Ichigo Preserves and Improves Real Estate

August 10, 2018
FY18/6 Earnings
Ichigo Green Infrastructure Investment Corporation (“Ichigo Green,” Tokyo Stock Exchange, 9282)
Representative: Mami Nagasaki, Executive Director
www.ichigo-green.co.jp/en
Ichigo Investment Advisors Co., Ltd. (Asset Management Company)
Representative: Wataru Orii, President
Inquiries: Masanori Kubota, Statutory Executive Officer (Finance)
Telephone: +81-3-3502-4854
Submission of Financial Report (Yuka Shoken Hokokusho): September 25, 2018 (expected)
Dividend Payment: September 20, 2018 (expected)
Supplemental Material to Financial and Business Results: Yes (Corporate Presentation)
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. FY18/6 Financial Results (July 1, 2017 to June 30, 2018)(1) Earnings(JPY million; year-on-year change)

FY18/6
FY17/6

Operating
Revenue
1,153
566

Change103.6%–

Operating
Profit325
158

Net Income
per Share
(JPY)
2,046
1,158

FY18/6
FY17/6

Change105.2%–

Recurring
Profit212
97

Change117.4%–

Return on Equity

Return on Assets(Recurring Profit)

4.2%
1.9%

1.8%
0.8%

Net
Income210
94

Change123.5%–

Operating Profit
Margin(Recurring Profit)
18.4%
17.2%

Notes:
1. Ichigo Green executed a two-for-one stock split on January 1, 2018 (record date: December 31,2017). Net Income per Share and FFO per Share are thus calculated on a post-stock split basis.
2. Funds from Operations (FFO)
FY18/6 FFO per Share: JPY 8,560
FY17/6 FFO per Share: JPY 4,305
FFO per Share is calculated per the following:
FFO per Share = (Net Income + Depreciation + Amortization of Expenses Related to theEstablishment of Ichigo Green + Amortization of Share Issuance Expenses + Amortization ofStart-up Expenses + Loss on Disposal of Fixed Assets + Liability for Asset Retirement
Obligation ± Loss/Gain on Sales ± Extraordinary Loss/Profit) / Total Shares Outstanding
3. Although Ichigo Green’s FY17/6 ran from October 1, 2016 to June 30, 2017 (273 days), 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 (212 days).
4. Net Income per Share is based on the average number of shares outstanding during the period(post-stock split 81,406 shares). Net Income per Share during the actual operating timeframe of
FY17/6 was JPY 918, which is based on the average number of shares outstanding during that
timeframe (post-stock split 102,658 shares).

5. Return on Equity and Return on Assets for FY17/6 are calculated based on weighted-average
Equity and Total Assets, respectively, during the actual operating timeframe from December
1, 2016 to June 30, 2017.
(2) Dividends

FY18/6
FY17/6

Total
Dividend per
Dividends
Share(excluding(excluding
DEE)
DEE)
(JPY
(JPY)
million)
2,046
210
1,738
89

Total
DEE
Dividends in Dividend
Total
Payoutper Share Excess ofper Share Dividends
Ratio
(JPY)
Earnings(JPY)(JPY million)(JPY million)
2,180
2,540

224
130

4,226
4,278

435
220

100%
94.9%

DOE

4.2%
1.8%

DEE = Dividend in Excess of Earnings. The DEE is paid from Ichigo Green’s solar power production
revenue (which Ichigo Green receives in cash) that are not treated as income under Japanese tax rules,
because they are offset by non-cash depreciation expenses.
Notes:
1. Ichigo Green executed a two-for-one stock split on January 1, 2018 (record date: December 31,2017). FY17/6 DEE per Share and Dividend per Share (excluding DEE) based on a post-stock
split basis are JPY 1,270 and JPY 869, respectively.
2. The FY17/6 payout ratio is calculated as follows:
Payout Ratio = Total Dividends (excluding DEE) / Net Income x 100
3. The FY17/6 Dividend of JPY 89 million is calculated as FY17/6 Net Income minus JPY 4 millionof retained losses.
4. 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 not adversely affecting Ichigo Green’s
financial standing. Accordingly, Ichigo Green will pay a FY18/6 Dividend in Excess of Earnings
equivalent to 35.3% of depreciation expenses.
5. A Dividend in Excess of Earnings is treated as a “return of capital” under Japanese tax rules.
6. Dividend in Excess of Earnings amounts to a 2.7% and 4.7% return of capital (from Ichigo Green
to its shareholders) in FY17/6 and FY18/6, respectively, as calculated pursuant to Article 23
Paragraph 1 Item 5 of the Order for Enforcement of the Corporation Tax Act.
(3) Assets and Equity

FY18/6
FY17/6

Total Assets(JPY million)
12,247
11,938Net Assets(JPY million)
5,034
5,043

Equity Ratio
41.1%
42.2%

Net Assets per Share(JPY)
48,892
48,985

Note: Ichigo Green executed a two-for-one stock split on January 1, 2018 (record date:
December 31, 2017). Net Assets per Share is thus calculated on a post-stock split basis.

