Ichigo Preserves and Improves Real Estate

October 24, 2016
IssuerIchigo Green Infrastructure Investment Corporation (9282)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Mami Nagasaki, Executive Director
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4854

Earnings and Dividend Forecasts for the June 2017
and June 2018 Fiscal Periods
Ichigo Green Infrastructure Investment Corporation (“Ichigo Green”) hereby announces
its earnings and dividend forecasts for the June 2017 and June 2018 fiscal periods.
Earnings and Dividend Forecasts

Operating Operating RecurringNet
Revenue
ProfitProfitIncome(million(million(million (million
yen)
yen)
yen)
yen)

Dividendper Shareexcluding
Dividend in
Excess ofEarnings
per Share(yen)

Dividend in
Excess ofEarnings
per Share(yen)

Dividendper Shareincluding
Dividend in
Excess ofEarnings
per Share(yen)June 2017(7 months)

545

110

43

43

685

2,547

3,232

December 2017
(6 months)*

472

81

28

28

－*

－*

－*

June 2018(12 months)

963

181

78

77

1,448

4,366

5,814

(Reference) Forecast number of shares outstanding and EPS:
June 2017 (7 months)
53,180 shares, JPY 818
December 2017 (6 months)
53,180 shares, JPY 535
June 2018 (12 months)
53,180 shares, JPY 1,448* This is the half-term forecast for the June 2018 fiscal period. Ichigo Green has anannual fiscal period running from July to June. Because there is no regulatory framework
in Japan for Investment Corporations to pay dividends at half-term, 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 by seasonal changes in solar
power generation (as a semi-annual dividend would be).

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the June 2017 and June2018 fiscal periods by Ichigo Green, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Green’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

1(Note 1) While Ichigo Green’s fiscal period normally is from July to June, its first
period runs from the day it was founded on 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.
(Note 2) The issuance price of new shares used to calculate the forecast presented
above is JPY 100,000 per share.
(Note 3) The forecasts presented above for the June 2017 and June 2018 fiscal periods
are based on certain preconditions set out below in “Preconditions for theJune 2017, December 2017, and June 2018 Earnings Forecasts.” Thepreconditions are subject to change due to such factors as future acquisitions
and dispositions 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 share prices, and changes in otherfactors related to Ichigo Green. The actual operating revenue, operating
profit, recurring profit, net income, dividend per share (excluding thedividend in excess of earnings per share), dividend in excess of earnings per
share, and dividend per share (including dividend in excess of earnings per
share) may vary due to changes in circumstances. These forecasts should not
be construed as a guarantee of such performance or results.
(Note 4) For the June 2017 fiscal period, the total of unappropriated retained earnings,
which is this period’s net profit minus loss brought forward from theprevious period, will be paid as dividend.
(Note 5) Ichigo Green will make a forecast revision should there be a substantial
discrepancy between the forecast and actual operating results.
(Note 6) Ichigo Green will list its shares on the TSE on December 1, 2016.
(Note 7) Fractions are rounded off to the nearest full unit.
(Note 8) Although Ichigo Green did not have assets to operate, the September 2016
fiscal period earnings forecast is below. The expected number of shares as ofthe end of the fiscal period is 3,000 shares.

Operating Operating RecurringNet
Revenue
ProfitProfitIncome(million(million(million (million
yen)
yen)
yen)
yen)

September 2016

0

-3

-6

-7

Dividendper Share
Excluding
Dividend in
Excess ofEarnings
per Share(yen)

Dividend in
Excess ofEarnings
per Share(yen)

Dividendper Shareincluding
Dividend in
Excess ofEarnings
per Share
(yen)

0

0

0

* Distribution of this material: the Kabuto Club, the press club of the Ministry of Land,
Infrastructure, Transport, and Tourism, and the press club for construction industry
newspapers at the Ministry of Land, Infrastructure, Transport, and Tourism.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecasts for the June 2017 and June2018 fiscal periods by Ichigo Green, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Green’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

