Ichigo Green Infrastructure Investment Corp. · TSE:9282

Ichigo Green Infrastructure Investment — FY2017 Earnings Presentation

43 slides from Ichigo Green Infrastructure Investment's earnings presentation, Aug 9, 2017

  1. Slide 1: FY17/6 Corporate Presentation

    Ichigo Green (9282) FY17/6 Corporate Presentation January August 13, 2017 9, 2017 Ichigo Green Infrastructure Investment Corporation Ichigo Investment Advisors Co., Ltd. © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. www.ichigo-gre

  2. Slide 2: Ichigo Preserves and Improves Real Estate

    Ichigo Preserves and Improves Real Estate © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.

  3. Slide 3: © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights

    © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.

  4. Slide 4: Contents

    Contents Ichigo Green Overview Growth Strategy Leveraging ‒ Mission & Deliverables to Shareholders Ichigo’s Strengths ‒ Solar Power Plant Portfolio Details ‒ Ichigo Green’s Sponsor: Ichigo (2337) ‒ Solar Power Plant Map ‒ Synergies Between Ichigo Green and Ichigo ‒ Ichigo & Ichigo Green Solar Power

  5. Slide 5: Ichigo Green Overview

    Ichigo Green Overview © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 5

  6. 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 No. of Shares

  7. Slide 7: Solar Power Plant Portfolio Details

    Solar Power Plant Portfolio Details As of August 9, 2017 No. of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT CO2 Reduction Generation JPY 38.7 22,850 Tons 10,638 Households * Annualized CO2 reduction relative to fossil fuels based on each plant’s forecast

  8. Slide 8: Solar Power Plant Map

    Solar Power Plant Map Geographically Diversified 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 1.24MW 1.9

  9. Slide 9: FY17/6 Results

    FY17/6 Results © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 9

  10. Slide 10: FY17/6 Highlights

    FY17/6 Highlights Achievements Details • TSE Listing on Dec. 1, 2016 • Shares outstanding: 51,483 shares • Geographically diverse portfolio • Acquired 13 solar plants (JPY 10B) • Swaps on 10-year loans lock-in low interest rates • Financed with new loans • Ten-year earnings forecast possible due to

  11. Slide 11: FY17/6 Earnings

    FY17/6 Earnings Above-Forecast Power Generation Drove Higher Earnings & Dividend JPY 1,738 DPS (+JPY 618, +55.2% vs. Forecast) (JPY million) FY17/6 (7 Months) FY17/6 (7 Months) Difference vs. Forecast (May 26, 2017 Forecast) (Actual) Operating Revenue 545 566 +21 103.9% Operating Expenses 418 407 -1

  12. Slide 12: Solar Power Generation

    Solar Power Generation +2% vs. Forecast FY17/6 Power Generation and Power Production Revenue (13 Power Plants) (kWh) (JPY million) 5,000,000 150 Forecast Power Generation Actual Power Generaiton 124 Power Production Revenue 117 4,000,000 120 112 110 (Reference) TSE IPO (Dec 1, 2016) 3,000,000 90 80

  13. Slide 13: Power Generation by Individual Power Plant

    Power Generation by Individual Power Plant Geographically Diverse Portfolio Contributes to Earnings Stability Forecast Power Actual Power Difference Actual Power Operating Solar Power Plant Generation (A) Generation (B) (B) - (A) Production Revenue Revenue (kWh) (kWh) (kWh) (JPY thousand) (JPY thous

  14. Slide 14: Loan Details

    Loan Details − Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps − Short-Term Financing of Consumption Tax Receivable As of August 9, 2017 Amount Interest Rate Loan Lender Fixed / Floating Borrowing Date Maturity Loan Term (JPY million) (%) Consumption Mizuho Bank 760 0.230 Floating De

  15. Slide 15: July 2017 Acquisitions Drive Further Earnings Growth

    July 2017 Acquisitions Drive Further Earnings Growth Further Diversify Portfolio by Adding Plants in Japan’s Chugoku Region  Ichigo Yamaguchi Aionishi ECO Power Plant (Yamaguchi Prefecture) — Panel Output: 1.24MW, FIT: JPY 40  Ichigo Yamaguchi Sayama ECO Power Plant (Yamaguchi Prefecture) — Panel

  16. Slide 16: FY18/6 Earnings Forecast

    FY18/6 Earnings Forecast +24.8% Net Income Growth vs. Initial Forecast due to 2 Accretive Power Plant Acquisitions (JPY million) FY18/6 (12 Months) FY18/6 (12 Months) FY17/6 (7 Months) Difference (Initial Forecast) (Revised Forecast) Change (Actual) (B) - (A) (A) (B) Operating Revenue 566 963 1,095

  17. Slide 17: FY18/6 Power Generation Forecast

    FY18/6 Power Generation Forecast − 15 Solar Power Plants − Forecast (P50): +1.66 million kWh YOY 5,000,000 FY17/6 Actual Power Generation (13 Power Plants) FY17/6 Actual: 32.95 million kWh FY18/6 FY18/6 Forecast: 34.62 million kWh (+1.66 million kWh YOY) Forecast Power Generation (15 Power Plants) 4

  18. Slide 18: Maximize Shareholder Value

    Maximize Shareholder Value © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 18