2(4) Cash Flows
Cash Flows fromOperations(JPY million)
FY18/6
FY17/6

Cash Flows from
Investments(JPY million)

1,597
-683

Cash and Cash
Equivalents
at End of the Period(JPY million)
933
759

Cash Flows from
Financing(JPY million)-1,506-10,237

81
11,451

2. FY19/6 Forecast (July 1, 2018 to June 30, 2019)(JPY million; year-on-year change)
Operating
Revenue
FY19/6 H1535
FY19/6
1,090

Change‐2.4%‐5.4%

Operating
Profit111
254

Change‐9.0%‐21.8%

Dividend per Share(excluding DEE)
(JPY)
FY19/6 H1
FY19/6

Recurring
Profit55
144‐14.7%‐32.1%

DEE per Share
(JPY)

–
1,375

Net
Income55
143

Change‐14.5%‐32.1%

Dividend per Share
(JPY)
–
2,185

–
3,560

Forecast FY19/6 Net Income per Share is JPY 1,389
3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective
Restatement(i) Changes Accompanying Amendments to Accounting Standards:(ii) Changes Not Listed in (i):(iii) Changes in Accounting Estimates:(iv) Retrospective Restatement:

None
None
None
None

(2) Number of Shares Issued and Outstanding(i) The number of shares issued and outstanding (including treasury shares) was 102,966
shares at the end of FY18/6 and 51,483 shares at the end of FY17/6.
(ii) There were no treasury shares at the end of FY18/6 or at the end of FY17/6.

3

ChangeReference: Ten-Year Earnings and Dividend Forecast (FY20/6 through FY26/6)(JPY million)

FY20/6
FY21/6
FY22/6
FY23/6
FY24/6
FY25/6
FY26/6

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

1,085
1,078
1,072
1,065
1,059
1,052
1,046

240
251
249
260
253
251
230

145
170
183
198
194
196
179

144
169
182
197
193
195
178

Dividendper Share(excluding
DEE)
(JPY)
1,390
1,625
1,750
1,895
1,860
1,875
1,715

DEE
per Share(JPY)

Dividendper Share
(JPY)

2,190
2,195
2,195
2,200
2,205
2,010
1,825

3,580
3,820
3,945
4,095
4,065
3,885
3,540

DEE = Dividend in Excess of Earnings. The DEE is paid from Ichigo Green’s solar power production
revenue (which Ichigo Green receives in cash) that are not treated as income 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 no regulatory
framework in Japan for Investment Corporations to pay dividends at half-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 by seasonal changes in solar power
generation (as a semi-annual dividend would be).

Completion Status of Auditing ProceduresThis document is not subject to the auditing requirements set forth in the Financial Instruments
and Exchange Law of Japan. The auditing procedures in accordance with those requirements havethus not been completed as of the date of the publication of this document.
Appropriate Use of Earnings Forecasts and Other Matters of Special Note
The forecasts presented above are current figures based on certain preconditions. Accordingly, theactual operating results may vary due to changes in circumstances, and these forecasts should not
be construed as a guarantee of such results.
For details on the preconditions of the FY19/6 earnings forecast, please refer to the “Preconditions
for the FY19/6 Earnings Forecast” on pages 6 through 8. For details of the preconditions of the
FY20/6 through FY26/6 earnings forecast, please refer to the June 28, 2017 release “Ten-Year
Earnings and Dividend Forecast Revision” and the November 28, 2017 release “Stock Split.”
This English version is a translation of the original Japanese report and is provided solely for
informational purposes. Should there be any discrepancies between this translation and theJapanese original, the latter shall prevail.

