Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — H1 FY23/6 Earnings Presentation
50 slides from Ichigo Green Infrastructure Investment's earnings presentation, Feb 14, 2023
Slide 1: FY23/6 H1 Corporate Presentation
Ichigo Green (9282) FY23/6 H1 Corporate Presentation January 13, February 14, 2017 2023 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 message
We would like to express our deepest condolences to all those affected by the global Covid pandemic, the war in Ukraine, and the tragic earthquake in Turkey and Syria, along with our heartfelt wish for the immediate cessation of hostilities in Ukraine, the continued saving of lives in search and res
Slide 3: Make The World More Sustainable
Make The World More Sustainable
Slide 4: World-Class Excellence
World-Class Excellence “= Ichigo ICHIGO
Slide 5: Ichigo is a J.League Top Partner
Ichigo is a J.League Top Partner Ichigo JJLEAGUE
Slide 6: Contents
Contents Mission & Deliverables to Shareholders Ichigo’s Sustainability Commitment (ESG) ‒ Ichigo Sustainability Policy FY23/6 H1 Results ‒ RE100 by 2025 On Track ‒ Solar Power Plant Portfolio Details ‒ Ichigo ESG – Environmental ‒ FY23/6 H1 Events ‒ Ichigo ESG – Social ‒ FY23/6 H1 Highlights ‒ Ichi
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: FY23/6 H1 Results
FY23/6 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, 2022 No. Of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT (per kWh) CO2 Reduction Generation JPY 38.7 17,082 Tons 11,257 Households * Annualized CO2 reduction relative to fossil-fuel-based power produc
Slide 10: FY23/6 H1 Events
FY23/6 H1 Events – Scheduled to Complete Replacing Panels at Ichigo Nago Futami ECO Power Plant During FY23/6 – Installed Online Grid Control Systems at Ichigo Iyo Nakayamacho Izubuchi ECO Power Plant & Ichigo Takamatsu Kokubunjicho Nii ECO Power Plant in Dec 2022 – Monthly Suspension of Renewable E
Slide 11: FY23/6 H1 Earnings
FY23/6 H1 Earnings – Despite Below-Forecast Power Generation, Operating Revenue was JPY 522M, in Line With Forecast – Net Income: JPY 75M (+9.2% vs. Forecast) (JPY million) FY22/6 H1 FY23/6 H1 FY23/6 H1 FY23/6 Full-Year vs. Forecast Actual Forecast (A) Actual (B) Forecast Operating Revenue 527 522 5
Slide 12: Power Generation -1.7% vs. Forecast
Power Generation -1.7% vs. Forecast FY23/6 H1 Power Generation and Power Production Revenue (kWh) (JPY million) 5,000,000 150 Forecast Power Production (left axis) Actual Power Production (left axis) Power Production Revenue (right axis) 128 125 4,000,000 109 120 109 3,000,000 82 90 69 2,000,000 60
Slide 13: Power Generation (YOY)
Power Generation (YOY) Power Generation -2.7% YOY Power Generation: FY23/6 H1 vs. FY22/6 H1 (kWh) 5,000,000 ■ FY22/6 H1 Actual (15 Power Plants) Jul-Dec 2021 Actual: 16.77M kWh ■ FY23/6 H1 Actual (15 Power Plants) Jul-Dec 2022 Actual: 16.32M kWh (-0.44M kWh, -2.7% YOY) 4,000,000 3,000,000 2,000,000
Slide 14: Power Generation by Individual Power Plant
Power Generation by Individual Power Plant Actual Power Forecast Power Actual Power Difference Operating Production No. Solar Power Plant Generation (A) Generation (B) (B) - (A) Revenue* Revenue (kWh) (kWh) (kWh) (JPY thousand) (JPY thousand) E-01 Ichigo Kiryu Okuzawa 710,286 692,184 -18,102 26,754
Slide 15: Financing Details
Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of December 31, 2022 Interest Amount Fixed/ Loan Loan Lender Rate Borrowing Date Maturity (JPY million) Floating Term (%) Term Loan I Mizuho Bank, SMBC 4,194 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan
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 YieldCo that it manages, in its shareholder program (70,000 shareholders total) − First company t
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 Above-Forecast Dividend 6 Years in a Row Since Listing (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 8,039 8,251 8,146 8,136 8,253 8,211 Dividend per Share 2,139 4,226 3,865 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 Prime ‒ Deeply committed to CSR and Sustainability ‒ Japan’s first zero-carbon listed real
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 Total Operating and In-Development Chugoku Ichigo Engaru Higashimachi 1.24MW Ichigo Power Plants Ichigo Yamaguchi Aionishi 1.24MW Ichigo Engaru Kiyokawa 1.12MW 65 Plant
Slide 27: Ichigo's Sustainability Commitment (ESG)
Ichigo’s Sustainability Commitment (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: RE100 by 2025 On Track
RE100 by 2025 On Track Ichigo RE100 Progress FY23/2 Renewable Energy Transition Impact CO2 Reduction 35,815 tons p.a. FY23/2 Q3 Renewable Energy % Reduction 47.2% Ratio 60% CO2 Emissions of Cars (+7pts vs. FY22/2 Q4) × 15,572 Note: % Reduction = Amount of CO2 reduction vs. 75,890 tons (FY20/2 actual
