Ichigo Preserves and Improves Real Estate

August 9, 2017
FY17/6 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 27, 2017 (expected)
Dividend Payment: September 21, 2017 (expected)
Supplemental Material to Financial and Business Results: Yes (Corporate Presentation)
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. Financial Results for FY17/6 (October 1, 2016 to June 30, 2017)(1) Earnings(JPY million; year-on-year change)

FY17/6
FY16/9FY17/6
FY16/9Operating
Revenue566–

Change––Net Income
per Share
(JPY)
2,316
-1,594

Operating
Profit158-3

Change––Recurring
Profit97-6

Change––Return on Equity

Return on Assets(Recurring Profit)

1.9%
-1.6%

0.8%
-2.3%

Net
Income94-4Change––Operating
Profit Margin(Recurring Profit)
17.2%–

FY17/6 Funds from Operations (FFO) per Share: JPY 8,610
Notes:
1. FFO per Share is calculated with the following formula:
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
2. While the FY17/6 period ran from October 1, 2016 to June 30, 2017 (273 days), Ichigo Green’s
actual operating timeframe during the period was from December 1, 2016, the day it acquired its
first power plants, to June 30, 2017 (212 days).
3. Net Income per Share is based on the average number of shares outstanding during the period(40,703 shares). Net Income per Share during the actual operating timeframe was JPY 1,836,
which is based on the average number of shares outstanding during that timeframe (51,329
shares).
4. Return on Equity and Return on Assets are calculated based on weighted-average Equity and Total
Assets, respectively, during the actual operating timeframe from December 1, 2016 to June 30,
2017.
5. Because FY16/9 was the first year of operations, year-on-year changes for Operating Revenue,
Operating Profit, Recurring Profit, and Net Income are not shown.

(2) Dividends

FY17/6
FY16/9

Total
Dividend per
Dividends
Share
Dividend
Total(excluding(excluding
in Excess Dividends in Dividend
Total
Dividend in
PayoutDividend inof Earnings Excess ofper Share Dividends
DOE
Excess of
Ratio
Excess of(per Share) Earnings(JPY)(JPY million)
Earnings)
Earnings)(JPY) (JPY million)
(JPY
(JPY)
million)
1,738
89
2,540
130
4,278
220
94.9% 1.8%
–
–
–
–
–
–
–
–

Notes:
1. The FY17/6 payout ratio is calculated as follows:
Payout Ratio = Total Dividends (excluding Dividend in Excess of Earnings) / Net Income x 100
2. The FY17/6 Dividend of JPY 89 million is FY17/6 Net Income minus JPY 4 million of retained
losses.
3. 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 FY17/6 Dividend in Excess of Earnings
equivalent to c. 40% of depreciation expenses.
4. A Dividend in Excess of Earnings is treated as a “return of capital” under Japanese tax.
5. The FY17/6 Dividend in Excess of Earnings amounts to a 2.7% return of capital (from Ichigo
Green to its shareholders), as calculated pursuant to Item 5 Paragraph 1 Article 23 of the Order for
Enforcement of the Corporation Tax Act.
(3) Assets and Equity

FY17/6
FY16/9Total Assets(JPY million)
11,938297

Net Assets(JPY million)
5,043
295

Equity Ratio
(%)
42.2%
99.3%

Cash Flows fromOperating Activities(JPY million)

Cash Flows from
Investing Activities(JPY million)

Cash Flows from
Financing Activities(JPY million)

-683
-2

-10,237-64

11,451295

Net Assets per Share(JPY)
97,971
98,405(4) Cash Flow

FY17/6
FY16/92

Cash and Cash
Equivalents
at End of the Period(JPY million)759
228

2. Earnings Forecast for FY18/6 (July 1, 2017 to June 30, 2018)(JPY million; year-on-year change)

Half-Year
Full-Year

Operating
Revenue537
1,095

Half-Year
Full-Year

Dividend per Share(excluding Dividend in Excessof Earnings)
(JPY)
–
2,820

Change––Operating
Profit112
262

Change––Recurring
Profit54
147

Change––Net
Income53
146

ChangeDividend in Excess of
Earnings (per Share)(JPY)

Dividend per Share
(JPY)

–
4,360

–
7,180

Notes:
1. Forecast FY18/6 Full-Year Net Income per Share is JPY 2,849.
2. Ichigo Green did not have a FY17/6 Half-Year earnings period, so no year-on-year change isshown for the Half-Year forecast.
3. The actual operating timeframe for FY17/6 was only nine months (from October 1, 2016 to June30, 2017), so no year-on-year change is shown for the Full-Year forecast.

