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.

May 26, 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

Ten-Year Earnings and Dividend Forecast Revision
Ichigo Green is revising up its ten-year earnings and dividend forecast for the June 2017
through June 2026 fiscal periods.
1. Ten-Year Earnings and Dividend Forecast Revision Rationale
Ichigo Green invests in solar power plants with proven operational capabilities andlong-term feed-in-tariff (FIT) contracts with Japanese electric power utilities. Because
Ichigo Green is also guaranteed a base fee from solar power plant operators regardlessof actual power generation, it has significant long-term earnings visibility and stability.
Given that its long-term earnings stability gives Ichigo Green the ability to do so, Ichigo
Green announced on March 24, 2017 the first-ever ten-year earnings forecast by aJapanese company.
Ichigo Green is revising up its forecast to reflect the finalized depreciable asset taxes
and lower-than-expected depreciation expenses on its thirteen solar power plants. Ichigo
Green’s dividend per share is therefore expected to increase between 7.1% and 17.7%.

1

2. Ten-Year Earnings and Dividend Forecast Revision (June 2017 – June 2026)
a. June 2017 (7 months) Earnings and Dividend Forecast Revision(JPY million)
Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

545

111

48

45

791

2,626

3,417

545

127

65

62

1,120

2,540

3,660

–

+16

+17

+17

+329

-86

+243

% Change–+14.4%+35.4%+37.8%+41.6%

-3.3%

+7.1%

Reference:
September 2016
Actual1

–

-3

-6

-4

–

–

–

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)Forecast number of shares outstanding and EPS: 51,483 shares, JPY 1,221
1While Ichigo Green’s fiscal period normally runs from July to June, its first period ran
from June 24, 2016 to September 30, 2016. Its second period runs from October 1,
2016 to June 30, 2017. Ichigo Green’s actual operating timeframe during the second
period is from December 1, 2016, the day of the asset acquisitions, to June 30, 2017.

b. June 2018 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

963

182

82

81

1,589

4,502

6,091

963

216

118

117

2,270

4,360

6,630

–

+34

+36

+36

+681

-142

+539

–

+18.7%+43.9%+44.4%+42.9%

-3.2%

+8.8%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 2,274
2

c. June 2019 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

958

159

62

61

1,196

4,505

5,701

958

216

121

120

2,340

4,370

6,710

–

+57

+59

+59

+1,144-135+1,009–+35.8%+95.2%+96.7%+95.7%-3.0%+17.7%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 2,343
d. June 2020 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

952

166

86

85

1,652

4,516

6,168

952

201

122

121

2,350

4,380

6,730

–

+35

+36

+36

+698

-136

+562

–

+21.1%+41.9%+42.4%+42.3%

-3.0%

+9.1%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 2,359

3

e. June 2021 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

946

162

93

92

1,794

4,527

6,321

946

214

146

145

2,820

4,390

7,210

–

+52

+53

+53

+1,026

-137

+889

–

+32.1%+57.0%+57.6%+57.2%-3.0%+14.1%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 2,822
f. June 2022 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

941

173

118

117

2,288

4,529

6,817

941

211

158

157

3,050

4,390

7,440

–

+38

+40

+40

+762

-139

+623

–

+22.0%+33.9%+34.2%+33.3%

-3.1%

+9.1%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 3,054

4

g. June 2023 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

935

168

116

115

2,252

4,533

6,785

935

221

171

170

3,310

4,400

7,710

–

+53

+55

+55

+1,058

-133

+925

–

+31.5%+47.4%+47.8%+47.0%-2.9%+13.6%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 3,319
h. June 2024 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

929

171

123

122

2,375

4,569

6,944

929

214

167

166

3,230

4,410

7,640

–

+43

+44

+44

+855

-159

+696

–

+25.1%+35.8%+36.1%+36.0%-3.5%+10.0%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 3,231

5

i. June 2025 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

924

155

109

108

2,108

4,649

6,757

924

212

168

167

3,250

4,490

7,740

–

+57

+59

+59

+1,142

-159

+983

–

+36.8%+54.1%+54.6%+54.2%-3.4%+14.5%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 3,253
j. June 2026 Earnings and Dividend Forecast Revision(JPY million)

Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% Change

Dividendper Sharein(excluding Dividend
Excessof
Dividend
Dividend in Earnings per per
Share
Excess of
Share
(JPY)
Earnings(JPY)
per Share)(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

