Ichigo Green Infrastructure Investment Corp. · TSE:9282

Ichigo Green Infrastructure Investment — FY2024 Earnings Presentation

57 slides from Ichigo Green Infrastructure Investment's earnings presentation, Aug 14, 2024

  1. Slide 1: FY24/6 Corporate Presentation

    Ichigo Green (9282) FY24/6 Corporate Presentation January 13,2024 August 14, 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: Make The World More Sustainable

    Make The World More Sustainable

  3. Slide 3: World-Class Excellence

    World-Class Excellence = Ichigo ICHIGO

  4. Slide 4: rece SSeS EE

    7 2) rece SSeS EE ve or recs Be oe ee ICHIGO TOP PARTNER @©J.LEAGUE

  5. Slide 5: Contents

    Contents FY24/6 Results Ichigo’s Sustainability Commitment (ESG) ‒ Solar Power Plant Portfolio Details ‒ Ichigo Sustainability Policy ‒ Progress on Ten-Year Earnings Forecast ‒ Ichigo Climate Positive: CO2 Reduction vs. ‒ FY24/6 Highlights Emissions ‒ FY24/6 Earnings ‒ RE100: Continued Renewable Ene

  6. Slide 6: FY24/6 Results

    FY24/6 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 6

  7. Slide 7: Solar Power Plant Portfolio Details

    Solar Power Plant Portfolio Details as of June 30, 2024 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 16,837 Tons 11,140 Households * Annualized CO2 reduction relative to fossil-fuel-based power production

  8. Slide 8: Progress on Ten-Year Earnings Forecast

    Progress on Ten-Year Earnings Forecast Achieved Above-Forecast Dividends 8 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 7,935 8,253 8,211 Dividend per Share 2,139 4,226

  9. Slide 9: FY24/6 Highlights

    FY24/6 Highlights Achievements Details Power 32.53M kWh • Limited impact from lower-than-forecast power generation at Generation (-3.2% vs. forecast) 6 of 15 power plants due to geographic diversification • Limited impact from power generation decrease due to base Operating JPY 1,031M fee guarantee

  10. Slide 10: FY24/6 Earnings

    FY24/6 Earnings Dividend JPY 4,065, in Line With Forecast (JPY million) FY23/6 FY24/6 Forecast FY24/6 Actual vs. Forecast vs. Forecast Actual (A) (B) (B) - (A) Operating Revenue 1,048 1,059 1,031 97.4% -27 Operating Expenses 794 806 798 99.1% -7 (Depreciation) 638 643 641 99.6% -2 Operating Profit 2

  11. Slide 11: FY24/6 Events (1)

    FY24/6 Events (1) – Portfolio Power Generation: -3.2% vs. Forecast Factor Analysis  Inclement weather – High rainfall, low daylight hours during Dec 2023 – May 2024 – Cumulative power generation since listing in Dec 2016: 100.1% vs. Forecast  Power suspensions – Less Kyushu Electric power suspensi

  12. Slide 12: FY24/6 Events (2)

    FY24/6 Events (2) – Cable Theft at Ichigo Kiryu Okuzawa (Feb 2024)  Two 22-meter electric cables were stolen, resulting in 2.8% of plant taken offline  Minimized cable theft impact due to ongoing measures to strengthen theft prevention in response to the recent rise in cable thefts in the Northern

  13. Slide 13: FY24/6 Power Suspensions

    FY24/6 Power Suspensions Installing Online Grid Control Systems to Limit Power Generation Loss During Power Suspensions − Installed in 4 out of 7 regions (6 of total 15 plants) − Scheduled to install online grid control systems in Tokyo, Okinawa, & Hokkaido Monthly Power Suspensions (Proxy Power Sus

  14. Slide 14: Power Generation vs. Forecast

    Power Generation vs. Forecast Achieved Above P50 Forecast Power Generation in 5 of Total 12 Months FY24/6 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

  15. Slide 15: Power Generation by Individual Power Plant

    Power Generation by Individual Power Plant Total Power Generation -3.2% vs. Forecast Impact from Ichigo Nago Futami Power Generation -18.2% vs. Forecast Minimized via Geographic Diversification Forecast Actual Power Actual Power Power Difference Operating Generation Production No. Solar Power Plant

  16. Slide 16: Financing Details

    Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of June 30, 2024 Interest Amount Fixed/ Borrowing Loan Loan Lender Rate Maturity (JPY million) Floating Date Term (%) Term Loan I Mizuho Bank, SMBC 3,687 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan II M

  17. Slide 17: FY25/6 Forecast

    FY25/6 Forecast Forecast Dividend JPY 3,885 (In Line With 10-Year Forecast) (JPY million) FY23/6 Actual FY24/6 Forecast FY24/6 Actual FY25/6 Forecast Operating Revenue 1,048 1,059 1,031 1,052 Operating Expenses 794 806 798 801 (Depreciation) 638 643 641 654 Operating Profit 254 253 233 251 Recurring

  18. 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 solar power producer that it manages, in its shareholder program (83,000 shareholders total) − Fi

  19. Slide 19: Driving Shareholder Value

    Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 19

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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. 24

