Make The World
More Sustainable[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 2, 2019
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/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4854

FY19/6 Earnings Forecast Revision
Ichigo Green is revising up its FY19/6 earnings forecast from the previous forecast
announced in the February 14, 2019 release “FY19/6 H1 Earnings.”
1. FY19/6 Earnings Forecast Revision(JPY million)

Operating Operating Recurring
Revenue
ProfitProfitNet
IncomeDividendper Share(excludingDEE)
(JPY)

DEE
per Share(JPY)

Dividendper Share(JPY)

Previous Forecast (A)

1,090

254

144

143

1,375

2,185

3,560

New Forecast (B)1,118282

174

173

1,680

2,185

3,865Difference (B) - (A)+27+27+30+29+305–+305% Change+2.5%+10.8%+21.1%+20.9%+22.2%–+8.6%

Reference:
FY18/6 Actual

1,153

325

212

210

2,046

2,180

4,226

Period-end number of shares outstanding: 102,966 shares Net Income per Share: JPY 1,680
DEE = Dividend in Excess of Earnings. The DEE is being paid from Ichigo Green’s solar
power production revenues (which Ichigo Green receives in cash) that are not treated asincome under Japanese tax rules because they are offset by non-cash depreciation
expenses.
Note:Ichigo Green has an annual fiscal year running from July to June. Because there is noregulatory framework in Japan for Investment Corporations to pay dividends at half1

year, 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).
For details on the preconditions of the FY19/6 earnings forecast, please refer to the“Preconditions for the FY19/6 Earnings Forecast” on pages 3 and 4.
2. FY19/6 Earnings Forecast Revision Rationale
Ichigo Green is revising up its FY19/6 earnings forecast to reflect significantly aboveforecast power generation at the Ichigo Kiryu Okuzawa, Ichigo Muroran Hatchodaira,Ichigo Toyokawa Mitocho Sawakihama, Ichigo Yamaguchi Aionishi, and Ichigo
Yamaguchi Sayama ECO Power Plants, and below-forecast power plant operating
expenses. As a result, forecast Dividend per Share (excluding DEE) and forecast
Dividend per Share will increase 22.2% and 8.6%, respectively.
There are no changes to the earnings forecasts for FY20/6 through FY26/6 announced
in the November 28, 2017 release “Stock Split.”2

Preconditions for the FY19/6 Earnings Forecast
Preconditions
PeriodNumber ofShares
Number ofPower Plants

FY19/6 : July 1, 2018 to June 30, 2019 (365 days)• 102,966 shares issued and outstanding as of the end of FY19/6• 15 power plants• Power production revenue is based on actual power generation.
• Specifically, power production revenue is calculated by adding base revenue

OperatingRevenue(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).
• 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.
• Forecast operating expenses are the total of renewable energy plant operation andmaintenance expenses (including fees paid to maintenance service providers andrepair costs), operator fees, rent paid, insurance premiums, management costs(including administration and tax fees), property, city planning, and consumption
taxes, and other expenses related to the power generation business, renewable energy
plants, and site leases.
• Because Ichigo Green is currently auditing its FY19/6 results, FY19/6 power
production revenue has not been finalized.

• Owners of renewable energy plants are generally charged a 1.4% property
OperatingExpenses(depreciable asset tax) tax rate on the assessment value of their plants. However, forcertain approved renewable energy plants newly acquired before March 31, 2016, theassessment value used in calculating such property tax is reduced to two-thirds forthree fiscal years following acquisition. Because this reduction in assessment value
applies to the 15 power plants Ichigo Green owns as of August 2, 2019, the property
tax is reduced by JPY 15 million to JPY 104 million for FY19/6.
• Depreciation (including incidental costs) is calculated using the straight-line method
and is forecast to be JPY 636 million for FY19/6.

• Ichigo Green plans to amortize expenses associated with its December 2016 Tokyo
Non-OperatingExpenses

Loans
Dividend per
Share(excludingDEE)

Stock Exchange (TSE) listing and new share issuance for 36 months and expenses forthe establishment of Ichigo Green for 60 months, using the straight-line method.
Ichigo Green anticipates such expenses to be JPY 34 million for FY19/6.
• Interest expenses and other borrowing-related expenses of JPY 73 million areanticipated for FY19/6.

• Ichigo Green assumes outstanding debt of JPY 6.73 billion as of the end of FY19/6.
• Loan to value (“LTV”) as of the end of FY19/6 is anticipated to be 57.8%. LTV iscalculated using the following formula:
LTV = Total interest-bearing debt / total assets * 100• The Dividend per Share forecast assumes that dividends will comply with the dividend
policy stipulated in Ichigo Green’s Articles of Incorporation.

• Because Ichigo Green’s fourth fiscal year ended in June 2019 and Ichigo Green iscurrently auditing its financial results, the Dividend per Share is subject to change.
3• Ichigo Green calculates its DEE per Share based on its Articles of Incorporation andDEE(Dividend inExcess ofEarnings)
per Share

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) suchdividend 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 DEE equivalent to 35.4% of annual depreciation
expense for FY19/6.
• Because a dividend in excess of earnings will decrease cash-on-hand, it may result ina 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, tax
Otherrules, accounting standards, listing rules of the Tokyo Stock Exchange, and rules of
the Investment Trusts Association, Japan, and no material changes in the state of theeconomy and real estate market conditions.

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