Renewable Japan Co., Ltd.
Company Information Material©2022 Renewable Japan Co.,Ltd.

2022_1Q

Founder and the Background of Founding
Bio of President and Representative Director, Katsuhito Manabe
1991

Joined Lehman Brothers Japan Inc.

2005

Joined Barclays Capital Securities Ltd.
(current Barclays Securities Japan Limited)

2008

Appointed as President and Representative Director of ZAIS
Japan

2011

The Great East Japan Earthquake (Brought water
purification equipment to the affected area）

2012

Founded RJ and became its President and Representative
Director (current)

Solar-powered
water purification equipment
太陽光発電で稼働する浄水機器©2022 Renewable Japan Co.,Ltd.

2

From Development to Power Production/Operation

AM
/O&M

Power
Production/Operation

Development/Technology

Civil
Engineering
/EPC

RJ is
Renewable energy
producer/developer
conducting allprocesses in one
stop

FinanceSet UpFunds©2022 Renewable Japan Co.,Ltd.

3

Cooperation with Shareholders
Major Shareholders“RJ”©2022 Renewable Japan Co.,Ltd.

4

Management Team with Significant Expertise

写真

写真

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Katsuhito Manabe Chief Executive Officer President
Motivated by the Great East Japan Earthquake, he established Renewable Japan in January 2012 and became its
Representative Director in order to embark on renewable energy business in Japan. He concurrently serves as
Representative Director of Committee for Promotion of Long-term Stable Renewable Energy Sources (“REASP”). Prior to
the establishment of Renewable Japan, he was involved in overseas mega solar projects in the capacity of Representative
Director of a foreign investment bank and a U.S. investment company, ZAIS Japan.
Daisuke Sano Director, and Senior Managing Executive Officer
After joining Renewable Japan in December 2014 and subsequently serving as Executive Officer and General Manager ofFinancial Business Division, he assumed the position of Director in June 2015. Prior to joining Renewble Japan, he worked
at financial companies in Japan and overseas, including Lehman Brothers Securities and Barclays Securities.

Tatsuaki Makino Director and Managing Executive Officer
After joining Renewable Japan in September 2016 and subsequently serving as General Manager, Strategic Business
Division of the Financial Services Division, he became a Director in August 2017. Prior to joining Renewable Japan, he
worked at a construction company, a bank, and a U.S. investment company.

Yasuyuki Saito Director, Managing Executive Officer
In March 2018, he assumed the position of Director. Prior to joining Renewable Japan, he served as Director and Senior
Managing Executive Officer of the Industrial Systems Division of Toshiba Plant Systems & Services Corporation.

©2022 Renewable Japan Co.,Ltd.

5

Three Stages
Asset Management Model

1st Stage(Accomplished)

Sell power plants andreceive stable AM andO&M fees

Stock Business Model

Sale of power plants

Fund
Income from the sale of power
plantsAM fee・O&M fee

Sale of power plants(Recurring revenue model)

2nd Stage(Accomplished)

Own power plants aswell as selling

Fund
Income from the sale of power
plantsAM fee・O&M fee

New Market
3rd Stage(Further step)• Overseas• Non-FIT• Other energy sources©2022 Renewable Japan Co.,Ltd.

6

Table of Contents

1

Rapidly Expanding Renewable Energy Market in Japan

8

2

RJ’s Advantages and Business Model

13

3

Three Advantages of RJ’s “One stop” Service

21

4

For Further Growth28

5Target for growth47©2022 Renewable Japan Co.,Ltd.

7

1

Rapidly Expanding Renewable Energy Market in Japan©2022 Renewable Japan Co.,Ltd.

