Takara Leben Infrastructure Fund Presentation Material
6th Fiscal Period ending November 30, 2018
Securities code: 9281
http://www.tif9281.co.jp/

Asset Manager

http://www.takara-am.co.jp/

I. Overview of the 6th Fiscal Period

II. Recent Topics

III. Future Management Strategy

IV. Appendix

1

Overview the 6th Fiscal Period Results (Ended Nov 2018)
Dividends/unit increased by ¥361 (+10.3%) to ¥3,871, due to improved operating revenue
5th Fiscal Period (Ended May 2018)

Forecast

ActualDifference

6th Fiscal Period (Ended Nov 2018)
Initialforecast

Forecast
as of Aug23, 2018

ActualDifference

Operational status (Million
Yen)
Operating revenue

1,189

1,205

+15

1,430

1,467

1,493

+63

Operating expense

742

731

-10

925

932

938

+13

Operating income

447

473

+25

504

535

555

+50

Ordinary income

391

415

+23

438

466

488

+49

Net income

390

414

+24

437

465

487

+50

¥3,771¥3,976¥+205¥3,510¥3,711¥3,871¥+361

Dividends per unit (excluding
surplus earnings distribution)¥3,307¥3,512¥+205¥3,160¥3,361¥3,521¥+361

Surplus earnings distribution
per unit (Return of capital)

¥464

¥464

¥±0

¥350

¥350

¥350

¥±0

Dividends per unit
(including surplus earnings
distribution)

Major Factors

Operating revenue : +63 Performance-linked rent
Operating expense : +3 IR-related expenses, +4 Depreciation and amortization, +4 Secretary-related commissions
2

Portfolio Performance
Entire Portfolio Performance(MWh)10,000■Forecasted power generation■Actual power generation+24.2%+17.0%+17.0%

9,000
+4.7%

+4.7%

7,000

-2.8%

-2.8%

-2.6%

6,000

+8.8%

-2.6%

4,000

6,575

6,449

6,721

8,093

7,935

7,137
6,698

+5.3%

+5.3%

-15.8%-15.8%

7,289
6,779

+5.8%

+5.8%

6,464

6,292
5,946

4,409 4,291

Dec, 2017

Jan, 2018

+6.3%

5,411
5,086

5,073 4,927

4,255

+6.3%

5,442

+8.8%
5,000

6,275

+4.2%

+6.5%

+4.2%

9,060

8,528

+6.5%

8,000

+24.2%

3,908

3,000
2,000
1,000
0

Feb, 2018

Mar, 2018

Apr, 2018

May, 2018

Jun, 2018

Jul, 2018

Aug, 2018

Sep, 2018

Oct, 2018

Nov, 2018

Individual Plants Performance
S-01 LS Shioya

S-02 LS Chikusei

（kwh）

（kwh）

400,000

200,000

300,000

150,000

200,000

100,000

100,000

50,00000
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov（note 1) Forecasted power generation is based on the expected amounts of electricity generation in the 50th percentile of probability of exceedance calculated by a third party.
（note 2) Performance period is from December 2017 to November 20183

Portfolio Performance■Forecasted power generation ■Actual power generation

S-03 LS Chiba Wakabaku

S-04 LS Miho
（kwh）

100,000
80,00060,00040,00020,0000（kwh）

200,000
150,000
100,000
50,0000
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-05 LS Kirishima Kokubu

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-06 LS Sosa

（kwh）

（kwh）

300,000

300,000

200,000

200,000

100,000

100,000

00
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-07 LS Miyagi Osato

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-08 LS Mito Takada

（kwh）

（kwh）

400,000

300,000

300,000

200,000

200,000
100,000

100,000
00

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-09 LS Aomori Hiranai

S-10 LS Tone Fukawa
（kwh）

（kwh）

300,000

400,000
300,000

200,000

200,000
100,000

100,000

00
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

4

Portfolio Performance■Forecasted power generation ■Actual power generation

S-11 LS Kamisu Hasaki

S-12 LS Tsukuba Bouchi

（kwh）

（kwh）

250,000
200,000
150,000
100,000
50,0000400,000
300,000
200,000
100,0000
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-13 LS Hokota

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-14 LS Nasu Nakagawa
（kwh）

（kwh）

300,000

3,000,000

200,000

2,000,000

100,000

1,000,00000
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-16 LS Inashiki Aranuma1

