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

2022_1st half-year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

Management Team with Significant Expertise

写真

写真

写真

写真

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 asVice President of Committee for Promotion of Long-term Stable Renewable Energy Sources (“REASP”). Prior to theestablishment 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.

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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.

5

Key Performance Indicator (KPI) for RJ

The key performance indicator(KPI) for RJ is
EBITDA(the earning power )©2022 Renewable Japan Co.,Ltd.

6

5 revenue sources for stock business2nd Stage(Achieved)

End of Dec. 31, 2021

1. high FIT
2.O&M

End of June. 30, 2022

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

154.8MW

337.4MWPV Capacity in O&M business (RJ and third parties)

986.5MW

1,144.0MW

O&M Business : Verification/Patrolling/Reporting,etc. of power plants operation

3rd Stage(Further step)

3. Non-FIT

Market is expected to expand exponentially in the
future.

4. Wind power

Further development is projected.

5. Overseas

A developing team has been formed in Spain.
Buying several assets is projected.
©2022 Renewable Japan Co.,Ltd.

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Growth Driver of EBITDA

5 businesses
boosting EBITDA
High FIT

Non-FIT11.4bn

7.9bn

4.6bn

Overseas

3.1bn
1.6bn
FY2019ActualWind power
FY2020
ActualFY2021
ActualFY2022（Revised Plan）

FY2023（Plan）* The FY2023 plan is for reference only and has not been approved by the Board of Directors.

©2022 Renewable Japan Co.,Ltd.

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Table of Contents

1

Rapidly Expanding Renewable Energy Market in Japan

10

2

RJ’s Advantages and Business Model

15

3

Three Advantages of RJ’s “One stop” Service

22

4

5 revenue sources for stock business supporting EBITDA

28

5Target for growth36©2022 Renewable Japan Co.,Ltd.

9

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.

11

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.

12

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.

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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.

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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.

16

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

152 members©2022 Renewable Japan Co.,Ltd.

Share 33%
*as of July 1, 2022

17

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.

18

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

19

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 fee20

Expanding RJ’s Independent Power Production Business (2nd Stage)
Power Plants Owned by RJ (Plants in operation + Plants Under development)
Total Net share* 415.1MW“Net share” stands for total value of each panel output multiplying RJ’s equity share.

* As of June 30, 2022

337.4MWIn Operation（Net share）

77.7MW
Under Development（Net share）

Plants inoperation

Plants underdevelopment©2022 Renewable Japan Co.,Ltd.

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

Acquire additional
plants21

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 185 plants, 887.8MW)
Annual CO2Reduction*:430,671.7t (Estimate)*Basically, the number is counted by ID* As of June 30, 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.

23

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 Office16.

Kurume Field Office2.

Iwate Office17.

Minamata Field Office3.

Aomori Field Office

18.

Kirishima Field Office4.

Namekata Field Office

5.

Noto Office

OthersPower Plant Office106.

Ishikawa Field Office7.

Suwa Field Office

Total

28

8.

Shizuoka Office9.

Matsusaka Office10.

Ise Office

11.

Yokkaichi Field Office

12.

Yoshino Office13.

Osaka Office14.

Osaka Central Office

15.

Kagoshima Office

①

③
②

⑤
⑥
⑬
⑭
⑯
⑰
⑱

⑪

⑨
⑩
⑫

⑦

④
TOKYO HQ⑧

≪Legends≫：Office：Field Office：Powerplant Office⑮*as of July 1, 2022

©2022 Renewable Japan Co.,Ltd.

24

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 26 plants
PV Capacity 46.1 MW*Basically, the number is counted by ID*As of June 30, 2022

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

2. Be able to control outsourced contractors
Ichinoseki kawasaki
HyotanToyama No.2
FusegiMatsuidaA / 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.

25

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

238 plants, 1,144.0 MW (PV Capacity) in O&M business- Incl. external development contracts (69 plants, 525.2 MW (PV Capacity) )*Basically, the number is counted by ID*As of June 30, 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.