The Sixth Basic Energy Plan

Ratio of Renewable energy
expands to 1.5 times (Target for FY2030)
Ammonia / H2: About 1%

ThermalThermal(Fossil Fuel):(Fossil Fuel):

41%

56%
Nuclear:20-22%
Nuclear:20-22%
Renewable:
Renewable:

36-38%

22-24%

Current Target

New Target
Source： Agency for Natural Resources and Energy ”The Fifth Basic Energy Plan” and ”The Sixth Basic Energy Plan
* Compiled by Renewable Japan Co., Ltd. based on Agency for Natural Resources and Energy ”The State of Energy Policy Toward FY2030”.
“The FY 2030 target (new plan)” is a figure stated in the Agency for Natural Resources and Energy's "Outline of the Sixth Basic Energy Plan"
as "an indication of what the outlook for energy supply and demand will be if we ambitiously assume that various issues will be overcome.

©2022 Renewable Japan Co.,Ltd.

9

The Sixth Basic Energy Plan【Energy Mix】

The Growth Area in Energy Mix set for FY2030 isSolar and Onshore Wind Power■Target Renewable Energy Mix for FY2030
Solar
Wind
Geothermal
Hydro
Biomass

Current Target

7.0%
1.7%
1.0-1.1%
8.8-9.2%
3.7-4.6%

New Target
14.0-16.0%
5.0%
1.0%
11.0%
5.0%

Source： Agency for Natural Resources and Energy ”The Fifth Basic Energy Plan” and ”The Sixth Basic Energy Plan
*Compiled by Renewable Japan Co., Ltd. based on ” Trends since the formulation of the Basic Energy Plan and the direction of future actions”©2022 Renewable Japan Co.,Ltd.

10

Opportunity for the Development of Renewable Energy Market - 1
The Sixth Basic Energy Plan
Target for FY2030 Solar power installation（Ambitious level）

117.6GW

Potential for growth:

61.8GW（Approx. 6 trillion yen*）*1MW＝Calculated as 0.1bn yen.

FT2019 Solar power installation

55.8GW

x2

Source： Compiled by Renewable Japan Co., Ltd. based on Agency for Natural Resources and Energy ”The State of Energy Policy Toward 2030”©2022 Renewable Japan Co.,Ltd.

11

Opportunity for the Development of Renewable Energy Market - 2
Potential growth area
Ministry of Land, Infrastructure, Transport and Tourism

2.3GW

Ministry of Economy, Trade and Industry

Target for FY2030 solar power
installation（Ambitious level）

61.8GW(Approx. 6trillion yen)In addition, each ministry supports
the promotion of renewabsle energy.
Ex. Utilization of unknown owner land.

3.5GW

Ministry of the Environment(+Ministry of Agriculture, Forestry and Fisheries )24.2GW

Utilizing airports forrenewable energy hub
Promoting measures for
new housing
Utilizing of agriculturalland & public facilities.
Promotion of selfconsumption
Organic growth

13.8GW(Approx. 1.5GW/year x 10 years）

18.0GW

FIT that is not in operation

Source： Compiled by Renewable Japan Co., Ltd. based on materials of each ministries and Subcommittee on Large-Scale Introduction of Renewable Energy and Next-Generation Power Networks* This document is based on the current target and data. These may be changed due to updates of target and data in the future.

©2022 Renewable Japan Co.,Ltd.

12

2

RJ’s Advantages and Business Model©2022 Renewable Japan Co.,Ltd.

From Development to Power Production/Operation

Three Advantages of RJ’s One -Stop Service
Advantage-2

Advantage-1

Technology

Local Presence

Land Acquisition

Administrative
Licenses andPermits

Civil Engineering/EPC

Power Production/Operation

Financing (Equity・Mezzanine・Debt)
Advantage-3

Finance©2022 Renewable Japan Co.,Ltd.

14

Three Advantages of RJ’s One -Stop Service
Power Production

Development
1. LocalPresence

2. Technology

3. Finance

Presence allover Japan

In-house EPC+
O&M

Financial
innovation

Local bases

Tech teamProject bond

28 locations

147 members©2022 Renewable Japan Co.,Ltd.