S-15 LS Fujioka A

（kwh）

（kwh）

500,000
400,000
300,000
200,000
100,0000

100,000
80,00060,00040,00020,0000

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-17 LS Fujioka B

S-18 LS Inashiki Aranuma2
（kwh）

（kwh）

400,000

200,000

300,000

150,000

200,000

100,000

100,000

50,00000
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

5

Portfolio Performance■Forecasted power generation ■Actual power generation

S-19 LS Sakuragawa Shimoizumi（kwh）

S-20 LS Fukushima Yamatsuri（kwh）

200,000

400,000

150,000

300,000

100,000

200,000

50,000100,000

00

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-21 LS Shizuoka Omaezaki (note)

S-22 LS Mie Yokkaichi

（kwh）

（kwh）

200,000

300,000

150,000

200,000

100,000

100,000

50,00000

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-23 LS Sakuragawa Nakaizumi

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-24 LS Shirahama

（kwh）

（kwh）

400,000

1,500,000

300,000

1,000,000

200,000
500,000

100,000

00
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

S-25 LS Takahagi

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov（kwh）

200,000
150,000

100,000
50,0000
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov(note) Acquisition date of LS Shizuoka Omezaki is February 28, 2018

6

Portfolio Performance（unit：Thousand Yen）
No.

Plant Name

Minimum
Guaranteed Rent
Income59,737

Performance-linked
Rent Income

Rent Expense（depreciation）

S-01

LS Shioya

S-02

LS Chikusei

25,135771

S-03

LS Chiba Wakabaku

15,8030

S-04

LS Miho

26,643

1,065

S-05

LS Kirishima Kokubu

45,949415

S-06

LS Sosa

37,648

1,580

S-07

LS Miyagi Osato

39,484

1,074

S-08

LS Mito Takada

45,025758

S-09

LS Aomori Hiranai

39,656437

S-10

LS Tone Fukawa

55,252

1,251

S-11

LS Kamisu Hasaki

25,413

1,965

S-12

LS Tsukuba Bouchi

54,381

2,674

S-13

LS Hokota

38,194

3,603

S-14

LS Nasu Nakagawa

371,322

30,244

S-15

LS Fujioka A

12,485

1,121

S-16

LS Inashiki Aranuma1

57,033

3,556

S-17

LS Fujioka B

49,526

4,420

S-18
S-19

LS Inashiki Aranuma2

25,502

1,918

LS Sakuragawa Shimoizumi

51,455

3,879

S-20

LS Fukushima Yamatsuri

26,720

1,353

S-21

LS Shizuoka Omaezaki

23,656

1,098

S-22

LS Mie Yokkaichi

43,556

1,911

S-23

LS Sakuragawa Nakaizumi

53,970

2,959

S-24

LS Shirahama

166,284

11,879S-25

LS Takahagi

20,999914

39,216 (29,981)
12,935 (9,050)
7,272 (4,742)
13,470 (9,216)
25,306 (17,797)
22,632 (13,999)
23,053 (17,261)
21,813 (16,353)
19,595 (12,504)
28,468 (21,533)
16,444 (11,000)
37,906 (23,046)
24,934 (16,439)
190,704 (154,740)
9,015 (4,595)
35,282 (20,276)
32,046 (20,439)
18,670 (11,100)
34,058 (20,584)
18,299 (10,597)
12,602 (10,000)
22,485 (18,132)
30,490 (22,955)
91,645 (62,278)
10,331 (7,869)

1,410,840

82,879798,684 (566,499)

Total

2,022

NOI
(after depreciation)

NOI(before depreciation)

52,52522,54322,023

12,972

13,2728,530

23,456

14,23938,85521,05830,595

16,596

34,766

17,50540,32523,97233,001

20,49749,56928,03521,935

10,93442,195

19,14933,303

16,864

365,604

210,864

9,186

4,591

45,58425,30842,342

21,903

19,8508,750

41,861

21,277

20,371

9,773

22,154

12,153

41,11522,98249,39526,439148,796

86,51819,455

11,586

1,261,547

695,048
7

I. Overview of the 6th Fiscal Period

II. Recent Topics

III. Future Management Strategy

IV. Appendix

8

Solar Power Plants Acquisition on June 1, 2018
Acquired 4 plants with total panel output of 13.71MW for 4.93 Billion Yen through thesecond public offering.
S-24 LS Shirahama

