Ichigo Green Infrastructure Investment Corp. · TSE:9282

Ichigo Green Infrastructure Investment — H1 FY19/6 Earnings Presentation

43 slides from Ichigo Green Infrastructure Investment's earnings presentation, Feb 14, 2019

  1. Slide 1: FY19/6 H1 Corporate Presentation

    Ichigo Green (9282) FY19/6 H1 Corporate Presentation January 13, February 14, 2017 2019 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

  2. Slide 2: Ichigo Preserves and Improves Real Estate

    Ichigo Preserves and Improves Real Estate

  3. Slide 3: World-Class Excellence

    World-Class Excellence WY ' Ichigo’s ICHIGO pe ICHIGO Hiromi Miyake

  4. Slide 4: Contents

    Contents Mission & Deliverables to Shareholders Solar Power Plant Data ‒ Solar Power Plant Map FY19/6 H1 Results ‒ Solar Power Plant Portfolio ‒ Solar Power Plant Portfolio Details ‒ Individual Solar Power Plant Earnings ‒ FY19/6 H1 Highlights (July – Dec 2018) ‒ Earnings ‒ Individual Solar Power Pl

  5. Slide 5: 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

  6. Slide 6: FY19/6 H1 Results

    FY19/6 H1 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 6

  7. Slide 7: Portfolio Details

    Solar Power Plant Portfolio Details as of December 31, 2018 No. of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT CO2 Reduction Generation JPY 38.7 22,752 Tons 10,592 Households * Annualized CO2 reduction relative to fossil fuels based on each plant’s forec

  8. Slide 8: FY19/6 H1 Highlights

    FY19/6 H1 Highlights – Western Japan Storm Response (July 2018)  No injuries or damages at Ichigo Green power plants – Hokkaido Earthquake Response (Sept 2018)  No injuries or damages at Ichigo Green power plants (seven in Hokkaido)  Plants offline for up to six days due to Hokkaido Electric grid

  9. Slide 9: Earnings

    Earnings – Net Income JPY 47M (-13% vs. Initial Forecast) due to Early Recognition of Operating Expenses – No Change to Full-Year Forecast; Annual Dividend Paid in September (Record Date: June 30) (JPY million) FY18/6 FY19/6 FY19/6 FY19/6 vs. Forecast H1 Actual H1 Forecast H1 Actual Full-Year Foreca

  10. Slide 10: Power Generation +0.4% vs. Forecast

    Power Generation +0.4% vs. Forecast FY19/6 H1 Power Generation and Power Production Revenue (15 Power Plants) (kWh) (JPY million) 5,000,000 150 138 137 Forecast Power Generation (left axis) Actual Power Generation (left axis) Power Production Revenue (right axis) 4,000,000 120 110 107 91 3,000,000 9

  11. Slide 11: Power Generation (YOY)

    Power Generation (YOY) Jul-Dec 2018 Power Generation Effectively Unchanged YOY (-1.0%) Power Generation: FY19/6 vs. FY18/6 (kWh) 5,000,000 ■ FY18/6 Actual (15 Power Plants) Jul-Dec 2017 Actual: 17.20M kWh ■ FY19/6 Actual (15 Power Plants) Jul-Dec 2018 Actual: 17.03M kWh (-0.17M kWh, -1.0% YOY) 4,000

  12. Slide 12: Power Generation by Individual Power Plant

    Power Generation by Individual Power Plant Geographically Diverse Portfolio Contributes to 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) (JP

  13. Slide 13: Financing Details

    Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of December 31, 2018 Amount Interest Rate Loan Loan Lender Fixed/Floating Borrowing Date Maturity oa (JPY million) (% ) Term Term Loan I Mizuho Bank, SMBC 5,564 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Lo

  14. Slide 14: Japan's First Ten-Year Earnings Forecast

    Japan’s First Ten-Year Earnings Forecast Ten-Year Dividend & FFO 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 7,911 7,816 7,982 8,002 8,146 8,136 8,253 8,211 DPS 2,139 4,226 3,560 3,580 3,820 3,945 4,095 4,065 3,885 3,

  15. Slide 15: Driving Shareholder Value

    Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 15

  16. Slide 16: 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

  17. Slide 17: Customized 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

  18. Slide 18: 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

  19. Slide 19: 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. 19

  20. Slide 20: Growth Strategy Leveraging Sponsor Strengths

    Growth Strategy Leveraging Sponsor Strengths © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 20

  21. Slide 21: Ichigo Green's Sponsor: Ichigo (2337)

    Ichigo Green’s Sponsor: Ichigo (2337) Core Businesses: Asset Management, Real Estate Value-Add, Clean Energy ‒ Manages Ichigo Green (9282), Ichigo Office (8975), and Ichigo Hotel (3463) ‒ TSE First Section, JPX-Nikkei 400 Member ‒ Japan’s First Zero-Carbon Listed Real Estate Company ©J.LEAGUE Hiromi

