Ichigo Green Infrastructure Investment Corp. · TSE:9282
Ichigo Green Infrastructure Investment — H1 FY22/6 Earnings Presentation
51 slides from Ichigo Green Infrastructure Investment's earnings presentation, Feb 14, 2022
Slide 1: FY22/6 H1 Corporate Presentation
Ichigo Green (9282) FY22/6 H1 Corporate Presentation January 13, February 14, 2017 2022 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
Slide 2: Condolences message regarding 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
Slide 3: Make The World More Sustainable
Make The World More Sustainable
Slide 4: World-Class Excellence
World-Class Excellence “= Ichigo ICHIGO
Slide 5: J.League Top Partner
@J,LEAGUE League Top Partner TOP PARTNER ™ © . ” \e) 5) om oO \ ry i AB NIN
Slide 6: Contents
Contents Mission & Deliverables to Shareholders Ichigo’s Sustainability Commitment (ESG) ‒ Ichigo Sustainability Policy FY22/6 H1 Results ‒ Ichigo ESG – Environmental ‒ Solar Power Plant Portfolio Details ‒ Ichigo ESG – Social ‒ FY22/6 H1 Events ‒ Ichigo ESG – Governance ‒ FY22/6 H1 Earnings ‒ Power
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: FY22/6 H1 Results
FY22/6 H1 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 December 31, 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 produc
Slide 10: FY22/6 H1 Events
FY22/6 H1 Events − Installed Power Output Control Unit at Ichigo Miyakonojo Yasuhisacho ECO Power Plant (Miyazaki) to Reduce Power Generation Loss Before: Stopped power generation from 8 am to 5 pm (9 hours) After: Controllable by the hour Completed installment in November 2021; successfully r
Slide 11: FY22/6 H1 Earnings
FY22/6 H1 Earnings – Operating Revenue: JPY 527M (+0.2% vs. H1 Forecast) Due to Above- Forecast Power Generation – Net Income: JPY 70M (+18.3% vs. H1 Forecast) Due to Cost Reduction (JPY million) FY21/6 H1 FY22/6 H1 FY22/6 H1 FY22/6 Full-Year vs. Forecast Actual Forecast (A) Actual (B) Forecast Oper
Slide 12: Power Generation +0.4% vs. Forecast
Power Generation +0.4% vs. Forecast FY22/6 H1 Power Generation and Power Production Revenue (kWh) (JPY million) 5,000,000 150 Forecast Power Production (left axis) Actual Power Production (left axis) Power Production Revenue (right axis) 133 120 4,000,000 115 120 111 3,000,000 90 83 77 2,000,000 60
Slide 13: Power Generation +2.1% YOY
Power Generation +2.1% YOY Power Generation: FY22/6 H1 vs. FY21/6 (kWh) 5,000,000 ■ FY21/6 Actual (15 Power Plants) Jul-Dec 2020 Actual: 16.42M kWh ■ FY22/6 Actual (15 Power Plants) Jul-Dec 2021 Actual: 16.77M kWh (+0.34M kWh, +2.1% YOY) 4,000,000 3,000,000 2,000,000 1,000,000 0 July August Septembe
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 thous
Slide 15: Financing Details
Financing Details Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps as of December 31, 2021 Interest Amount Loan Loan Lender Rate Fixed/Floating Borrowing Date Maturity (JPY million) Term (% ) Term Loan I Mizuho Bank, SMBC 4,544 0.760% Fixed Dec 1, 2016 Nov 30, 2026 10 years Term Loan
Slide 16: 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 (c. 65,000 shareholders total) − First compan
Slide 17: Driving Shareholder Value
Driving Shareholder Value © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 17
Slide 18: 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
Slide 19: Expected Increase in Renewable Energy Demand
Expected Increase in Renewable Energy Demand – Sixth Strategic Energy Plan Approved by METI (October 22, 2021) – Shift of Primary Energy Supply to Renewable Energy Stipulated as Top Priority Japan Renewable Energy Contribution ■ Renewable Energy ■ Non-Renewable Energy Global Acceleration of Net Zero
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 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. 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 Serving Local Communities and the Environment Hokkaido Ichigo Motomombetsu 1.40MW Ichigo Engaru Higashimachi 1.24MW Total Operating and In-Development Ichigo Engaru Kiyokawa 1.12MW Chugoku Ichigo Power Plants Ichigo Yamaguchi Aionishi 1.24MW Ichigo A
Slide 28: Ichigo's Sustainability Commitment (ESG)
Ichigo’s Sustainability Commitment (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: Delivering on Sustainability
Delivering on Sustainability Clean Energy Business Growth Addressing Critical Environmental Issues Ichigo is Net Zero Carbon Today Total Ichigo Power Plant CO2 Reductions Total Ichigo CO2 Emissions ■ Ichigo (93,526 tons) ■ Ichigo (28,763 tons) ■ Ichigo Green (22,357 tons) ■ Ichigo Office (22,727 ton
Slide 31: ESG Initiatives: Environmental
ESG Initiatives: Environmental Sustainability-Driven & Climate Positive Towards a Net Zero Carbon Society Effective Use of Existing Real Estate J-REIT Initiatives Community-Based, Productive Use of Preserve & Improve Real Estate Pro-Active Environmental Idle Land for Clean Energy to End Wasteful Dem