S-22 LS Mie Yokkaichi
Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights
S-23 LS Sakuragawa Nakaizumi
Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

1,984.50kW
Takara Leben
1,500.00kW
40 yen/kWh
September 18, 2034
Superficies

Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

7,839.76kW
Takara Leben
6,400.00kW
36 yen/kWh
May 31, 2037
Superficies

Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

1,194.60kW
Takara Leben
750.00kW
33 yen/kWh
December 25, 2037
Ownership

S-25 LS Takahagi
2,698.24kW
Takara Leben
1, 980.00kW
36 yen/kWh
September 22, 2036
Superficies

Offering Overview

Borrowing Overview

Offering form

Undocumented Offering

Interest rate(Note)

Base interest rate +0.5%

Issue resolution date

May 10, 2018

Drawdown dateJune 1, 2018

Condition Determination Date

May 22, 2018

Issue Price¥ 113,384/ unit

Final repayment date

May 31, 2028

Investment Units (PO)19,618 units

Repayment method

Install repayment in part

Investment Units(third-party allotment)

980 units

Issued investment units

137,594 units

Collateral

Unsecured and unguaranteed

Proceeds (incl. third-party allotment )¥ 2,230,083,666

Borrowing¥ 3,024 million
9Recent New Coverages on Price Change of Feed-in Tariff Policy
Overview of FIT policy■FIT policy requires electric power companies to purchase electricity generated fromrenewable energy sources on a fixed-period contract at a fixed price.
■Purchase price under the FIT system is annually revised based on procurement

price■Purchase price for each solar power generation facilities is final and will not be amended (note 1)(note 1) Except under circumstances where a commodity price or any other economic condition, such as hyperinflation, deflation and/or stagflation, has substantially changed or is likely to
substantially change, and when the Minister of Economy, Trade and Industry finds it especially necessary, the minister may revise a purchase price and period for existing facilities.

■TIF believes that recent news coverage regarding possible price drop on FIT policy only
applies to future approved solar power generation facilities and not apply to purchase prices forexisting approved facilities.
＜Change in Purchase Price (note 2) ＞
Fiscal year (April 1 to March 31）

Purchase price per 1kWh before tax

Purchase period

2012
2013
2014
2015 （April 1 to June 30）
2015 （July 1 to March 31）
2016
2017
2018

40 yen36 yen32 yen29 yen27 yen24 yen21 yen18 yen20 years
20 years
20 years
20 years
20 years
20 years
20 years
20 years(note 2) After 2017, purchase price for non-residential solar power generation facilities over 2MW were determined through successful bid at renewable energy auctions

10

Recent New Coverages on Price Change of Feed-in Tariff Policy
Overview of TIF■Among 25 solar power plants owned by TIF, 6 plants were approved
with purchase price of 40 yen per kWh, 18 plants approved with

No

Name

S-01 LS Shioya
S-02 LS Chikusei
S-03 LS Chiba Wakabaku

purchase price of 36 JPY per kWh and 1 plant approved with purchaseS-04 LS Miho

price of 32 yen per kWh.

S-05 LS Kirishima Kokubu
S-06 LS Sosa
S-07 LS Miyagi Osato■Above purchase prices for all of 25 solar power plants are honored
20 years from the day of grid connection.

S-08 LS Mito Takada
S-09 LS Aomori Hiranai
S-10 LS Tone Fukawa
S-11 LS Kamisu Hasaki■Same rules and principles applies to solar power generation facility
projects owned by our Sponsor, Takara Leben Co., Ltd.

S-12 LS Tsukuba Bouchi
S-13 LS Hokota

S-14 LS Nasu Nakagawa
S-15 LS Fujioka A

Impacts on operation performance of TIF in the event of
FIT policy changes

S-16 LS Inashiki Aranuma1

Electric power companies are required to purchase power generated
from solar power generation facilities owned by both TIF and theSponsor for 20 years from the day of grid connection. Therefore TIF
believes that there is no impact expected for FIT policy changes asannounced by various news sources.

