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.

January 30, 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

Earnings and Dividend Forecast Revisions
for the June 2017 and June 2018 Fiscal Periods
Ichigo Green is revising its earnings and dividend forecasts for the June 2017 and June2018 fiscal periods announced in the December 1, 2016 release “Earnings and Dividend
Forecasts for the June 2017 and June 2018 Fiscal Periods.”
I. June 2017 Earnings and Dividend Forecast Revision(7 months from December 1, 2016 through June 30, 2017)

Operating Operating Recurring
Revenue
ProfitProfit(million(million(millionyen)yen)
yen)Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)Net
Income(millionyen)

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

545

110

43

40

673

2,547

3,220

545

111

48

45

791

2,626

3,417

–

+1+5+5+118+79+197% Change–+0.6%+11.4%+12.1%+17.5%

+3.1%

+6.1%

Reference:
September 2016
Actual1–-3-6-4–––(Reference) Forecast number of shares outstanding and EPS: 51,483 shares, JPY 884
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While Ichigo Green’s fiscal period normally is 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.
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II. June 2018 Half-Term Earnings and Dividend Forecast Revision(6 months from July 1, 2017 through December 31, 2017)

Operating Operating Recurring
RevenueProfitProfit(million(million(millionyen)yen)yen)
PreviousAnnounced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% ChangeNet
Income(millionyen)

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

472

81

28

27–––

472

82

31

30

–––

–

+1+3+3–––

–

+0.5%

+9.9%

+10.1%–––(Reference) Forecast number of shares outstanding and EPS: 51,483 shares, JPY 596
III. June 2018 Full-Term Earnings and Dividend Forecast Revision(12 months from July 1, 2017 through June 30, 2018)

Operating Operating Recurring
Revenue
ProfitProfit(million(million(millionyen)yen)
yen)
Previous
Announced
Forecast (A)Current
Amended
Forecast (B)Difference(B) - (A)% ChangeNet
Income(millionyen)

Dividendper Shareexcluding
Dividend in
Excess ofEarnings
per Share(yen)

Dividend in
Excess ofEarnings
per Share(yen)

Dividendper Share
(yen)

963

181

76

75

1,428

4,366

5,794

963

182

82

81

1,589

4,502

6,091

–

+1+6+6+161+136+297

–

+0.5%

+7.6%

+7.7%+11.3%

+3.1%

+5.1%

(Reference) Forecast number of shares outstanding and EPS: 51,483 shares, JPY 1,589
Notes:
Ichigo Green has an annual fiscal period running from July to June. Because there isno 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).
2The forecasts presented above for the June 2017 and June 2018 fiscal periods arebased on certain preconditions set out below in “Preconditions for the June 2017,December 2017, and June 2018 Earnings Forecasts.” The preconditions are subject tochange due to such factors as future acquisitions and dispositions of renewable energy
power plants, changes in the Tokyo Stock Exchange (“TSE”) Infrastructure Fundmarket, fluctuations in interest rates, the issuance of additional shares, and changes inother factors related to Ichigo Green. The actual operating revenue, operating profit,
recurring profit, net income, dividend per share (excluding the dividend in excess ofearnings 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 incircumstances. These forecasts should not be construed as a guarantee of such
performance or results.
For the June 2017 fiscal period, JPY 40 million of unappropriated retained earnings,
which is this period’s net profit minus JPY 4 million of loss brought forward from theprevious period, will be paid as a dividend.
Ichigo Green will make a forecast revision should there be a substantial discrepancy
between the forecast and actual operating results.
IV. Earnings and Dividend Forecast Revision Rationale
Ichigo Green is raising its forecasts due to lower-than-forecast expenses related toIchigo Green’s establishment, new share issuance, and TSE listing and theconfirmation of the number of shares issued as part of the IPO’s underwriter
third-party allotment (Greenshoe). Ichigo Green’s forecast dividend per share will thusincrease by >5%.

3Preconditions for the June 2017, December 2017, and June 2018 Earnings Forecasts
ItemPreconditions

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. The forecast assumes there will be no additional acquisitions or sales before
the end of June 2018.
 The total number of portfolio assets may change due to acquisitions or sales.

Number ofShares 51,483 shares issued and outstanding as of today.
 The forecast assumes there will be no additional new issuance before the end of June
2018.

OperatingRevenue Power production revenue is based on the annual P50 power production forecast ofoperating 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 ofoperator 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 portfolio assets,
and does not assume the sale of the portfolio assets.
 Operating Revenue assumes that Ichigo Green fully receives its contractual power
production revenues.

4OperatingExpenses

 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 previous 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 289 million for the December 2017 (half-term) fiscal
period, and JPY 579 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 previous 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 Acquired Assets, the property
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 power plants 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 June2018 fiscal period.

Non-OperatingExpenses

 Expenses related to the new share issuance and TSE listing, offering-related expenses,and expenses related to the establishment of Ichigo Green of JPY 129 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 22 million in
the June 2017 fiscal period, JPY 17 million in the December 2017 (half-term) fiscal
period, and JPY 34 million in the June 2018 fiscal period.
 Interest expenses and other borrowing-related expenses of JPY 40 million areanticipated for the June 2017 fiscal period, JPY 32 million for the December 2017(half-term) fiscal period, and JPY 63 million for the June 2018 fiscal period.

Borrowings

 Figures are based on the outstanding borrowings of JPY 6,952 million as of January
30, 2017. The forecast assumes the repayment of consumption tax loan (loan amount:
JPY 760 million) will be made in full on November 30, 2017.
 Loan to value (“LTV”) as of the end of the June 2017 fiscal period is 57.7%.
 LTV is calculated with the following formula:
LTV = Total sum of interest-bearing debt / total assets * 100

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 perand unexpected maintenance and repair costs and other expenses.
Share)

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Dividend in
Excess ofEarnings perShare Ichigo Green calculates Dividend in Excess of Earnings per Share based on its Articlesof Incorporation and dividend policy set forth in IIA’s internal Operating Guidelines.
 In principle, it is Ichigo Green’s policy to pay a cash dividend 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
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 assets, maintenance of existing
assets, working capital needs, and loan repayments.
 Calculated as roughly 40% of depreciation for both the June 2017 and June 2018
periods. For the June 2017 period Ichigo Green expects cash in excess of earnings tobe JPY 135 million compared to depreciation of JPY 338 million, and a dividend inexcess of earnings per share of JPY 2,626. For the June 2018 period Ichigo Green
expects cash in excess of earnings to be JPY 231 million compared to depreciation ofJPY 579 million, and a dividend in excess of earnings per share of JPY 4,502.
 Regardless of the above, for the September 2016 fiscal period Ichigo Green did not
distribute cash in excess of earnings because it did not yet operate the portfolio assets.
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 isdescribed 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 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 shortage of cash when there is a sudden and unexpected need for capital
expenditure, or may limit flexibility in financing asset acquisitions. Any dividend inexcess of earnings will be deducted from paid-in capital or any retained earnings.

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 nounexpected material change in general economic trends and real estate market
conditions, etc.

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