4

FY19/6 Earnings Forecast
FY19/6 H1 (July 1, 2018 to December 31, 2018)
Operating Revenue
Operating Profit
Recurring Profit
Net Income
Dividend per Share (excluding DEE)
DEE per ShareDividend per Share (including DEE)

JPY 535 million
JPY 111 million
JPY 55 million
JPY 55 million–––

FY19/6 Full-Year (July 1, 2018 to June 30, 2019)
Operating Revenue
Operating Profit
Recurring Profit
Net Income
Dividend per Share (excluding DEE)
DEE per ShareDividend per Share (including DEE)

JPY 1,090 million
JPY 254 million
JPY 144 million
JPY 143 million
JPY 1,375
JPY 2,185
JPY 3,560

For details on the forecast preconditions, please refer to the “Preconditions for the FY19/6 Earnings
Forecast” on pages 6 through 8.

5Preconditions for the FY19/6 Earnings Forecast
Preconditions
PeriodFY19/6 H1: July 1, 2018 – December 31, 2018 (184 days)
FY19/6 Full-Year: July 1, 2018 – June 30, 2019 (365 days)

Number of
Shares• 102,966 shares issued and outstanding as of today, with no additional new shareissuance through FY19/6

Number ofPower Plants• 15 power plants

Operating
Revenue• 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 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), and assumes that no EPCO purchaser of
Ichigo Green’s power production will seek to suspend purchases withoutcompensation to Ichigo Green.
• Forecast power generation is a third-party, 50% probability mean annual production
forecast (P50 forecast) that serves as the base forecast for each solar power plant’s
operating plan. The P85 annual production is a third-party, 85% probability meanannual production forecast. P85-based electricity sales revenue is the assumed
electricity sales revenue calculated by multiplying the annual P85 production forecastby the FIT (Feed-In Tariff) 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.
• 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 forreasons 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,
and does not assume the sale of any power plants.
• Operating Revenue assumes that Ichigo Green fully receives its contractual power
production revenue.

6

Operating
Expenses• Per the above, power plant operation and management expenses are deducted frompower 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 theprevious power plant owner(s), adjusted for anticipated expense variations.
• 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, 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 10, 2018, the property
tax is reduced by JPY 13 million to JPY 51 million for FY19/6 H1 and by JPY 15
million to JPY105 million for FY19/6.
• Depreciation (including incidental costs) is calculated based on acquisition priceusing the straight-line method and is forecast to be JPY 318 million and JPY 636
million for FY19/6 H1 and FY19/6, respectively.

Non-Operating
Expenses• 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
for the start-up and establishment of Ichigo Green for 60 months, using the straightline method. Ichigo Green anticipates such expenses to be JPY 17 million and JPY 34
million for FY19/6 H1 and FY19/6, respectively.
• Interest expenses and other borrowing-related expenses of JPY 38 million and JPY
75 million is anticipated for FY19/6 H1 and FY19/6, respectively.

Loans• Ichigo Green assumes outstanding debt of JPY 6.907 billion and JPY 6.733 billion asof the end of FY19/6 H1 and FY19/6, respectively.
• Loan-to-Value (LTV) is anticipated at 59.4% and 58.2% as of the end of FY19/6 H1
and FY19/6, respectively.
• LTV is calculated using the following formula:
LTV = Total interest-bearing debt / total assets

Dividend(excluding
DEE)• The dividend forecast assumes that dividends will comply with the dividend policy
stipulated in Ichigo Green’s Articles of Incorporation.
• The dividend is subject to change due to factors such as power plant operator
turnover, changes in power production revenue, and unexpected maintenance andrepair costs and other expenses.

• Ichigo Green sets its DEE based on its Articles of Incorporation and dividend policy
set forth in Ichigo Investment Advisors’ internal Operating Guidelines.
• It is Ichigo Green’s general policy to pay a cash DEE equivalent to c. 40% of annual
depreciation expenses, subject to the dividend not adversely affecting Ichigo Green’s
financialstanding. The policy is based upon a) such dividend not affecting Ichigo
Dividend inGreen’slong-term
maintenance policy, taking into consideration planned capital
Excess of
expenditureforeachfiscal year, and b) a certain amount of retained cash is necessary
Earnings (DEE)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 FY19/6. The Total DEE and DEE per share is expected to be JPY 224
million and JPY 2,185, respectively.

7

Other• This forecast assumes that there are no material revisions to laws and regulations, thetax rules, accounting standards, listing rules of the Tokyo Stock Exchange, and rulesof the Investment Trusts Association, Japan, and no material changes in the state of
the economy and real estate market conditions.

