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.

March 24, 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
Ichigo Green hereby announces its ten-year earnings and dividend forecast for the June2017 through June 2026 fiscal periods.
1. Ten-Year Earnings and Dividend Forecast Rationale
Leveraging Ichigo’s capabilities and track record in renewable energy production,
Ichigo Green is a solar power YieldCo. Ichigo Green’s mission is to maximize
shareholder value via a renewable energy portfolio that provides both return stability
and growth potential, offering investors an opportunity to invest in the significant andrapidly expanding green infrastructure asset class while contributing to the developmentof a sustainable society.
In keeping with this mission, Ichigo Green invests in solar power plants with provenoperational capabilities and long-term feed-in-tariff (FIT) contracts with Japaneseelectric power utilities. Because Ichigo Green is also guaranteed a base fee from solar
power plant operators regardless of 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 has decided to announce the first-ever ten-year earnings forecast by a Japanesecompany.

12. Ten-Year Earnings and Dividend Forecast(June 2017 through June 2026 fiscal periods)(JPY million)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

545
963
958
952
946
941
935
929
924
918

111
182
159
166
162
173
168
171
155
158

48
82
62
86
93
118
116
123
109
115

45
81
61
85
92
117
115
122
108
114

June 2017
June 2018
June 2019
June 2020
June 2021
June 2022
June 2023
June 2024
June 2025
June 2026

Dividendper Share
Dividend(excludingin
Excess Dividend
Dividend in of Earnings
per Share
Excess of
per
Share
(JPY)
Earnings per(JPY)
Share)
(JPY)
791
2,626
3,417
1,589
4,502
6,091
1,196
4,505
5,701
1,652
4,516
6,168
1,794
4,527
6,321
2,288
4,529
6,817
2,252
4,533
6,785
2,375
4,569
6,944
2,108
4,649
6,757
2,224
4,688
6,912

(Reference) Forecast Number of Shares Outstanding and EPS for each Period
Forecast Number of Shares
June 2017
June 2018
June 2019
June 2020
June 2021
June 2022
June 2023
June 2024
June 2025
June 2026

51,48351,48351,48351,48351,48351,48351,48351,48351,48351,483

Forecast EPS (JPY)
884
1,589
1,196
1,652
1,794
2,288
2,252
2,375
2,108
2,224

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
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).
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
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(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, the total dividend paid will be JPY 40 million, which is
this period’s net income less JPY 4 million of losses from the previous period.
Ichigo Green is releasing this Ten-Year Earnings and Dividend Forecast because thelong-term stability of its earnings allows for a long-term forecast. Ichigo Green will issue
an earnings 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)

10,0008,000

Dividend per Share (excluding Dividend in Excess of Earnings per Share)
Dividend in Excess of Earnings per Share

6,000
1,589

1,652

1,794

2,288

2,252

2,375

2,108

2,224

1,196

4,502

4,505

4,516

4,527

4,529

4,533

4,569

4,649

4,688

June
2018

June
2019

June
2020

June
2021

June
2022

June
2023

June
2024

June
2025

June
2026

4,000
791

2,000
2,626

0
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.

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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, and otherexpenses related to the power generation business, renewable energy plants, land, ormanagement. 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.
4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 will include such estimated taxes in its acquisition cost and will therefore 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 calculatingsuch property tax is reduced to two-thirds for three periods following acquisition.
Because this reduction in assessment value applies to the power plants Ichigo Greenowns as of today, 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 power plants are as follows:(JPY million)
June 2017
June 2018
June 2019
June 2020
June 2021
51
115
127
120
109
June 2022
100

June 2023
92

June 2024
85

June 2025
78

June 2026
72

Depreciation (including incidental costs) is calculated using the straight-line method,and is forecast as follows:(JPY million)
June 2017
June 2018
June 2019
June 2020
June 2021
338
579
579
581
582
June 2022
583

June 2023
583

June 2024
588

June 2025
598

June 2026
603

 Expenses related to Ichigo Green’s TSE listing and new share issuance and to Ichigo
Green’s establishment of JPY 129 million are anticipated for the June 2017 fiscal
period. Ichigo Green plans to amortize expenses associated with the TSE listing andnew share issuance for 36 months and expenses for the establishment of Ichigo Greenfor 60 months, using the straight-line method. Ichigo Green anticipates such expensesof JPY 22 million in the June 2017 fiscal period, JPY 34 million in the June 2018
fiscal period, JPY 34 million in the June 2019 fiscal period, JPY 21 million in the June
2020 fiscal period, and JPY 12 million in the June 2021 fiscal period.
Non-Operating Interest expenses and other loan-related expenses are forecast as follows:
Expenses(JPY million)
June 2017
June 2018
June 2019
June 2020
June 2021
40
63
60
57
54
June 2022
52

June 2023
49

June 2024
47

5June 2025
44

June 2026
41 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
53.6%

June 2019
53.4%

June 2020
52.9%

June 2021
52.4%

June 2022
51.7%

June 2023
51.1%

June 2024
50.2%

June 2025
49.4%

June 2026
48.3%

 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) Dividend is based on the assumption that distribution will comply with the dividend
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.
 In principle, it is Ichigo Green’s 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

338

579

579

581

582

135

231

231

232

233

2,626

4,502

4,505

4,516

4,527

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

583

583

588

598

603

233

233

235

239

241

4,529

4,533

4,569

4,649

4,688

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 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.

Other

This forecast assumes that there are no material revisions to laws and regulations, thetax 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.

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