3––

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 3,000
shares at the end of FY16/9 and 51,483 shares at the end of FY17/6.
(ii) There were no treasury shares at the end of FY16/9 or at the end of FY17/6.

Reference: Ten-Year Earnings and Dividend Forecast (FY19/6 through FY26/6)(JPY million)

FY19/6
FY20/6
FY21/6
FY22/6
FY23/6
FY24/6
FY25/6
FY26/6

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
Income

1,090
1,085
1,078
1,072
1,065
1,059
1,052
1,046

254
240
251
249
260
253
251
230

144
145
170
183
198
194
196
179

143
144
169
182
197
193
195
178

Dividendper Share
Dividend(excluding
in Excess
Dividend in of Earnings
Excess of (per Share)
Earnings)
(JPY)
(JPY)
2,750
4,370
2,780
4,380
3,250
4,390
3,500
4,390
3,790
4,400
3,720
4,410
3,750
4,020
3,430
3,650

Dividendper Share
(JPY)

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).

4

7,120
7,160
7,640
7,890
8,190
8,130
7,770
7,080

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 FY18/6 earnings forecast, please refer to the “Preconditions
for the FY18/6 Half-Year and Full-Year Earnings Forecasts” on pages 7 through 9. For details of
the preconditions of the FY19/6 through FY26/6 earnings forecast, please refer to the June 28,2017 release “Ten-Year Earnings and Dividend Forecast Revision.”
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.

5Earnings Forecasts
FY18/6 Half-Year (July 1, 2017 to December 31, 2017)
Operating Revenue
Operating Profit
Recurring Profit
Net Income
Dividend per Share (excluding Dividend in Excess of Earnings)
Dividend in Excess of Earnings (per Share)
Dividend per ShareJPY 537 million
JPY 112 million
JPY 54 million
JPY 53 million–––

FY18/6 Full-Year (July 1, 2017 to June 30, 2018)
Operating Revenue
Operating Profit
Recurring Profit
Net Income
Dividend per Share (excluding Dividend in Excess of Earnings)
Dividend in Excess of Earnings (per Share)
Dividend per Share

JPY 1,095 million
JPY 262 million
JPY 147 million
JPY 146 million
JPY 2,820
JPY 4,360
JPY 7,180

For details on the preconditions, please refer to the “Preconditions for FY18/6 Half-Year and FullYear Earnings Forecasts” on page 7.

6

Preconditions for the FY18/6 Half-Year and Full-Year Earnings Forecasts
Preconditions
PeriodFY18/6 Half-Year: July 1, 2017 – December 31, 2017 (184 days)
FY18/6 Full-Year: July 1, 2017 – June 30, 2018 (365 days)

Number of
Shares• 51,483 shares issued and outstanding as of today, with no additional new shareissuance through FY18/6• The dividend is also calculated based on the above assumption of 51,483 sharesissued and outstanding.

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 annual P85 production forecast minus forecast
operating expenses) to actual power production revenue (electricity sales revenue
based on the annual P50 production forecast minus base revenue and forecast
operating expenses). Power production revenue assumes that there is no suspensionof renewable energy supply without compensation through FY18/6.
• 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.
• Renewable energy plant operation and maintenance expenses (including fees paid tomaintenance service providers and repair costs) are the total of operator fees, rent
paid, insurance premiums, management costs (including administration and tax fees),
property, city planning, and consumption taxes, and other expenses related to thepower 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.

7

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.
• 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 andthe buyer based on period of ownership and paid 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 calendar year 2017 with respect to the
2 power 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 13 power plants Ichigo
Green owned as of the end of FY17/6, the property tax is reduced by JPY 19 million
to JPY 45 million and JPY 33 million to JPY 96 million for FY18/6 Half-Year and
FY18/6 Full-Year, respectively.
• Depreciation (including incidental costs) is calculated based on acquisition priceusing the straight-line method. Depreciation expenses of JPY 317 million and 635
million are forecast for FY18/6 Half-Year and FY18/6 Full-Year, respectively.

Non-Operating
Expenses• Ichigo Green plans to amortize expenses associated with its December 2016 TSE
listing and new share issuance for 36 months and expenses for the establishment of
Ichigo Green for 60 months, using the straight-line method. Ichigo Green anticipatessuch expenses to be JPY 17 million and JPY 34 million for FY18/6 Half-Year and
FY18/6 Full-Year, respectively.
• Interest expenses and other borrowing-related expenses of JPY 41 million and JPY
80 million are anticipated for FY18/6 Half-Year and FY18/6 Full-Year, respectively.