8Financial Statements(1) Balance Sheet(JPY thousand)
FY17/6(as of June 30, 2017)
AssetsCurrent Assets
Cash and cash equivalents
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Deferred tax assets
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Solar power plant equipment
Depreciation
Solar power plant equipment (net)Land
Total Property, Plant, and Equipment
Investments and Other Assets
Tenant leasehold and security deposits
Long-term prepaid expenses
Total Investments and Other Assets
Total Fixed Assets
Deferred Assets
Expenses related to the establishment of
Ichigo Green
Share issuance expenses
Start-up expenses
Total Deferred Assets
Total Assets

9

FY18/6(as of June 30, 2018)759,965
220,175
42,363
779,29819
1,801,822

933,188
255,128
56,97730,5058
1,275,808

10,094,384-326,300
9,768,083
133,163
9,901,246

11,525,022‐962,342
10,562,679
208,820
10,771,500

10,000120,850
130,850
10,032,097

10,000120,566
130,566
10,902,067

49,94137,60552,0732,208
104,223
11,938,143

30,165
1,708
69,47912,247,355

(JPY thousand)
FY17/6(as of June 30, 2017)
Liabilities
Current Liabilities
Accounts payable
Short-term loans
Long-term loans (due within one year)
Accounts payable – otherAccrued expenses
Income taxes payable
Other
Total Current Liabilities
Long-Term Liabilities
Long-term loans
Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
Shareholders’ capital
Deduction from shareholders’ capital(DEE payment)
Shareholders’ capital (net)
Surplus
Unappropriated retained earnings
Total Surplus
Total Shareholders’ Equity
Total Net Assets
Total Liabilities and Net Assets

10

FY18/6(as of June 30, 2018)

11,143760,000
336,278
23,442131
1,103–
1,132,098

8,292－
427,040
41,630
302
654
1,386
479,306

5,762,182
5,762,182
6,894,281

6,733,739
6,733,739
7,213,046

4,954,368

4,954,368–‐130,766

4,954,368

4,823,601

89,49489,494
5,043,862
5,043,862
11,938,143

210,707
210,707
5,034,308
5,034,308
12,247,355

(2) Income Statement

Operating Revenue
Solar power plant revenue
Total Operating Revenue
Operating Expenses
Solar power plant expenses
Asset management fee
Custodian fee
Other administrative expenses
Directors’ compensation
Other
Total Operating Expenses
Operating Profit
Non-Operating Income
Interest income
Total Non-Operating Income
Non-Operating Expenses
Interest expenses
Borrowing-related expenses
Amortization of expenses related to theestablishment of Ichigo Green
Amortization of share issuance expenses
Other
Total Non-Operating Expenses
Recurring Profit
Pre-Tax Income
Income Taxes – Current
Income Taxes – Deferred
Total Income Taxes
Net Income
Retained Earnings Brought Forward
Unappropriated Retained Earnings (Loss)11

FY17/6(October 1, 2016 toJune 30, 2017)(JPY thousand)
FY18/6(July 1, 2017 toJune 30, 2018)566,623566,623

1,153,477
1,153,477

371,835
16,998
1,909
2,997
6,300
7,901
407,941
158,681733,138
37,432
3,392
5,505
8,400
39,921
827,790
325,686

2
2

7
7

28,344
10,06357,80919,1099,019

12,336

13,411
291
61,12997,55497,554
1,103
2,172
3,275
94,279‐4,78489,494

21,9082,438
113,602
212,091
212,091
1,390
10
1,401
210,69016
210,707(3) Statement of Shareholders’ Equity
FY17/6 (October 1, 2016 to June 30, 2017)(JPY thousand)Shareholders’ Equity
Surplus
Paid-In
CapitalBalance as of
October 1, 2016
Changes during the
PeriodIssuance of New
Shares300,000

UnappropriatedRetained
Earnings(Loss)-4,784

Total
Surplus-4,7844,654,368

Net Income

Total
Shareholders’EquityTotal
Net Assets

295,215

295,215

4,654,368

4,654,368

94,27994,27994,27994,279Total Changes

4,654,368

94,27994,2794,748,647

4,748,647

Balance as ofJune 30, 2017

4,954,368

89,49489,494

5,043,862

5,043,862

12

FY18/6 (July 1, 2017 to June 30, 2018)(JPY thousand)Shareholders’ Equity
Paid-In Capital

Surplus

Deduction from
UnappropriatedShareholders’
Paid-In Capital Shareholders’
Retained
Capital (net)
CapitalEarnings
Balance as ofJuly 1, 2017
Changes during the
Period4,954,368

