Renewable Japan Co., Ltd.

Financial Highlights
for Fiscal Year Ended December 31, 2022

February 13, 2023

Torrijos, Spain©2023 Renewable Japan Co.,Ltd.

Year-end

Table of Contents

1

FY2022 Financial Highlights- for Fiscal Year Ended December 31, 2022 -2

Major Factors that affected FY2022 Finances

3

Forecast for FY2023 and Mid-Term Management Plan

©2023 Renewable Japan Co.,Ltd.

2

1

FY2022 Financial Highlights- for Fiscal Year Ended December 31, 2022 -©2023 Renewable Japan Co.,Ltd.

Consolidated PL: Summary (Actual)(JPY bn)(rounded down to bn)

SalesFY2021(A)

FY2022(B)

15.9(B) - (A)17.7

Major factors+1.7

Increase in electricity sales : +3.2
Decrease in sales of owner’s equity :(1.0)
Decrease in development fees : (0.2)
Increase in profitability of electricity
sales : +1.3
Decrease in sales of owner’s equity :(1.0)
Decrease in development fees : (0.2)

Gross profit

6.0

5.8

(0.1)

SG&A

3.7

4.5

+0.7 Increase in TOB costs:+0.6

Operating profit

2.2

1.2(0.9)
TOB costs: (1.8)
Breakdown
Non-operating income /loss (1.1)
SG&A (0.6)

Ordinary profit

0.9(1.3)(2.3)

EBITDA

4.6

7.6+2.9Profit attributable toowners of parent

0.5(1.5)(2.0) TOB costs:(1.7)*EBITDA = Ordinary profit + Interest expense + Commission paid + Depreciation + Amortization of goodwill + Other depreciation (EBITDA is exempt from audit or a quarterly review.

©2023 Renewable Japan Co.,Ltd.

4

Changes in Gross Profit (by Flow & Stock)
JPY bnSteady growth in stock-type gross profit

12

Flow-type business = One-time sales business
Stock-type business = Recurring revenue business103.582.862.3
2.94

1.4
7.8

2.8

20

3.7

0.2

6.3

3.1

0.7

1.93.0

2018

2019

2020

2021

ActualActualActualActual
Stock

4.4

4.9

2022

2023

2024

2025

Actual
Flow

Plan

Plan

Plan

©2023 Renewable Japan Co.,Ltd.

5

Key Performance Indicator (KPI) : EBITDA/Net Income
JPY bn16

Net loss for FY2022:One-time expenses (1.8bn) occurred due to TOBEBITDA for FY2022 : Significant increase due to TOB Impact

Target15.0

14Significant increase due toTOB

12
10

0.3

0.20.462.0

1.5

0.5
0.0
-0.5

4.6

40

1.0

0.7

2.0

1.0

7.6

82

12.5

11.7

0.5

1.4

JPY bn

-1.0

3.1
1.6

-1.5

(1.5)

20182019

2020

2021

2022

2023

2024

2025

ActualActualActualActualActual

Plan

Plan

Plan

EBITDA

Profit attributable to owners of parent©2023 Renewable Japan Co.,Ltd.

-2.0

6

Making Progress in Five Revenue Sources for Stock Business
Stock Revenue Sources of Power Plants
1.

December 31, 2022

December 31, 2021

Total net share of power plants owned by RJ in operation(Net share)

Plants owned within Japan(High-FIT)

154.8MW

X2

325.6MWPV Capacity in O&M business (RJ and third parties)

2. Operation & Maintenance*Verification/Patrolling/Reporting,etc. of power plants operation

3. Plants owned overseas

986.5MWX 1.3

1,306.5MW

Total net share of power plants owned by RJ in operation(Net share)-29.6MW4. WindFurther development is projected

5. Non-FIT

Market is expected to expand exponentiallyin the future©2023 Renewable Japan Co.,Ltd.

7

2Major Factors affecting FY2022 Finances©2023 Renewable Japan Co.,Ltd.

Major Factors affecting FY2022 Finances
2May 2022
TOB - Renewable Japan Energy Infrastructure Fund, Inc.

P.14

1Q

P.19

2Q

33Q

May 2022
COD of major projects
Ichinoseki-daito (42.3MW)
Hirono-taneichi (15.0MW)

4Q

4

September 2022
1st Overseas project
Launched

P.18
14 Dec. 2022
2nd Overseas Project
Launched

P.19

1Q

Sharp drop in profitability of sales of electricity due to heavy snowfall

P.12©2023 Renewable Japan Co.,Ltd.