S-19 LS Sakuragawa Shimoizumi

S-17 LS Fujioka B
S-18 LS Inashiki Aranuma2

S-20 LS Fukushima Yamatsuri
S-21 LS Shizuoka Omaezaki
S-22 LS Mie Yokkaichi
S-23 LS Sakuragawa Nakaizumi
S-24 LS Shirahama

TIF discloses forecast performance based on above
assumptions

S-25 LS Takahagi

FIT price(Yen/kWh)Remaining
FIT period (note 1)

40
40
40
36
40
36
36
36
36
36
36
40
36
36
36
36
36
36
36
36
36
40
36
36
32

14 years 7 months
15 years 3 months
15 years 3 months
15 years 7 months
15 years 9 months
16 years

16 years 3 months
16 years 3 months
16 years 7 months
17 years
17 years 3 months
15 years 7 months
17 years 3 months
17 years 3 months
17 years 7 months
17 years 7 months
17 years 10 months
18 years 1 months
17 years 10 months
17 years 11 months
16 years 3 months
15 years 9 months
17 years 9 months
18 years 5 months
19 years(note 1) As of December 1, 201811

Curtailment Orders Against Solar Power Plants In Kyusyu Area
Curtailment Orders against our solar power plants
Two curtailment orders were enforced against our solar power plants LS Kirishima Kokubu (S-05)
Overview of Curtailment

Suspended Date

Ratio of loss of power generation tototal estimated power generation of
the entire portfolio for the fiscal
period ending November 30, 2018

Impact for forecast of performancefor 6th Fiscal Period (ended
November 30, 2018)

October 21, 2018 (Sunday)

0.02% (note)

No Impact

November 11, 2018 (Sunday)

0.03% (note)

No Impact(note) The ratio is rounded off to third decimal place

Impact for forecast of performance All power plants are leased to Takara Leben and we receive rent revenue.
 Minimum guaranteed rents Takara Leben is paying are fixed for entire lease term regardlessenforcement of curtailment orders Performance-linked rent income of LS Kirishima Kokubu is not expected for forecasted
performance for the fiscal period ending November 30, 2018.

12

ESG Participation
Donation to “Miyagi Disaster Prevention Forests
Partnership Promotion Project “ through Hometown
Taxation Program for Companies
Takara Leben Infrastructure Fund, Inc.
Takara Asset Management Co., Ltd. (Asset Manager) On December 21, 2018, we and our Asset Manager has decided a donation toproject to recover Disaster Prevention Forests in Miyagi Prefecture In Miyagi Prefecture where we own a solar power plants, significant scales ofDisaster Prevention Forests has been lost due to the tsunami caused by Great
East Japan Earthquake As a part of exercising our basic principles of engaging environmental issues
and contributing to local community, the Investment Corporation has decided to
donate for the promotion project.

13

Promotion of Renewable Energy
Execution of New wholesale Electricity Supply Agreement with Minnna Denryoku

Minna Denryoku
Through supply of electricity, Minna Denryoku iscommitited to create new commonsense:
generating” and “consuming” electricity,
promotes regional revitalization, and supports
inter-regional collaboration via electricity.

<Overview>
No

S-21

S-22

Name

LS Shizuoka-Omaezaki

LS Mie-Yokkaichi

Execution Date

January 10, 2019

January 10, 2019

Panel Output

1,098.24kW

1,984.50kW

Operator

Takara Leben

Takara Leben

Wholesale Supplier

Minna Denryoku

Minna Denryoku

14Promotion of Renewable Energy (2)Grounds of Execution
Contribute to promote renewable energy Improving energy independence rate by promoting decarbonization, and eco-friendly energy throughsupplying electricity to environment-friendly consumers
Maintaining regional connection through electricity supply Through supplying electricity to Minna Denryoku, undertaking interregional cooperation via electricity, it will
challenge new commonsense that focus on “generating” and “consuming” electricity, promotes
revitalization of regional communities.
Maximization of unitholders value through our assets
 With amendment of Lease agreement with Takara Leben, Premium Bill paid by Minna Denryoku will beequally shared with us and Takara Leben.

