Ichigo Green Infrastructure Investment Corp. · TSE:9282

Ichigo Green Infrastructure Investment — H1 FY2020/6 Earnings Presentation

51 slides from Ichigo Green Infrastructure Investment's earnings presentation, Feb 13, 2020

  1. Slide 1: FY20/6 H1 Corporate Presentation

    Ichigo Green (9282) FY20/6 H1 Corporate Presentation January 13, February 13, 2017 2020 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: Make The World More Sustainable

    Make The World More Sustainable

  3. Slide 3: World-Class Excellence

    World-Class Excellence “= Ichigo ICHIGO

  4. Slide 4: ICHIGO

    WY ICHIGO

  5. Slide 5: Contents

    Contents Mission & Deliverables to Shareholders Ichigo’s Commitment to ESG ‒ Ichigo Sustainability Policy FY20/6 H1 Results ‒ Ichigo ESG – Environmental ‒ Solar Power Plant Portfolio Details ‒ Ichigo ESG – Social ‒ FY20/6 H1 Events – Robust Power Generation Infrastructure ‒ Ichigo ESG – Governance ‒

  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 Ichigo Green’s

  7. Slide 7: FY20/6 H1 Results

    FY20/6 H1 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 7

  8. Slide 8: Solar Power Plant Portfolio Details

    Solar Power Plant Portfolio Details as of December 31, 2019 No. of Power Plants Acquisition Price Panel Output 15 JPY 11.4B 29.43MW Annual Power Average FIT CO2 Reduction Generation JPY 38.7 22,636 Tons 11,432 Households * Annualized CO2 reduction relative to fossil fuels based on each plant’s forec

  9. Slide 9: FY20/6 H1 Events – Robust Power Generation Infrastructure

    FY20/6 H1 Events – Robust Power Generation Infrastructure Typhoon Faxai (aka Typhoon No. 15) (Sep 2019) − No injuries or material damages at Ichigo Green power plants despite powerful typhoon landfall in the Kanto region Typhoon Hagibis (aka Typhoon No. 19) (Oct 2019) − No injuries or material damag

  10. Slide 10: FY20/6 H1 Earnings

    FY20/6 H1 Earnings – Operating Revenue -2.3% (-JPY 520M) vs. Full-Year Forecast due to adverse weather in July and August – No change in full-year forecast and annual dividend (JPY million) FY19/6 FY20/6 FY20/6 FY20/6 vs. Forecast H1 Actual H1 Forecast H1 Actual Full-Year Forecast Operating Revenue

  11. Slide 11: Power Generation -1.5% vs. Forecast

    Power Generation -1.5% vs. Forecast FY20/6 H1 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) 120 122 4,000,000 112 120 114 93 3,000,000 90 72 2,000,000 60

  12. Slide 12: Power Generation (YOY)

    Power Generation (YOY) Jul – Dec 2019 Power Generation -2.4% YOY Power Generation: FY20/6 vs. FY19/6 (kWh) 5,000,000 FY19/6 Actual (15 Power Plants) Jul-Dec 2018 Actual: 17.03M kWh FY20/6 Actual (15 Power Plants) Jul-Dec 2019 Actual: 16.62M kWh (-0.41M kWh, -2.4% YOY) 4,000,000 3,000,000 2,000,000 1

  13. Slide 13: 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

  14. Slide 14: Financing Details

    Financing Details Have Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of December 31, 2019 Amount Interest Rate Loan Loan Lender Fixed/Floating Borrowing Date Maturity (JPY million) (% ) Term Term Loan I Mizuho Bank, SMBC 5,230 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term

  15. Slide 15: Launch of Ichigo J.League Shareholder Program

    Launch of Ichigo J.League Shareholder Program Represents Two Firsts for a Shareholder Program in Japan − Ichigo is the 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 − Ichigo is the first

  16. Slide 16: Driving Shareholder Value

    Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 16

  17. Slide 17: Japan’s First Ten-Year Earnings Forecast

    Japan’s First Ten-Year Earnings Forecast Ten-Year Dividend & FFO Forecast (Includes 2017 – 2019 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 7,816 7,982 8,002 8,146 8,136 8,253 8,211 DPS 2,139 4,226 3,865 3,580 3

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: 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. 21

  22. Slide 22: Growth Strategy Leveraging Ichigo Strengths

    Growth Strategy Leveraging Ichigo Strengths © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 22