9

1

1Q: Sharp Drop in Profitability of Electricity Sales due to Heavy Snowfall

Revenue from sale of electricity fluctuates by the seasons⇒ a full-year perspective is required
Chart of revenue from sale of electricity vs. costs

Surplus

Revenue from sale of electricity

Deficit

Deficit

Cost:
FixedCosts
JanFeb
1Q

Mar

AprMayJunJul

2Q

Aug
3Q

Sep

Oct

Nov

Dec

4Q

Cashflow©2023 Renewable Japan Co.,Ltd.

10

1

1Q: Intense Snowfall Led to a Sharp Drop in Profitability of Electricity Sales

Progressing almost as planned(fluctuates by seasonality)
FY2022(JPY bn)(rounded down to bn)

PowerProductionetc.,

1Q(Actual)2Q(Actual)3Q(Actual)4Q(Actual)All year

Sales

2.5

4.4

3.92.7

13.7

Gross profit

0.0

1.8

1.4(0.0)

3.2©2023 Renewable Japan Co.,Ltd.

112May 2022: TOB-Renewable Japan Energy Infrastructure Fund, Inc.

May 2022

Jun. 2022• Tender offer launched• Tender offer approved• Business acquisition financed by Nomura Capital Investment Co., Ltd.
• Renewable Japan Energy Infrastructure Fund, Inc. became a subsidiary• +103.1MW of the company owned plants• Ultra long-term interest rate fixed ⇐ Refinanced in Green Bonds• Loan from the Nomura Capital Investment Co., Ltd. repaid, most of which has
Dec. 2022 already been refinanced©2023 Renewable Japan Co.,Ltd.

12

2TOB Impact on PL(JPY bn)(rounded down to bn)

FY2022

FY2022

ActualTOB Impact

Actual excl. TOBimpact

Sales

17.7ｰ

17.7

Gross profit

5.8ｰ

5.8

SG&A

4.5(0.6)

3.9

Operating profit

1.2

0.6

1.9

Ordinary profit

(1.3)

1.8

0.4

EBITDA

7.6

0.6

8.2

0.0

0.0

0.0

0.2

-0.2

(1.4)

1.7

0.2(1.5)

1.7

0.2

Extra ordinary
profit/loss
Income taxes
Net profit
Profit attributable toowners of parent©2023 Renewable Japan Co.,Ltd.

13

2Changes in Profitability due to TOB -1
Before TOB

After TOBPower company, etc.

Investment units

Sale ofelectricity

Dividends

LessorInfra fund

RJ group

Lendpowerplants

LesseeSale ofelectricity

RJ group

Income fromthe sale ofelectricity(Power production business)(Power production business)

Owns power plant Pay rent

Rent

Income fromthe sale ofelectricity

Power company, etc.

Consolidated
subsidiaries

Before TOB

After TOB

Pay fixed rent to the Infra fundNo rent to be paid

©2023 Renewable Japan Co.,Ltd.

14

2

Changes in Profitability due to TOB -2
Sales remains the same, but EBITDA is increased by more than 10 times

Charts of Before/After TOB(JPY bn)

Before TOB: Annual profit/loss

After TOB: Annual profit/loss

Cost of sales

O&M costs, etc.

Cost of sales

Sales

O&M costs andproperty taxes,etc.
0.62

0.06

Rent
3.99

EBITDA
0.32

Income fromelectricity
sales
4.37

Depreciation
2.36

EBITDA
3.75bnGross profit

Sales

Income fromelectricity
sales
4.37

Gross profit
1.39

0.32

10X

©2023 Renewable Japan Co.,Ltd.

Income fromelectricity sales islinked and remainsthe same15May 2022: COD of Two Major Projects

3

Ichinoseki-daito

Hirono-taneichi

Site nameIchinoseki-daito, Iwate pref.

Hirono-taneichi, Iwate pref.

Capacity

42.3MW

15.0MW

Electricity Unit
Price

JPY 32/kWh

JPY 36/kWh

COD

May 2022

May 2022

Ownership ratio

100％100％©2023 Renewable Japan Co.,Ltd.

