Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — H1 FY21/6 Earnings Presentation
49 slides from Ichigo Green Infrastructure Investment's earnings presentation, Feb 15, 2021
Slide 1: FY21/6 H1 Corporate Presentation
Ichigo Green (9282) FY21/6 H1 Corporate Presentation January 13, February 15, 2017 2021 Ichigo Green Infrastructure Investment Corporation Ichigo Investment Advisors Co., Ltd. © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. www.ichigo-gr
Slide 2: Condolences for earthquake and Covid pandemic
We would like to express our deepest condolences to all those affected by the M7.3 earthquake off the coast of Fukushima this past Saturday and by the Covid pandemic globally, and our wishes for the earliest and fullest possible recovery. © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastru
Slide 3: Make The World More Sustainable
Make The World More Sustainable
Slide 4: World-Class Excellence
World-Class Excellence “= Ichigo ICHIGO
Slide 5: Ichi
Ichi ICHIGO OG JLEAGUE gO
Slide 6: Contents
Contents Mission & Deliverables to Shareholders Ichigo’s Commitment to ESG ‒ Ichigo Sustainability Policy FY21/6 H1 Results ‒ Ichigo ESG – Environmental ‒ Solar Power Plant Portfolio Details ‒ Ichigo ESG – Social ‒ FY21/6 H1 Events ‒ Ichigo ESG – Governance ‒ FY21/6 H1 Earnings ‒ Power Generation -2
Slide 7: Mission & Deliverables to Shareholders
Mission & Deliverables to Shareholders Mission: To maximize shareholder value via a renewable energy portfolio that provides both return stability and growth potential, along with offering investors an opportunity to invest in Japan’s rapidly expanding green infrastructure asset class Ichigo Green’s
Slide 8: FY21/6 H1 Results
FY21/6 H1 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 8
Slide 9: Solar Power Plant Portfolio Details
Solar Power Plant Portfolio Details as of December 31, 2020 No. of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT CO2 Reduction Generation JPY 38.7 22,520 Tons 11,374 Households * Annualized CO2 reduction relative to fossil fuels based on each plant’s forec
Slide 10: FY21/6 H1 Events
FY21/6 H1 Events Stable Power Generation Due to Geographically Diverse Portfolio Despite Natural Disasters − Natural Disasters Reiwa Rainfall (July 2020) No injuries or material damages at Ichigo Green power plants despite record rainfall Typhoon Haishen (September 2020) No injuries or material
Slide 11: FY21/6 H1 Earnings
FY21/6 H1 Earnings – Operating Revenue: JPY 527M (-0.5% vs. H1 Forecast Due to Adverse Weather) – Net Income: JPY 59M (+5.8% vs. H1 Forecast Due to Cost Reduction) (JPY million) FY20/6 H1 FY21/6 H1 FY21/6 H1 FY21/6 Full-Year vs. Forecast Actual Forecast Actual Forecast Operating Revenue 520 529 527
Slide 12: Power Generation -2.2% vs. Forecast
Power Generation -2.2% vs. Forecast FY21/6 H1 Power Generation and Power Production Revenue (kWh) (JPY million) 5,000,000 150 138 Forecast Power Generation (left axis) Actual Power Generation (left axis) Power Production Revenue (right axis) 4,000,000 120 114 116 101 85 3,000,000 90 76 2,000,000 60
Slide 13: Power Generation (YOY)
Power Generation (YOY) Jul – Dec 2020 Power Generation -1.2% YOY Power Generation: FY21/6 H1 vs. FY20/6 H1 (kWh) 5,000,000 ■ FY20/6 H1 Actual (15 Power Plants) Jul-Dec 2019 Actual: 16.62M kWh ■ FY21/6 H1 Actual (15 Power Plants) Jul-Dec 2020 Actual: 16.42M kWh(-0.2M kWh, -1.2% YOY) 4,000,000 3,000,0
Slide 14: Power Generation by Individual Power Plant
Power Generation by Individual Power Plant Geographically Diverse Portfolio Supports Earnings Stability Forecast Actual Power Actual Power Difference Operating Power Production No. Solar Power Plant Generation (B) (B) - (A) Revenue* * Generation (A) Revenue (kWh) (kWh) (JPY thousand) (kWh) (JPY thou
Slide 15: Financing Details
Financing Details Have Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of December 31, 2020 Amount Interest Rate Loan Loan Lender Fixed/Floating Borrowing Date Maturity (JPY million) (% ) Term Term Loan I Mizuho Bank, SMBC 4,893 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term
Slide 16: Ichigo J.League Shareholder Program
Ichigo J.League Shareholder Program Represents Two Firsts for a Shareholder Program in Japan − First Japanese company to include not just its own shareholders, but also the shareholders of the REITs and listed solar power producer that it manages, in its shareholder program (67,000 shareholders tota
Slide 17: Driving Shareholder Value
Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 17
Slide 18: Japan's First Ten-Year Earnings Forecast