Slide 32: ESG Initiatives: Social
ESG Initiatives: Social Contributing to a Sustainable Society Contributing to Regional Revitalization Ichigo University Sports Initiatives Ichigo works to revitalize local communities Ichigo established Ichigo University in May and promote regional economic 2013 to support employees’ continuing As a
Slide 33: ESG Initiatives: Governance
ESG Initiatives: Governance Global Best Practice Governance Ichigo Green Asset Management Company Monitors Asset Management Company Global Best Practice Governance − All Ichigo Green Directors are Independent of the Asset − Majority of Directors (3 of 5) are Independent Directors Management Company
Slide 34: Solar Power Plant Data
Solar Power Plant Data © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 34
Slide 35: Geographically Diversified Portfolio
Geographically Diversified Portfolio (as of December 31, 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 1.2
Slide 36: Solar Power Plant Portfolio
Solar Power Plant Portfolio as of December 31, 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 350 426 1.33 40 4.09% E-02 Ichigo Motom
Slide 37: Individual Solar Power Plant Earnings (July – December 2021)
Individual Solar Power Plant Earnings (July – December 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 27,847 6,762 21,084 1,634 19,450 14,897 4,552 E-
Slide 38: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-01 Ichigo Kiryu Okuzawa FY22/6 H1 Actual Power Generation: +1.0% 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
Slide 39: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-03 Ichigo Muroran Hatchodaira FY22/6 H1 Actual Power Generation: +0.3% vs. Forecast Location Hokkaido Forecast Power Generation Actual Power Generation (kWh) Area 35,801m2 200,000 Operation Mar 3, 2014 Start Date 150,000 Panel 1.24MW Output 100,000 FIT JPY 40 /
Slide 40: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-05 Ichigo Iyo Nakayamacho Izubuchi FY22/6 H1 Actual Power Generation: -4.3% vs. Forecast Location Ehime Forecast Power Generation Actual Power Generation (kWh) Area 26,261m2 200,000 Operation Apr 2, 2014 Start Date 150,000 Panel 1.23MW Output 100,000 FIT JPY 40
Slide 41: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-07 Ichigo Abira Toasa FY22/6 H1 Actual Power Generation: +10.7% vs. Forecast Location Hokkaido Forecast Power Generation Actual Power Generation (kWh) Area 29,731m2 200,000 Operation Dec 2, 2014 Start Date 150,000 Panel 1.16MW Output 100,000 FIT JPY 40 / kWh FI
Slide 42: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-09 Ichigo Nago Futami FY22/6 H1 Actual Power Generation: -8.1% vs. Forecast Location Okinawa Forecast Power Generation Actual Power Generation (kWh) Area 146,217m2 1,500,000 Operation 1,200,000 Feb 2, 2015 Start Date Panel 8.44MW 900,000 Output FIT JPY 40 / kWh
Slide 43: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-11 Ichigo Takamatsu Kokubunjicho Nii FY22/6 H1 Actual Power Generation: +1.1% vs. Forecast Location Kagawa Forecast Power Generation Actual Power Generation (kWh) Area 79,340m2 400,000 Operation Jun 2, 2015 Start Date 300,000 Panel 2.43MW Output 200,000 FIT JPY
Slide 44: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-13 Ichigo Toyokawa Mitocho Sawakihama FY22/6 H1 Actual Power Generation: +3.5% vs. Forecast Location Aichi Forecast Power Generation Actual Power Generation (kWh) Area 19,393m2 300,000 Operation 250,000 Sep 16, 2015 Start Date Panel 200,000 1.80MW Output 150,00
Slide 45: Individual Solar Power Plant Details
Individual Solar Power Plant Details E-15 Ichigo Yamaguchi Sayama FY22/6 H1 Actual Power Generation: +10.2% vs. Forecast Location Yamaguchi Forecast Power Generation Actual Power Generation (kWh) Area 43,621m2 400,000 Operation Apr 6, 2016 Start Date 300,000 Panel 2.35MW Output 200,000 FIT JPY 36 /
Slide 46: Appendix
Appendix © Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 46
Slide 47: 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 48: Shareholder Composition
Shareholder Composition Major Shareholders (as of December 31, 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. 22,671 22.0% 100% 22,50
Slide 49: Share Price (Dec 1, 2016 to Jan 31, 2022)
Share Price (Dec 1, 2016 to Jan 31, 2022) 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 Final trading date for settlement 15,000 before the two-for-
Slide 50: Ichigo Green Overview
Ichigo Green Overview Investment Corporation Name Ichigo Green Infrastructure Investment Corporation Securities Code 9282 Address 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Executive Director Nanako Ito Fiscal Year July 1 – June 30 (Half-Year is July 1 – December 31) Asset Management Company Name Ichigo
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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