16

1st Overseas Project4

Site nameSocovos

Torrijos

Site location

Socovos, Albacete (Spain)

Torrijos, Toledo (Spain)

Capacity

21.6MW

7.9MW

COD

July 2021

June 2020

Acquisition date September 2022

December 2022

Ownership ratio 100％

100％Socovos

Torrijos

Quite a few early-stage projects are on the move
We will continue to acquire overseas plants in 2023
©2023 Renewable Japan Co.,Ltd.

17

4Abundant SunlightJapanSpain

Land

Lots of mountains, few flat lands

Plenty of flat lands

SolarRadiation

1,100 kWh/kWp on avg.*(avg. amount at major power plants sites owned by RJ)

1,600 kWh/kWp on avg.

*kWp: A unit that expresses the power that can be generated from renewable energy, variable power sources under standard measurement conditions.
1kWp refers to the installed capacity to generate 1kW of electricity under standard measurement conditions.
Source: Compiled by RJ based on the Global Solar Atlas

The huge flat space makes it possible to add a tracking system(tracking movement of the sun) to the panels.
⇒Increasing power generation
Photo : Torrijos©2023 Renewable Japan Co.,Ltd.

18

4

Establishment of Local Subsidiary

Unique for a Japanese corporation⇒ Easy access to local information
All staff members are locals (Spanish)
Organization chart of RJE

President andrepresentative director
Pedro BerraondoBusinessProjectDevelopment

Management

２employees

1 employee

Engineering
2 employees
As of December 31, 2022

©2023 Renewable Japan Co.,Ltd.

19

3

Forecast for FY2023 and Mid-Term Management Plan

©2023 Renewable Japan Co.,Ltd.

Outlines of Mid-Term Management Plan

1

Profit attributable toowners of parent

FY2025 JPY 1.4bn (Target)
FY2024FY2023

JPY1.0bn
JPY0.7bn

FY2025 JPY 15bn (Target)

2

EBITDA

3

Maintain the total assets until 2025
and improve the Equity to asset ratio

FY2024

JPY12.5bn

FY2023

JPY11.7bn©2023 Renewable Japan Co.,Ltd.

21

Consolidated PL: Summary (reposted)(JPY bn)(rounded down to bn)

2021(Actual)2022(Actual)2023(Plan)

2024(Plan)

2025(Plan)

Sales

15.9

17.7

26.7

28.9

31.7

Gross profit

6.0

5.8

7.3

9.2

11.3

SG&A

3.7

4.5

4.0

4.5

4.9

Operating profit

2.2

1.2

3.3

4.7

6.3

Ordinary profit

0.9(1.3)

1.2

1.6

2.2

EBITDA

4.6

7.6

11.7

12.5

15.0

Profit attributable toowners of parent

0.5

(1.5)

0.7

1.0

1.4

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

©2023 Renewable Japan Co.,Ltd.

22

Consolidated PL : By Business Segment (Reposted)
Sales

3.7

2.2

2023(Plan)
10.2

Gross profit

2.9

1.4

2.3

2.8

3.5

10.5

13.7

14.1

14.6

16.3

Gross profit

1.8

3.2

3.6

4.4

5.3

O&M Business

Sales

1.6

1.9

2.5

2.8

3.2

(Nonconsolidated)

Gross profit

1.0

1.3

1.6

2.0

2.4

AM Business

Sales

0.6

0.6

0.4

0.4

0.5

(Nonconsolidated)

Gross profit

0.6

0.6

0.4

0.4

0.5

Sales

(0.5)

(0.8)

(0.6)

(0.6)

(0.6)

Gross profit

(0.5)

(0.8)

(0.6)

(0.6)

(0.6)

Sales

12.2

15.5

16.4

17.3

19.5

Gross profit

3.0

4.4

4.9

6.3

7.8

Sales

15.9

17.7

26.7

28.9

31.7

Gross profit

6.0

5.8

7.3

9.2

11.3

2021
(Actual)(JPY bn)(rounded down to bn)

Flow(One Time SalesBusiness)

Power
Sales
Production etc.,

Intercompany
elimination
Stock(Recurring RevenueBusiness)

Total

2022
(Actual)©2023 Renewable Japan Co.,Ltd.

