Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — FY2022 Earnings Presentation
53 slides from Ichigo Green Infrastructure Investment's earnings presentation, Aug 10, 2022
Slide 1: FY22/6 Corporate Presentation
Ichigo Green (9282) FY22/6 Corporate Presentation January 13,2022 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
Slide 2: Condolences message
We would like to express our deepest condolences to all those affected by the global Covid pandemic and by the war and humanitarian crisis in Ukraine, along with our heartfelt wish for the immediate cessation of hostilities in Ukraine and the earliest and fullest possible recovery for all. Take care
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 FY22/6 Results ‒ Delivering on Sustainability ‒ Solar Power Plant Portfolio Details ‒ Ichigo ESG – Environmental ‒ FY22/6 Highlights ‒ Ichigo ESG – Social ‒ FY22/6 Earnings ‒ Ichig
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: FY22/6 Results
FY22/6 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 June 30, 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 production
Slide 10: FY22/6 Highlights
FY22/6 Highlights Achievements Details Power 34.09M kWh • Higher-than-forecast power generation for the whole portfolio Generation (+0.4% vs. forecast) due to a graphically diversified portfolio. Operating JPY 1,083M • +1.1% vs. forecast due to above-forecast power generation Revenue (+JPY 11M vs. f
Slide 11: FY22/6 Earnings
FY22/6 Earnings – Operating Revenue: JPY 1,083M (+1.1% vs. Forecast) Due to Above- Forecast Power Generation – Net Income: JPY 211M (+16.0% vs. Forecast) Due to Cost Reduction (JPY million) FY22/6 Forecast FY22/6 Actual vs. vs. Forecast FY21/6 Actual (A) (B) Forecast (B) - (A) Operating Revenue 1,07
Slide 12: FY22/6 Events
FY22/6 Events − Received JPY 19.8M Operator-Guaranteed Base Revenue Despite Lower-Than- Forecast Power Generation at Ichigo Nago Futami ECO Power Plant Impacted by low productive daylight hours (July 2021) & rainy season with 2.9X average rainfall (May – June 2022) Detected failure of some solar
Slide 13: Power Generation +0.4% vs. Forecast
Power Generation +0.4% vs. Forecast FY22/6 Power Generation and Power Production Revenue (kWh) (JPY million) 5,000,000 150 Forecast Power Production (left axis) Actual Power Production (left axis) 133 Power Production Revenue (right axis) 127 135 120 115 118 118 4,000,000 120 111 88 3,000,000 83 90
Slide 14: Power Generation by Individual Power Plant
Power Generation by Individual Power Plant Geographically Diverse Portfolio Supports 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) (JPY thousa
Slide 15: Financing Details
Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of June 30, 2022 Amount Interest Rate Loan Loan Lender Fixed/Floating Borrowing Date Maturity (JPY million) (% ) Term Term Loan I Mizuho Bank, SMBC 4,402 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan II M
Slide 16: FY23/6 Forecast
FY23/6 Forecast Forecast Dividend JPY 4,095 (-3.6% vs. FY22/6 Actual) (JPY million) FY21/6 FY22/6 FY22/6 FY23/6 Actual Forecast Actual Forecast Operating Revenue 1,074 1,072 1,083 1,065 Operating Expenses 816 822 807 805 (Depreciation) 637 640 637 641 Operating Profit 257 249 276 260 Recurring Profi
Slide 17: Japan’s First Ten-Year Earnings Forecast
Japan’s First Ten-Year Earnings Forecast Above-Forecast Dividend 6 Years in a Row Since Establishment (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
Slide 18: 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 19: Driving Shareholder Value
Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 19
Slide 20: 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 21: 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 22: 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 23: 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. 23
Slide 24: Growth Strategy Leveraging Ichigo Strengths
Growth Strategy Leveraging Ichigo Strengths © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 24
Slide 25: 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, JPX-Nikkei 400 Member ‒ Deeply committed to CSR and Sustainability ‒ Japan’s first
Slide 26: 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 27: 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 28: Ichigo’s Sustainability Commitment (ESG)
Ichigo’s Sustainability Commitment (ESG) © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 28
Slide 29: 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 30: Delivering on Sustainability
Delivering on Sustainability CO2 Reduction: +19% YOY (FY21 CO2 Reduction 115,884 tons) Clean Energy Business Growth Addressing Critical Environmental Issues Total Ichigo Power Plant CO2 Reductions Total Ichigo CO2 Emissions ■ Ichigo (115,342 tons) ■ Ichigo (28,763 tons) ■ Ichigo Green (22,506 tons
Slide 31: 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 32: 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 33: 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 34: Solar Power Plant Data
Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 34
Slide 35: Geographically Diversified Portfolio
Geographically Diversified Portfolio (as of June 30, 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 1.23MW
Slide 36: Power Generation (YOY)
Power Generation (YOY) Power Generation +1.0% YOY Power Generation: FY22/6 vs. FY21/6 (kWh) 5,000,000 ■ FY21/6 Actual (15 Power Plants) FY21/6 Actual: 33.76M kWh ■ FY22/6 Actual (15 Power Plants) FY22/6 Actual: 34.09M kWh (+0.33M kWh. +1.0% YOY) 4,000,000 3,000,000 2,000,000 1,000,000 0 July 2021 Au
Slide 37: Individual Solar Power Plant Earnings (July 2021 – June 2022)
Individual Solar Power Plant Earnings (July 2021 – June 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 62,907 13,328 49,578 3,018 46,560 29,795 16,765
Slide 38: FY23/6 Forecast Power Generation
FY23/6 Forecast Power Generation FY23/6 Forecast 33.77 million kWh (FY22/6 Actual 34.09 million kWh) FY22/6 Actual Power Generation and FY23/6 Forecast Power Production (kWh) 5,000,000 ■ FY22/6 Actual (15 Power Plants) FY22/6 Actual: 34.09M kWh ■ FY23/6 Forecast (15 Power Plants) FY23/6 Forecast: 33
Slide 39: Solar Power Plant Portfolio
Solar Power Plant Portfolio as of June 30, 2022 Book Appraisa Panel Acquisition Value l 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 335 394 1.33 40 4.06% E-02 Ichigo Motomombetsu
Slide 40: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY22/6 Actual Power Generation: +6.1% 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 Pe
Slide 41: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY22/6 Actual Power Generation: +6.7% 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 / kW
Slide 42: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY22/6 Actual Power Generation: +0.7% 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 43: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY22/6 Actual Power Generation: +3.5% 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 FIT Pe
Slide 44: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY22/6 Actual Power Generation: -11.3% 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 / kWh 6
Slide 45: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY22/6 Actual Power Generation: +5.6% 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 36
Slide 46: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY22/6 Actual Power Generation: +5.2% 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 150,000 F
Slide 47: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY22/6 Actual Power Generation: +15.8% 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 / kWh
Slide 48: Appendix
Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 48
Slide 49: 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 50: Shareholder Composition
Shareholder Composition Major Shareholders (as of June 30, 2022) 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. 22,677 22.0% 100% 23,428 sh
Slide 51: Share Price (Dec 1, 2016 to Jun 30, 2022)
Share Price (Dec 1, 2016 to Jun 30, 2022) 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 Final trading date for settlement 15,000 before the two-for-
Slide 52: 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 53: 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
Ichigo Green Infrastructure Investment — FY2022 Earnings Presentation on 6ix