Japan’s First Ten-Year Earnings Forecast Ten-Year Dividend & FFO Forecast (Includes 2017 – 2020 Actuals) (JPY) Actual Forecast FY17/6 FY18/6 FY19/6 FY20/6 FY21/6 FY22/6 FY23/6 FY24/6 FY25/6 FY26/6 FFO per Share 4,305 8,560 8,197 8,001 7,982 8,002 8,146 8,136 8,253 8,211 DPS 2,139 4,226 3,865 3,802 3
Slide 19: Ichigo (2337) Power Plant Performance Guarantee
Ichigo (2337) Power Plant Performance Guarantee Further Supports and Solidifies Long-Term Returns − Power Generation Operating Revenue fully distributed to Ichigo Green shareholders − Above-forecast Operating Revenue also fully distributed Guaranteed base revenue (FIT electricity sales revenue) fr
Slide 20: Customized Solar Power Plant Builds
Customized Solar Power Plant Builds Optimized to Local Climate & Topography to Maximize Power Production Efficiency − Snow (Hokkaido): High mounting racks and 30 degree panel inclination to avoid and displace snow coverage (vs. 10 degree in other areas) − High winds (Kagawa): Mounting racks closely
Slide 21: Fully-Networked Panel-Level Production Monitoring
Fully-Networked Panel-Level Production Monitoring Real-Time Monitoring System Immediately Detects Any Failures at the Panel Level Power Plant A Power Plant B Inverter Connection Unit Solar Panel Power Plant C String Monitoring Monitoring System Power Plant D Comprehensive Monitoring System Internet
Slide 22: World-Class Disclosure: Real-Time Power Production Data
World-Class Disclosure: Real-Time Power Production Data Real-Time Individual Power Plant Data and Live Video Feeds Ichigo Green Website www.ichigo-green.co.jp/en Live Video Feed © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 22
Slide 23: Growth Strategy Leveraging Ichigo Strengths
Growth Strategy Leveraging Ichigo Strengths © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 23
Slide 24: Sponsor: Ichigo, A Sustainable Infrastructure Company
Sponsor: Ichigo, A Sustainable Infrastructure Company Core Businesses: Asset Management, Sustainable Real Estate, Clean Energy ‒ Manages Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282) ‒ TSE First Section, JPX-Nikkei 400 Member ‒ Deeply committed to CSR and Sustainability ‒ Japan’
Slide 25: Synergies Between Ichigo Green and Ichigo Sustainable Real Estate
Synergies Between Ichigo Green and Ichigo − Ichigo-provided solar and wind power plant pipeline − Power plant technical capabilities backed by Ichigo ECO Energy’s nationwide solar power operating track record − Ichigo Investment Advisor’s deep asset management capabilities Sustainable Real Estate Bu
Slide 26: Ichigo & Ichigo Green Solar Power Plant Portfolio
Ichigo & Ichigo Green Solar Power Plant Portfolio Serving Local Communities and the Environment Hokkaido Ichigo Motomombetsu 1.40MW Ichigo Engaru Higashimachi 1.24MW Chugoku Total Operating and In-Development Ichigo Engaru Kiyokawa 1.12MW Ichigo Yamaguchi Aionishi 1.24MW Ichigo Power Plants Ichigo A
Slide 27: Ichigo's Commitment to ESG
Ichigo’s Commitment to ESG © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 27
Slide 28: Ichigo Sustainability Policy
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, extend
Slide 29: Ichigo ESG – Environmental
Ichigo ESG – Environmental Contributing to a Low-Carbon World Sustainable Real Estate Clean Energy Preserve & Improve Real Estate to End Wasteful Annual Power Generation 158,586,005 kWh Demolition Equivalent to annual energy consumption of 52,862 households ‒ Lengthen useful life of real estate The
Slide 30: Ichigo ESG – Social
Ichigo ESG – Social Supporting Local Communities Working with Tenants − Ichigo’s Boutique Hotel THE KNOT − Conduct tenant surveys to understand needs to A place where visitors, communities, and the old implement effective value-add and the new can come together − Became sole investor for Oshii Mamor
Slide 31: Ichigo ESG – Governance
Ichigo ESG – Governance Ichigo Green Asset Management Company Monitors Asset Management Company Global Best Practice Governance − All Ichigo Green Directors are Independent of − Majority of Directors (3 of 5) are Independent the Asset Management Company and the Directors Ichigo Group − Exclusive ass
Slide 32: Solar Power Plant Data
Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 32
Slide 33: Solar Power Plant Map
Solar Power Plant Map (as of December 31, 2020) Geographically Diversified Across Japan Ichigo Motomombetsu Ichigo Engaru Higashimachi 1.40MW 1.24MW Ichigo Nago Futami Ichigo Abira Toasa Ichigo Engaru Kiyokawa 8.44MW 1.16MW 1.12MW Ichigo Iyo Nakayamacho Izubuchi Ichigo Muroran Hatchodaira Ichigo Nak
Slide 34: Solar Power Plant Portfolio