2024(Plan)
11.5

2025(Plan)
12.1

23

RJ Business Diversification (Three Stages)
1st Stage(Complete)

Circulation Model(Asset Management Model)

Sale of power plants

Sell power plants and receive stable
AM and O&M fees

2nd Stage(Complete)

In-house holding Model(Recurring revenue model)
Expand the In-house holding
model and gain income from saleof electricity

Privateequity
fund ,etc.
Income from the sale of power plants
AM fee・O&M fee

Sale of electricity

Powercompany
Income from sale of electricity

3rd Stage(Further step)

New Market• Overseas• Non-FIT• Other energy sources©2023 Renewable Japan Co.,Ltd.

24

Control of Total Asset

Reuse of 1st Stage Model
Circulation Model (Asset Management Model)
Sale of power plants(Domestic & Overseas)

Private Equity
Fund Etc.

Flow revenue : Income from sale of plants
Stock revenue : AM fee/O&M fee(Domestic)©2023 Renewable Japan Co.,Ltd.

25

Consolidated BS: Summary
Aim for 7% Equity-to-asset ratio in FY2025
December 31,
2021(JPY bn)(rounded down to bn)(Actual)December 31,
2022(Actual)December 31, 2025
Plan

18.1

14.4

78.6

18.0

8.5

117.6

Other assets

14.3

16.5

Total assets

119.7

166.7

Interest-bearing debt (recourse)

46.3

58.4

Interest-bearing debt (non-recourse)

53.0

79.3

Other liabilities

6.2

16.3

Total liabilities

105.6

154.1

Total liabilities JPY158.0bn

Total net assets

14.0

12.6

Total net assets JPY12.0bn*5

Total liabilities and net assets

119.7

166.7

Equity-to-asset ratio*3

8.9%

5.6%

Equity-to-asset ratio excl. non-recourse*4

16.8%

11.1%

Cash deposit
Inventory*1
Fixed asset*2

Plants held for a long term
has been reclassified fromInventory to Fixed asset

TargetTotal assets

JPY170.0bn

Equity-to-asset ratio

7.0%

Equity-to-asset ratio excl. non-recourse 11.0%*1:Inventory = investment securities for sale + Plants for sale + Plants for sale (in progress) + Costs on construction contracts in progress *2 : Excl. investments and other assets*3: Equity-to-asset ratio = Own capital/Total assets *4: Equity-to-asset ratio excl. non-recourse = Own capital / (Total assets -Non-controlling interests - Interest-bearing debt (non-recourse))*5:Net assets excl. non-controlling interests : JPY 10.6bn as of December 31, 2021 → JPY 8.7bn as of December 31, 2022 → JPY 11.5bn as of December 31, 2025
©2023 Renewable Japan Co.,Ltd.

26

Five Revenue Sources for Stock Business2nd Stage(Complete)1.

December 31, 2022 December 31, 2025 (Target)

Plants owned within Japan(High-FIT)

Total net share of power plants owned by RJ in operation (Net share)

325.6MW

384.3MWPV Capacity in O&M business (RJ and third parties)

2. Operation & Maintenance1,306.5MW

2,336.0MW

3rd Stage(Further Step)
Total net share of power plants owned by RJ in operation (Net share)

3. Plants owned overseas

29.6MW

4. Wind218.5MWFurther development is projected

5. Plants owned in Japan (Non-FIT)

Total net share of power plants owned by RJ in operation (Net share)©2023 Renewable Japan Co.,Ltd.

0MW

110MW

27

Changes in In-house owned Plants in Operation in Japan

1. High FIT

Changes in In-house owned Plants in Operation in Japan(Net share)

325.6MW

2

X

Assumed Transition in case ofaccumulation of 70-80MW/yr.
without TOB

154.8MW

December 31, 2021
(Actual)Average annual
operatingcapacity

325.8MW

336.4MW

384.3MW

December 31, 2022 December 31, 2023(Plan)(Actual)December 31, 2024
(Plan)

December 31, 2025
(Plan)

2021

2022

2023

2024

2025

117.4MW319.0MW330.0MW

325.4MW

371.0MW©2023 Renewable Japan Co.,Ltd.