Loans• Ichigo Green assumes outstanding debt of JPY 7.336 billion and JPY 7.160 billion asof the end of FY18/6 Half-Year and FY18/6 Full-Year, respectively.
• Loan-to-Value (LTV) as of the end of FY18/6 Half-Year and FY18/6 Full-Year isanticipated at 59.7% and 58.6%, respectively. LTV is calculated with the following
formula:LTV = Total interest-bearing debt / total assets * 100

Dividend(excluding
Dividend in
Excess ofEarnings)• 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.

8Dividend in
Excess ofEarnings• Ichigo Green sets its Dividend in Excess of Earnings based on its Articles ofIncorporation and 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 is based upon a)such dividend not affecting Ichigo Green’s long-term maintenance policy, taking into
consideration planned capital expenditure for each fiscal year, and b) a certain
amount of 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 Dividend in Excess of Earnings equivalent to 35.3% ofannual depreciation expense for FY18/6. The Total Dividend in Excess of Earnings is
expected to be JPY 224 million and Dividend in Excess of Earnings (per Share) is
expected to be JPY 4,360.

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, andrules of the Investment Trusts Association, Japan, and no material changes in the stateof the economy and real estate market conditions.

9Financial Statements(1) Balance Sheet(JPY thousand)FY16/9(as of September 30,
2016)
AssetsCurrent Assets
Cash and cash equivalents
Accounts receivable
Prepaid expenses
Consumption taxes receivable
Deferred tax assets
Other
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Solar power plant equipment
Depreciation
Solar power plant equipment (net)Land
Buildings under construction
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

10

FY17/6(as of June 30, 2017)

228,636
–
–
–
2,191
–
230,828

759,965
220,175
42,363
779,29819–
1,801,822

–
–
–
–
540
540

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

10,000–10,000
10,54010,000120,850
130,850
10,032,097

51,96149,941

4,080–
56,041
297,409

52,0732,208
104,223
11,938,143

(JPY thousand)FY16/9(as of September 30,
2016)
Liabilities
Current Liabilities
Accounts payable
Short-term loans
Long-term loans (due within one year)
Accounts payable – otherAccrued expenses
Income taxes payable
Total Current Liabilities
Long-Term Liabilities
Long-term loans
Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
Shareholders’ capital
Surplus
Unappropriated retained earnings
Total Surplus
Total Shareholders’ Equity
Total Net Assets
Total Liabilities and Net Assets

11

FY17/6(as of June 30, 2017)

–
–
–
2,121
–
72
2,193

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

–
–
2,193

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

300,000

4,954,368-4,784-4,784295,215
295,215
297,40989,49489,494
5,043,862
5,043,862
11,938,143

(2) Income Statement(JPY thousand)
FY17/6(October 1, 2016 toJune 30, 2017)

FY16/9(June 24, 2016 to
September 30, 2016)
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 (Loss)
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 (Loss)
Pre-Tax Income
Income Taxes – Current
Income taxes – Deferred
Total Income Taxes
Net Income (Loss)
Retained Earnings (Loss) Brought Forward
Unappropriated Retained Earnings (Loss)

12

–
–

566,623566,623

–
–
406
1,069
2,263
202
3,941
-3,941

371,835
16,998
1,909
2,997
6,300
7,901
407,941
158,681

–
–

2
2

–
–

28,344
10,063

2,721

9,019

240
–
2,961
-6,903-6,90372-2,191-2,118-4,784–-4,784

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

(3) Statement of Shareholders’ Equity
FY16/9 (June 24, 2016 to September 30, 2016)(JPY thousand)Shareholders’ Equity
Surplus
UnappropriatedRetained
Earnings(Loss)

Paid-In
CapitalBalance as ofJune 24, 2016
Changes during the
PeriodIssuance of New
SharesNet Income(Loss)–

Total
Shareholders’EquityTotal
Surplus––300,000

Total
Net Assets––

300,000

300,000-4,784-4,784-4,784-4,784

Total Changes

300,000-4,784-4,784295,215

295,215

Balance as of
September 30, 2016

300,000-4,784-4,784295,215

295,215

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
SharesNet Income(Loss)

300,000

UnappropriatedRetained
Earnings(Loss)-4,784

Total
Surplus-4,7844,654,368

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

13

(4) Notes to the Calculation of Dividends

I Unappropriated Retained Earnings (Loss)II Total Dividends
Dividend per ShareTotal Dividends(excluding Dividend in
Excess of Earnings)
Dividend per Share(excluding Dividend in
Excess of Earnings)
Total Dividends in
Excess of Earnings
Per-Share Dividend in Excess of
Earnings
III Retained Earnings (Loss)
Brought Forward