918

158

115

114

2,224

4,688

6,912

918

192

150

149

2,900

4,590

7,490

–

+34

+35

+35

+676

-98

+578

–

+21.5%+30.4%+30.7%+30.4%

-2.1%

+8.4%

Forecast number of shares outstanding and EPS: 51,483 shares, JPY 2,907

6

Notes:Ichigo Green has an annual fiscal period 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 period is based on certain preconditions set
out below in “Preconditions for Ten-Year Earnings and Dividend Forecast.” Thepreconditions are subject to change due to such factors as future acquisitions anddispositions of renewable energy power plants, changes in the Tokyo Stock Exchange(TSE) Infrastructure Fund market, fluctuations in interest rates, the issuance of additional
shares, 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 incircumstances. These forecasts should not be construed as a guarantee of such
performance or results.
For the June 2017 fiscal period, total dividend paid will be JPY 58 million, which is thisperiod’s net income less JPY 4 million of losses carried over from the previous period.
Ichigo Green released this Ten-Year Earnings and Dividend Forecast because the longterm stability of its earnings allows for a long-term forecast. Ichigo Green will issue anearnings and dividend forecast for the post-June 2027 period when reasonable andappropriate. Should a substantial discrepancy emerge between this forecast and actual
operating results, Ichigo Green will revise this forecast.
Ten-Year Dividend Forecast(JPY)

Dividend per Share (excluding Dividend in Excess of Earnings per Share)
Dividend in Excess of Earnings per Share
7,210

7,440

7,710

7,640
7,640

7,740
7,740

7,490
7,490

2,350

2,820

3,050

3,310

3,230

3,250

2,900

4,370

4,380

4,390

4,390

4,400

4,410

4,490

4,590

June
2019

June
2020

June
2021

June
2022

June
2023

June
2024

June
2025

June
2026

6,630

6,710

6,730

2,270

2,340

4,360

June
2018

3,660
1,120
2,540

June
2017*

* Ichigo Green’s actual operating period for the June 2017 fiscal period is the sevenmonths from December 1, 2016, the day of the power plant acquisitions, to June 30,
2017.

7

Preconditions for Ten-Year Earnings and Dividend Forecast(June 2017 through June 2026 fiscal periods)
Item

PeriodPreconditions
June 2017 : October 1, 2016 – June 30, 2017 (273 days)
June 2018 : July 1, 2017 – June 30, 2018 (365 days)
June 2019 : July 1, 2018 – June 30, 2019 (365 days)
June 2020 : July 1, 2019 – June 30, 2020 (366 days)
June 2021 : July 1, 2020 – June 30, 2021 (365 days)
June 2022 : July 1, 2021 – June 30, 2022 (365 days)
June 2023 : July 1, 2022 – June 30, 2023 (365 days)
June 2024 : July 1, 2023 – June 30, 2024 (366 days)
June 2025 : July 1, 2024 – June 30, 2025 (365 days)
June 2026 : July 1, 2025 – June 30, 2026 (365 days)

Number of
Shares 51,483 shares issued and outstanding as of today, with no additional new shareissuance through June 2026
 The dividend is also calculated based on the above assumption of 51,483 shares issued
and outstanding.

Number ofPower Plants

 The current 13 power plants
 The total number of power plants may change due to acquisitions or sales.

Operating
Revenue Power production revenue is based on the annual P50 power production forecast of theoperating power plants.
 Specifically, power production revenue is calculated by adding base revenue(electricity sales revenue based on the annual P85 production forecast minus operationand management expenses) to actual power production revenue (electricity sales
revenue based on the annual P50 production forecast minus operation andmanagement expenses as well as base revenue). Power production revenue assumes
that there is no suspension of renewable energy supply without compensation throughJune 2026.
 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 for eachplant.
 Renewable energy plant operation and maintenance expenses (including fees paid tomaintenance service providers and repair costs) are hereinafter defined as the total of
operator fees, rent paid, insurance premiums, management costs (including
administration and tax fees), property, city planning, and consumption taxes, andother expenses related to the power generation business, renewable energy plants,
land, or management. Maintenance expenses are as estimated by Ichigo Investment
Advisors, the asset management company of Ichigo Green, based on third party
reports. However, actual expenses for the period could differ significantly from these
forecast amounts for reasons including the variability of maintenance and repair
expenses, one-time costs due to unexpected maintenance needs, etc.
 Actual production is calculated by multiplying the annual P50 production forecast by
the FIT for each plant. The annual P50 production is a third-party, 50% probability
mean annual production forecast that serves as the base forecast for each solar power
plant’s operating plan.
 Operating Revenue is based on the power production revenue of the power plants, anddoes not assume the sale of any power plants.
 Operating Revenue assumes that Ichigo Green fully receives its contractual power
production revenue.
8

Operating
Expenses Per the above, operation and management expenses of the power plants are deductedfrom the leaseholder’s power production revenue, and therefore are not part of Ichigo
Green’s operating expenses.
 Property and city planning taxes and other operating expenses, excluding depreciation,
are calculated based on historical data and information provided by the previous
power plant owner(s), adjusted for anticipated expense variations.
 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, Ichigo
Green included such estimated taxes in its acquisition cost and therefore did notrecognize them as operating expenses for calendar year 2016. Owners of renewableenergy 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 periods following
acquisition. Because this reduction in assessment value applies to the power plants
Ichigo Green owns as of today, the property tax is reduced by JPY 19 million for theJune 2017 fiscal period, JPY 30 million for the June 2018 fiscal period, and JPY 10
million for the June 2019 fiscal period. The anticipated amounts of property and city
planning tax for the power plants are as follows:(JPY million)
June 2017
June 2018
June 2019
June 2020
June 2021
45
90
92
88
75
June 2022
64