89,49489,494

Dividend‐89,477‐89,477

Net Income

210,690

210,690DEE–

4,954,368‐130,766‐130,766

Total
Surplus

Total Changes–‐130,766‐130,766

121,212

121,212

Balance as ofJune 30, 2018

4,954,368‐130,766

4,823,601

210,707

210,707

Shareholders’EquityTotal Assets

Total
Balance as ofJuly 1, 2017
Changes during the
Period

5,043,862

5,043,862

DEE-130,766-130,766

Dividend-89,477-89,477

Net Income

210,690

210,690

Total Changes-9,553-9,553

Balance as ofJune 30, 2018

5,034,308

5,034,308

13

(4) Dividend Statement
FY17/6(October 1, 2016 toJune 30, 2017)(JPY)
FY18/6(July 1, 2017 toJune 30, 2018)

Unappropriated Retained Earnings

89,494,380

210,707,207

Provision to Dividend in Excess of
Earnings (DEE)
Deduction from Shareholders’ Capital
III Total Dividends including DEE
Dividend per Share including DEE
Dividend
Dividend per ShareTotal DEE
DEE per Share
IV Retained Earnings Carried Forward

130,766,820
220,244,274
4,278
89,477,454
1,738
130,766,820
2,540
16,926

224,465,880
435,134,316
4,226
210,668,436
2,046
224,465,880
2,180
38,771III

14

(5) Cash Flow Statement

Cash Flows from Operations:Pre-tax net income
Depreciation
Amortization of expenses related to theestablishment of Ichigo Green
Amortization of share issuance expenses
Interest income
Interest expense
Decrease (increase) in operating accounts
receivable
Decrease (increase) in consumption taxes
receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid
expenses
Increase (decrease) in operating accounts
payableIncrease (decrease) in accounts payable
Other
Sub-totalInterest income received
Interest expense paid
Income taxes paid
Net Cash from (Used for) Operations
Cash Flows from Investments:
Acquisition of property, plant, and equipment
Expenses related to the establishment of
Ichigo GreenOther
Net Cash from (Used for) Investments
Cash Flows from Financing:
Proceeds from short-term loans
Repayment of short-term loans
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from share issuance
Share issuance expenses
Dividends paid
DEE paid
Net Cash from (Used for) Financing
Net Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of
PeriodCash and Cash Equivalents at End of Period

15

FY17/6(October 1, 2016 toJune 30, 2017)(JPY thousand)
FY18/6(July 1, 2017 toJune 30, 2018)

97,554
326,300

212,091
636,041

9,019

12,336

13,411‐2
28,344

21,908‐7
57,809‐220,175‐34,952‐779,298

748,793‐42,363‐14,613283‐120,850
11,143
21,860291‐654,7642‐28,212‐72‐683,047‐10,227,547‐2,85018,1882,167
1,657,195
7‐57,639‐1,8391,597,724‐7,000‐1,506,295–‐2,500‐10,237,047–‐1,506,295

760,000–
6,192,000‐93,539
4,654,368‐61,404––
11,451,424–‐760,000
1,475,000‐412,680–‐1,938‐87,820‐130,766
81,794

531,328

173,222

228,636759,965

759,965

933,188

Notes to Balance Sheet
Minimum Net Assets Stipulated in the Investment Trust and Investment Corporation Law(JPY thousand)
FY17/6(as of June 30, 2017)

FY18/6(as of June 30, 2018)

50,00050,000Notes to Income Statement
Details of Solar Power Plant Revenue(JPY thousand)
FY17/6(October 1, 2016 toJune 30, 2017)

FY18/6(July 1, 2017 toJune 30, 2018)

A. Revenue
Base Revenue
Additional Revenue (>P85 Forecast)
Total

516,549
50,074566,623

1,038,061
115,415
1,153,477

B. Expenses
Property and City Planning Taxes
Depreciation Expense
Total

45,534
326,300
371,835

97,096
636,041
733,138

194,788

420,339

C. Power Production Income(A) – (B)

Notes to Statement of Shareholders’ Equity

Number of Authorized Shares

FY17/6(October 1, 2016 toJune 30, 2017)
10,000,000

Number of Issued & Outstanding Shares

51,48316

FY18/6(July 1, 2017 toJune 30, 2018)
10,000,000
102,966

Notes to Cash Flow
Relationship between Cash and Cash Equivalents at End of the Fiscal Year and Items Shownon the Balance Sheet