  22. Slide 22: 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 asset management capabilities Value-Add Business Model Green

  23. Slide 23: Ichigo & Ichigo Green Portfolio

    Ichigo & Ichigo Green Solar Power Plant Portfolio (as of Jan 11, 2019) Serving Local Communities and the Environment Total Operating and In-Development Chugoku Hokkaido Ichigo Solar Power Plants Ichigo Yamaguchi Aionishi 1.24MW Ichigo Motomombetsu 1.40MW Ichigo Yamaguchi Sayama 2.35MW 49 Plants (152

  24. Slide 24: Data

    Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 24

  25. Slide 25: Map

    Solar Power Plant Map (as of December 31, 2018) 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 Nak

  26. Slide 26: Portfolio

    Solar Power Plant Portfolio as of December 31, 2018 Appraisal Book Value Panel Acquisition Value 1 2 FIT 3 Portfolio No. Solar Power Plant Location (JPY Output 4 Date (JPY (JPY) Weight million) (MW) million) E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma Dec 2016 439 487 1.33 40 4.20% E-02 Ichigo Motom

  27. Slide 27: Individual Earnings (July – Dec 2018)

    Individual Solar Power Plant Earnings (July – Dec 2018) (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 30,842 8,073 22,769 2,709 20,059 14,895 5,164 E-02 Ic

  28. Slide 28: Individual Details

    Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa Forecast Power Generation Location Gunma Actual Power Generation (kWh) 200,000 Area 27,588m2 Operation 150,000 Sep 30, 2013 Start Date Panel 1.33MW Output 100,000 FIT JPY 40 50,000 FIT Period Sep 29, 2033 Power TEPCO Energy 0 Jul Aug Sep

  29. Slide 29: Individual Details

    Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira Forecast Power Generation Location Hokkaido Actual Power Generation (kWh) 200,000 Area 35,801m2 Operation 150,000 Mar 3, 2014 Start Date Panel 1.24MW Output 100,000 FIT JPY 40 50,000 FIT Period Mar 2, 2034 Power 0 Hokkaido Electric

  30. Slide 30: Individual Details

    Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi Forecast Power Generation Location Ehime Actual Power Generation (kWh) 200,000 Area 26,260m2 Operation 150,000 Apr 2, 2014 Start Date Panel 1.23MW Output 100,000 FIT JPY 40 50,000 FIT Period Apr 1, 2034 Power 0 Shikoku Electri

  31. Slide 31: Individual Details

    Individual Solar Power Plant Details E-07 Ichigo Abira Toasa Forecast Power Generation Location Hokkaido Actual Power Generation (kWh) 200,000 Area 29,730m2 Operation 150,000 Dec 2, 2014 Start Date Panel 1.16MW Output 100,000 FIT JPY 40 50,000 FIT Period Dec 1, 2034 Power 0 Hokkaido Electric Jul Aug

  32. Slide 32: Individual Details

    Individual Solar Power Plant Details E-09 Ichigo Nago Futami Forecast Power Generation Location Okinawa 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 40 300,000 FIT Period Feb 1, 2035 Power 0 Okinawa Elec

  33. Slide 33: Individual Details

    Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii Forecast Power Generation Location Kagawa Actual Power Generation (kWh) 400,000 Area 79,340m2 Operation 300,000 Jun 2, 2015 Start Date Panel 2.43MW Output 200,000 FIT JPY 36 100,000 FIT Period Jun 1, 2035 Power 0 Shikoku Ele

  34. Slide 34: Individual Details

    Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama Forecast Power Generation Location Aichi 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 FIT JPY 32 100,000 FIT Period Sep 15, 2035 50,000 Po

  35. Slide 35: Individual Details

    Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama Forecast Power Generation Location Yamaguchi Actual Power Generation (kWh) 400,000 Area 43,621m2 Operation 300,000 Apr 6, 2016 Start Date Panel 2.35MW Output 200,000 FIT JPY 36 100,000 FIT Period Apr 5, 2036 Power 0 Chugoku Electric J

  36. Slide 36: Appendix

    Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 36

  37. Slide 37: 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

  38. Slide 38: Shareholder Composition

    Shareholder Composition Major Shareholders (as of December 31, 2018) 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. 15,794 15.3% 100% 18,71

  39. Slide 39: Share Price (Dec 1, 2016 to Jan 31, 2019)

    Share Price (Dec 1, 2016 to Jan 31, 2019) Two-for-one stock split on January 1, 2018 (JPY) (Shares Traded) 90,000 18,000 Ichigo Green TSE REIT Index Trading Volume (left axis) (left axis) (right axis) 80,000 16,000 70,000 14,000 Final trading date for settlement before the two-for-one stock split De

  40. Slide 40: 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

  41. Slide 41: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 41

  42. Slide 42: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 42

  43. Slide 43: Contact: Ichigo Green IR Desk (9282)

    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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