14

FY16/9June 24, 2016 to
September 30, 2016
-JPY 4,784,715––

FY17/6
October 1, 2016 toJune 30, 2017
JPY 89,494,380
JPY 220,244,274
JPY 4,278–

JPY 89,477,454–

JPY 1,738–

JPY 130,766,820–

JPY 2,540-JPY 4,784,715

JPY 16,926

(4) Cash Flow Statement
FY16/9(June 24, 2016 to
September 30, 2016)
Cash Flows from Operating Activities:
Pre-tax net income (loss)
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 payable
Increase (decrease) in accounts payable
Other
Sub-totalInterest income received
Interest expense paid
Income taxes paid
Net Cash from (Used for) Operating Activities(JPY thousand)
FY17/6(October 1, 2016 toJune 30, 2017)-6,903–97,554
326,300

2,721

9,019

240
–
–
–
–
–
–
–
1,581
–
-2,360–––-2,36013,411-2
28,344-220,175-779,298-42,363-120,850
11,143
21,860291-654,7642-28,212-72-683,047

Cash Flows from Investing Activities:
Acquisition of property, plant, and equipment
Payment of deposits
Expenses related to the establishment of Ichigo GreenOther
Net Cash from (Used for) Investing Activities–-10,000-54,682–-64,682-10,227,547–-7,000-2,500-10,237,047

Cash Flows from Financing Activities:
Proceeds from short-term loans
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from share issuance
Share-issuance expenses
Net Cash from (Used for) Financing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period–––
300,000-4,320295,680
228,636–
228,636

760,000
6,192,000-93,539
4,654,368-61,404
11,451,424
531,328
228,636759,96515

Notes to Balance Sheet
1．Minimum Net Assets Stipulated in the Investment Trust and Investment Corporation Law(JPY thousand)FY16/9September 30, 2016

FY17/6
June 30, 2017

50,00050,000Notes to Income Statement
1．Details of Solar Power Plant Revenue(JPY thousand)FY16/9FY17/6
June 24, 2016 to October 1, 2016 to
September 30, 2016 June 30, 2017
A. Revenue
Base Revenue
Additional Revenue
Total

–
–
–

516,549
50,074566,623

B. Expenses
Property and City Planning Taxes
Depreciation Expense
Total

–
–
–

45,534
326,300
371,835–

194,788

C. Power Production Income(A) – (B)

Notes to Statement of Shareholders’ Equity
FY16/9June 24, 2016 to
September 30, 2016
10,000,000

Number of Authorized Shares
Number of Issued & Outstanding Shares

16

3,000

FY17/6
October 1, 2016 toJune 30, 2017
10,000,000
51,483

Notes to Cash Flow
1. Relationship between Cash and Cash Equivalents at End of the Fiscal Year and Items Shown on
the Balance Sheet(JPY thousand)FY16/9June 24, 2016 to
September 30, 2016
228,636

Cash and deposits
Cash and cash equivalents

228,63617

FY17/6
October 1, 2016 toJune 30, 2017759,965
759,965

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

FY16/9(June 24, 2016 to
September 30, 2016)
Net Assets per Share

98,40597,971Net Income per Share-1,5942,316

Note: Net Income per Share is calculated based on the weighted average number of shares
during the period. There are no potentially dilutive shares outstanding. The data used
to calculate Net Income per Share is shown below.
(JPY thousand)FY16/9FY17/6(June 24, 2016 to(October 1, 2016 to
September 30, 2016)
June 30, 2017)
Net Income
Income not attributable to commonshareholders
Net Income attributable to commonshareholders
Average number of shares in thefiscal period-4,784

94,279––-4,784

94,2793,000 shares

40,703 shares

New Share IssuanceTotal Number of
SharesIssuedOutstanding

Issue Amount(JPY million)
Increase
Total

Date

MethodJune 24, 2016

Private Offering1

3,000

3,000

300

300

November 30, 2016

Initial Public Offering2

47,18050,180

4,529

4,829

Third-Party Allotment toDecember 26, 2016 Underwriter(Greenshoe)3

1,303

51,483

125

4,954

1

3,000 shares were issued for the establishment of Ichigo Green at a share price of JPY 100,000.
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.
3
New shares were issued via third-party allotment as part of the initial public offering to theunderwriter (Greenshoe).
218Solar Power Plant Information
Solar Power Plant Portfolio Composition
FY17/6
Asset Type

