Ichigo Green Infrastructure Investment Corp. · TSE:9282

Ichigo Green Infrastructure Investment — FY2021 Earnings Presentation

53 slides from Ichigo Green Infrastructure Investment's earnings presentation, Aug 13, 2021

  1. Slide 1: FY21/6 Corporate Presentation

    Ichigo Green (9282) FY21/6 Corporate Presentation January 13,2021 August 13, 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

  2. Slide 2: Condolences message on Covid pandemic

    We would like to express our deepest condolences to all those across the world affected by the Covid pandemic, and our wishes for the earliest and fullest possible recovery. Take care, be safe. © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reser

  3. Slide 3: Make The World More Sustainable

    Make The World More Sustainable

  4. Slide 4: World-Class Excellence

    World-Class Excellence “= Ichigo ICHIGO

  5. Slide 5: J.League Top Partner

    @J,LEAGUE League Top Partner TOP PARTNER ™ © . ” \e) 5) om oO \ ry i AB NIN

  6. Slide 6: Contents

    Contents Mission & Deliverables to Shareholders Ichigo’s Commitment to ESG ‒ Ichigo Sustainability Policy FY21/6 Results ‒ Ichigo ESG – Environmental ‒ Solar Power Plant Portfolio Details ‒ Ichigo ESG – Social ‒ FY21/6 Highlights ‒ Ichigo ESG – Governance ‒ FY21/6 Earnings ‒ FY21/6 Events – Robust P

  7. 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

  8. Slide 8: FY21/6 Results

    FY21/6 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 8

  9. Slide 9: Solar Power Plant Portfolio Details

    Solar Power Plant Portfolio Details as of June 30, 2021 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 22,405 Tons 11,316 Households * Annualized CO2 reduction relative to fossil-fuel-based power production

  10. Slide 10: FY21/6 Highlights

    FY21/6 Highlights Achievements Details • Lower-than-forecast power generation at Ichigo Nago Futami Power 33.76M kWh and Ichigo Miyakonojo Yasuhisacho ECO Power Plants due to Generation (-1.1% vs. forecast) adverse weather conditions and EPCO power suspension Operating JPY 1,074M • -0.4% vs. forecas

  11. Slide 11: FY21/6 Earnings

    FY21/6 Earnings – Operating Revenue: JPY 1,074M (-0.4% vs. Full-Year Forecast Due to Adverse Weather) – Net Income: JPY 177M (+5.1% vs. Full-Year Forecast Due to Cost Optimization) (JPY million) FY20/6 FY21/6 FY21/6 vs. Forecast vs. Forecast Actual Forecast (A) Actual (B) (B) - (A) Operating Revenue

  12. Slide 12: FY21/6 Events – Robust Power Generation Infrastructure

    FY21/6 Events – Robust Power Generation Infrastructure No Natural Disaster Impact Due to Durable Plant Construction − Natural Disasters  Heavy Rainfall (Jul 2020): No injuries or material damages at Ichigo Green power plants despite record rainfall in the Kyushu and Chubu regions  Typhoon Haishen

  13. Slide 13: Power Generation -1.1% vs. Forecast

    Power Generation -1.1% vs. Forecast FY21/6 Power Generation and Power Production Revenue (kWh) (JPY million) 5,000,000 150 138 Forecast Power Production (left axis) Actual Power Production (left axis) Power Production Revenue (right axis) 133 122 123 117 4,000,000 120 114 116 101 91 85 3,000,000 90

  14. Slide 14: Power Generation by Individual Power Plant

    Power Generation by Individual Power Plant Geographically Diverse Portfolio Supports Earnings Stability Despite Adverse Weather Conditions in Okinawa and EPCO Purchase Suspension Actual Power * Forecast Power Actual Power Difference Operating Production No. Solar Power Plant Generation (A) Generatio

  15. Slide 15: Financing Details

    Financing Details Have Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of June 30, 2021 Amount Interest Rate Loan Loan Lender Fixed/Floating Borrowing Date Maturity (JPY million) (%) Term Term Loan I Mizuho Bank, SMBC 4,754 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan

  16. Slide 16: FY22/6 Forecast

    FY22/6 Forecast Forecast Dividend JPY 3,945 (+0.6% vs. FY21/6 Actual) (JPY million) FY20/6 FY21/6 FY21/6 FY22/6 Actual Forecast Actual Forecast Operating Revenue 1,089 1,078 1,074 1,072 Operating Expenses 831 826 816 822 (Depreciation) 636 640 637 640 Operating Profit 257 252 257 249 Recurring Profi

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

    Japan’s First Ten-Year Earnings Forecast Ten-Year Dividend & FFO Forecast (Includes 2017 – 2021 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 8,039 8,002 8,146 8,136 8,253 8,211 Dividend per Share 2,139 4,22

  18. Slide 18: Expected Increase in Renewable Energy Demand

    Expected Increase in Renewable Energy Demand 2030 Energy Mix/Sixth Basic Energy Plan Announced by METI (July 21, 2021) Japan Renewable Energy Contribution ■ Renewable Energy ■ Non-Renewable Energy Global Acceleration of Net Zero Carbon Japan Shifting Main Energy Source to Renewable Energy Towards 20

  19. 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 YieldCo that it manages, in its shareholder program (65,000 shareholders total) − First company t