  19. Slide 19: Ichigo Power Plant Performance Guarantee

    Ichigo 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) from Ichi

  20. Slide 20: Customized Solar Power Plant Builds

    Customized Solar Power Plant Builds Optimized to Local Meteorologies 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 fit to

  21. Slide 21: Fully-Networked Panel-Level Production Monitoring

    Fully-Networked Panel-Level Production Monitoring Real-Time Monitoring System Immediately Detects Any Failures at the Panel Level Inverter Comprehensive Monitoring System Schematic Comprehensive Monitoring System Monitoring & Analysis • Real‐time monitoring • Immediate response capability • Real‐tim

  22. Slide 22: Japan's First Ten-Year Earnings Forecast

    Japan’s First Ten-Year Earnings Forecast Long-Term Earnings Stability Enables 10-Year Earnings Forecast ‒ Fixed 20-year FIT power sales contracts ‒ Power plant base performance guaranteed by operator ‒ Accelerated depreciation expenses reduce accounting-based EPS – cash earnings much higher, with FF

  23. 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 Camera Video Feeds Live Camera Ichigo Green HP www.ichigo-green.co.jp/en/ © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 23

  24. Slide 24: Growth Strategy Leveraging Sponsor Strengths

    Growth Strategy Leveraging Sponsor Strengths © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 24

  25. Slide 25: 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, Ichigo Office REIT (8975) ,and Ichigo Hotel REIT (3463) ‒ TSE First Section, JPX-Nikkei 400 Member ‒ Deeply committed to CSR and Sustainability – Japan’s first zero-ca

  26. 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 asset management capabilities Ichigo’s Value-Add Business Mod

  27. Slide 27: Ichigo & Ichigo Green Solar Power Plant Portfolio

    Ichigo & Ichigo Green Solar Power Plant Portfolio (As of August 9, 2017) Serving Local Communities and the Environment Ichigo Engaru Higashimachi (1.24MW) Total Operating and In-Development Ichigo Motomombetsu (1.40MW) Ichigo Engaru Kiyokawa Ichigo & Ichigo Green Solar Power Plants (1.12MW) 43 Plant

  28. Slide 28: Solar Power Plant Data

    Solar Power Plant Data © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 28

  29. Slide 29: Solar Power Plant Portfolio

    Solar Power Plant Portfolio 2 Panel 4 Portfolio 1 Appraisal Value 3 FIT 5 No. Solar Power Plant Location Book Value Output Weight (JPY million) (JPY) (MW) (%) E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma 483 508 1.33 40 4.25 E-02 Ichigo Motomombetsu Mombetsu City, Hokkaido 490 513 1.40 40 4.31 E-03 I

  30. Slide 30: Individual Solar Power Plant Details

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

  31. Slide 31: Individual Solar Power Plant Details

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

  32. Slide 32: Individual Solar Power Plant Details

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

  33. Slide 33: Individual Solar Power Plant Details

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

  34. Slide 34: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-09 Ichigo Nago Futami Location Okinawa Forecast Power Generation Actual Power Generation (kWh) Area 146,294m2 1,000,000 Operation 800,000 Feb 2, 2015 Start Date Panel Output 8.44MW 600,000 FIT JPY 40 400,000 FIT Period Feb 1, 2035 200,000 Power Okinawa Electric

  35. Slide 35: Individual Solar Power Plant Details

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

  36. Slide 36: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama Location Aichi Forecast Power Generation Actual Power Generation (kWh) Area 19,393m2 300,000 Operation Sep 16, 2015 Start Date 200,000 Panel Output 1.80MW FIT JPY 32 100,000 FIT Period Sep 15, 2035 Power Chubu Electric 0 Pu

  37. Slide 37: Appendix

    Appendix © 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 37

  38. Slide 38: 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. FIT FIT Contra

  39. Slide 39: Shareholder Composition

    Shareholder Composition Major Shareholders (as of June 30, 2017) Shareholdings by Shareholder Type No. of Name Share Shares Held 1 Ichigo Trust Pte. Ltd. 7,897 15.3% Foreign Corporations & Individuals 14,004 2 Ichigo Inc. 3,000 5.8% Domestic Individuals Other Domestic 29,731 3 MACQUARIE BANK LIMITED

  40. Slide 40: Share Price (December 1, 2016 to August 7, 2017)

    Share Price（December 1, 2016 to August 7, 2017） TSE IPO on December 1, 2016 (JPY) (Trade Volume, Shares) 110,000 10,000 Ichigo Green TSE REIT Index Trade Volume Share Price (Left Axis) (Right Axis) (Left Axis) 100,000 7,500 90,000 5,000 80,000 2,500 70,000 0 © 2017 Ichigo Investment Advisors Co., Lt

  41. Slide 41: Ichigo Green Schedule

    Ichigo Green Schedule July to June fiscal year 12-month fiscal period smooths significant seasonal variability in power generation and earnings that would occur in two 6-month fiscal periods Fiscal Year-End 2016 2017 TSE IPO on Dec Jan Feb Mar Apr May Jun Jul Aug Sep December 1, 2016 FY17/6 （Dec 201

  42. Slide 42: Ichigo Green Overview

    Ichigo Green Overview Ichigo Green 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) Note: FY17/6 ran from October 2016 to Ju

  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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