June 2023
55

June 2024
47

June 2025
41

June 2026
36

Depreciation (including incidental costs) is calculated using the straight-line method,with the depreciation period set to the number of months remaining for the guaranteed
FIT, and is forecast as follows:(JPY million)
June 2017
June 2018
June 2019
June 2020
June 2021
327
562
562
564
565
June 2022
566

June 2023
566

June 2024
568

June 2025
578

June 2026
590

 Expenses related to Ichigo Green’s TSE listing and new share issuance and to Ichigo
Green’s establishment: JPY 59 million in the September 2016 fiscal period and JPY
70 million anticipated in the June 2017 fiscal period. Ichigo Green plans to amortize
expenses associated with the TSE listing and new share issuance for 36 months andexpenses for the establishment of Ichigo Green for 60 months, using the straight-line
method. Ichigo Green anticipates such expenses of JPY 22 million in the June 2017
fiscal period, JPY 34 million in the June 2018 fiscal period, JPY 34 million in the June2019 fiscal period, JPY 21 million in the June 2020 fiscal period, and JPY 12 million
Non-Operatingin the June 2021 fiscal period.
Expenses Interest expenses and other loan-related expenses are forecast as follows:
June 201739

June 2018
63

June 201960

June 2020
57(JPY million)
June 2021
55

June 2022
52

June 2023
49

June 2024
47

June 2025
44

June 2026
41

9 The forecast is based on outstanding interest-bearing debt of JPY 6.95 billion as oftoday, and assumes that repayment of the consumption tax loan (loan amount: JPY 760
million) will be made in full on November 30, 2017.
 Forecast loan to value (LTV) for each fiscal period-end is as follows:
Loans

June 2017
57.7%

June 2018
53.5%

June 2019
53.1%

June 2020
52.7%

June 2021
52.1%

June 2022
51.5%

June 2023
50.7%

June 2024
49.9%

June 2025
48.9%

June 2026
47.7%

 LTV is calculated with the following formula:
LTV = Total sum of interest-bearing debt / total assets * 100
Dividend per
Share(excluding
Dividend in
Excess ofEarnings per
Share)

 The dividend is based on the assumption that distribution will comply with thedividend distribution policy stipulated in Ichigo Green’s Articles of Incorporation.
 The dividend per share is subject to change due to factors such as leaseholder turnover,fluctuations in rental income due to changes in the content of lease contracts, andunexpected maintenance and repair costs and other expenses.
 Ichigo Green calculates 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, up to a
maximum of 40% of annual depreciation expenses, and to the extent it will notadversely affect Ichigo Green’s financial standing. The policy assumes a) such
dividend shall not affect its long-term maintenance policy, taking into consideration
planned capital expenditure for each period, and b) a certain amount of retained cash isnecessary to cover items such as acquisition of new power plants, maintenance ofexisting power plants, working capital needs, and loan repayments.
 Calculated as roughly 40% of annual depreciation expense. Depreciation, Dividend in
Excess of Earnings, and Dividend in Excess of Earnings per Share are forecast as
follows:

Dividend in
Excess ofEarnings per
Share

June
2017
Depreciation
Dividend in Excess of
Earnings
Dividend in Excess of
Earnings per Share (JPY)

June
2019

327

562

562

564

565

131

224

225

225

226

2,540

4,360

4,370

4,380

4,390

June
2022

June
2023

June
2024

June
2025

June
2026

Depreciation
Dividend in Excess of
Earnings
Dividend in Excess of
Earnings per Share (JPY)

June
2018

(JPY million)
June
June
2020
2021

566

566

568

578

590

226

226

227

231

236

4,390

4,400

4,410

4,490

4,590

10

 Irrespective of the above, Ichigo Green did not distribute cash in excess of earnings for
the September 2016 fiscal period, because it did not yet operate any power plants.
Starting with the June 2017 fiscal period, it is possible that Ichigo Green will not
distribute cash in excess of earnings or pay a larger/smaller amount than what is
forecast above, although within the range set forth in the rules of the Investment Trusts
Association, Japan, in consideration of the possibility of deploying such cash towards
capital expenditure, loan repayment, acquisition of new power plants, and sharebuybacks, and also in consideration of the economic environment, renewable energy
market trends, and the financial condition of Ichigo Green.
 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 retained
earnings.
 This forecast assumes that there are no material revisions to laws and regulations, the

Othertax 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.

11