Slide 30: ESG Initiatives: Environmental
ESG Initiatives: Environmental Sustainability-Driven & Climate Positive Towards a Net Zero Carbon Society Effective Use of Existing Real Estate J-REIT Initiatives Community-Based, Productive Use of Preserve & Improve Real Estate Pro-Active Environmental Idle Land for Clean Energy to End Wasteful Dem
Slide 31: ESG Initiatives: Social
ESG Initiatives: Social Contributing to a Sustainable Society Contributing to Regional Revitalization Ichigo University Sports Initiatives Ichigo works to revitalize local communities Ichigo established Ichigo University in May and promote regional economic 2013 to support employees’ continuing As a
Slide 32: ESG Initiatives: Governance
ESG Initiatives: Governance Global Best Practice Governance Ichigo Green Asset Management Company Monitors Asset Management Company Global Best Practice Governance − All Ichigo Green Directors are Independent of the Asset − Majority of Directors (3 of 5) are Independent Directors Management Company
Slide 33: Solar Power Plant Data
Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 33
Slide 34: Geographically Diversified Portfolio
Geographically Diversified Portfolio (as of December 31, 2022) 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 1.2
Slide 35: Solar Power Plant Portfolio
Solar Power Plant Portfolio as of December 31, 2022 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 320 394 1.33 40 4.03% E-02 Ichigo Motomombe
Slide 36: Individual Solar Power Plant Earnings (July 2022 – Dec 2022)
Individual Solar Power Plant Earnings (July 2022 – Dec 2022) (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 26,754 6,684 20,069 1,384 18,685 14,897 3,787 E-
Slide 37: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY23/6 H1 Actual Power Generation: -2.5% vs. Forecast Location Gunma Forecast Power Generation Actual Power Generation (kWh) Area 27,588m2 200,000 Operation Sep 30, 2013 Start Date 150,000 Panel 1.33MW Output 100,000 FIT JPY 40 / kWh FIT
Slide 38: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY23/6 H1 Actual Power Generation: +5.5% 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 /
Slide 39: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY23/6 H1 Actual Power Generation: -2.1% 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 40: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY23/6 H1 Actual Power Generation: +10.5% 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 / kWh FI
Slide 41: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY23/6 H1 Actual Power Generation: -17.2% 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 8.44MW 900,000 Output FIT JPY 40 / kW
Slide 42: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY23/6 H1 Actual Power Generation: +3.5% vs. Forecast Location Kagawa Forecast Power Generation Actual Power Generation (kWh) Area 79,340m2 400,000 Operation Jun 2, 2015 Start Date 300,000 Panel 2.43MW Output 200,000 FIT JPY
Slide 43: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY23/6 H1 Actual Power Generation: +1.7% vs. Forecast Location Aichi Forecast Power Generation Actual Power Generation (kWh) Area 19,393m2 300,000 Operation 250,000 Sep 16, 2015 Start Date Panel 200,000 1.80MW Output 150,00
Slide 44: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY23/6 H1 Actual Power Generation: +15.7% vs. Forecast Location Yamaguchi Forecast Power Generation Actual Power Generation (kWh) Area 43,621m2 400,000 Operation Apr 6, 2016 Start Date 300,000 Panel 2.35MW Output 200,000 FIT JPY 36 /
Slide 45: Appendix
Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 45
Slide 46: 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 47: Shareholder Composition
Shareholder Composition Major Shareholders (as of December 31, 2022) Shareholdings by Shareholder Type Foreign Corporations & Individuals Domestic Financial Institutions No. Of Name Share Non-Financial Domestic Corporations Domestic Individuals Shares 100% 1 Ichigo Trust Pte. Ltd. 22,677 22.0% 24,37
Slide 48: Share Price (Dec 1, 2016 to Jan 31, 2023)
Share Price (Dec 1, 2016 to Jan 31, 2023) Listed on the TSE on Dec 1, 2016 (JPY) (Shares Traded) 80,000 3,000 Final trading date for Ichigo Green TSE REIT Index TSE Infrastructure Fund Index Trading Volume settlement (left axis) (left axis) (left axis) (right axis) before the two-for-one stock split
Slide 49: Ichigo Green Overview
Ichigo Green Overview Investment Corporation Name Ichigo Green Infrastructure Investment Corporation Securities Code 9282 Address 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Executive Director Nanako Ito Fiscal Year July 1 – June 30 (Half-Year is July 1 – December 31) Asset Management Company Name Ichigo
Slide 50: 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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