RegionBook Value(JPY million)% of Total

Hokkaido

3,438

28.8%

Kanto

483

4.1%

Chubu

519

4.3%

Shikoku

1,579

13.2%

Kyushu513

4.3%

Okinawa

3,368

28.2%

Sub-total

9,901

82.9%

Deposits & Other Assets

2,036

17.1%

Total Assets

11,938100.0%

Solar Power Plant

Region:Hokkaido:
Kanto:
Chubu:
Shikoku:
Kyushu:Okinawa:

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

19

Solar Power Plant Details(as of June 30, 2017)
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

20

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

Solar Energy
Producer

Power
Purchaser

Ichigo Kiryu
E-01
Okuzawa

Ichigo Kiryu ECO
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
ElectricNo.

Solar Power Plant

21

Acquisition
Price
(JPY
million)

489

495

467

398

471

770

441

434

(as of June 30, 2017)
Appraisal
Value
Breakdown
Appraisal
Book
(JPY
Value
Value
million)
(JPY
(JPY
Top:
million) Powermillion)
Plant
Bottom:Real Estate
508

483

–

–

513

490

–

–

486

462

–

–

400

395

–

–

494

467

–

–

764

760

–

–

450

437

–

–

449

430

–

–

508

513

486

400

494

764

450

449

Solar Energy
Producer

Power
Purchaser

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
ElectricNo.

Solar Power Plant

E-09

Ichigo Nago
Futami

Ichigo Engaru
E-10
Higashimachi

Total

Acquisition
Price
(JPY
million)

3,688
3,425

464

1,124

517

523

10,018

1

Appraisal
Value
Breakdown
Appraisal
(JPY
Value
million)(JPY
Top:
million) Power
Plant
Bottom:Real Estate
3,688

Book
Value
(JPY
million)

3,368

–

–

466

460

–

–

1,024

978

112

133

545

513

–

–

499

519

–

–

10,288

9,768

112

133

466

1,136

545

499

10,400Acquisition 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 at fiscal year-end.
2

22

Earnings by Solar Power Plant(JPY thousand)No.
Solar Power Plant

Total
Portfolio(1) Revenue
Base revenue
Additional revenue

566,623
516,549
50,07436,32928,137
8,192

28,151
27,021
1,130

E-03
IchigoMuroranHatchodaira
28,93926,2792,660(2) Expenses

45,534

3,228

2,222

2,104

1,795

Depreciable asset tax
Fixed asset tax
Other(3) NOI(4) Depreciation Expense(5) Net Income

45,281204
48
521,089
326,300
194,788

3,224

2,218

2,100

1,791

–

–

–

–

4
33,10017,364
15,736

4
25,92917,1538,775

426,834
16,114
10,7194
20,262
13,7596,502

No.
Solar Power Plant(1) Revenue
Base revenue
Additional revenue

E-05
Ichigo Iyo
Nakayamacho
Izubuchi
28,14624,889
3,256

E-01

E-02

Ichigo Kiryu
Okusawa

IchigoMotomombetsu

E-04
IchigoEngaruKiyokawa
22,057
21,412
644

E-06

E-07

E-08

E-09

IchigoNakashibetsu
Midorigaoka

Ichigo Abira
Toasa

IchigoToyokoro

Ichigo Nago
Futami47,62942,733
4,895

27,05024,562
2,487

27,24324,717
2,525

173,505
166,6716,833(2) Expenses

2,118

3,405

1,961

1,970

15,238Depreciable asset tax
Fixed asset tax
Other(3) NOI(4) Depreciation Expense(5) Net Income

2,114

3,401

1,957

1,966

15,234

–

–

–

–

–

4
26,027
16,1999,828

444,22325,47818,745

4
25,088
14,595
10,493

4
25,27314,364
10,9094
158,266
111,208
47,058

23

No.

E-10

(1) Revenue
Base revenue
Additional revenue

23,71423,714–

E-11
IchigoTakamatsu
KokubunjichoNii
61,41553,955
7,459

Solar Power Plant

Ichigo Engaru
Higashimachi(2) Expenses

2,106

Depreciable asset tax
Fixed asset tax
Other(3) NOI(4) Depreciation Expense(5) Net Income

2,102
–

4
21,607
15,2096,398

29,56926,755
2,814

E-13
IchigoMiyakonojo
Mitocho
Sawakihama
32,871
25,698
7,173

4,654

2,360

2,367

4,449
204

2,356

2,363

–

–

–

4
27,20916,555
10,653

4
30,504
16,594
13,91056,76031,70325,05624

E-12
IchigoMiyakonojo
Yasuhisacho