Share 34%
*as of March 31, 2022

15

Comparison to Other Companies

Company

1. Focus on Renewableenergy(Industry type:
Electricity, gas)

Development(Low-FIT-High-FIT)+
IPP/O&M

Company A

Development(High-FIT Only)+
IPP

Company B

PPS (Power Productionand Supply)＋
Contracted construction

Company C

PPS (Power Productionand Supply)＋
Contracted construction

2.Side Business(Industry type:
Construction)

The majority of sales are
PPS + Contracted construction

Main
Business

Advantage
Local Presence

Technology

Finance

◎ ◎ ◎
◎
◎ ◎
◎

©2022 Renewable Japan Co.,Ltd.

16

Corporate Structure to Optimize Development
Conduct Due Diligence (Review/Study) for Project Development/Acquisition within the company

Speedy Project Development/Acquisition with minimized risks
Each team examines potential risks
in development
Land
Team

Development
Team

Civil Engineering
/EPC
Team

Power
Production/Operation
Team

Cashflow analysis
Team

MinimizeRisk©2022 Renewable Japan Co.,Ltd.

FinanceTeam

17

RJ’s Business Model

Realization of Stability and Growthby Stock business* (In-house Power Production + O&M/AM）and
Flow business* (Sale of Power Plant)*Stock business= Recurring revenue business*Flow business= one-time sales business

Owned by RJ

Owned by funds
Sale of power plants

Income from the saleof power plants
AM fee・O&M fee©2022 Renewable Japan Co.,Ltd.

Listed Infrastructure FundPrivate Funds

18

Expansion of Stock-type BusinessStable Revenue Build-UP
by expanding the Stock-Type Business*
Development fee*Stock business= Recurring revenue business*Flow business= one-time sales business

EPC fee
Income from the sale of power
plants/TK equity share

Development
Business(Flow-type*)
Power Production /Operation Business(Stock-type*)©2022 Renewable Japan Co.,Ltd.

Income from thesale ofelectricity
AM feeO&M fee19

Expanding RJ’s Independent Power Production Business (2nd Stage)
Power Plants Owned by RJ (Plants in operation + Plants Under development)
Total Net share* 304.9MW“Net share” stands for total value of each panel output multiplying RJ’s equity share.

* As of March 31, 2022

169.8MWIn Operation（Net share）

135.1MW
Under Development（Net share）

Plants inoperation

Plants underdevelopment©2022 Renewable Japan Co.,Ltd.

Further Acquisition（70-80MW/year or more）

Acquire additional
plants20

3

Three Advantages of RJ’s “One stop” Service

1. LocalPresence

2. Technology©2022 Renewable Japan Co.,Ltd.

3. Finance1. Local
Presence

Abundant Track Record of Development/Acquisition
Abundant Development/
Acquisition Track Record(Total 183plants, 815.4MW)
Annual CO2Reduction*:395,550.5t (Estimate)*Basically, the number is counted by ID*As of March 31, 2022

Hydro

Solar

Wind
Under Development* “Annual CO2 Reduction” refers to the amount of CO2 emitted if the annual amount of power generation (the amount of power generation achieved without emitting CO2) calculated
based on our track record of developing renewable energy power plants is assumed to be generated using methods other than renewable energy.
Specifically, it is calculated by multiplying the Company's renewable energy power plant development results to date by the annual amount of power generation per MW,
and then multiplying that by the CO2 emission coefficient (0.441) set for FY2020 announced by the Council of Electric Utility Companies for Low Carbon Society.

©2022 Renewable Japan Co.,Ltd.

22

1. Local
Presence

Business expansion by utilizing regional bases

Use our 28 bases all over Japan for Development and O&M
Major Regional Offices
1.

Sapporo Field Office2.

Iwate Office3.

Aomori Field Office4.

Namekata Field Office

5.

Noto Office6.

Suwa Field Office7.

Shizuoka Office8.

Matsusaka Office9.

