Renewable Japan Co., Ltd.

Supplemental Material for
FY2022 Revised Financial Results Forecast©2022 Renewable Japan Co.,Ltd.

Reposted

1Target for growth©2022 Renewable Japan Co.,Ltd.

Reposted

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.

3

Reposted

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

2025 Target2GW

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 schedule4Partially revised

Mid-term Target 2. Earning Power (EBITDA)
FY2025
JPY15bn⁺
FY2022
JPY7.9bn (After revision)

FY2021
JPY4.6bn

PreviousTerm

JPY7.6bn (Before revision)

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
5

RepostedLong-term Target :IPP Capacity Targeted within 10 Years

Domestic Solar Power

Domestic Wind Power

1GW+α1GW©2022 Renewable Japan Co.,Ltd.

Overseas

1GW
6

2

Takeover Bid (TOB) and Revised Financial Results Forecast©2022 Renewable Japan Co.,Ltd.

Purpose of the Takeover Bid (TOB)

1

Increase capacity of power plants owned by thecompany in order to achieve growth targets in linewith the existing policy

2

Increase profits by owning the projects directly andstreamline AM*¹・O&M *² businesses*1

AM Business： Management and operation/ Income and expenditure management/ paperwork,etc.,
related to power plant*2

O&M Business：Verification/Patrolling/Reporting,etc., of power plants operations©2022 Renewable Japan Co.,Ltd.

8

Increase in Power Plants Owned through Takeover Bid (TOB)
By acquiring power plants owned by infrastructure fund, the number of power plants
owned by RJ (net share*) will increase by approximately 1.5 times.

BeforeTOB

Power Plants in Operation
Owned by RJ(Net share*)After
TOB336.4MW

227.2MW(as of May 31, 2022)

55 Power plants
109.2MW*”Net share” stands for total value of each panel output multiplying RJ’s equity share.
©2022 Renewable Japan Co.,Ltd.

9Impact of the Takeover Bid (TOB)
Financial performance for the current term will fail due to one-time expenses
incurred from the takeover bid (TOB) .
However, a significant increase in earning power (EBITDA) is expected in thenext fiscal year and beyond.
15bn

Unit : JPY

11.4bnAiming to exceed
the target in FY2025

7.9bn

1.6bn
FY2019Actual

3.1bn

4.6bn

FY2020 FY2021 FY2022 FY2023
ActualActual (Revised Plan) (Plan)

FY2024FY2025*The FY2023 plan is for reference only and has not been approved by the Board of Directors.
©2022 Renewable Japan Co.,Ltd.

10

“Earning Power”(EBITDA Target)
EBITDA=Operating profit +Depreciation,etc.,

FY2022
7.9bn(After revision)

FY202515bn⁺

FY2023
11.4bn8.0bn

Unit : JPY

Takeover Bid (TOB) effect

7.6bn(Before revision)
FY2021
4.6bn
Depreciation, etc.,(2.4bn)Depreciation, etc.,(8bn)
Depreciation, etc.,(5.8bn)Operating profit（2.2bn）

Operating profit(2.1bn)FY2021

FY2022(Actual)(Revised plan)

Operating profit(3.4bn)FY2023(Plan)*EBITDA=Ordinary profit＋Interest expense＋Commission paid＋Depreciation＋Amortization of goodwill＋Other depreciation=Operating profit＋Depreciation＋ Amortization of goodwill + Other depreciation＋Non-operating profit
Depreciation, etc.,©2022 Renewable Japan Co.,Ltd.

FY2025*The FY2023 plan is for reference only and has not been approved by the Board of Directors.
*EBITDA is exempt from audit or a quarterly review.

11Changes in Revenues from Infrastructure Fund-related Businesses
Before and After Takeover Bid (TOB)
Sales remain the same, but EBITDA will increase by more than 10 times
Before TOB

After TOBPower company,etc.,
Sales ofpower plants

RJ

Lend
power plants

Income fromthe sale ofpower plants

Infra fundLessee(Power production business)

Own power plants

Consolidated
subsidiaries

Pay rent

Unit : JPY

O&M costs,etc.,

Sales

Power company,etc.,

Sales ofpower plants

RJ

EBITDA is expected to expandby more than 10 times

Rent
EBITDA
320 mn

4.4bn

EBITDA
3.7bn

Gross profit
320 mn©2022 Renewable Japan Co.,Ltd.

