Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — FY2020 Earnings Presentation
52 slides from Ichigo Green Infrastructure Investment's earnings presentation, Aug 11, 2020
Slide 1: FY20/6 Corporate Presentation
Ichigo Green (9282) FY20/6 Corporate Presentation January 13,2020 August 11, 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 for Covid-19 and heavy rainfalls
We would like to express our deepest condolences to all those across the world affected by the Covid-19 pandemic and to all those in Japan affected by the recent heavy rainfalls, and our wishes for the earliest possible recovery. © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Inv
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 and J.League
Ichi ICHIGO OG JLEAGUE gO
Slide 6: Contents
Contents Mission & Deliverables to Shareholders Ichigo’s Commitment to ESG ‒ Ichigo Sustainability Policy FY20/6 Results ‒ Ichigo ESG – Environmental ‒ Solar Power Plant Portfolio Details ‒ Ichigo ESG – Social ‒ FY20/6 Highlights ‒ Ichigo ESG – Governance ‒ FY20/6 Earnings ‒ FY20/6 Events – Robust P
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: FY20/6 Results
FY20/6 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, 2020 No. of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT CO2 Reduction Generation JPY 38.7 22,520 Tons 11,374 Households * Annualized CO2 reduction relative to fossil fuels based on each plant’s forecast
Slide 10: FY20/6 Highlights
FY20/6 Highlights Achievements Drivers • Despite typhoons and some days offline due to EPCO purchase Power 34.31M kWh suspensions, geographically diverse power plant portfolio Generation (+0.1% vs. initial forecast) delivers robust power generation stability Operating JPY 1,089M • +0.4% vs. initial
Slide 11: FY20/6 Earnings
FY20/6 Earnings – Net Income JPY 165M (+14.8% vs. Full-Year Forecast) – Dividend: JPY 3,802 (+6.2% vs. Full-Year Forecast) (JPY million) FY19/6 FY20/6 FY20/6 vs. Forecast vs. Forecast Actual Forecast (A) Actual (B) (B)-(A) Operating Revenue 1,118 1,085 1,089 100.4% +4 Operating Expenses 836 844 831
Slide 12: FY20/6 Events – Robust Power Generation Infrastructure
FY20/6 Events – Robust Power Generation Infrastructure Stable Power Generation Due to Geographically Diverse Portfolio Despite Natural Disasters and EPCO Purchase Suspension − Natural Disasters Typhoon Faxai (Sep 2019) No injuries or material damages at Ichigo Green power plants despite typhoon la
Slide 13: Power Generation +0.1% vs. Forecast
Power Generation +0.1% vs. Forecast FY20/6 Power Generation and Power Production Revenue (kWh) (JPY million) 5,000,000 150 Forecast Power Generation (left axis) Actual Power Generation (left axis) Power Production Revenue (right axis) 132 131 120 122 121 119 4,000,000 120 112 114 93 91 3,000,000 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 thou
Slide 15: Financing Details
Financing Details Have Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of June 30, 2020 Amount Interest Rate Loan Loan Lender Fixed/Floating Borrowing Date Maturity (JPY million) (% ) Term Term Loan I Mizuho Bank, SMBC 5,094 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan
Slide 16: FY21/6 Forecast
FY21/6 Forecast Forecast Dividend JPY 3,820 (JPY million) FY19/6 FY20/6 FY20/6 FY21/6 Actual Forecast Actual Forecast Operating Revenue 1,118 1,085 1,089 1,078 Operating Expenses 836 844 831 826 (Depreciation) 636 638 636 640 Operating Profit 282 240 257 252 Recurring Profit 174 145 167 170 Net Inco
Slide 17: 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 (55,000 shareholders total) − First company t
Slide 18: Driving Shareholder Value
Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 18
Slide 19: Japan's First Ten-Year Earnings Forecast
Japan’s First Ten-Year Earnings Forecast Ten-Year Dividend & FFO Forecast (Includes 2017 – 2020 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 8,197 8,001 7,982 8,002 8,146 8,136 8,253 8,211 DPS 2,139 4,226 3,865 3,802 3
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 Live Feed Ichigo Green HP www.ichigo-green.co.jp/en © 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 First Section, JPX-Nikkei 400 Member ‒ Deeply committed to CSR and Sustainability ‒ Japan’
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 Hokkaido Serving Local Communities and the Environment Ichigo Motomombetsu Ichigo Engaru Higashimachi 1.40MW 1.24MW Chugoku Total Operating and In-Development Ichigo Yamaguchi Aionishi 1.24MW Ichigo Engaru Kiyokawa 1.12MW Ichigo Power Plants Ichigo Y
Slide 28: Ichigo's Commitment to ESG
Ichigo’s Commitment to 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: Ichigo ESG – Environmental