2

Preconditions for the June 2017, December 2017, and June 2018 Earnings Forecasts
Item

Preconditions

PeriodJune 2017 (Second Period): October 1, 2016 – June 30, 2017 (273 days)
December 2017 (Third Period Half-Term): July 1, 2017 – December 31, 2017 (184 days)
June 2018 (Third Period Full-Term): July 1, 2017 – June 30, 2018 (365 days)

Portfolio Assets

 13 assets (“To-be Acquired Assets”) to be acquired on December 1, 2016, with noadditional acquisitions or sales before the end of June 2018.
 The total number of portfolio assets may change due to acquisitions or sales.

Number of
Shares 53,180 shares: the sum of 3,000 shares issued and outstanding as of today plus 47,180
shares to be issued from an initial public offering and a maximum of 3,000 shares to beissued from a third-party allotment (should the over-allotment option be exercised).
 The forecast assumes there will be no additional new issuance before the end of June
2018.
 Dividend per Share (excluding dividend in excess of earnings per share), Dividend in
Excess of Earnings per Share, and Dividend per Share (including dividend in excess ofearnings per share) are based on the 53,180 shares issued and outstanding as of the endof June 2017 and June 2018 fiscal periods.

Operating
Revenue Power production revenue is based on the annual power production forecast (P50) of
operating power plants.
 Specifically, power production revenue is calculated by adding base revenue(electricity sales revenue based on annual P85 production forecast minus operation andmanagement expenses) to actual power production revenue (electricity sales revenue
based on the annual P50 production forecast minus operation and management
expenses as well as base revenue.) Power production revenue assumes that there is nosuspension of renewable energy supply without compensation through June 2018.
 P85 is a third-party, 85% probability mean annual production forecast. P85-based
electricity sales revenue is the assumed electricity sales revenue calculated bymultiplying annual P85 production forecast by the feed-in tariff (FIT) for each plant.
 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, and otherexpenses related to the power generation business, renewable energy plants, land, ormanagement. Maintenance expenses are as estimated by Ichigo Investment Advisors(“IIA”), 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 feed-in tariff (FIT) for each plant. P50 is a third-party, 50% probability meanannual 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 To-be-Acquired
Assets, and does not assume the sale of the To-be-Acquired Assets.
 Operating Revenue assumes that Ichigo Green fully receives its contractual power
production revenues.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecasts for the June 2017 and June2018 fiscal periods by Ichigo Green, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Green’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

3Operating
Expenses As explained above, operation and management expenses of solar power plants are
deducted from the leaseholder's power production revenue, and therefore are not partof 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 current power
plant owner(s), adjusted for anticipated expense variations.
 Depreciation is calculated based on acquisition price including incidental costs using
the straight-line method. Depreciation of JPY 338 million has been anticipated for theJune 2017 fiscal period, JPY 290 million for the December 2017 (half-term) fiscal
period, and JPY 580 million for the June 2018 fiscal period.
 While property and city planning taxes with respect to the acquisition and sale ofrenewable energy plants are, in general, pro-rated between the current owner and thebuyer based on period of ownership and settled at the time of acquisition, Ichigo Green
will include such estimated taxes in its acquisition cost and will therefore not recognize
them as operating expenses for calendar year 2016. Owners of renewable energy plants
are generally charged a 1.4% property (depreciable asset tax) tax rate on theassessment value of their plants. However, for certain approved renewable energy
plants newly acquired before March 31, 2016, the assessment value used in calculatingsuch property tax is reduced to two-thirds for three periods following acquisition.
Because this reduction in assessment value applies to the To-be-Acquired Assets, theproperty tax is reduced by JPY 21 million for the June 2017 fiscal year and JPY 25
million for the June 2018 fiscal year. The anticipated amounts of property and city
planning tax for the To-be Acquired Assets are JPY 51 million for the June 2017 fiscal
period, JPY 51 million for the December 2017 (half-term) fiscal period, and JPY 115
million for the June 2018 fiscal period.