Ise Office

10.

Yokkaichi Field Office

11.

Yoshino Office12.

Osaka Office13.

Osaka Central Office

14.

Kagoshima Office

15.

Kurume Field Office16.

Minamata Field Office

17.

Kirishima Field Office

OthersPower Plant Office
11

Total

28

①

③
②

⑤

⑫

⑮
⑯

⑬

10

⑧

⑥

④
TOKYO HQ⑦

⑪ ⑨

≪Legends≫：Office：Field Office⑰⑭：Powerplant Office*as of March 31, 2022

©2022 Renewable Japan Co.,Ltd.

23

2. Technology Excellent engineering knowhow of RJ’s in-house EPC
Expansion of in-house EPC using the special construction license(same license as general contractors)
Engineering, Procurement andConstruction (EPC) Achievements
Total 25 plants
PV Capacity 45.4 MW*Basically, the number is counted by ID*As of March 31, 2022

Advantages of owning a
construction unit
1. Reduce cost by negotiating directly with
manufacturer

2. Be able to control outsourced contractors
Ichinoseki kawasaki
HyotanFusegiMatsuidaA / MatsuidaC
Shirakicho /Hirao
AharanoShimonoseki No.1/ No.2

3. Perform large scale maintenance related to
O&M within the company

Mietoba / Hinomizu
Matsusaka Iitaka Kita / Matsusaka Iitaka Minami / Hara
/ Kubo / Yamagami / Kashiwa-machi Nishinono / Sada /Kashiwa-machi Okayama / Kashiwa-machi Akamecho /Nonaka / Tamiyaji Shishigo /Tamiyaji Abiro / Tamiyaji Nishikirima©2022 Renewable Japan Co.,Ltd.

24

2. Technology Low-Cost and High-Quality O&M Business

232 plants, 1,130.6 MW (PV Capacity) in O&M business- Incl. 65 plants, 514.0 MW (PV Capacity) from third party*Basically, the number is counted by ID*As of March 31, 2022

Promotion of

Reduce Cost

in-house production(Mowing, Inspection, etc. )Technology
Conducting all processes
in one stop

Respond to various
needs swiftly©2022 Renewable Japan Co.,Ltd.

25

The Frontrunner of New Financial Scheme- Making Standard for the Future Feb. 2021

Oct. 2017

Structure a PPA Scheme
using FIT-Independent
SolutionsPower purchase contract
for 20 years

Project Financing for Solar
Sharing projectMar. 2017

Infrastructure fund islistedListed Infrastructure Fund
26
©2022 Renewable Japan Co.,Ltd.

Project Bond Achievements

3. Finance

Renewable Japan Co., Ltd
Apr.2017-Mar.2022

RJ’s Record

No. 1 share in Project Bond Issuance

11 issued 90.2 billion yen (34%)
Project BondⅠ
4.7 bn yen
14.5MW

Project BondⅡ
6.9 bn yen
16.5MW

Sole Lead Manager

Sole Lead Manager

Aug. 2017

Apr. 2018

Project BondⅢ
8.9 bn yen
22.0MW

Project BondⅣ
5.7 bn yen
14.8MW

Sole Lead Manager

Sole Lead Manager

Feb. 2019

Jun. 201920%

5%
Project BondV
6.9 bn yen
20.4MW

Sole Lead Manager

Project Bond VI
11.1 bn yen
22.8MW

Project Bond VII
14.5 bn yen
38.1MW

Sole Lead Manager

Sole Lead Manager

6%

Aug. 2020

Nov. 2019

Dec. 2019

6%

RJ
34%
RJ
RJ
265.1 billion yen worth ofproject bond was issued
36%
In the whole market
6%