Ichigo ESG – Environmental Solar and Wind Energy: Safe and Clean Sustainable Real Estate Annual Power Generation Annual CO2 Reduction Preserve & Enhance Existing Buildings 158,586,005 kWh 104,666,758 kg to End Wasteful Demolish & Rebuild ‒ Lengthen useful life of existing real estate Equivalent to a
Slide 31: Ichigo ESG – Social
Ichigo ESG – Social Children’s Cancer Sports Arts Treatment Support National & Paralym Art Sponsor Support University of Miyazaki World-Class Athletes - Support artists with Faculty of Medicine’s Program ‒ Weightlifting disabilities for Children ‒ Riflery ‒ Ichigo subsidiary Miyako City ‒ Track & Fi
Slide 32: Ichigo ESG – Governance
Ichigo ESG – Governance Ichigo Green Asset Management Company Monitors Asset Management Company Global Best Practice Governance − All Ichigo Green Directors are Independent − Majority of AMC Directors (3 of 5) are Directors Independent Directors − Active discussion and effective internal − Independe
Slide 33: Solar Power Plant Data
Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 33
Slide 34: Solar Power Plant Map
Solar Power Plant Map (as of June 30, 2020) 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
Slide 35: Power Generation (YOY)
Power Generation (YOY) Power Generation -2.5% YOY Power Generation: FY20/6 vs. FY19/6 (kWh) 5,000,000 FY19/6 Actual (15 Power Plants) FY19/6 Actual: 35.21M kWh FY20/6 Actual (15 Power Plants) FY20/6 Actual: 34.31M kWh (-0.89M kWh, -2.5% YOY) 4,000,000 3,000,000 2,000,000 1,000,000 0 July 2019 August
Slide 36: Individual Solar Power Plant Earnings (July 2019 – June 2020)
Individual Solar Power Plant Earnings (July 2019 – June 2020) (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 63,166 11,985 51,181 4,218 46,962 29,795 17,167
Slide 37: FY21/6 Forecast Power Generation
FY21/6 Forecast Power Generation FY21/6 Forecast 34.12 million kWh (FY20/6 Actual 34.31 million kWh) FY20/6 Actual Power Generation and FY21/6 Forecast Power Production (15 Power Plants) (kWh) 5,000,000 FY20/6 Actual (15 Power Plants) FY20/6 Actual: 34.31M kWh FY21/6 Forecast (15 Power Plants) FY21/
Slide 38: Solar Power Plant Portfolio
Solar Power Plant Portfolio as of June 30, 2020 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 394 440 1.33 40 4.15% E-02 Ichigo Motomombe
Slide 39: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY20/6 Actual Power Generation: +4.6% vs. Forecast Location Gunma Forecast Power Generation 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 P
Slide 40: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY20/6 Actual Power Generation: +3.9% vs. Forecast Location Hokkaido Forecast Power Generation 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 50,0
Slide 41: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY20/6 Actual Power Generation: -7.6% vs. Forecast Location Ehime Forecast Power Generation Actual Power Generation (kWh) 200,000 Area 26,261m2 Operation Apr 2, 2014 150,000 Start Date Panel 1.23MW Output 100,000 FIT JPY 40 50
Slide 42: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY20/6 Actual Power Generation: +4.3% vs. Forecast Location Hokkaido Forecast Power Generation Actual Power Generation (kWh) 200,000 Area 29,731m2 Operation Dec 2, 2014 150,000 Start Date Panel 1.16MW Output 100,000 FIT JPY 40 50,000 FIT P
Slide 43: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY20/6 Actual Power Generation: -2.8% vs. Forecast Location Okinawa Forecast Power Generation 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
Slide 44: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY20/6 Actual Power Generation: +0.6% vs. Forecast Location Kagawa Forecast Power Generation 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
Slide 45: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY20/6 Actual Power Generation: +5.1% vs. Forecast Location Aichi Forecast Power Generation 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 F
Slide 46: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY20/6 Actual Power Generation: +9.0% vs. Forecast Location Yamaguchi Forecast Power Generation 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 36 100,00
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 sale price for electricity (in Japan, 20 years) at a fixed price. ‒ Japan’s FIT is updated every year. Solar Power FI
Slide 49: Shareholder Composition
Shareholder Composition Major Shareholders (as of June 30, 2020) 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. 15,973 15.5% 100% 25,866 sh
Slide 50: Share Price (Dec 1, 2016 to June 30, 2020)
Share Price (Dec 1, 2016 to June 30, 2020) 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 15,000 Final trading date for settlement before the two-for
Slide 51: 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
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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