  23. Slide 23: Ichigo Green’s Sponsor: Ichigo (2337)

    Ichigo Green’s Sponsor: Ichigo (2337) 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’s first zero-car

  24. Slide 24: 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

  25. Slide 25: 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 Ichigo Engaru Higashimachi 1.24MW Total Operating and In-Development Chugoku Ichigo Engaru Kiyokawa 1.12MW Ichigo Power Plants Ichigo Yamaguchi Aionishi 1.24MW Ichigo Y

  26. Slide 26: Ichigo’s Commitment to ESG

    Ichigo’s Commitment to ESG © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 26

  27. Slide 27: 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

  28. Slide 28: 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 141,699,548 kWh 93,521,697 kg to End Wasteful Demolish & Rebuild ‒ Lengthen useful life of existing real estate Equivalent to an

  29. Slide 29: Ichigo ESG – Social

    Ichigo ESG – Social Sports & Arts Children’s Cancer Treatment Supporting Outstanding, Supporting University of Miyazaki World-Class Athletes Faculty of Medicine’s Program for ‒ Weightlifting Children with Cancer ‒ Riflery ‒ Issued CSR bond & donated a portion of ‒ Track & Field underwriter commissio

  30. Slide 30: 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

  31. Slide 31: Solar Power Plant Data

    Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 31

  32. Slide 32: Solar Power Plant Map

    Solar Power Plant Map (as of December 31, 2019) 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

  33. Slide 33: Solar Power Plant Portfolio

    Solar Power Plant Portfolio as of December 31, 2019 Appraisal Book Value Panel Acquisition Value 1 FIT 3 Portfolio No. Solar Power Plant Location (JPY Output2 Date (JPY (JPY) Weight4 million) (MW) million) E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma Dec 2016 409 478 1.33 40 4.17% E-02 Ichigo Motomom

  34. Slide 34: Individual Solar Power Plant Earnings (July – December 2019)

    Individual Solar Power Plant Earnings (July – December 2019) (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 27,216 5,772 21,443 2,287 19,156 14,897 4,258 E-

  35. Slide 35: Individual Solar Power Plant 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 Sep 30, 2013 150,000 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

  36. Slide 36: Individual Solar Power Plant 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 Mar 3, 2014 150,000 Start Date Panel 1.24MW Output 100,000 FIT JPY 40 50,000 FIT Period Mar 2, 2034 Power 0 Hokkaido Electric

  37. Slide 37: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi Forecast Power Generation Location Ehime Actual Power Generation (kWh) 200,000 Area 26,261m2 Operation Apr 2, 2014 150,000 Start Date Panel 1.23MW Output 100,000 FIT JPY 40 50,000 FIT Period Apr 1, 2034 Power 0 Shikoku Electri

  38. Slide 38: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-07 Ichigo Abira Toasa Forecast Power Generation Location Hokkaido 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 Period Dec 1, 2034 Power 0 Hokkaido Electric Jul Aug

  39. Slide 39: Individual Solar Power Plant 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

  40. Slide 40: Individual Solar Power Plant 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 Jun 2, 2015 300,000 Start Date Panel 2.43MW Output 200,000 FIT JPY 36 100,000 FIT Period Jun 1, 2035 Power 0 Shikoku Ele

  41. Slide 41: Individual Solar Power Plant 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

  42. Slide 42: Individual Solar Power Plant 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 Apr 6, 2016 300,000 Start Date Panel 2.35MW Output 200,000 FIT JPY 36 100,000 FIT Period Apr 5, 2036 Power 0 Chugoku Electric J

  43. Slide 43: Appendix

    Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 43

  44. Slide 44: 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

  45. Slide 45: Shareholder Composition

    Shareholder Composition Major Shareholders (as of December 31, 2019) 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% 33,33

  46. Slide 46: Share Price (Dec 1, 2016 to January 31, 2020)

    Share Price (Dec 1, 2016 to January 31, 2020) Listed on the TSE on Dec 1, 2016 (JPY) (Shares Traded) 90,000 18,000 Ichigo Green TSE REIT Index Trading Volume (left axis) (left axis) (right axis) 80,000 15,000 Final trading date for settlement before the two-for-one stock split Dec 26, 2017 70,000 12

  47. Slide 47: 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

  48. Slide 48: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 48

  49. Slide 49: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 49

  50. Slide 50: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 50

  51. Slide 51: 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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