28

Changes in End-of-period Capacity of Orders Received

2. O&M

End-of-period Capacity of Orders Received

Revised the target upward from
“2GW(2,000MW) in 2025”

1986.0MW
1,636.0MW

1,306.5MW

Orders received
Orders received

986.5MW

Orders received
Orders received

Orders received
O&M (Non-consolidated)

2,336.0MW

1,678.5MW

1,369.0MW

999.0MW

684.1MW391.1MW*Before allocations

December 31, 2021
(Actual)December 31, 2022
(Actual)December 31, 2023
(Plan)

December 31, 2024
(Plan)

December 31, 2025
(Plan)

Sales (JPY bn)

1.6

1.9

2.5

2.8

3.2

# of employees

115

118

157

182

207

©2023 Renewable Japan Co.,Ltd.

29

Changes in In-house owned Plants in Operation Overseas

3. Overseas

Power plants owned by RJ in operation overseas(Net share)

226.7MW
153.6MW

77.8MW
5.4MW

Average annual
operatingcapacity

December 31, 2021
(Actual)December 31, 2022
(Actual)December 31, 2023
(Plan)

December 31, 2024
(Plan)

December 31, 2025(Plan)

End of Dec. 2021

End of Dec. 2022

End of Dec. 2023

End of Dec. 2024

End of Dec. 2025

‐29.6MW

170.4MW161.7MW218.5MW

Launch of circulation model(Sell to private equity funds, etc.)©2023 Renewable Japan Co.,Ltd.

30

Outlines of Mid-Term Management Plan

1

Profit attributable toowners of parent

FY2025 JPY 1.4bn (Target)
FY2024FY2023

JPY1.0bn
JPY0.7bn

FY2025 JPY 15bn (Target)

2

EBITDA

3

Maintain the total assets until 2025
and improve the Equity to asset ratio

FY2024

JPY12.5bn

FY2023

JPY11.7bn©2023 Renewable Japan Co.,Ltd.

31

References©2023 Renewable Japan Co.,Ltd.

【Ref.】Changes in Potential shares resulting fromthe Issuance of Stock Acquisition Rights# of potential shares as
9th-11thof December 31,2022 Stock acquisition rights
500,000 shares# of shares issued as ofDecember 31, 2022

1,830,190
sharesExpired due to unfulfilledconditions(incl. treasury shares)

12th and 13th
Issuance of stockacquisition rights(Disclosed on Jan. 27, 2023)

240,000 shares*Not granted until the grant
date due to time capsule stock
options

Not diluted since
December 31, 2022

29,168,332
sharesRatio of Potential shares

December 31, 2022

February 13, 2023

6.3%

5.4%

©2023 Renewable Japan Co.,Ltd.

33

【Ref.】 Fluctuations in Sales Figures due to the Change in Sales Methods
 Because of the difference in selling methods, sales figures change materially though thegross profit stays the same.

Case 1. Sales of a Power Plant⇒Power plant (Book Value) = 90, Profit = 10
Power plant:90

Sales:100

Profit:10

Sales

Selling Price100

COGS

Power Plant(Book Value)

90

Gross profit

Profit10Sales

Gain on Sale

10COGS-Gross profit

ProfitCase 2. Sales of TK’s Equity shares⇒Profit (Gain on Sale) = 10

Profit:10

Sales:10©2023 Renewable Japan Co.,Ltd.

1034

Accumulation of Stock-type Business Income
Stock Income

JPY bn10

SG&A

Flow-type business = One-time sales business
Stock-type business = Recurring revenue business

Interest Expenses,etc.

X0.9

Stock Income/SG&A and Interest Expenses, etc.

97

X0.6

51.4

10

SG&A
StockIncome

3.0

3.7

2021(Actual)

InterestExpenses,etc.

2.8InterestExpenses,etc.

Stock
IncomeStock
Income

4.1

3.1

2.4

InterestExpenses,etc.

42

X0.8

InterestExpenses,etc.

63

X0.8

X0.68

InterestExpenses,etc.

Stock
Income

SG&A

Stock
Income

SG&A
SG&A
SG&A

7.8

6.3
4.4

4.5

2022
(Actual)

4.9
4.02023(Plan)©2023 Renewable Japan Co.,Ltd.

4.52024(Plan)

4.92025(Plan)

35

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 anyresponsibility 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.
Since the amount stated in this document represents consolidated figures in principal and is rounded
down to the nearest billion yen, it may not match the total value in each column.
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/©2023 Renewable Japan Co.,Ltd.

36

Making everyone an energy player©2023 Renewable Japan Co.,Ltd.

37

©2023 Renewable Japan Co.,Ltd.