  20. Slide 20: Driving Shareholder Value

    Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 20

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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) ‒ TSE First Section, JPX-Nikkei 400 Member ‒ Deeply committed to CSR and Sustainability ‒ Japan’

  27. 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

  28. 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 Ichigo Engaru Higashimachi 1.24MW Chugoku Total Operating and In-Development Ichigo Engaru Kiyokawa 1.12MW Ichigo Yamaguchi Aionishi 1.24MW Ichigo Power Plants Ichigo A

  29. Slide 29: Ichigo’s Commitment to ESG

    Ichigo’s Commitment to ESG © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 29

  30. 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

  31. Slide 31: Ichigo ESG – Environmental

    Ichigo ESG – Environmental Contributing to a Low-Carbon World Sustainable Real Estate Clean Energy Preserve & Improve Real Estate to End Wasteful Annual Power Generation 186,921,674kWh Demolition Equivalent to annual energy consumption of 62,307 households ‒ Lengthen useful life of real estate The F

  32. Slide 32: Ichigo ESG – Social

    Ichigo ESG – Social Supporting Local Communities Working with Tenants − Ichigo’s Boutique Hotel THE KNOT − Conduct tenant surveys to understand needs to A place where visitors, communities, and the old implement effective value-add and the new can come together − Exclusive investor for Oshii Mamoru’

  33. Slide 33: 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 of − Majority of Directors (3 of 5) are Independent the Asset Management Company and the Directors Ichigo Group − Exclusive ass

  34. Slide 34: Solar Power Plant Data

    Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 34

  35. Slide 35: Geographically Diversified Portfolio

    Geographically Diversified Portfolio (as of June 30, 2021) 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

  36. Slide 36: Power Generation (YOY)

    Power Generation (YOY) Power Generation -1.6% YOY Power Generation: FY21/6 vs. FY20/6 (kWh) 5,000,000 ■ FY20/6 Actual (15 Power Plants) FY20/6 Actual: 34.31M kWh ■ FY21/6 Actual (15 Power Plants) FY21/6 Actual: 33.76M kWh (-0.55M kWh, -1.6% YOY) 4,000,000 3,000,000 2,000,000 1,000,000 0 July 2020 Au

  37. Slide 37: Individual Solar Power Plant Earnings (July 2020 – June 2021)

    Individual Solar Power Plant Earnings (July 2020 – June 2021) (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 61,886 12,544 49,342 3,565 45,776 29,795 15,981

  38. Slide 38: FY22/6 Forecast Power Generation

    FY22/6 Forecast Power Generation FY22/6 Forecast 33.94 million kWh (FY21/6 Actual 33.76 million kWh) FY21/6 Actual Power Generation and FY22/6 Forecast Power Production (kWh) 5,000,000 FY21/6 Actual: 33.76M kWh ■ FY21/6 Actual (15 Power Plants) FY22/6 Forecast: 33.94M kWh ■ FY22/6 Forecast (15 Power

  39. Slide 39: Solar Power Plant Portfolio

    Solar Power Plant Portfolio as of June 30, 2021 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 364 426 1.33 40 4.11% E-02 Ichigo Motomombe

  40. Slide 40: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY21/6 Actual Power Generation: +3.9% 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

  41. Slide 41: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY21/6 Actual Power Generation: +0.5% 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 / kW

  42. Slide 42: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY21/6 Actual Power Generation: -1.3% vs. Forecast Location Ehime Forecast Power Generation Actual Power Generation (kWh) 200,000 Area 26,261m2 Operation Apr 2, 2014 Start Date 150,000 Panel 1.23MW Output 100,000 FIT JPY 40 /

  43. Slide 43: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY21/6 Actual Power Generation: +3.4% 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 / kWh 50,000

  44. Slide 44: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY21/6 Actual Power Generation: -7.9% vs. Forecast Location Okinawa Forecast Power Generation Actual Power Generation (kWh) 1,500,000 Area 146,217m2 Operation 1,200,000 Feb 2, 2015 Start Date Panel 8.44MW 900,000 Output FIT JPY 40 / kWh 60

  45. Slide 45: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY21/6 Actual Power Generation: +4.9% vs. Forecast Location Kagawa Forecast Power Generation Actual Power Generation (kWh) 400,000 Area 79,340m2 Operation Jun 2, 2015 Start Date 300,000 Panel 2.43MW Output 200,000 FIT JPY 36

  46. Slide 46: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY21/6 Actual Power Generation: +2.9% vs. Forecast Location Aichi Forecast Power Generation Actual Power Generation (kWh) 300,000 Area 19,393m2 Operation 250,000 Sep 16, 2015 Start Date 200,000 Panel 1.80MW Output 150,000 F

  47. Slide 47: Individual Solar Power Plant Details

    Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY21/6 Actual Power Generation: +12.9% 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 / kWh

  48. Slide 48: Appendix

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

  49. Slide 49: 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

  50. Slide 50: Shareholder Composition

    Shareholder Composition Major Shareholders (as of June 30, 2021) 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. 19,824 19.3% 100% 25,866 sh

  51. Slide 51: Share Price (Dec 1, 2016 to Jul 31, 2021)

    Share Price (Dec 1, 2016 to Jul 31, 2021) 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-

  52. Slide 52: Ichigo Green Overview

    Ichigo Green Overview Investment Corporation 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 M

  53. Slide 53: 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 — FY2021 Earnings Presentation on 6ix