Overview of Execution
 Takara Leben, the lesser and the operator of the solar power plants, aims to contribute society throughpromoting decarbonization and renewable energy and supplying electricity through Minna Denryoku to
consumers and firms that prefer environment-friendly energy We believe that this movement matches the our basic principles; “create value through utilization ofnatural energy resource, provide regional employment opportunities and develop a social economy, andlimit the global warming and improve domestic energy dependence”, we fully collaborate andcorporate with these movements.
15

I. Features of Takara Leben Infrastructure Fund, Inc.

II. Recent Topics

III. Future Management Strategy

IV. Appendix

16

The First Listed Infrastructure Fund in JapanI
Sustainable
Growth Strategy

II
Portfolio located in
High-Demand Area

III
Profit-based Dividends

IV
The only credit rated
Infrastructure Fund in
Japan
17

Stable Growth through Solar Power Plant Acquisition
Total Asset Price and Panel Output■Owned Assets■Newly Acquired Asset

30.24 Billion Yen
69.5MW

22.14 Billion Yen
50.0MW
8.16 Billion Yen
17.8MW

8.65 Billion Yen
19.0MWIPO

3rd FP
Acquisition

22.51Billion Yen
50.8MW

1st PO

24.63 Billion Yen
55.8MW

Panel
Expansion

5th FP
Acquisition

2nd PO
Acquisition* Total Asset Price is based on appraisal value as of November 30, 2018

Dividends Forecast and Results: Growing dividends through acquisition of solar power plants■Estimated Dividends per Unit (excl. surplus earnings distribution) (Yen)■Actual Dividends per Unit (excl. surplus earnings distribution) (Yen)■Surplus earnings distribution per Unit (Estimated and Actual) (Yen)

Forecast
Actual
2nd Fiscal Period
Nov 2016

Forecast
Actual
3rd Fiscal Period
May 2017

Forecast
Actual
4th Fiscal Period
Nov 2017

Forecast
Actual
5th Fiscal Period
May 2018

Forecast
Actual
6th Fiscal Period
Nov 2018

18

Portfolio Overview
Numbers of Asset

Total Asset Acquired

25solar power plants 30.24

Billion Yen

Total Pannel Output

69.5

MW

LS Aomori
Hiranai

LS Shioya

LS Sosa

LS Tsukuba
BouchiLS Inashiki
Aranuma1

LS Miyagi
Osato

LS Chikusei

LS Mito Takada

LS Hokota

LS Fujioka

LS Chiba
Wakabaku

LS ToneFukawaLS Nasu
Nakagawa

LS Inashiki
Aranuma2

LS Miho

LS Kamisu
Hasaki

LS Fujioka A

LS Sakuragawa
Shimoizumi

LS Sakuragawa
Nakaizumi

LS Takahagi

LS Fukushima
Yamatsuri

LS Kirishima
KokubuLS Shirahama

LS MieYokkaichi

LS Shizuoka
Omaezaki

19

Portfolio Breakdown
Significant investment ratio in regions where high power generation demand is anticipated.
■Breakdown of Portfolio by Region
As of November 30, 2018

Investment Ratio for regions under Tokyo, Chubu
and Kansai power company’s jurisdictions：89.6%■ Electric Energy Sold in 2016
Investment Ratio(Based on acquisition price)

Total Asset Size

30.24Billion Yen

Tokyo Electric Power Company

241,52075.0%

Chubu Electric Power

121,821

4.2%

Kansai Electric Power Company

121,500

10.4%

Kyushu Electric Power78,61974,2583.2%
6.9%■Kanto Region

75.0%

Tohoku Electric Power■Kansai Region

10.4%

Chugoku Electric Power Company■Tohoku Region

6.9%

Hokuriku Electric Power Company

28,104■Chubu Region

4.2%

Hokkaido Electric Power Company

26,8060%■Kyusyu Region

3.2%

Shikoku Electric Power25,6970%0%“Kanto Region” refers to Tokyo, Chiba, Ibaraki, Kanagawa, Gunma, Saitama, and Tochigi“Kansai Region” refer to Osaka, Kyoto, Nara, Hyogo, Shiga , and Wakayama.
“Tohoku Region” refers to Fukushima, Aomori, Akita, Iwate,, Miyagi and Yamagata,“Chubu Region” refers to Aichi, Niigata, Yamanashi, Shizuoka, Nagano and Mie.
“Kyushu Region” refers to Fukuoka, Oita, Kagoshima, Kumamoto, Saga, Nagasaki, andMiyazaki.

