY: 135.9 %

vs. Medium-Term Management Plan

Net sales: 105.6%

Ordinary income: 115.6%

7

Summary of results

FY3/17 FY3/18 YoY change

Results % Results % Change % change

Net sales 52,726 100.0% 63,364 100.0% 10,638 20.2%

Gross profit 13,022 24.7% 16,041 25.3% 3,019 23.2%

Selling, general

and administrative

expenses

7,432 14.1% 8,752 13.8% 1,320 17.8%

Operating income 5,590 10.6% 7,289 11.5% 1,698 30.4%

Ordinary income 5,325 10.1% 6,936 10.9% 1,611 30.3%

Profit attributable

to owners of

parent

3,357 6.4% 4,564 7.2% 1,206 35.9%

Million yen

8

Income statement (consolidated)

Net sales by segment

9

Million yen

FY3/17 FY3/18

Results Composition

ratio Results

Composition

ratio

Total 52,726 100％ 63,364 100％

Condominium Apartments

for Families and Singles 30,911

35,197

58.6％ 21,861

36,500

34.5%

CCRC 4,285 8.1％ 14,639 23.1%

Houses and Flats 8,975 17.0％ 9,188 14.5%

Real Estate Investment 4,484 8.5％ 11,074 17.5%

Property Management and

Related Services 4,029 7.6％ 6,555 10.3%

Other 38 0.1％ 45 0.1％

Balance sheet (consolidated) FY3/17 FY3/18 Change

Current assets 88,329 107,820 19,491

Cash and deposits 21,383 30,493 9,109

Real estate for sale 12,718 16,471 3,753

Real estate for sale in process 47,922 53,680 5,757

Non-current assets 16,331 27,447 11,116

Land 6,686 8,640 1,953

Buildings 5,310 9,629 4,319

Total assets 104,660 135,359 30,699

Liabilities 80,129 92,767 12,637

Total interest-bearing debt 63,625 79,237 15,612

(Short-term) interest-bearing debt 14,888 24,537 9,648

(Long-term) interest-bearing debt 48,736 54,700 5,963

Net assets 24,530 42,592 18,061

Total liabilities and net assets 104,660 135,359 30,699

Million yen

Equity ratio 23.4％ 31.4％

Net equity ratio 29.4％ 40.5％

* Net equity ratio= Shareholders’ equity / (total assets ‐cash and deposits, etc.) 10

11

3. FY3/18 topics

FY3/14 FY3/17 FY3/18

Other regions

Tokyometropolitanarea

FY3/14 FY3/17 FY3/18

Family-friendly condominiums by region: Tokyo metropolitan area and other regions (based on completed projects)

83%

17%

75%

25%

Reforming the revenue structure

Area expansion

12

73％

27％

* Tokyo, Kanagawa,

Chiba, Saitama

Areas along the

Tsukuba Express line

Suburbs of Tokyo metropolitan area Regional city centers

Growing to cover all cities in Japan 13

Advancing into key regional cities with populations of approx. 200,000 or more

Area expansion

(As of March 31, 2018)

Target

Now

* 52 cities as of March 31, 2017

131cities

61cities

14

Sales status

(Condominiums/CCRC condominiums)

FY3/18

FY3/17

Number of contracted units

807

1,040

Strong sales results

Sales for the next year also got off to a strong start

15

Purchasing

¥104.3 billion (116.5%)

Net sales

¥14.5 billion Ordinary income

(107.2%)

Favorable purchasing (against the target)

For increase of future earnings

Tomorrow PLAZA multipurpose health facilities opened

Aim at nationwide development by linking with redevelopment projects

The centerpiece for a healthcare REIT

A base for the city of Hino’s integrated community/

human-resources/employment creation strategy

16

CCRC

Tamadaira, Hino, Tokyo (eight minutes on foot from Toyoda Station

on the JR Chuo Line)

Hoosiers Holdings

Hoosiers Corporation

Hoosiers Care Design

Hoosiers Asset Management

Hoosiers Living Service

Hoosiers Wellness & Sports

Developer, operator

Long-term care, community

engagement

Property management

Building management

Athletic activities

■ “Hidaka Kuratomi Solar Power Plant” (Mega solar)

Annual power generation: approx. 12 million kWh/year

Enhancing fee-based businesses

Expanding stable earnings 17

Enhancing leasing/fee-based businesses

Real Estate Investment

■ “Duo Flats Shibakoen” (Serviced apartment)

Enhancing leasing business

Handling operations/ management under contract Acquisition of lease properties

Expanding stable earnings 18

Enhancing leasing/fee-based businesses

Real Estate Investment

20.0

25.0

30.0

35.0

40.0

Trends in net revenue from leasing/fees (¥100 million)

FY3/17 FY3/18

Expanding fee-based businesses 19

Vermilion Capital Management added to the Group

Full-scale entry into asset management business

REIT

Prefund

Off-balance sheet

Securitization

Hoosiers Asset

Management

Aims to cover the entire range of the real estate investment business

REIT

AM

VCM

Development Sale

20

¥13.5 billion

Japan’s first partial-commitment-type rights offering

Rights offering

Future investment of approx. ¥50 billion

(Execution rate: 100%)