Non-Operating
Expenses Expenses related to the new share issuance and TSE listing, offering-related expenses,
and expenses related to the establishment of Ichigo Green of JPY 142 million in total
are anticipated for the June 2017 fiscal period. Ichigo Green plans to amortize theexpenses associated with the new share issuance and listing of the shares for 36
months, and the expenses for the establishment of Ichigo Green for 60 months using
the straight-line method. Ichigo Green anticipates such expenses of JPY 25 million in
the June 2017 fiscal period, JPY 19 million in the December 2017 (half-term) fiscal
period, and JPY 39 million in the June 2018 fiscal period.
 Interest expenses and other borrowing-related expenses of JPY 41 million are
anticipated for the June 2017 fiscal period, JPY 32 million for the December 2017
(half-term) fiscal period, and JPY 62 million for the June 2018 fiscal period.

Borrowings

 Ichigo Green will borrow JPY 6,952 million on December 1, 2016 from Qualified
Institutional Investors prescribed in Article 2(3)(i) of the Financial Securities andExchange Act as well as in Article 67-15 of the Act on Special Measures concerning
Taxation (“Qualified Institutional Investors”). Ichigo Green anticipates the repaymentof borrowings for the To-be Acquired Assets and future asset acquisitions from the net
proceeds from a maximum of 3,000 shares to be issued through a third-party allotment(should the over-allotment option be exercised).
 Loan to value (“LTV”) as of the end of the June 2017 fiscal period is 56.9%.
 LTV is calculated with the following formula:
LTV = Total sum of interest-bearing debt / total assets * 100
 LTV may change due to changes in the number of shares issued and the issue price ofthe new share issuance.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecasts for the June 2017 and June2018 fiscal periods by Ichigo Green, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Green’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

4Dividend per Dividend per share is based on the assumption that the distribution will comply with
Share (Excluding
the dividend distribution policy stipulated in Ichigo Green’s Articles of Incorporation.
Dividend in The dividend per share amount is subject to change due to factors such as leaseholder
Excess ofturnover, fluctuations in rental income due to changes in the content of lease contracts,
Earnings per
and unexpected maintenance and repair costs and other expenses.
Share)

Dividend in
Excess ofEarnings per
Share Ichigo Green calculates Dividend in Excess of Earnings per Share based on its Articles
of Incorporation and policy on distribution of cash set forth in IIA’s internal Operating
Guidelines.
 In principle, it is Ichigo Green’s policy to distribute cash in excess of earnings, up to a
maximum of 40% of the depreciation amount for each period and to the extent it will
not adversely affect Ichigo Green’s financial standing. The policy assumes a) such
distribution 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 assets, maintenance of existing
assets, working capital needs, and loan repayments.
 Regardless of the above, for the September 2016 fiscal period Ichigo Green will not
distribute cash in excess of earnings because it does not yet operate the To-be-Acquired
Assets. Starting with the June 2017 fiscal period, Ichigo Green may not distribute cash
in excess of earnings or pay a larger/smaller amount than what is described 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 assets, and share buybacks, and also
in consideration of the economic environment, renewable energy market trends, andthe financial condition of Ichigo Green.
 Because a distribution of cash in excess of earnings will decrease cash-on-hand, it may
result in a possible shortage of cash when there is a sudden and unexpected need forcapital expenditure, or may limit flexibility in financing asset acquisitions.
Furthermore, the amount of the distribution shall be deducted from invested capital orinvestment surplus.

Other Performance forecasts are based on the assumption that no material revisions will bemade to laws and ordinances, the tax system, accounting standards, listing rules of theTSE, and rules of the Investment Trusts Association, Japan, etc.
 Performance forecasts are also based on the assumption that there will be no
unexpected material change in general economic trends and real estate market
conditions, etc.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecasts for the June 2017 and June2018 fiscal periods by Ichigo Green, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Ichigo Green’s
prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

5