57,254

Okinawa Electric Power Company

0%
0%

0%

7,813
0

50,000100,000

150,000

200,000

250,000

300,000(GWh)
Source, “FACT BOOK 2018” published by Hokuriku Electric Power Company

20

Our Dividends Policy
Strengths of our dividends policy■Dividends(excluding surplus dividends)■Surplus dividends
0%
1%

2%

Takara Leben Infrastructure Fund

3%

5%

6%

6.02%

Infrastructure Fund A

2.52%

2.44%

7.63%

6.67%
6.32%

3.88%

Average J-REIT

8%

6.67%

1.98%

4.15%

Infrastructure Fund C

7%
0.65%

5.65%

Infrastructure Fund B

4.54%(incl. SPE)TOPIX Forecast

AA Rating Corporate Bond 9 to 10Y

4%

2.48%
0.44%

 TIF’s EPS is 6.02%; Highest rate among infrastructure
funds.

AA Rating Corporate Bond 4 to 5Y

0.15%

 Pursuit profit-based returning; maintain low SED
compare to other infrastructure funds.

Japanese Government Bond 10Y

0.13%

 Secure higher yield than other products such as
corporate bond and J-REIT.

Source: Data from each funds and companies, as of January 4 , 201921

The only credit-rated infrastructure Fund in Japan

Long-term Issuer
Rating: A- (stable)（as of May 16, 2018）

Issued by Japan Credit Rating Agency

22

Change in the Balance of Borrowings and LTV Ratio
Transition of borrowings■ IPO Financing ■ PO Financing ■ 5th FP Financing ■ 6th FP Financing(Billion Yen)

15.6

16
14

15.1

14.6

14.1

13.1

13.6

13.1

11.6

12
10

12.6

12.1

11.6

11.1

10.6

10.1

9.6

9.1

8.6

8.1

8
6
4.2

4.0

2nd FP

3rd FP4
2
0
1st FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP

Transition of LTV ratio（％）■ LTV Ratio ■ Remaining Borrowing Spare Capacity

70
60

50
40
30
20

49.0

46.1

45.3

50.5

53.4

53.2

52.7

52.0

51.2

50.4

10
0
June 2,2016

End of
2nd FP

End of
3nd FP

End of
4nd FP

End of
5nd FP

End of
6th FP

End of
7th FP

End of
8th FP

End of
9th FP

End of10th FP

Debt strategy (LTV ratio)
The interest-bearing debt ratio limits up to 60%
as a principle.
This limit, however, may temporary exceeded
for acquiring properties.
Meanwhile, TIF aimed to conservatively
maintain 50% by considering portfolio scales
during facing.

Borrowing spare capacity
by Amortization
23

External Growth
Acquisition Opportunity from the Sponsor’s Solar Power Plants
As of end of November 2018

Completed by Takara Leben

33 plants

92.7MW

Currently Developing by
Takara Leben

2 plants

41.8MW

Takara Leben aim to operate total of 250MW before the end of March 2021

TIF holds First Refusal Right for all sponsor‘s completed and future projects

Third Party Acquisitions through Asset Manager’s network• Asset Management Company holds own network to collect Information of solar power plants
transaction from secondary markets (Completed properties/properties under development)• Diversified renewable energy power generation facilities, including solar power, wind powerand biomass

24Internal Growth
Stable and upside potential revenue scheme through combination of 20 years-long minimum
guaranteed rent and performance-linked rent
Minimum guaranteed rent
based on projected amount ofelectricity generation＋

Performance-linked rent

(Note 1) Method of setting guaranteed minimum rent and performance-linked rent differs depending on the contents of lease agreement of each property.

(Note 2) Performance-linked rent may not be expected due to actual amount of electricity generation.

Well-planned capex (including maintenance) to maintain and improve medium- to long-term
revenue Outsourcing O&M (Note) of solar energy generation facilities to highly skilled third-party O&M service
firms(Note) stands for Operation & Maintenance Developing capex (inclusive of maintenance) plans for each property.
 Lessees basically bear expenses for regular maintenance, management, repair, etc.

25

Stabilized Income Scheme
Guaranteed minimum rent and stabilization of income
Post-IPO acquisitionof solar power plants(15 plants)

IPO solar power plants(10 plants)

Performance- linked
rent

110%

100%

100%

Set toP50

P50に設定Guaranteed
minimum rent

Set toP75に設定P75

Actual powersales amount*Excess probability (P=percentile) : Estimated electricity generation that would be achieved with a probability of 50% or 75%

Under the Feed-in Tariff (FIT) policy, electric power companies are required to purchase electricity generated from renewableenergy at a fixed priced on fixed-period contract
Electric powercompanies

Electric power sales

Lessees

Lease of solar energy generation
facilities, etc.

