Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — H1 FY24/6 Earnings Presentation
52 slides from Ichigo Green Infrastructure Investment's earnings presentation, Feb 14, 2024
Slide 1: FY24/6 H1 Corporate Presentation
Ichigo Green (9282) FY24/6 H1 Corporate Presentation January 13, February 14, 2017 2024 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 the Ishikawa earthquake
We would like to express our deepest condolences to all those impacted by the January 1, 2024 earthquake in Ishikawa Prefecture, and our wishes for the earliest and fullest possible recovery for all. © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights
Slide 3: Make The World More Sustainable
Make The World More Sustainable
Slide 4: World-Class Excellence
World-Class ( y, \\ Excellence Bet ICHIGG Ichigo's A Ichigo Hiromi Miyake ICHIGO
Slide 5: Ichigo is a J.League Top Partner
Slide 6: Contents
Contents Mission & Deliverables to Shareholders Ichigo’s Sustainability Commitment (ESG) ‒ Ichigo Sustainability Policy FY24/6 H1 Results ‒ Ichigo Climate Positive: CO2 Reduction vs. ‒ Solar Power Plant Portfolio Details Emissions ‒ FY24/6 H1 Earnings ‒ Renewable Energy Transition Towards a ‒ Power
Slide 7: FY24/6 H1 Results
FY24/6 H1 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 7
Slide 8: Solar Power Plant Portfolio Details
Solar Power Plant Portfolio Details as of December 31, 2023 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 15,839 Tons 10,660 Households * Annualized CO2 reduction relative to fossil-fuel-based power produc
Slide 9: FY24/6 H1 Earnings
FY24/6 H1 Earnings Net Income: JPY 71M, +JPY 4M (+6.9%) vs. Forecast (JPY million) FY23/6 H1 FY24/6 H1 FY24/6 H1 FY24/6 Full-Year vs. Forecast Actual Forecast Actual Forecast Operating Revenue 522 520 518 99.7% 1,059 Operating Expenses 416 422 417 98.9% 806 (Depreciation) 319 321 320 99.8% 643 Opera
Slide 10: Power Generation -0.2% vs. Forecast
Power Generation -0.2% vs. Forecast FY24/6 H1 Power Generation and Power Production Revenue (kWh) (JPY million) 5,000,000 150 Forecast Power Production (left axis) Actual Power Production (left axis) 131 Power Production Revenue (right axis) 117 4,000,000 120 114 110 87 3,000,000 90 72 2,000,000 60
Slide 11: Power Generation +1.0% YOY
Power Generation +1.0% YOY Power Generation: FY24/6 H1 vs. FY23/6 H1 (JPY million) (kWh) 5,000,000 ■ FY23/6 Actual (15 Power Plants) Jul-Dec 2022 Actual: 16.32M kWh ■ FY24/6 Actual (15 Power Plants) Jul-Dec 2023 Actual: 16.49M kWh (+0.16M kWh, +1.0% YOY) 4,000,000 3,000,000 2,000,000 1,000,000 0 Jul
Slide 12: FY24/6 H1 Events
FY24/6 H1 Events – Portfolio Power Generation Roughly in Line With Forecast (-0.2% vs. Forecast) Although Ichigo Nago Futami power generation was significantly below forecast due to panel failure, power generation compensated by power generation in other areas with favorable weather conditions – I
Slide 13: FY24/6 H1 Power Suspensions
FY24/6 H1 Power Suspensions Installing Online Grid Control Systems to Limit Lost Power Generation During Power Suspensions − Installed in 4 (6 plants) out of 7 regions (15 plants) − Contributing to the reduction in power generation loss despite increased number of power suspensions − Scheduled to in
Slide 14: Power Generation by Individual Power Plant
Power Generation by Individual Power Plant Although Ichigo Nago Futami Power Generation -16% vs. Forecast Due to Inclement Weather & PID, Total Power Generation -0.2% vs. Forecast Due to Geographic Diversification Forecast Actual Power Actual Power Difference Operating Power Production No. Solar Pow
Slide 15: Financing Details
Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of December 31, 2023 Interest Amount Fixed/ Loan Loan Lender Rate Borrowing Date Maturity (JPY million) Floating Term (%) Term Loan I Mizuho Bank, SMBC 3,835 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 solar power producer that it manages, in its shareholder program (82,000 shareholders total) − Fi
Slide 17: Driving Shareholder Value
Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 17
Slide 18: 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 19: Progress on Ten-Year Earnings Forecast
Progress on Ten-Year Earnings Forecast Achieved Above-Forecast Dividends 7 Years Into 10-Year Forecast (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 8.072 8,136 8,253 8,211 Dividend per Share 2,139 4,226
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) ‒ Sustainable Real Estate business adds value to existing buildings by drawing upon its real est
Slide 26: 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 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 Chugoku Total Operating Ichigo Yamaguchi Aionishi 1.24MW Ichigo Engaru Higashimachi 1.24MW Ichigo Power Plants Ichigo Yamaguchi Sayama 2.35MW Ichigo Engaru Kiyokawa 1.1
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 and Recycling Ichigo actively monitors and minimizes the environmental impact of its business operations via extending the useful life of its assets, reducing water and water consumption, and recycling. Addressing Climate Change and Shift to
