Ichigo Green Infrastructure Investment Corp. · TSE:9282

Ichigo Green Infrastructure Investment — FY2018 Earnings Presentation

47 slides from Ichigo Green Infrastructure Investment's earnings presentation, Aug 10, 2018

  1. Slide 1: FY18/6 Corporate Presentation

    Ichigo Green (9282) FY18/6 Corporate Presentation January 13,2018 August 10, 2017 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-green.co

  2. Slide 2: Condolences for heavy rainfall in western Japan

    We express our deepest condolences to all those affected by the recent heavy rainfall in western Japan and our wishes for the earliest possible recovery. © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.

  3. Slide 3: Ichigo Preserves and Improves Real Estate

    Ichigo Preserves and Improves Real Estate © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.

  4. Slide 4: © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.

    © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.

  5. Slide 5: Contents

    Contents Mission & Deliverables to Shareholders Solar Power Plant Data ‒ Solar Power Plant Map FY18/6 Results ‒ Solar Power Generation (YOY) ‒ Solar Power Plant Portfolio Details ‒ Individual Solar Power Plant Earnings ‒ FY18/6 Highlights ‒ FY19/6 Solar Power Generation Forecast ‒ Earnings ‒ Solar P

  6. Slide 6: 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

  7. Slide 7: FY18/6 Results

    FY18/6 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 7

  8. Slide 8: Solar Power Plant Portfolio Details

    Solar Power Plant Portfolio Details as of June 30, 2018 No. of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT CO2 Reduction Generation JPY 38.7 22,752 Tons 10,592 Households * Annualized CO2 reduction relative to fossil fuels based on each plant’s forecast

  9. Slide 9: FY18/6 Highlights

    FY18/6 Highlights Achievements Drivers • July, March, April, & May actuals significantly above forecast Power 35.76 million kWh • Kiryu Okuzawa (Kanto), Nakashibetsu Midorigaoka (Hokkaido), Generation (+3.3% vs. initial forecast) and Toyokawa (Chubu) significantly above forecast Operating JPY 1,153M

  10. Slide 10: Earnings

    Earnings − Net Income JPY 210M (+43.6% vs. Initial Forecast) − Dividend JPY 4,226 (+17.7% vs. Initial Forecast) (JPY million) FY17/6 FY18/6 Initial FY18/6 vs. FY18/6 Initial vs. Forecast Actual Forecast (A) Actual (B) Forecast (B) - (A) Operating Revenue 566 1,095 1,153 +5.3% +58 Operating Expenses

  11. Slide 11: Power Generation +3% vs. Forecast

    Power Generation +3% vs. Forecast FY18/6 Power Generation and Power Production Revenue (15 Power Plants) (kWh) (JPY million) 5,000,000 150 Forecast Power Generation (left axis) 147 Actual Power Generation (left axis) 146 Power Production Revenue (right axis) 137 132 134 4,000,000 120 125 117 95 101

  12. Slide 12: 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 No. Solar Power Plant Generation (A) Generation (B) (B) - (A) Revenue* Revenue (kWh) (kWh) (kWh) (JPY thousand) (JP

  13. Slide 13: Financing Details

    Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of June 30, 2018 Amount Interest Rate Loan Loan Lender Fixed/Floating Borrowing Date Maturity (JPY million) (% ) Term Term Loan I Mizuho Bank, SMBC 5,762 0.760 Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan II Mi

  14. Slide 14: FY19/6 Earnings Forecast

    FY19/6 Earnings Forecast FY19/6 Dividend Forecast JPY 3,560 (JPY million) FY17/6 FY18/6 FY18/6 FY19/6 Actual (7 months) Initial Forecast Actual Forecast Operating Revenue 566 1,095 1,153 1,090 Operating Expenses 407 832 827 836 (Depreciation) 326 635 636 636 Operating Profit 158 262 325 254 Recurrin

  15. Slide 15: Driving Shareholder Value

    Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 15

  16. Slide 16: Japan's First Ten-Year Earnings Forecast

    Japan’s First Ten-Year Earnings Forecast Ten-Year Dividend & FFO Forecast (Includes FY17/6 and FY18/6 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 7,911 7,816 7,982 8,002 8,146 8,136 8,253 8,211 DPS 2,139 4,226 3,560 3

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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 © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 20

  21. Slide 21: Growth Strategy Leveraging Sponsor Strengths

    Growth Strategy Leveraging Sponsor Strengths © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 21

  22. Slide 22: 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 Ichigo Green (9282), Ichigo Office (8975), and Ichigo Hotel (3463) ‒ TSE First Section, JPX-Nikkei 400 Member ‒ Committed to CSR and Sustainability Ichigo Key Subsidia

