Hulic : Financial Information of FY2022 (January～December）【SUMMARY】

January 30, 2023

Company Name: Hulic Co., Ltd.

(3003JP TSE Prime)

President : Takaya MAEDA

Contact: [e-mail]

Financial Information of FY2022 (January～December） 【SUMMARY】

Ⅰ．FY2022 Performance Result Summary

(Billion of Japanese Yen)

		FY2020	FY2021	FY2022	FY2023 Guidance
Operating Revenue		339.6	447.0	523.4	N.A.
Operating Income		100.5	114.5	126.1	140.0
Ordinary Income		95.6	109.5	123.2	132.0
Net Income		63.6	69.5	79.1	86.5
Annual Dividend per share		36.0yen	39.0yen	42.0yen	46.0 yen
<> PL Year :	Leasing(Fine), Transaction(Excellent), Hotel operation(Recovering) >

・Tokyo office average vacancy 6.4% vs Our Tokyo office vacancy was less than 1.0%. We think we can keep this level for sometime. ･Tokyo office average rent has been downed 29 month in a row. vs. Our Tokyo year-endoffice rent rose from one year ago.

・Transaction market stays strong, and CAP rates have been going lower for all sectors, even 10 year JGB yield shifted to the upside.

・Our year-end appraisal result showed that unrealized value of our asset (NAV minus Booked Value on B/S) increased to 375.8 billion JPY. ・Hotel subsidiaries' loss stopped in the 4th quarter, anticipating to move into the black PL in FY2023.

・EPS replaced the historical-high, overcoming a dilution effect of the Offering in October 2021.

・Annual dividend payout ratio exceeded 40%as we had promised before. We expect 46yen(+4 yen) per share for FY2023.

Ⅱ．Major KPIs

			(Japanese Yen)
	2020/12	2021/12	2022/12
NIKKEI Index	27,444	28,792	26,095
HULIC share price	1,133 yen	1,092 yen	1,040 yen
Market Capitalization	763.5 Billion	838.6 Billion	798.6 Billion
payout ratio	37.8%	38.5%	40.3%
EPS	95.23 yen	101.09 yen	104.00 yen
BPS	728.31 yen	836.89 yen	902.70 yen
unrealized value of leasing asset	353.0 Billion	364.6 Billion	375.8 Billion

Ⅲ．FY2023-2025 Medium Term Plan (Summary)

	2022/12	2023/12(est)	2025/12(est)
Operating Income(JPY Billion)	126.1	140.0	165.0
Ordinary Income(JPY Billion)	123.2	132.0	150.0
Net Income(JPY Billion)	79.1	86.5	98.5
payout ratio	40.3%	40.4%	40% or over
Net D/E(debt/equity) ratio	1.3 times	below 3.0 times
Net Investment Amount (JPY billion)	193.8	up to 410	Total 900bil budget in FY2023-25

・【Quality buildings】 All leasing assets must clear the durability standard against the strongest earthquake possible by 2025. We will challenge effective acquisition through CRE(direct deal) and equity investment to utilize capital money efficiently.

・【Accelerating Development Projects and secure the Exit Pipelines】 100 development projects to be completed by 2029. Setting up different focus-FUNDSfor exiting the developed projectsand keeping sound B/S and better KPI.

・【Expanding current profit lines and challenging new businesses】 Nursing Homes, Hotels, Environment focus + Education, Bizflex, Datacenter, etc.