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.

July 27, 2018
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: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4854

FY18/6 Earnings Forecast Revision
Ichigo Green is revising up its FY18/6 earnings forecast announced in the February 14,
2018 release “FY18/6 H1 Earnings.”
1. FY18/6 Earnings Forecast Revision(JPY million)

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

DEEper Share(JPY)

Dividendper Share(JPY)

Previous Forecast (A)

1,095

262

147

146

1,410

2,180

3,590

New Forecast (B)

1,153

325

212

210

2,046

2,180

4,226

Difference (B) - (A)+58+62+64+63+636

–+636

+5.3%

+23.9%+43.6%+43.6%+45.1%–+17.7%

566

158

9794

1,738

2,540

4,278% Change
Reference:
FY17/6 Actual1, 2Period-end number of shares outstanding: 102,966 shares Net Income per Share: JPY 2,046
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.
1Although Ichigo Green’s FY17/6 ran from October 1, 2016 to June 30, 2017, its actual
operating timeframe was the 7-month period from December 1, 2016, the day it
acquired its first power plants, to June 30, 2017.
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2Ichigo Green executed a two-for-one stock split on January 1, 2018 (record date:
December 31, 2017). Per Share data is calculated on a post-stock split basis.

Notes:
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 halfyear, 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 FY18/6 earnings forecast, please refer to the“Preconditions for the FY18/6 Earnings Forecast” on pages 3 and 4.
2. FY18/6 Earnings Forecast Revision Rationale
Ichigo Green is revising up its FY18/6 recurring profit and net income forecasts by
43.6% and dividend forecast by 17.7% to reflect significantly above-forecast power
generation at the Ichigo Kiryu Okuzawa, Ichigo Nakashibetsu Midorigaoka, Ichigo
Nago Futami, Ichigo Toyokawa Mitocho Sawakihama, Ichigo Yamaguchi Aionishi, andIchigo Yamaguchi Sayama ECO Power Plants, and below-forecast SG&A and power
plant operating expenses.
There are no changes to the earnings forecasts for FY19/6 through FY26/6 announced
in the November 28, 2017 release “Stock Split.”2

Preconditions for the FY18/6 Earnings Forecast
Preconditions
PeriodNumber ofSharesNumber ofPower Plants

OperatingRevenue

FY18/6 : July 1, 2017 to June 30, 2018 (365 days)• 102,966 shares issued and outstanding as of the end of FY18/6.
• 15 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 through FY18/6.
• 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.
• 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.
• Power production revenue has not been finalized yet, because Ichigo Green iscurrently auditing its FY18/6 results.

• While property and city planning taxes with respect to the acquisition and sale ofOperatingExpenses

renewable 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 notrecognize these taxes as operating expenses in the 2017 tax year with respect to the 2power plants it acquired on July 3, 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 suchproperty tax is reduced to two-thirds for three fiscal years following acquisition.
Because this reduction in assessment value applies to the 15 power plants Ichigo
Green owns as of July 27, 2018, the property tax is reduced by JPY 33 million to JPY
97 million for FY18/6.
• Depreciation (including incidental costs) is calculated using the straight-line method
and is forecast to be JPY 636 million for FY18/6.

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

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.
Non-OperatingIchigo Green anticipates such expenses to be JPY 34 million for FY18/6.
Expenses• Interest expenses and other borrowing-related expenses of JPY 76 million areanticipated for FY18/6.

Loans• Ichigo Green assumes outstanding debt of JPY 7.16 billion as of the end of FY18/6.
• Loan to value (“LTV”) as of the end of FY18/6 is anticipated at 58.5%. LTV iscalculated using the following formula:
LTV = Total interest-bearing debt / total assets * 1003Dividend perShare(excludingDEE)• 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 third fiscal year ended in June 2018 and Ichigo Green iscurrently auditing its financial results, the Dividend per Share is subject to change.

• Ichigo Green calculates its DEE per Share based on its Articles of Incorporation andDEEper Sharedividend 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 DEE equivalent to 35.3% of annual depreciation
expense for FY18/6.
• 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 ofthe Investment Trusts Association, Japan, and no material changes in the state of theeconomy and real estate market conditions.

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