Solar Power Plant Portfolio as of December 31, 2020 Book Appraisal Panel Acquisition Value Value1 FIT3 Portfolio No. Solar Power Plant Location Output2 Date (JPY (JPY (JPY) Weight4 (MW) million) million) E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma Dec 2016 379 440 1.33 40 4.23% E-02 Ichigo Motomombe
Slide 35: Individual Solar Power Plant Earnings (Jul 2020 – Dec 2020)
Individual Solar Power Plant Earnings (Jul 2020 – Dec 2020) (JPY thousand) Leaseholder Ichigo Green Power Operating Operating Depreciation No. Solar Power Plant Production Expenses NOI Income Expenses Revenue Expense Revenue E-01 Ichigo Kiryu Okuzawa 27,346 6,455 20,890 1,931 18,958 14,897 4,061 E-0
Slide 36: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY21/6 H1 Actual Power Generation: -1.5% vs. Forecast Location Gunma Forecast Power Generation Actual Power Generation (kWh) Area 27,588m2 200,000 Operation Sep 30, 2013 150,000 Start Date Panel 1.33MW Output 100,000 FIT JPY 40 50,000 FI
Slide 37: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY21/6 H1 Actual Power Generation: -5.1% vs. Forecast Location Hokkaido Forecast Power Generation Actual Power Generation (kWh) Area 35,801m2 200,000 Operation Mar 3, 2014 Start Date 150,000 Panel 1.24MW Output 100,000 FIT JPY 40 5
Slide 38: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY21/6 H1 Actual Power Generation: -1.5% vs. Forecast Location Ehime Forecast Power Generation Actual Power Generation (kWh) Area 26,261m2 200,000 Operation Apr 2, 2014 Start Date 150,000 Panel 1.23MW Output 100,000 FIT JPY 40
Slide 39: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY21/6 H1 Actual Power Generation: +5.9% vs. Forecast Location Hokkaido Forecast Power Generation Actual Power Generation (kWh) Area 29,731m2 200,000 Operation Dec 2, 2014 Start Date 150,000 Panel 1.16MW Output 100,000 FIT JPY 40 50,000 FI
Slide 40: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY21/6 H1 Actual Power Generation: -11.9% vs. Forecast Location Okinawa Forecast Power Generation Actual Power Generation (kWh) Area 146,217m2 1,500,000 Operation 1,200,000 Feb 2, 2015 Start Date Panel 900,000 8.44MW Output FIT JPY 40 600,
Slide 41: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY21/6 H1 Actual Power Generation: +2.2% vs. Forecast Location Kagawa Forecast Power Generation Actual Power Generation (kWh) Area 79,340m2 400,000 Operation Jun 2, 2015 300,000 Start Date Panel 2.43MW Output 200,000 FIT JPY
Slide 42: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY21/6 H1 Actual Power Generation: +1.9% vs. Forecast Location Aichi Forecast Power Generation Actual Power Generation (kWh) Area 19,393m2 250,000 Operation 200,000 Sep 16, 2015 Start Date Panel 150,000 1.80MW Output FIT JP
Slide 43: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY21/6 H1 Actual Power Generation: +10.6% vs. Forecast Location Yamaguchi Forecast Power Generation Actual Power Generation (kWh) Area 43,621m2 400,000 Operation Apr 6, 2016 300,000 Start Date Panel 2.35MW Output 200,000 FIT JPY 36 10
Slide 44: Appendix
Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 44
Slide 45: Reference: Japan's Feed-In Tariff (FIT)
Reference: Japan’s Feed-In Tariff (FIT) What is a FIT? ‒ A policy mechanism designed to accelerate the deployment of renewable energy such as solar and wind, guaranteeing a long-term sale price for electricity (in Japan, 20 years) at a fixed price. ‒ Japan’s FIT is updated every year. Solar Power FI
Slide 46: Shareholder Composition
Shareholder Composition Major Shareholders (as of December 31, 2020) Shareholdings by Shareholder Type No. of Foreign Corporations & Individuals Domestic Financial Institutions Name Share Shares Non-Financial Domestic Corporations Domestic Individuals 1 Ichigo Trust Pte. Ltd. 18,592 18.1% 100% 25,86
Slide 47: Share Price (Dec 1, 2016 to Jan 31, 2021)
Share Price (Dec 1, 2016 to Jan 31, 2021) Listed on the TSE on Dec 1, 2016 (JPY) (Shares Traded) 90,000 18,000 Ichigo Green TSE REIT Index TSE Infrastructure Fund Index Trading Volume (left axis) (left axis) (left axis) (right axis) 80,000 15,000 Final trading date for settlement before the two-for-
Slide 48: Ichigo Green Overview
Ichigo Green Overview Investment Corporation Investment Corporation Name Ichigo Green Infrastructure Investment Corporation Securities Code 9282 Location 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Executive Director Mami Nagasaki Fiscal Year July 1 to June 30 (Half-Year is July 1 to December 31) Asset M
Slide 49: Make The World More Sustainable
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as, an offer to sell or buy securities of Ichigo Green Investment Corporation (Ichigo Green). These materials may contain forward-looking statements regarding the intent, belief
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