Income fromelectricity sales
is linked andremains thesame

O&M costs andfixed asset tax

Sales

Depreciation

Income fromelectricity sales

Cost of sales
Income fromelectricity sales

Income fromthe sale ofpower plants

4.4bn

Gross profit
1.39bn12

Gross Profit Trend (Breakdown of Flow・Stock Businesses)(100 mn yen)

Steady growth in gross profit of stock business

8070

発電・運営事業（ストック）
Stock

開発事業（フロー）
Flow

60

1250

30

40
2930
203862
51

3130

10013

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

19372018

20192020

2021*The FY2023 plan is for reference only and has not been approved by the Board of Directors.
©2022 Renewable Japan Co.,Ltd.

2022（修正計画）(Revised plan)

2023（予算計画）(Plan)

13

Assumed Impact for FY12/2022 (full year)
Temporary drop in profits due to costs incurred from Takeover Bid (TOB)(JPY mn)(rounded down to mm)

2022
Initial Plan

2022
RevisedPlan

Changesfrom initialplan

188.0

190.0

+2.0

Gross profit

68.0

63.0

(5.0)

SG&A

39.0

42.0

+3.0

Operating profit

29.0

21.0

(8.0)

Ordinary profit

14.0(13.5)(27.5)EBITDA

76.0

79.1+3.1

6.0(16.5)(22.5)

Sales

Profit attributable toowners of parent【Sales/Gross profit】
Refer to P15【SG&A】
Administrative expenses,etc.,
incurred from acquisition of infra
fund +220mn
Business tax (Size-based BusinessTax) +30mn【Non-operating expenses】
Borrowing costs incurred fromacquisition of infra fund (1.76bn)【Extraordinary profit/loss】
Costs incurred from acquisition ofinfra fund (490mn)

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.

14Assumed Impact for FY12/2022 (full year) by Business Segment
2022
Initial plan

(JPY mn)(rounded down to mm)

Flow(One Time Sales Business)
Power Productionetc.,

O&M Business

YoY

23.3
23.3

32.7
12.1

+40%
(48%)

144.6

139.5(4%)

Gross profit

30.8

39.4

+28%

Sales

14.5

14.0(3%)

8.3
5.5
5.5
164.6
44.6
188.0
68.0

7.7
3.7
3.7
157.2
50.8
190.0
63.0(7%)
(33%)
(33%)
(4%)
+14%
+1%(7%)

Sales
Gross profit
Sales

Gross profit
AM Business

2022
Revised plan

Sales
Gross profit
Sales

Stock
(Recurring Revenue Business)

Gross profit

Total

Sales
Gross profit©2022 Renewable Japan Co.,Ltd.

15

Assumed Impact for FY12/2022 (full year) (Non-consolidated・Consolidated AM/O&M)(JPY mn)(rounded down to mm)

Sales
Nonconsolidated

AM

Elimination of
intracompany
transactions

Consolidated
Total

JPY mn)(rounded down to mm)

Plan
2.9

Nonconsolidated

Plan
Sales

19.9

Cost of sales

6.3

Cost of sales-Gross profit

2.9

Gross profit

13.6

Sales

(1.4)

Sales(5.9)

Cost of sales-

Gross profit
Sales

Elimination ofintracompany
transactions

Cost of sales-(1.4)

Gross profit

(5.9)

1.4

Sales

14.0

Cost of sales

6.3

Gross profit

7.7

Cost of sales-

Gross profit

1.4

O＆M

©2022 Renewable Japan Co.,Ltd.