Cash and Deposits

FY17/6(October 1, 2016 toJune 30, 2017)759,965

Cash and Cash Equivalents

759,965

17(JPY thousand)
FY18/6(July 1, 2017 toJune 30, 2018)
933,188933,188

Per Share Information(JPY)
FY17/6(October 1, 2016 toJune 30, 2017)

FY18/6(July 1, 2017 toJune 30, 2018)

Net Assets per Share

48,98548,892Net Income per Share

1,158

2,046

Notes:
1. Ichigo Green executed a two-for-one stock split on January 1, 2018 (record date: December 31,2017). Net Assets per Share and Net Income per Share are thus calculated on a post-stock split basis.
2. Details for calculation of Net Income per Share.
FY18/6(July 1, 2017 toJune 30, 2018)

FY17/6(October 1, 2016 toJune 30, 2017)
Net Income (JPY thousand)Income not attributable to commonshareholders (JPY thousand)
Net Income attributable to commonshareholders (JPY thousand)Average number of shares in the fiscal
period94,279210,690––

94,279210,690

81,406

102,966

New Share IssuanceTotal Number of
SharesIssuedOutstanding

Issue Amount1(JPY million)
Increase
Total

Date

MethodJune 24, 2016

Private Offering2

3,000

3,000

300

300

November 30, 2016

Initial Public Offering3

47,18050,180

4,529

4,829

Third-Party Allotment toDecember 26, 2016 Underwriter(Greenshoe)4
DEE Payment
September 21, 2017
(Return of Capital)5

1,303

51,483

125

4,954

–

51,483

-130

4,823

51,483102,966–

4,823

January 1, 2018

Stock Split6

1

The DEE payment has been subtracted from Issue Amount, because it is treated as a return of capital.
3,000 shares were issued for the establishment of Ichigo Green at a share price of JPY 100,000.
3
New shares were issued for an initial public offering on the Tokyo Stock Exchange at a share priceof JPY 100,000 (subscription price of JPY 96,000) to procure funds for asset acquisitions.
4
New shares were issued at a subscription price of JPY 96,000 via third-party allotment as part ofthe initial public offering to the underwriter (Greenshoe).
2

18

5

Ichigo Green resolved at its August 9, 2017 board meeting that it will pay a DEE of JPY 2,540 per
share for FY17/6. The DEE is paid from Ichigo Green’s solar power production revenue (which
Ichigo Green receives in cash) that are not treated as income under Japanese tax rules, because they
are offset by non-cash depreciation expenses. The Dividend & DEE payment date was September
21, 2017.
6
Ichigo Green executed a two-for-one stock split on January 1, 2018 (record date: December 31, 2017).

19

Solar Power Plant Information
Solar Power Plant Portfolio Composition
Asset Typeas of June 30, 2018
Book Value% of Total(JPY million)

RegionHokkaido

3,238

26.4

Kanto

453

3.7

Chubu

490

4.0

Chugoku

1,428

11.7

Shikoku

1,496

12.2

Kyushu484

4.0

Okinawa

3,178

26.0

Sub-total

10,771

87.9

Deposits & Other Assets

1,475

12.1

Total Assets

12,247100.0

Solar Power Plant

RegionHokkaido
Kanto
Chubu
Chugoku
Shikoku
KyushuOkinawa

Prefectures
Hokkaido
Ibaraki, Tochigi, Gunma, Saitama, Chiba, Tokyo, Kanagawa
Niigata, Toyama, Ishikawa, Fukui, Yamanashi, Nagano, Gifu, Shizuoka, Aichi
Tottori, Shimane, Okayama, Hiroshima, Yamaguchi
Tokushima, Kagawa, Ehime, Kochi
Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima
Okinawa

20

Solar Power Plant Details(as of June 30, 2018)
No.

Solar Power Plant

Location

Total Area
(m2)

FIT
(JPY)