10%
13%

Project Bond Ⅷ
12.7 bn yen
42.3MW
Sole Lead Manager

Feb. 2021

Project Bond
Ⅸ
10.2 bn yen
25.8MW
Sole Lead Manager

Mar. 2021

Project BondⅩ
4.7 bn yen
14.5MW

Project Bond Ⅺ
4.0 bn yen
10.5MW

Sole Lead Manager

Sole Lead Manager

Sep. 2021

Jan. 2022

Green Bond Rating(R&I)
GA１(Top rated)•： Project bonds that have received a project bond rating from Rating and Investment Information, Inc.(R&I)

Compiled by Renewable Japan Co., Ltd. based on Japan Securities Dealers Association’s ”Securitization Market Survey Report”
and the number described on websites of R&I and Journal Citation Reports as of March 31, 2022.

©2022 Renewable Japan Co.,Ltd.

27

4

For Further Growth(Non-FIT, Wind and Overseas)©2022 Renewable Japan Co.,Ltd.

Why is Non-FIT Business Growth important
Relying solely on high FIT projects will lead to the “FIT Cliff”
in about 10 years at which the FIT revenue will begin to fall sharply

Revenue

2012年
2012Start of FIT
FIT制度スタート

If only high FIT projects are inplace, revenue will fall sharply
when the FIT period expires＝FIT Cliff

FIT
A feed in tariff (FIT) is a policy designed to support the development of renewable energy
sources by providing a guaranteed market price for producers.
FITs usually involve long term contracts from 15 to 20 years.

2021年現在
2021

2030年代前半
Early 2030s

Year

Note: This is an image of shift of profitability.

©2022 Renewable Japan Co.,Ltd.

29

FIT, FIP and Non-FIT

Moving Forward to the New Era that requires
Power Management
FIT, A feed in tariff (FIT) is a policy designed to support the development of renewable energy sources by providing a guaranteed market price for producers. FITs usually involve long term contracts from 15 to 20 years.
FIP, A feed in premium (FIP) is a type of price-based policy designed for producers to receive a premium on top of the market price of their electricity production. FIP can either be fixed or sliding.

SimpleComplicated

FIT era

FIP, Non-FIT era(Supply Price)

FIP

Income+Subsidy

Non-FIT

Income+Subsidy

Bilateral
Trading（Supply Price）

Premium

Producer

Users
Long & fixedPrice

0 1 2 3 4 5 6 7 8 9

1 1 1 1 1 1 1 1 1 1 2 2 2 2
0 1 2 3 4 5 6 7 8 9 0 1 2 3

0 1 2 3 4 5 6 7 8 9（Hours）（Hours）• Income level is fixed• Power Supply & Demand
adjustment is not required1 1 1 1 1 1 1 1 1 1 2 2 2 2
0 1 2 3 4 5 6 7 8 9 0 1 2 3• Income level fluctuates• Power Supply & Demand adjustment isrequired©2022 Renewable Japan Co.,Ltd.

30

Cooperation with relevant ministries and agencies（REASP）
Chairman

Katsuhito Manabe

Board of Directors

Exchange Information, Policy Proposals

Ministries, Public Organization(Such as Agency of Natural Resources)©2022 Renewable Japan Co.,Ltd.

31

RJ’s Strategy for Growth- Non-FIT Contract with Tokyo Gas

Aim to Develop 500MW (total) Solar Power Plant
using FIT-Independent Solutions
ExamplePower purchase contract for 20 years
Power Producer

Electricity Retailer

Power Plant Developer/Finance/Operation management

Power Supply &Demand Management/Retailer©2022 Renewable Japan Co.,Ltd.

32

Diversified Power Sources (Hydroelectric and Wind)
Ogunimachi, Yamagata 1.2(Hydro )(In Operation)

Mie Naka-Ise 1(Wind)(Business is authorized)(Image)Power Output : 11.2MW

Power Output : 25.2MW

Date of Acquisition : February 2021

Date of Acquisition : February 2017 (FIT=22yen)Status : In Operation

Status : Under Development
Scheduled Commercial Operation Date : Year 2026
©2022 Renewable Japan Co.,Ltd.

