Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — H1 FY18/6 Earnings Presentation
43 slides from Ichigo Green Infrastructure Investment's earnings presentation, Feb 14, 2018
Slide 1: FY18/6 H1 Corporate Presentation
Ichigo Green (9282) FY18/6 H1 Corporate Presentation January 13, February 14, 2017 2018 Ichigo Green Infrastructure Investment Corporation Ichigo Investment Advisors Co., Ltd. © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. www.ichi
Slide 2: Ichigo Preserves and Improves Real Estate
Ichigo Preserves and Improves Real Estate © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Slide 3: © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights
© 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Slide 4: Contents
Contents FY18/6 H1 Results Solar Power Plant Data ‒ Earnings ‒ Solar Power Plant Portfolio Details ‒ Solar Power Generation vs. Forecast ‒ Solar Power Plant Map ‒ Solar Power Generation (YOY) ‒ Solar Power Plant Portfolio ‒ Power Generation by Individual Power Plant ‒ Individual Solar Power Plant Ea
Slide 5: FY18/6 H1 Results
FY18/6 H1 Results © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 5
Slide 6: Earnings
Earnings − Net Income Beat Forecast by 20.3% − Annual Dividend to be Paid in June 2018 (JPY million) FY18/6 FY18/6 FY18/6 vs. Forecast H1 Forecast H1 Actual Full-Year Forecast Operating Revenue 537 548 102.2% 1,095 Operating Expenses 424 426 100.4% 832 (Depreciation) 317 318 100.0% 635 Operating Pro
Slide 7: Solar Power Generation vs. Forecast
Solar Power Generation vs. Forecast Solar Power Generation +1% vs. Forecast FY18/6 H1 Power Generation and Power Production Revenue (15 Power Plants) (kWh) (JPY million) 5,000,000 150 147 Forecast Power Generation Actual Power Generation 133 Power Production Revenue 4,000,000 120 118 101 3,000,000 9
Slide 8: Solar Power Generation (YOY)
Solar Power Generation (YOY) − 2 Accretive Power Plant Acquisitions on Jul 3, 2017 (current total: 15 Plants) − Power Generation +15.6% YOY (kWh) 5,000,000 FY17/6 Actual (13 Power Plants) Jul-Dec 2016 Actual: 14.88 million kWh FY18/6 Actual (15 Power Plants) Jul-Dec 2017 Actual: 17.20 million kWh (+
Slide 9: Power Generation by Individual Power Plant
Power Generation by Individual Power Plant Geographically Diverse Portfolio Contributes to Earnings Stability Actual Power Forecast Power Actual Power Difference Operating Production * Solar Power Plant Generation (A) Generation (B) (B) - (A) Revenue Revenue (kWh) (kWh) (kWh) (JPY thousand) (JPY tho
Slide 10: Financing Details
Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps As of December 31, 2017 Amount Interest Rate Borrowing Loan Loan Lender Fixed/Floating Maturity (JPY million) (%) Date Term Term Loan I Mizuho Bank, SMBC 5,892 0.760 Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan II
Slide 11: Driving Shareholder Value
Driving Shareholder Value © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 11
Slide 12: Stock Split
Stock Split Two-for-One Stock Split to Support Share Liquidity and Make it Easier for Individual Investors to Buy Ichigo Green Shares Record Date December 31, 2017 Effective Date January 1, 2018 Number of Shares before the Stock Split 51,483 shares Share Increase due to the Stock Split 51,483 shares
Slide 13: Japan's First Ten-Year Earnings Forecast
Japan’s First Ten-Year Earnings Forecast − Dividend per Share Forecasts Adjusted to Reflect Stock Split − No Actual Change in Earnings and Dividend Forecasts Ten-Year Dividend & FFO Forecast (Post-Stock Split) 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
Slide 14: World-Class Disclosure: Real-Time Power Production Data
World-Class Disclosure: Real-Time Power Production Data Real-Time Individual Power Plant Data and Live Camera Video Feeds Live Camera Ichigo Green HP www.ichigo-green.co.jp/en © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 14
Slide 15: 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 16: Growth Strategy Leveraging Sponsor Strengths
Growth Strategy Leveraging Sponsor Strengths © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 16
Slide 17: Ichigo Green's Sponsor: Ichigo (2337)
Ichigo Green’s Sponsor: Ichigo (2337) ‒ Core Businesses: Real Estate Asset Management, Real Estate Value-Add, Clean Energy ‒ Manages 2 TSE REITs (Ichigo Office 8975 & Ichigo Hotel 3463) and a TSE Solar YieldCo (Ichigo Green 9282) ‒ JPX-Nikkei 400 Member ‒ Committed to CSR and Sustainability ■ Ichigo
Slide 18: Synergies Between Ichigo Green and Ichigo
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 asset management capabilities Value-Add Business Model Green
Slide 19: Ichigo & Ichigo Green Portfolio
Ichigo & Ichigo Green Solar Power Plant Portfolio Serving Local Communities and the Environment Ichigo Engaru Higashimachi (1.24MW) Total Operating and In-Development Ichigo Motomombetsu Ichigo Engaru Kiyokawa Ichigo Solar Power Plants (1.40MW) (1.12MW) 44 Plants (134MW) Ichigo Abira Toasa (1.16MW)
Slide 20: Customized Builds
Customized Solar Power Plant Builds Optimized to Local Meteorologies 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 fit to
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 Inverter Comprehensive Monitoring System Schematic Comprehensive Monitoring System Monitoring & Analysis • Real‐time monitoring • Immediate response capability • Real‐tim