  23. Slide 23: 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

  24. Slide 24: Ichigo & Ichigo Green Portfolio

    Ichigo & Ichigo Green Solar Power Plant Portfolio (as of July 12, 2018) Serving Local Communities and the Environment Hokkaido Chugoku Ichigo Motomombetsu 1.40MW Total Operating and In-Development Ichigo Yamaguchi Aionishi 1.24MW Ichigo Engaru Higashimachi 1.24MW Ichigo Solar Power Plants Ichigo Yam

  25. Slide 25: Data

    Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 25

  26. Slide 26: Solar Power Plant Map

    Solar Power Plant Map (as of July 31, 2018) 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 Nakashi

  27. Slide 27: Solar Power Generation (YOY)

    Solar Power Generation (YOY) − 2 Accretive Power Plant Acquisitions on July 3, 2017 (current total: 15 Plants) − Power Generation +15.8% YOY Power Generation: FY18/6 vs. FY17/6 (kWh) 5,000,000 FY17/6 Actual (13 Power Plants) FY17/6 Actual: 30.86M kWh FY18/6 Actual: 35.76M kWh FY18/6 Actual (15 Power

  28. Slide 28: Individual Earnings (July 2017-June 2018)

    Individual Solar Power Plant Earnings (July 2017－June 2018) (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 67,234 12,625 54,609 5,934 48,675 29,767 18,907 E

  29. Slide 29: FY19/6 Solar Power Generation Forecast

    FY19/6 Solar Power Generation Forecast FY 19/6 Forecast 34.47 million kWh vs. FY18/6 Forecast 34.62 million kWh (FY18/6 Actual 35.76 million kWh) Power Generation: FY18/6 Actual vs. FY19/6 Forecast (kWh) 5,000,000 FY18/6 Actual (15 Power Plants) FY18/6 Actual: 35.76M kWh FY19/6 Forecast (15 Power Pl

  30. Slide 30: Portfolio

    Solar Power Plant Portfolio as of June 30, 2018 Appraisal Book Value Panel Acquisition Value 1 2 FIT 3 Portfolio No. Solar Power Plant Location (JPY Output 4 Date (JPY (JPY) Weight million) (MW) million) E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma Dec 2016 453 487 1.33 40 4.21% E-02 Ichigo Motomombe

  31. Slide 31: 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 Sep 30, 2013 150,000 Start Date Panel 1.33MW Output 100,000 FIT JPY 40 50,000 FIT Period Sep 29, 2033 Power TEPCO Energy 0 Purchaser P

  32. Slide 32: 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 Mar 3, 2014 150,000 Start Date Panel 1.24MW Output 100,000 FIT JPY 40 50,000 FIT Period Mar 2, 2034 Power 0 Hokkaido Electric

  33. Slide 33: Individual Details

    Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi Forecast Power Generation Location Ehime Actual Power Generation (kWh) 200,000 Area 26,260m2 Operation Apr 2, 2014 150,000 Start Date Panel 1.23MW Output 100,000 FIT JPY 40 50,000 FIT Period Apr 1, 2034 Power 0 Shikoku Electri

  34. Slide 34: 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 Dec 2, 2014 150,000 Start Date Panel 1.16MW Output 100,000 FIT JPY 40 50,000 FIT Period Dec 1, 2034 Power 0 Hokkaido Electric Purchas

  35. Slide 35: 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 Panel 900,000 8.44MW Output 600,000 FIT JPY 40 300,000 FIT Period Feb 1, 2035 Power 0 Okinawa Elec

  36. Slide 36: 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 Jun 2, 2015 300,000 Start Date Panel 2.43MW Output 200,000 FIT JPY 36 100,000 FIT Period Jun 1, 2035 Power 0 Shikoku Ele

  37. Slide 37: 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 1.80MW Output 150,000 FIT JPY 32 100,000 FIT Period Sep 15, 2035 50,000 Po

  38. Slide 38: Individual Details

    Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama Forecast Power Generation Location Yamaguchi Actual Power Generation (kWh) 400,000 Area 43,621m2 Operation Apr 6, 2016 300,000 Start Date Panel 2.35MW Output 200,000 FIT JPY 36 100,000 FIT Period Apr 5, 2036 Power 0 Chugoku Electric P

  39. Slide 39: Appendix

    Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 39

  40. Slide 40: 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. Guarantee Guar

  41. Slide 41: Shareholder Composition

    Shareholder Composition Major Shareholders (as of June 30, 2018) 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. 15,794 15.3% 100% 14,004 sh

  42. Slide 42: 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

  43. Slide 43: Share Price (Dec 1, 2016 to July 31, 2018)

    Share Price (Dec 1, 2016 to July 31, 2018) TSE Infrastructure Listing on Dec 1, 2016 (Securities Code 9282) (JPY) (Shares Traded) 90,000 18,000 Ichigo Green TSE REIT Index Trading Volume 80,000 15,000 70,000 12,000 Final trading date for settlement before the two-for-one stock split Dec 26, 2017 60,

  44. Slide 44: 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

  45. Slide 45: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 45

  46. Slide 46: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 46

  47. Slide 47: 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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