Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

August 3, 2017
IssuerIchigo Green Infrastructure Investment Corporation (“Ichigo Green,” 9282)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Mami Nagasaki, Executive Director
www.ichigo-green.co.jp
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Business Administration
Tel: +81-3-3502-4854

FY17/6 Earnings and Dividend Forecast Revision
Ichigo Green is revising up its FY17/6 earnings and dividend forecast from May 26,
2017.
1. FY17/6 (7 months) Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change
Reference:
September 2016
ActualOperating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

545

127

65

62

1,120

2,540

3,660

566

158

97

94

1,738

2,540

4,278+21+31+32+31+618–+618+3.9%+24.7%+48.9%+50.0%+55.2%–+16.9%–-3-6-4–––

Number of shares outstanding: 51,483 shares
1Dividendper Sharein(excluding Dividend
ExcessofDividend
Dividend in Earnings per perShare
Excess ofShare(JPY)
Earnings(JPY)
per Share)(JPY)

Forecast EPS: JPY 1,831

While Ichigo Green’s fiscal year normally runs from July to June, its first year wasfrom June 24, 2016 to September 30, 2016, and its second year was from October 1,
2016 to June 30, 2017. Ichigo Green’s actual operating timeframe during the second
fiscal year was from December 1, 2016, the day it acquired its first power plants, toJune 30, 2017.
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Notes:Ichigo Green has an annual fiscal year running from July to June. Because there is no
regulatory framework in Japan for Investment Corporations to pay dividends at halfterm, Ichigo Green therefore pays an annual dividend once a year. The annual dividend
results both in lower administrative costs and a dividend that is not impacted byseasonal changes in solar power generation (as a semi-annual dividend would be).
The forecast presented above for each fiscal year is based on certain preconditions set out
below in “Preconditions for FY17/6 Earnings and Dividend Forecast.” The preconditions
are subject to change due to such factors as future acquisitions and dispositions ofrenewable energy power plants, changes in the Tokyo Stock Exchange (TSE)Infrastructure Fund market, fluctuations in interest rates, and changes in other factors
related to Ichigo Green. The actual operating revenue, operating profit, recurring profit,
net income, and dividend may vary due to changes in circumstances. These forecasts
should not be construed as a guarantee of such performance or results.
Ichigo Green plans to pay total dividends of JPY 89 million for FY17/6, which is thisyear’s net income less JPY 4 million of losses carried over from the previous fiscal year.
2. FY17/6 Earnings and Dividend Forecast Revision Rationale
Ichigo Green is revising up its forecast to reflect above-forecast power generation at theIchigo Kiryu Okuzawa and Ichigo Toyokawa Mitocho Sawakihama ECO Power Plants
and below-forecast SG&A.
There are no changes to the earnings and dividend forecasts for FY18/6 through FY26/6
announced in the June 28, 2017 release “Ten-Year Earnings and Dividend Forecast
Revision.”2

Preconditions for FY17/6 Earnings and Dividend Forecast
ItemPeriod
Number ofShares
Number ofPower Plants