Slide 22: Data
Solar Power Plant Data © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 22
Slide 23: Portfolio Details
Solar Power Plant Portfolio Details As of December 31, 2017 No. of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT CO2 Reduction Generation JPY 38.7 22,850 Tons 10,638 Households * Annualized CO2 reduction relative to fossil fuels based on each plant’s forec
Slide 24: Map
Solar Power Plant Map Geographically Diversified 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 Nakashibetsu Midorigaoka 1.23MW 1.24MW 1.9
Slide 25: Portfolio
Solar Power Plant Portfolio As of December 31, 2017 Appraisal Panel 3 Acquisition 1 2 FIT Portfolio No. Solar Power Plant Location Book Value Value Output 4 Date (JPY) Weight (JPY million) (MW) E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma Dec 2016 468 508 1.33 40 4.22% E-02 Ichigo Motomombetsu Mombet
Slide 26: Individual Earnings (Jul-Dec 2017)
Individual Solar Power Plant Earnings (Jul-Dec 2017) Operating Expenses (Maintenance, Property, Insurance Expenses) : 16.5% of Power Generation Revenue Property Tax Included in Acquisition Cost and Not Expensed (JPY thousand) Leaseholder Ichigo Green Power Operating Rental Rental Depreciation Rental
Slide 27: Individual Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa Forecast Power Generation Location Gunma Actual Power Generation (kWh) 200,000 Area 27,588m2 Operation 150,000 Sep 30, 2013 Start Date Panel Output 1.33MW 100,000 FIT JPY 40 50,000 FIT Period Sep 29, 2033 0 Power TEPCO Energy Jul Aug Sep
Slide 28: Individual Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira Forecast Power Generation Location Hokkaido Actual Power Generation (kWh) 200,000 Area 35,801m2 Operation 150,000 Mar 3, 2014 Start Date Panel Output 1.24MW 100,000 FIT JPY 40 50,000 FIT Period Mar 2, 2034 0 Power Jul Aug Sep Oct N
Slide 29: Individual Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi Forecast Power Generation Location Ehime Actual Power Generation (kWh) Area 26,260m2 200,000 Operation Apr 2, 2014 150,000 Start Date Panel Output 1.23MW 100,000 FIT JPY 40 50,000 FIT Period Apr 1, 2034 0 Power Jul Aug Sep Oct
Slide 30: Individual Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa Forecast Power Generation Location Hokkaido Actual Power Generation (kWh) 200,000 Area 29,730m2 Operation 150,000 Dec 2, 2014 Start Date Panel Output 1.16MW 100,000 FIT JPY 40 50,000 FIT Period Dec 1, 2034 0 Power Jul Aug Sep Oct Nov Dec J
Slide 31: Individual Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami Forecast Power Generation Location Okinawa Actual Power Generation (kWh) 1,500,000 Area 146,294m2 Operation 1,200,000 Feb 2, 2015 Start Date 900,000 Panel Output 8.44MW 600,000 FIT JPY 40 300,000 FIT Period Feb 1, 2035 Power 0 Okinawa Elec
Slide 32: Individual Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii Forecast Power Generation Location Kagawa Actual Power Generation (kWh) 400,000 Area 79,340m2 Operation 300,000 Jun 2, 2015 Start Date Panel Output 2.43MW 200,000 FIT JPY 36 100,000 FIT Period Jun 1, 2035 0 Power Jul Aug Sep
Slide 33: Individual Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama Forecast Power Generation Location Aichi Actual Power Generation (kWh) 300,000 Area 19,393m2 250,000 Operation Sep 16, 2015 Start Date 200,000 Panel Output 1.80MW 150,000 100,000 FIT JPY 32 50,000 FIT Period Sep 15, 2035 0
Slide 34: Individual Details
Individual Solar Power Plant Details Acquired July 2017 E-15 Ichigo Yamaguchi Sayama Forecast Power Generation Location Yamaguchi Actual Power Generation (kWh) 400,000 Area 43,621m2 Operation 300,000 Apr 6, 2016 Start Date Panel Output 2.35MW 200,000 FIT JPY 36 100,000 FIT Period Apr 5, 2036 0 Power
Slide 35: Appendix
Appendix © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 35
Slide 36: 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 37: 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. FIT FIT Contra
Slide 38: Ichigo Green Structure
Ichigo Green Structure Ichigo Green Electric Utility Companies FIT Solar Power Power Production Sales Revenue Borrow Leaseholder Lease Borrowings Banks Repay (SPC) Rent Power Plant Operator Fee Solar Power Operation Plants Operator Ichigo ECO Energy Invest 100% Subsidiary Shareholders’ Shareholders
Slide 39: Shareholder Composition
Shareholder Composition Major Shareholders (as of December 31, 2017) Shareholdings by Shareholder Type No. of Name Share Foreign Corporations & Individuals Domestic Financial Institutions Shares Non-Financial Domestic Corporations Domestic Individuals 1 Ichigo Trust Pte. Ltd. 7,897 15.3% 100% 14,004
Slide 40: Share Price (Dec 1, 2016 to Jan 31, 2018)
Share Price (Dec 1, 2016 to Jan 31, 2018) TSE Infrastructure Listing on Dec 1, 2016 （Securities Code 9282） (JPY) (Shares Traded) 90,000 18,000 Final trading date for Ichigo Green TSE REIT Index Trading Volume settlement before the two-for-one stock split Dec 26, 2017 80,000 15,000 70,000 12,000 60,0
Slide 41: Ichigo Green Overview
Ichigo Green Overview 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 Management Company Name
Slide 42: MEMO
MEMO © 2018 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 42
Slide 43: Contact: Ichigo Green IR Desk (9282)
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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