Funding

21

4. Future prospects

22

Expand condominiums business

Condominium Apartments for Families and Singles

FY3/19

FY3/18

Delivered units

(excluding CCRC condominiums)

1,315

548

Monetization of large-scale redevelopment projects

Utsunomiya PEAKS (Utsunomiya City, Tochigi Prefecture, 209 units)

23

Nationwide urban redevelopment projects: Community revitalization

Condominium Apartments for Families and Singles

Population and number of households of

Utsunomiya City

2000 2018

Source: Utsunomiya City

"Statistical data"

440,000 520,000

170,000 220,000

Population

Number of

households

Regional cities promoting

compact city strategy

As of March 31, 2018

Progress of contracts 86％

Big business opportunities in regional cities

(To be delivered in February 2019)

24

Increase number of delivered units

Delivery plan

Condominiums

FY3/19 FY3/18

548 units 1,315 units

CCRC 386 units 171 units

Houses 142 units 161 units

AP 6 buildings 9 building

RESTA 29 units 27 units

934 units 1,486 units

1,105 units

6 buildings

1,674 units

9 buildings

25

Sales status

Beginning of FY3/19 Beginning of FY3/18

365 units (vs. 1,315 units of condominiums delivered)

690 units

Progress of condominium contracts

Number of contracts concluded at beginning of year

Strong start

26

Purchasing

Beginning of FY3/18

Beginning of FY3/19

(excluding CCRC condominiums)

4,000 units

3,200 units

Future pipeline (condominiums)

Paved a path to ¥100 billion

Ideal form of CCRC

27

Healthcare business

Condominiums

Multipurpose

CCRC facility Hospital ＝

…

…

Developed

in-house

REIT

New type of healthcare REIT

PFI

Sports clubs

Rebirth of healthcare REIT

28

Healthcare business

FY3/20: Listing a healthcare REIT

(33 existing facilities)

Hospitals/Clinics

Lease-type CCRC

condominiums

Multipurpose CCRC facility (Tomorrow PLAZA)

29

Energy business

Expansion of stock business

Full deregulation of electric power

Efficient use of management resources (management)

Securing power (energy business)

Expand earnings

30

Energy business

Investment in palm-oil power generation business

Scheduled to start operation in FY3/20

Biomass power plant in Kamisu

Expanding stable earnings

Investments in projects

with

PIRR of 25％ or higher

31

5. Dividends plan

Dividends and total dividends

32

FY3/18 FY3/19

¥971 million ¥1,455 million

Dividends

Total

dividends

¥24 ¥25

Significant increase in dividends

Increase in dividends

(¥17 in net amount)

■ Type of treasury shares

subject to purchase

■ Total number of shares

eligible for purchase

■ Total purchase price of shares

■ Period of purchase

■ Method of purchase

Shares of the Company’s common stock

625,000 shares (maximum) (1.08% of total shares issued and outstanding [excluding treasury shares])

¥500,000,000 (maximum)

May 15, 2018 - March 31, 2019

Market purchase on the Tokyo Stock Exchange

Purchase of treasury shares

33

Enhance profit return to shareholders

Increase in share buybacks

Profit return

34

FY3/18 FY3/19

26.5％ 37.4％

Total Return Ratio

Proactive profit return policy

Improve total return ratio

Targeting market capitalization of ¥100 billion

FY3/16 FY3/17 FY3/18 FY3/19

Net income (Million yen)

1,835 3,357 4,564 5,200 (planned)

Dividends per share ¥14 ¥24 ¥24 ¥25 (planned)

Total dividends (Million yen)

408 669 971 1,455 (planned)

Payout ratio 22.7% 19.7% 20.2% 27.8%

Purchase of treasury

shares (Million yen)

1,026 285 237 500 (planned)

Total return ratio 77.4% 29.0% 26.5% 37.4%

Interim: ¥12; year-end: ¥13

Policies on dividends and profit return

35

36

６．Medium-Term Management Plan and beyond

37

Medium-Term Management Plan

11.5 billion

7.0 billion

8.5 billion

FY3/19

FY3/20

10.0 billion FY3/21

8.0 billion

14.0 billion

Revised target figures in the Medium-Term Management Plan

“Ordinary income” targets announced

Policy on profit return

38

Up to now FY3/20 onwards

Payout ratio

20％

Total return ratio

40％

Further enhancement of profit return

Introduction of total return ratio

39

Flow business

Stock business

+

Rental Healthcare

REIT

Energy

business

AM

fee

Beyond the target of ¥100 billion

Expansion of stock business

Creation of new profit structure

Contact us:

Opinions, forecasts, statements regarding future outlook, and other forward-looking statements in this document are estimates based on the information available at the time this document was prepared. They are subject to significant change due to uncertainties in future economic conditions, the competitive climate, and extent of the success of new services.

Please note that actual business performance, strategies, and other results and aspects may differ substantially from that described in this document.

No reproduction, duplication, or reuse of this document is permitted without prior consent.

IR inquiries

Hoosiers Holdings

PR/IR Office; tel. +81-3-3287-0704

E-mail ir@hoosiers.co.jp

URL https://www.hoosiers.co.jp