Consolidated
Total

16

(Reference) Assumed Impact for FY12/2022(The FY2023 plan is for reference only and has not been approved by the board of directors)

V-shaped recovery (especially, Earning Power (EBITDA) will grow significantly)(JPY mn)(rounded down to mm)

2022
Revised plan2023
PlanDifferences

Sales

190.0

240.0

+50.0

Gross profit

63.0

75.0+12.0

SG&A

42.0

40.5(1.5)

Operating profit

21.0

34.5

+13.5

Ordinary profit(13.5)

12.0

+25.5

Earning power（EBITDA）

79.1

114.1

+35.0

Profit attributable to owners ofparent(16.5)

7.5

+24.0

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.

17

(Reference) Assumed Impact for FY12/2022 by Business Segment(The FY2023 plan is for reference only and has not been approved by the board of directors)
2022
Revised plan

(JPY mn)(rounded down to mm)
Flow(One Time Sales Business)
Power Productionetc.,

O&M Business

YoY

32.7
12.1

67.0
13.0

+105%
+7%

139.5

153.0

+10%

Gross profit

39.4

50.7

+29%

Sales

14.0

17.8

+27%

7.7
3.7
3.7
157.2
50.8
190.0
63.0

9.2
2.1
2.1
173.0
62.0
240.0
75.0

+19%
(43%)
(43%)
+10%+22%+26%+19%

Sales
Gross profit
Sales

Gross profit
AM Business

2023
PlanSales
Gross profit
Sales

Stock(Recurring Revenue Business)

Gross profit

Total

Sales
Gross profit©2022 Renewable Japan Co.,Ltd.

18

(Reference) Assumed Impact for FY12/2022 (Non-consolidated・Consolidated AM/O&M)(The FY2023 plan is for reference only and has not been approved by the board of directors)(JPY mn)(rounded down to mm)
Sales
Nonconsolidated

AM

Elimination of
intracompany
transactions

Consolidated
Total(JPY mn)(rounded down to mm)

Plan
3.0

Nonconsolidated

Plan

Sales

23.4

Cost of sales

8.6

Cost of sales-Gross profit

3.0

Gross profit

14.8

Sales(1.0)

Sales

(5.6)

Elimination ofintracompany
transactions

Cost of sales-(1.0)

Gross profit

(5.6)

2.1

Sales

17.8

Cost of sales

8.6

Gross profit

9.2

Cost of sales-

Gross profit
Sales
Cost of sales-

Gross profit

2.1

O＆M

Consolidated
Total©2022 Renewable Japan Co.,Ltd.

19

3Appendix©2022 Renewable Japan Co.,Ltd.

Fluctuations in Sales due to Differences in Sales Methods
 Depending on the difference in selling method of 1. Power plants 2. TK’s equity shares,
sales figures change materially, although the gross 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 Price

100COGSPower 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©2022 Renewable Japan Co.,Ltd.

1021

Sales Trend (Breakdown of Flow・Stock Businesses)(100mn yen)

Steady growth in stock business revenue

250

発電・運営事業（ストック）
Stock

Flow-type business = One-time sales business
Stock-type business = Recurring revenue business開発事業（フロー）
Flow

67200
33
138

150

37159100

122157122500173

8427
2018年

47
2019年

2020年

2021年

*The FY2023 plan is for reference only and has not been approved by the Board of Directors.
©2022 Renewable Japan Co.,Ltd.

2022年

2023年

(Revisedplan)（修正案）(Plan)（予算案）

22

Factors for Flow Business Sales Increase from FY12/2022 toFY12/2023(The FY2023 plan is for reference only and has not been approved by the board of directors)

Flow
Gross profit
1.21bnFlow Sales
3.27bnGross profit for flow remains
mostly the same, but sales willgrow sharply because of thesales method (sale of powerplants)

Flow
Gross profit
1.3bn

Flow Sales
6.7bn

2023
Total gross profit
7.5bn
Stock Sales
17.3bnStock Sales
15.72bn2022
Total gross profit
6.3bn

Total grossTotal grossprofit for
profit for
Stock
Stock
5.08bn *The FY2023 plan is for reference only and has not been approved 6.2bn

by the Board of Directors.
2022(Revised plan)©2022 Renewable Japan Co.,Ltd.

2023(Budget)23

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

©2022 Renewable Japan Co.,Ltd.