33

RJ’s Initiatives in Overseas Markets
2nd
Step

Enter into Development/IPP in Europe & US

Utilize the know-how and advantages developed in Japan

GlobalExpansion

1. LocalPresence

2.Technology

1st
Step

3. Finance

ExpandMarket sharein JapanSet up a base in Spain⇒Promote developmentwith local community©2022 Renewable Japan Co.,Ltd.

34

Three Stages
Asset Management Model

1st Stage(Accomplished)

Sell power plants andreceive stable AM andO&M fees

Stock Business Model

Sale of power plants

Fund
Income from the sale of power
plantsAM fee・O&M fee

Sale of power plants(Recurring revenue model)

2nd Stage(Accomplished)

Own power plants aswell as selling

Fund
Income from the sale of power
plantsAM fee・O&M fee

New Market
3rd Stage(Further step)• Overseas• Non-FIT• Other energy sources©2022 Renewable Japan Co.,Ltd.

35

5Target for growth©2022 Renewable Japan Co.,Ltd.

Expansion of Stock-type Business
RJ aims to achieve stable growth by focusing on stock-type businesssuch as Power Production and O&M business moving forward.
Flow-type business = One-time sales business
Stock-type business = Recurring revenue business

Flow-type Business

Stock-type Business©2022 Renewable Japan Co.,Ltd.

37

Mid-term Target 1. O&M Business:
Further Expansion of Contract Scale

2025 Target

2GW

Technical Improvement
× In-house production
Expand orders from third party

2022 1Q Actual

1,130.6MW

2022

2023

2024

©2022 Renewable Japan Co.,Ltd.

RJ aims to achieve the goal ahead of schedule38Mid-term Target 2. EBITDA

FY2025
JPY15bn⁺

FY2021
JPY4.6bn

PreviousTerm

FY2022
JPY7.6bn

This Term*EBITDA = Ordinary profit + Interest expense + Commission paid + Depreciation + Amortization of goodwill + Other depreciation(EBITDA is exempt from audit or a quarterly review).

©2022 Renewable Japan Co.,Ltd.

3 years later
39

Long-term Target : IPP Capacity Targeted within 10 Years

Domestic Solar Power

Domestic Wind Power

1GW
+α

1GW
©2022 Renewable Japan Co.,Ltd.

Overseas

1GW
40

Making everyone an energy player©2022 Renewable Japan Co.,Ltd.

41

Disclaimer
This document has been prepared by Renewable Japan Co., Ltd. (the “Company”) solely to provide theCompany and its group companies’ information and does not constitute a solicitation for shares or othersecurities issued by the Company, whether in Japan or overseas.
The relevant information relating to current industry, market trends and economic conditions contained
herein is based on information the Company currently has and the Company has not independently
verified the credibility, accuracy, rationality or comprehensiveness of such information, nor assume any
responsibility for updates to its contents.
Furthermore, the information on the group’s plans, outlooks, estimates and forecasts and other future
information are solely the current determinations or ideas of the Company. As such, the actual
operating results, financial status and other outcomes may subject to the trends in energy policies,
legislation, schemes, market trends in Japan and overseas, the status of licenses and permits required
for the Group’s projects, and the acquisition or development of land and power generation facilities that
could cause actual results to differ materially from those described herein or suggested by thisdocument. The contents described in this document or the contents estimated from them may differ
greatly depending on success or failure of the acquisition or development of land or power generation
facility, changes in weather, climate, natural environment, etc.
The amount stated in this document may not match the total value in each column since the amountrepresents consolidated figures in principal and is rounded down to the nearest million yen.

©2022 Renewable Japan Co.,Ltd.

For enquiry:
Investor Relations Office,Renewable Japan Co., Ltd.
Telephone : +81-3-6670-6644
Email: rj_ir_ii@renewable-japan.com
IR Website: https://www.rn-j.com/en/

42