Slide 30: Ichigo Climate Positive: CO2 Reduction vs. Emissions
Ichigo Climate Positive: CO2 Reduction vs. Emissions Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) & Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction) CO2 Reduction vs. CO2 Emissions (tons) ■ Total Ichigo Power Plant CO2 Reduction1 ■ Total Ichigo CO2 Emi
Slide 31: Renewable Energy Transition Towards a Sustainable Society
Renewable Energy Transition Towards a Sustainable Society Ichigo Ranked No. 1 in Nikkei GX 500 Ranking for Information Disclosure & Emissions Management & Reduction Ichigo RE100 Progress 100% (as of December 31, 2023) RE100 Target: 2025 Annual Renewable Energy Transition Impact (Forecast) 85% FY24/2
Slide 32: ESG Initiatives: Environmental
ESG Initiatives: Environmental Climate Positive & Sustainability-Driven Preserve & Improve Real Estate Community-Based, Productive Use of Pro-Active Environmental to End Wasteful Demolition Idle Land for Clean Energy Certifications Ichigo's Sustainable Real Estate business Ichigo will not build powe
Slide 33: ESG Initiatives: Social
ESG Initiatives: Social Contributing to Society Contributing to Regional Revitalization Ichigo University Sports Initiatives Ichigo works to revitalize local communities Ichigo established Ichigo University in May As a top partner of the J.League and promote regional economic 2013 to support employe
Slide 34: 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 (2 of 4) are Independent Directors Management Company
Slide 35: Solar Power Plant Data
Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 35
Slide 36: Geographically Diversified Portfolio
Geographically Diversified Portfolio (as of December 31, 2023) 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 37: Solar Power Plant Portfolio
Solar Power Plant Portfolio as of December 31, 2023 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 297 297 1.33 40 4.04% E-02 Ichigo Motomombe
Slide 38: Individual Solar Power Plant Earnings (July 2023 – Dec 2023)
Individual Solar Power Plant Earnings (July 2023 – Dec 2023) (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 33,626 10,697 22,928 1,172 21,756 15,047 6,708 E
Slide 39: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY24/6 H1 Actual Power Generation: +23.3% 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 FI
Slide 40: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY24/6 H1 Actual Power Generation: +3.9% 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 41: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY24/6 H1 Actual Power Generation: -0.3% 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 42: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY24/6 H1 Actual Power Generation: +10.0% 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 43: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY24/6 H1 Actual Power Generation: -16.2% vs. Forecast Location Okinawa Forecast Power Generation Actual Power Generation (kWh) 1,500,000 Area 146,217m2 Operation 1,200,000 Feb 2, 2015 Start Date Panel 900,000 8.44MW Output FIT JPY 40 / kW
Slide 44: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY24/6 H1 Actual Power Generation: +7.7% vs. Forecast Location Kagawa Forecast Power Generation Actual Power Generation (kWh) 400,000 Area 79,340m2 Operation Jun 2, 2015 Start Date 300,000 Panel 2.43MW Output 200,000 FIT JPY
Slide 45: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY24/6 H1 Actual Power Generation: +16.6% 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 150,0
Slide 46: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY24/6 H1 Actual Power Generation: +14.6% 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 47: Appendix
Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 47
Slide 48: 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 fixed sale price for electricity (in Japan, 20 years). ‒ Japan’s FIT is updated every year. Power Source FY2012 FY201
Slide 49: Shareholder Composition
Shareholder Composition Major Shareholders (as of December 31, 2023) Shareholdings by Shareholder Type Foreign Corporations & Individuals Domestic Financial Institutions No. Of Name Share Non-Financial Domestic Corporations Domestic Individuals Shares 1 Ichigo Trust Pte. Ltd. 22,677 22.0% 2 Ichigo I
Slide 50: Share Price (Dec 1, 2016 to Jan 31, 2024)
Share Price (Dec 1, 2016 to Jan 31, 2024) Listed on the TSE on Dec 1, 2016 (Shares Traded) (JPY) 90,000 3,000 Final trading date Ichigo Green TSE REIT Index TSE Infrastructure Fund Index Trading Volume for settlement before the two-for- (left axis) (left axis) (left axis) (right axis) one stock spli
Slide 51: Ichigo Green Overview
Ichigo Green Overview Investment Corporation Name Ichigo Green Infrastructure Investment Corporation Securities Code 9282 Address 2-6-1 Marunouchi, 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 In
Slide 52: 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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