Operating
Revenue

OperatingExpenses

Preconditions
FY17/6 : October 1, 2016 to June 30, 2017 (273 days) 51,483 shares issued and outstanding as of the end of FY17/6. The dividend is also
calculated based on the above assumption of 51,483 shares issued and outstanding.
 13 power plants
 Power production revenue is based on actual power generation.
 Specifically, power production revenue is calculated by adding base revenue(electricity sales revenue based on the annual P85 production forecast minus forecast
operating expenses) to actual power generation revenue (electricity sales revenue
based on actual power generation minus base revenue, forecast operating expenses,
and actual additional operating expenses). There has been no suspension of renewableenergy supply without compensation as of the end of FY17/6.
 The P85 annual production is a third-party, 85% probability mean annual production
forecast. P85-based electricity sales revenue is the assumed electricity sales revenue
calculated by multiplying the annual P85 production forecast by the FIT (Feed-InTariff) for each plant.
 Renewable energy plant operation and maintenance expenses (including fees paid tomaintenance service providers and repair costs) are the total of operator fees, rent
paid, insurance premiums, management costs (including administration and tax fees),
property, city planning, and consumption taxes, and other expenses related to thepower generation business, renewable energy plants, and site leases.
 Power production revenue has not been finalized yet, because Ichigo Green iscurrently auditing its FY17/6 results.
 While property and city planning taxes with respect to the acquisition and sale ofrenewable energy plants are, in general, pro-rated between the previous owner and thebuyer based on period of ownership and settled at the time of acquisition, because
Ichigo Green included such estimated taxes in its acquisition cost, it will not recognize
these taxes as operating expenses in calendar year 2016 with respect to the 13 power
plants it owned as of June 2017. Owners of renewable energy plants are generally
charged a 1.4% property (depreciable asset tax) tax rate on the assessment value of
their plants. However, for certain approved renewable energy plants newly acquired
before March 31, 2016, the assessment value used in calculating such property tax is
reduced to two-thirds for three fiscal years following acquisition. Because thisreduction in assessment value applies to the 13 power plants Ichigo Green owned as ofthe end of FY17/6, the property tax is reduced by JPY 20 million to JPY 45 million for
FY17/6.
 Depreciation (including incidental costs) is calculated based on acquisition price using
the straight-line method. Depreciation of JPY 327 million has been anticipated for
FY17/6.

 Ichigo Green plans to amortize expenses associated with its December 2016 TSE
listing and new share issuance for 36 months, and expenses for the establishment ofIchigo Green for 60 months, using the straight-line method. Ichigo Green anticipates
Non-Operatingsuch expenses to be JPY 22 million for FY17/6.
Expenses Interest expenses and other borrowing-related expenses of JPY 38 million are
anticipated for FY17/6.
Loans

 Ichigo Green has outstanding debt of JPY 6.858 billion as of the end of FY17/6.
 Loan to value (“LTV”) as of the end of FY17/6 is 57.4%. LTV is calculated with thefollowing formula:
LTV = Total interest-bearing debt / total assets * 1003

Dividend perShare(excluding
Dividend in
Excess ofEarnings perShare) The Dividend per Share is based on the assumption that the dividend will comply withthe dividend policy stipulated in Ichigo Green’s Articles of Incorporation.
 Because Ichigo Green’s second fiscal year ended in June 2017 and Ichigo Green iscurrently auditing its financial results, the Dividend per Share is subject to change.

Dividend in
Excess ofEarnings perShare Ichigo Green calculates its Dividend in Excess of Earnings per Share based on its
Articles of Incorporation and dividend policy set forth in Ichigo Investment Advisors’internal Operating Guidelines.
 It is Ichigo Green’s general policy to pay a cash dividend in excess of earnings
equivalent to c. 40% of annual depreciation expenses, subject to the dividend notadversely affecting Ichigo Green’s financial standing. The policy assumes a) such
dividend shall not affect Ichigo Green’s long-term maintenance policy, taking into
consideration planned capital expenditure for each fiscal year, and b) a certain amountof retained cash is necessary to cover items such as acquisition of new power plants,
maintenance of existing power plants, working capital needs, and loan repayments.
 Ichigo Green expects to pay a Dividend in Excess of Earnings equivalent to 40.1% ofannual depreciation expense for FY17/6.
 Because a dividend in excess of earnings will decrease cash-on-hand, it may result in a
possible cash shortfall when there is a sudden and unexpected need for capital
expenditure, or may limit flexibility in financing power plants acquisitions. Any
dividend in excess of earnings will be deducted from paid-in capital or retainedearnings.
 This forecast assumes that there are no material revisions to laws and regulations, theOthertax system, accounting standards, listing rules of the Tokyo Stock Exchange, and rulesof the Investment Trusts Association, Japan, and no material changes in the state of theeconomy and real estate market conditions.

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