Certification
Date

FIT Period

E-01

Ichigo Kiryu Okuzawa

Gunma

27,588.00

40

Feb 14, 2013

Sep 29, 2033

E-02

Ichigo Motomombetsu

Hokkaido

48,946.89

40

Jul 4, 2012

Feb 2, 2034

E-03

Ichigo MuroranHatchodaira

Hokkaido

35,801.00

40

Feb 15, 2013

Mar 2, 2034

E-04

Ichigo Engaru
Kiyokawa

Hokkaido

27,164.16

40

Mar 4, 2013

Mar 3, 2034

E-05

Ichigo Iyo
Nakayamacho Izubuchi

Shikoku

26,260.77

40

Jul 11, 2012

Apr 1, 2034

E-06

Ichigo Nakashibetsu
Midorigaoka

Hokkaido

54,870.00

40

Feb 19, 2013

Nov 3, 2034

E-07

Ichigo Abira Toasa

Hokkaido

29,730.72

40

Jul 4, 2012

Dec 1, 2034

E-08

Ichigo Toyokoro

Hokkaido

29,004.00

40

Feb 22, 2013

Dec 3, 2034

E-09

Ichigo Nago Futami

Okinawa 146,294.00

40

Mar 15, 2013

Feb 1, 2035

E-10

Ichigo Engaru
Higashimachi

Hokkaido

46,329.00

40

Feb 15, 2013

Feb 2, 2035

E-11

Ichigo Takamatsu
Kokubunjicho Nii

Shikoku

79,340.00

36

Feb 20, 2014

Jun 1, 2035

E-12

Ichigo Miyakonojo
Yasuhisacho

Kyushu94,165.00

36

Feb 14, 2014

Jul 7, 2035

E-13

Ichigo Toyokawa
Mitocho Sawakihama

Aichi

19,393.00

32

Feb 13, 2015

Sep 15, 2035

E-14

Ichigo Yamaguchi
Aionishi

Chugoku

19,815.38

40

Mar 12, 2013

Dec 6, 2035

E-15

Ichigo Yamaguchi
SayamaChugoku

43,621.00

36

Mar 17, 2014

Apr 5, 2036

21

Acquisition Price, Appraisal Value, and Book Value of Solar Power Plants

No.

Solar Power Plant

Solar Energy
Producer(as of June 30, 2018)
Appraisal
Value
Breakdown
Acquisition Appraisal
Book
(JPY
Power
Price
Value
Value
million)Purchaser
(JPY
(JPY
(JPY
Top:
million)million) Powermillion)
Plant
Bottom:Real Estate

Ichigo Kiryu
E-01
Okuzawa

Ichigo ECO Kiryu
Okuzawa Power
Plant GKTEPCO
EnergyPartner

IchigoE-02
Motomombetsu

Ichigo ECO
Motomombetsu
Power Plant GK

Hokkaido
Electric

Ichigo Muroran
E-03
Hatchodaira

Ichigo ECO
MuroranHatchodaira Power
Plant GK

Hokkaido
Electric

Ichigo Engaru
E-04
Kiyokawa

Ichigo Engaru
Kiyokawa ECOPower Plant GK

Hokkaido
Electric

Ichigo Iyo
E-05 Nakayamacho
Izubuchi

Ichigo ECO Iyo
Nakayamacho
Izubuchi Power
Plant GK

ShikokuElectric

IchigoE-06 Nakashibetsu
Midorigaoka

IchigoNakashibetsu
Midorigaoka ECOPower Plant GK

Hokkaido
Electric

Ichigo Abira
E-07
Toasa

Ichigo Abira Toasa
ECO Power Plant
GK

Hokkaido
Electric

E-08 Ichigo Toyokoro

Ichigo Toyokoro
ECO Power Plant
GK

Hokkaido
Electric

22

489

495

467

398

471

770

441

434

487

453

–

–

492

460

–

–

465

435

–

–

383

371

–

–

474

439

–

–

734

717

–

–

431

412

–

–

431

406

–

–

487

492

465

383

474

734

431

431

No.

Solar Power Plant

E-09

Ichigo Nago
FutamiSolar Energy
Producer

Appraisal
Value
Breakdown
Acquisition Appraisal
(JPY
Power
Price
Value
million)Purchaser
(JPY
(JPY
Top:
million)million) Power
Plant
Bottom:Real Estate

Ichigo ECO Nago
Futami Power
Plant GK

Okinawa
Electric

Ichigo Engaru
Higashimachi
ECO Power Plant
GK

Hokkaido
Electric

Ichigo Takamatsu
E-11
Kokubunjicho Nii

Ichigo ECO Energy

ShikokuElectric

IchigoE-12 Miyakonojo
Yasuhisacho

Ichigo Miyakonojo
Yasuhisacho ECOPower Plant GK

KyushuElectric

Ichigo Toyokawa
E-13 Mitocho
Sawakihama

Ichigo Toyokawa
Mitocho
Sawakihama ECOPower Plant GK

Chubu
Electric

Ichigo Yamaguchi
Ichigo Yamaguchi
E-14
Aionishi ECO
AionishiPower Plant GK

ChugokuElectric

Ichigo Yamaguchi
Sayama ECOPower Plant GK

ChugokuElectric

Ichigo Engaru
E-10
Higashimachi

IchigoE-15 Yamaguchi
Sayama

Total

3,425

464

1,124

517

523

544

925

11,487

23

Book
Value
(JPY
million)

