Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — FY23/6 Earnings Presentation
55 slides from Ichigo Green Infrastructure Investment's earnings presentation, Aug 10, 2023
Slide 1: FY23/6 Corporate Presentation
Ichigo Green (9282) FY23/6 Corporate Presentation January 13,2023 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: Make The World More Sustainable
Make The World More Sustainable
Slide 3: World-Class Excellence
World-Class Excellence “= Ichigo ICHIGO
Slide 4: Me aap
Me aap Poff
Slide 5: Contents
Contents Mission & Deliverables to Shareholders Ichigo’s Sustainability Commitment (ESG) ‒ Ichigo Sustainability Policy FY23/6 Results ‒ Ichigo Climate Positive: CO2 Reduction vs. ‒ Solar Power Plant Portfolio Details Emissions ‒ Progress on Ten-Year Earnings Forecast ‒ Renewable Energy Transition T
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
Slide 7: FY23/6 Results
FY23/6 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 June 30, 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 production
Slide 9: 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 10: FY23/6 Highlights
FY23/6 Highlights Achievements Details • Limited impact from lower-than-forecast power generation at Power 33.02M kWh Nago Futami and Miyakonojo Yasuhisacho due to geographic Generation (-2.2% vs. forecast) diversification • -1.6% vs. forecast Operating JPY 1,048M • Limited impact from power generat
Slide 11: FY23/6 Earnings
FY23/6 Earnings – Lower-Than-Forecast Total Power Generation Due to Differences in Power Generation by Region – Dividend in Line With Forecast Using Cash From Depreciation (JPY million) FY23/6 Forecast FY23/6 Actual vs. Forecast FY22/6 Actual vs. Forecast (A) (B) (B) - (A) Operating Revenue 1,083 1,
Slide 12: FY23/6 Events
FY23/6 Events – Lower-Than-Forecast Portfolio Power Generation (-2.2% vs. Forecast) Factor Analysis Inclement weather – Impact from inclement weather varies each fiscal year, cumulative power generation since listing exceeds forecasts Power suspensions – Increase in areas subject to power suspen
Slide 13: FY23/6 Power Suspensions
FY23/6 Power Suspensions Installing Online Grid Control Systems to Limit Lost Power Generation During Power Suspensions − Installed in Shikoku (Iyo/Takamatsu) in Dec 2022 & Chubu (Toyokawa) in July 2023; Installed in 4 (6 plants) out of 7 regions (15 plants) − Contributing to the reduction in power
Slide 14: Ichigo Nago Futami ECO Power Plant Panel Failure
Ichigo Nago Futami ECO Power Plant Panel Failure Confirmed Failure of Half of Panels − Plant uses panels made by 2 manufacturers (Toshiba 47%, Yingli 53%); Failure in Yingli panels − Conducted negotiations with manufacturer regarding panel guarantee, and agreed to cash reimbursement instead of panel
Slide 15: Power Generation -2.2% vs. Forecast
Power Generation -2.2% vs. Forecast FY23/6 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) 128 129 125 119 4,000,000 120 112 109 109 115 3,000,000 90 82 79
Slide 16: 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 1,525,433 1,583,339 +57,907 61,
Slide 17: Financing Details
Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of June 30, 2023 Interest Amount Fixed/ Loan Loan Lender Rate Borrowing Date Maturity (JPY million) Floating Term (%) Term Loan I Mizuho Bank, SMBC 4,049 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan II M
Slide 18: FY24/6 Forecast
FY24/6 Forecast Forecast Dividend JPY 4,065 (-0.7% vs. FY23/6 Actual) (JPY million) FY22/6 FY23/6 FY23/6 FY24/6 Actual Forecast Actual Forecast Operating Revenue 1,083 1,065 1,048 1,059 Operating Expenses 807 805 794 805 (Depreciation) 637 641 638 643 Operating Profit 276 260 254 253 Recurring Profi
Slide 19: 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 (76,000 shareholders total) − Fi
Slide 20: Driving Shareholder Value
Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 20
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
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
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
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
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
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
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
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 Total Operating and In-Development Chugoku Ichigo Engaru Higashimachi 1.24MW Ichigo Power Plants Ichigo Yamaguchi Aionishi 1.24MW Ichigo Engaru Kiyokawa 1.12MW 64 Plant
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
Slide 30: 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 31: 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 32: Renewable Energy Transition Towards a Sustainable Society
Renewable Energy Transition Towards a Sustainable Society Ichigo RE100 Progress (as of FY24/2 Q1) 100% FY24/2 Renewable Energy Transition Impact RE100 Target: 2025 85% CO2 Reduction 35,000 tons p.a. FY24/2 Target Renewable CO2 Emissions Energy of Cars Switch 71% 49% × 15,200 cars p.a. 22% Non-Fossil
Slide 33: 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 34: 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 35: 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 36: Solar Power Plant Data
Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 36
Slide 37: Geographically Diversified Portfolio
Geographically Diversified Portfolio (as of June 30, 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 1.23MW
Slide 38: Power Generation (YOY)
Power Generation (YOY) Power Generation -3.1% YOY (kWh) 5,000,000 ■ FY22/6 Actual (15 Power Plants) FY22/6 Actual: 34.09M kWh ■ FY23/6 Actual (15 Power Plants) FY23/6 Actual: 33.02M kWh (-1.06M kWh, -3.1% YOY) 4,000,000 3,000,000 2,000,000 1,000,000 0 July 2022 August September October November Dece
Slide 39: Individual Solar Power Plant Earnings (July 2022 – June 2023)
Individual Solar Power Plant Earnings (July 2022 – June 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 61,203 15,969 45,233 2,556 42,677 29,806 12,870
Slide 40: FY24/6 Power Generation Forecast
FY24/6 Power Generation Forecast FY24/6 Forecast 33.59 million kWh (FY23/6 Actual 33.02 million kWh) (kWh) 5,000,000 ■ FY23/6 Actual (15 Power Plants) FY23/6 Actual: 33.02M kWh ■ FY24/6 Forecast (15 Power Plants) FY24/6 Forecast: 33.59M kWh (+0.56M kWh, +1.7% YOY) 4,000,000 3,000,000 2,000,000 1,000
Slide 41: Solar Power Plant Portfolio
Solar Power Plant Portfolio as of June 30, 2023 Book Appraisal 1 Panel 3 Acquisition Value Value 2 FIT Portfolio No. Solar Power Plant Location Output 4 Date (JPY (JPY (JPY) Weight (MW) million) million) E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma Dec 2016 306 359 1.33 40 4.02% E-02 Ichigo Motomombe
Slide 42: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY23/6 Actual Power Generation: +3.8% 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 Pe
Slide 43: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY23/6 Actual Power Generation: +4.8% 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 44: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY23/6 Actual Power Generation: -2.5% 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 45: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY23/6 Actual Power Generation: +4.9% 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 46: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY23/6 Actual Power Generation: -13.7% 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 47: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY23/6 Actual Power Generation: +0.4% 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 48: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY23/6 Actual Power Generation: +3.2% 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 49: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY23/6 Actual Power Generation: +9.8% 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 50: Appendix
Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 50
Slide 51: 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. Solar Power FIT Wind Powe
Slide 52: Shareholder Composition
Shareholder Composition Major Shareholders (as of June 30, 2023) 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% 25,404 sh
Slide 53: Share Price (Dec 1, 2016 to Jul 31, 2023)
Share Price (Dec 1, 2016 to Jul 31, 2023) 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
Slide 54: 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 55: 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 — FY23/6 Earnings Presentation on 6ix