26

3. Finance

Project Bond Achievements
Renewable Japan Co., Ltd
Apr.2017-June.2022

RJ’s Record

No. 1 share in Project Bond Issuance in Japan

11 issued 90.2 billion yen (33%)

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. 2019

19%

RJRJ
RJ
RJ
2,738 billion yen worth of 33%
project bond was issued36%

4%
Project BondV
6.9 bn yen
20.4MW

Sole Lead Manager

Project BondVI
11.1 bn yen
22.8MW

Sole Lead Manager

Project BondVII
14.5 bn yen
38.1MW

Sole Lead Manager

In the whole market

6%Aug. 2020

Nov. 2019

Dec. 2019

6%

13%

9%
Project Bond
VIII
12.7 bn yen
42.3MW

Project Bond
IX
10.2 bn yen
25.8MW

Feb. 2021

Mar. 2021

Sole Lead Manager

Sole Lead Manager

10%
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 June 30, 2022.

©2022 Renewable Japan Co.,Ltd.

27

4

5 revenue sources for stock businesssupporting EBITDA©2022 Renewable Japan Co.,Ltd.

Significant Increase of Power Plants Owned By RJ
1. High FIT

Plants in operation owned by RJ(Net share*1)
120 plants

337.4MW

57 plants
154.8MW*2

63 plants
182.6MW(increased in 6 months)

As of Dec. 31, 2021

As of Jun. 30, 2022

*1 “Net share” stands for total value of each panel output multiplying RJ’s equity share.
*2 The existing projects owned by the Renewable Japan Energy Infrastructure Fund, Inc. are to be 100% owned by RJ by the squeeze-out.
©2022 Renewable Japan Co.,Ltd.

29

Significant Increase of Power Plants Owned by RJ (Breakdown)
1. High FIT

63 plants (182.6MW) have been increased during the period
from end of Dec. 2021 – end of Jun. 2022)

TOB- Renewable Japan Energy Infrastructure Fund, Inc.

(109.2MW*, 55 plants)

Started operation of power plants which were being
developed (57.3MW, 2 plants)⇒Ichinoseki and Hirono-cho in Iwate Pref.

63 plants
182.6MW

Other purchase etc. (16.1MW, 6 plants)* The existing projects owned by the Renewable Japan Energy Infrastructure Fund, Inc. are to be 100% owned by RJ by the squeeze-out.
©2022 Renewable Japan Co.,Ltd.

30

Toward the Achievement of 2GW(2,000MW) in O&M in 2025
2. O&M

We aim to achieve the target of 2GW(2,000MW) in 2025 byacquiring 250MW per year.
The achievement rate for the first half of the year remains steadyat approx. 115%.

Achieved 115% of ourtarget in 6 months

2025 Target

2GW

Jun. 30, 2022

1,144.0MW(2,000MW)

Dec. 31, 2021

986.5MW

2021

2022

RJ aims to achieve the goal ahead of schedule©2022 Renewable Japan Co.,Ltd.

31

Market Expansion
3. Non-FIT

The market is expected to expand exponentially

Projected Capacity Transition ofSolar Power Generation

Potential for growth: approx. 18trill.
*1MW= Calculated as 0.1bn yen.
（ 1GW=1,000MW ）Potential for growth : approx. 6 trill.

300GW+α*1MW＝Calculated as 0.1bn yen.
（ 1GW=1,000MW ）117.6GW
55.8GW
Now

2050

2030

Source： Compiled by Renewable Japan Co., Ltd. based on Agency for Natural Resources and Energy ”The State of Energy Policy Toward 2030”.
Japan Photovoltaic Energy Association, “Toward Achieving Carbon Neutrality in 2050 -Solar Power 2030 Operating Targets and Challenges.

©2022 Renewable Japan Co.,Ltd.

32

Toward Further Development of Wind Power Development
4. Wind power

In addition to the existing project below, further
development is planned.

Power Output : 25.2MW＋

Furtherdevelopment isplanedDate of Acquisition : February 2017(FIT=22 yen)
Status : Under Development
Scheduled Commercial Operation Date : Year 2026
©2022 Renewable Japan Co.,Ltd.

33

Toward Overseas Development
5. Overseas

Formed a developing team in Spain
Buying several assets is considered.

©2022 Renewable Japan Co.,Ltd.

34

Toward Overseas Development- Characteristics of the Spanish Market
5. Overseas

Big Environmental Differences

Japan

Spain

Land

Lots of mountains, few flat lands

Many flat lands

Solar Radiation

1,100 kWh/kWp* on average

1,800 kWh/kWp
in some regions*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 togenerate 1kW of electricity under standard measurement conditions.
Source: Compiled by RJ based on the Global Solar Atlas©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（2,000MW）

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

Overseas

1GW※1GW=1,000MW©2022 Renewable Japan Co.,Ltd.

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