  25. Slide 25: Growth Strategy Leveraging Ichigo Strengths

    Growth Strategy Leveraging Ichigo Strengths © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 25

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: Ichigo's Sustainability Commitment (ESG)

    Ichigo’s Sustainability Commitment (ESG) © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 29

  30. Slide 30: 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

  31. Slide 31: Ichigo Climate Positive: CO2 Reduction vs. Emissions (1)

    Ichigo Climate Positive: CO2 Reduction vs. Emissions (1) Ichigo CO2 Reduction = 4X CO2 Emissions CO2 Reduction CO2 Emissions 101,217 22,767 tons tons CO2 Reduction due to Ichigo & Ichigo Green Clean Energy Scope 1+2 Emissions Power Plant Production (Ichigo + Ichigo Office + Ichigo Hotel + Ichigo Gre

  32. Slide 32: Ichigo Climate Positive: CO2 Reduction vs. Emissions (2)

    Ichigo Climate Positive: CO2 Reduction vs. Emissions (2) Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) & Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction) CO2 Reduction/Reduction Impact/CO2 Emissions ■ Total Ichigo Power Plant CO2 Reduction ■ Total Ichig

  33. Slide 33: RE100: Continued Renewable Energy Transition

    RE100: Continued Renewable Energy Transition Targeting Full Group-Wide 100% Renewable Energy Transition in FY25/2 – Ichigo Office & Ichigo Hotel Have Completed Transition to 100% Renewable Energy RE100 Progress (as of May 31, 2024) RE100 Target: 2025 92% 59% Non-Fossil Certificate Tracking for 33% R

  34. Slide 34: Ichigo SBT (Science Based Targets) Certification

    Ichigo SBT (Science Based Targets) Certification Ichigo’s Greenhouse Gas Reduction Targets Certified as SBT Aligned SBT Certified Ichigo’s Greenhouse Gas Reduction Targets Target Target Year Direct emissions owned or controlled by a Scope 1 company 70% Reduction Indirect emissions associated with th

  35. Slide 35: 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

  36. Slide 36: 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

  37. Slide 37: 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 − 2 of 5 Directors are Independent Directors Management Company and the Ichigo

  38. Slide 38: Solar Power Plant Data

    Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 38

  39. Slide 39: Geographically Diversified Portfolio

    Geographically Diversified Portfolio (as of June 30, 2024) 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

  40. Slide 40: Power Generation (YOY)

    Power Generation (YOY) Power Generation -1.5% YOY (kWh) 5,000,000 ■ FY23/6 Actual (15 Power Plants) FY23/6 Actual: 33.02M kWh ■ FY24/6 Actual (15 Power Plants) FY24/6 Actual: 32.53M kWh (-0.49M kWh, -1.5% YOY) 4,000,000 3,000,000 2,000,000 1,000,000 0 July August September October November December

  41. Slide 41: Individual Solar Power Plant Earnings (July 2023 – June 2024)

    Individual Solar Power Plant Earnings (July 2023 – June 2024) (JPY thousand) Leaseholder Ichigo Green Power Operating Operating Operating Depreciation No. Solar Power Plant Production NOI Income Expenses Revenue Expenses Expense Revenue E-01 Ichigo Kiryu Okuzawa 66,940 20,093 46,914 2,208 44,705 30,

  42. Slide 42: FY25/6 Power Generation Forecast

    FY25/6 Power Generation Forecast FY25/6 Forecast 33.42 million kWh (FY24/6 Actual 32.53 million kWh) (kWh) 5,000,000 ■ FY24/6 Actual (15 Power Plants) FY24/6 Actual: 32.53M kWh ■ FY25/6 Forecast (15 Power Plants) FY25/6 Forecast: 33.42M kWh (+0.88M kWh, +2.7% YOY) 4,000,000 3,000,000 2,000,000 1,000

  43. Slide 43: Solar Power Plant Portfolio

    Solar Power Plant Portfolio as of June 30, 2024 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 294 323 1.33 40 4.16% E-02 Ichigo Motomombetsu

  44. Slide 44: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY24/6 Actual Power Generation: +13.8% 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 P

  45. Slide 45: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY24/6 Actual Power Generation: +9.0% 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

  46. Slide 46: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY24/6 Actual Power Generation: -5.2% 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 /

  47. Slide 47: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY24/6 Actual Power Generation: +7.7% 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

  48. Slide 48: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY24/6 Actual Power Generation: -18.2% 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 / kWh 6

  49. Slide 49: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY24/6 Actual Power Generation: +1.5% 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 36

  50. Slide 50: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY24/6 Actual Power Generation: +9.5% 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

  51. Slide 51: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY24/6 Actual Power Generation: +8.9% 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

  52. Slide 52: Appendix

    Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 52

  53. Slide 53: 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

  54. Slide 54: Shareholder Composition

    Shareholder Composition Major Shareholders (as of June 30, 2024) 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% 24,938 sh

  55. Slide 55: Share Price (Dec 1, 2016 to Jul 31, 2024)

    Share Price (Dec 1, 2016 to Jul 31, 2024) Listed on the TSE on Dec 1, 2016 (JPY) (Shares Traded) 90,000 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 spli

  56. Slide 56: 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

  57. Slide 57: 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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