3,570

3,178

–

–

447

434

–

–

980

923

118

133

523

484

–

–

478

490

–

–

496

456

68

75

953

896

–

–

11,348

10,562

186

208

3,570

447

1,098

523

478

564

953

11,535

1

Acquisition Price excludes incidental expenses such as property, city planning, and consumption taxes.
Appraisal Value is a median calculated pursuant to Ichigo Green’s Articles of Incorporation(Article 35, Paragraph 2, Item 1) and using land and power plant appraisal values provided by PwC
Sustainability LLC.
3
The top row of the Appraisal Value Breakdown column shows the Plant Appraisal Value, calculated
as the difference between the Appraisal Value described in footnote 2 above and the corresponding
Real Estate Appraisal Value in reports produced by Daiwa Real Estate Appraisal. Values in thesecond row show the Real Estate appraisal value by Daiwa Real Estate Appraisal.
4
The top row of the Book Value column shows the book value of the solar power plant and thebottom row shows that of the underlying land on June 30, 2018.
224

Earnings by Solar Power Plant(JPY thousand)No.
Solar Power Plant(1) Revenue
Base Revenue
Additional Revenue(>P85 Forecast)(2) Expenses
Fixed Asset Tax
Depreciable Asset Tax
Other(3) NOI(4) Depreciation(5) Net Income

No.
Solar Power Plant(1) Revenue
Base Revenue
Additional Revenue(>P85 Forecast)(2) Expenses
Fixed Asset Tax
Depreciable Asset Tax
Other(3) NOI(4) Depreciation Expense(5) Net Income

E-01

E-02

Total Portfolio

Ichigo Kiryu
Okuzawa

IchigoMotomombetsu

1,153,477
1,038,061

54,60946,24547,812
46,259E-03
IchigoMuroranHatchodaira
45,75144,473

115,415

8,364

1,553

1,277

2,571

97,096707
96,37117
1,056,380
636,041
420,339

5,934
–
5,934
–
48,67529,767
18,907

4,975
–
4,975
–
42,837
29,405
13,431

4,701
–
4,701
–
41,05027,624
13,425

4,011
–
4,011
–
34,886
23,588
11,298

E-05
Ichigo Iyo
Nakayamacho
Izubuchi
45,46744,727

E-04
IchigoEngaruKiyokawa
38,89836,326

E-06

E-07

E-08

E-09

IchigoNakashibetsu
Midorigaoka

Ichigo Abira
Toasa

IchigoToyokoro

Ichigo Nago
Futami80,421
67,26344,33839,71244,38639,473360,205
321,909740

13,158

4,625

4,913

38,296

4,720
–
4,720
–
40,746
27,79812,948

7,760
–
7,760
–
72,661
43,67728,983

4,455
–
4,455
–
39,88225,02014,862

4,426
–
4,426
–
39,96024,624
15,33528,260–28,260–331,945
190,697
141,248

25

(JPY thousand)
No.

E-10

Solar Power Plant

Ichigo Engaru
Higashimachi(1) Revenue
Base Revenue
Additional Revenue(>P85 Forecast)(2) Expenses
Fixed Asset Tax
Depreciable Asset Tax
Other(3) NOI(4) Depreciation Expense(5) Net Income
No.
Solar Power Plant(1) Revenue
Base Revenue
Additional Revenue(>P85 Forecast)(2) Expenses
Fixed Asset Tax
Depreciable Asset Tax
Other(3) NOI(4) Depreciation Expense(5) Net Income

41,56340,670

E-11
IchigoTakamatsu
KokubunjichoNii
101,937
93,704

892
3,891
–
3,891
–
37,671
26,072
11,59848,99446,855

E-13
IchigoMiyakonojo
Mitocho
Sawakihama
53,68943,187

8,233

2,139

10,502

6,015

8,626
409
8,216
–
93,311
54,34938,961

4,348
–
4,348
–
44,64628,381
16,265

4,391
–
4,391
–
49,29728,446
20,850

2,432
297
2,126
7
49,972
26,07423,897

E-15
IchigoYamaguchi
Sayama92,99480,864
12,130
4,159
–
4,150
9
88,83550,51238,32226

E-12
IchigoMiyakonojo
Yasuhisacho

E-14
IchigoYamaguchi
Aionishi
52,404
46,389