TIF

Electricity generation
utilities operators

Electric power sales price

Rent of solar energy generation
facilities, etc.
26

Performance Forecast
Performance forecast for the 7th, 8th, and 9th fiscal periods

Operational status(Unit: Million Yen)

7th fiscal period

8th fiscal period

9th fiscal period(ending May, 2019)(ending Nov, 2019)(ending May, 2020)

Forecast as of
May 10, 2018

Forecast as of
May 10, 2018

Forecast as of
May 10, 2018

Operating revenue

1,468

1,423

1,460

Operating expense

940

951

942

Operating income

527

472

517

Ordinary income

457

407

454

Net income

456

406

453

¥3,631¥3,271¥3,594¥3,297¥2,935¥3,274

¥334

¥336

¥320

Dividends per unit
(including surplus earnings distribution)

Dividends per unit
(excluding surplus earnings distribution)

Surplus earnings distribution per unit
(return of capital)(Note 1) Amounts are rounded down to the nearest million yen.
(Note 2) The above forecasts are subject to change due to acquisition or sale of renewable energy power generation facilities changes in infrastructure markets fluctuation in interest rates and otherchanges in circumstances surrounding the Investment Corporation. Forecasts do not guarantee any dividends amount.

27

Dividends Results and Forecast■Estimated dividends per unit
■Actual dividends per unit
■Surplus earnings distribution (return of capital)
4,000(Unit: Yen)

3,771

3,976
464

3,586
464
3,188

3,121
3,000

2,981

463

3,871
3,711
3,510

350
350

3,631
334

350

3,021
2,852

3,594
3,271

320

336
463

2,000

2,981

3,121
2,852

3,123

3,021

3,307

3,512
3,160

3,361

3,521

3,297

3,274
2,935

2,725

1,000

0
Forecast

Actual

2nd Fiscal Period(ended Nov 2016)

Forecast

Actual

3rd Fiscal Period(ended May 2017)

Forecast

Actual

4th Fiscal Period(ended Nov 2017)

Forecast

Actual

5th Fiscal Period(ended May 2018)

Forecast Forecast(May 10, (Aug 23,
2018)
2018)

Actual

6th Fiscal Period(ended Nov 2018)

Forecast(May 10,2018)
7th Fiscal Period(ended May 2019)

Forecast(May 10,2018)

Forecast(Jan 15,2019)

8th Fiscal Period 9th Fiscal Period(ended May 2019) (ended May 2019)28

Revenue Forecast for 7th Fiscal Period (ending May 2019)
Revenue Forecast of Portfolio
No.

S-01
S-02
S-03
S-04
S-05
S-06
S-07
S-08
S-09
S-10
S-11
S-12
S-13
S-14
S-15
S-16
S-17
S-18
S-19
S-20
S-21
S-22
S-23
S-24
S-25

Plant Name
LS Shioya
LS Chikusei
LS Chiba Wakabaku
LS Miho
LS Kirishima Kokubu
LS Sosa
LS Miyagi Osato
LS Mito Takada
LS Aomori Hiranai
LS Tone Fukawa
LS Kamisu Hasaki
LS Tsukuba Bouchi
LS Hokota
LS Nasu Nakagawa
LS Fujioka A
LS Inashiki Aranuma1
LS Fujioka B
LS Inashiki Aranuma2
LS Sakuragawa Shimoizumi
LS Fukushima Yamatsuri
LS Shizuoka Omaezaki
LS Mie Yokkaichi
LS Sakuragawa Nakaizumi
LS Shirahama
LS Takahagi
Total（Unit：Thousands yen）

Minimum
Guaranteed Rent
IncomePerformance-linked
Rent Income

Rent Expense（depreciation）

NOI(afterdepreciation)

NOI(beforedepreciation)

67,22927,422
15,17928,02045,11237,26340,21545,33932,28256,892
24,69157,012
39,078403,404
13,87954,88054,96024,80957,443
27,17623,492
39,63259,891
151,931
20,957
1,448,199

505
1,127
773
7,373
267
1,091
1,058
508
1,105
450
496
659
1,169
3,087
418
20,095

39,163 (29,930)
13,010 (9,062)
7,304 (4,749)
13,498 (9,216)
25,254 (17,797)
21,226 (13,999)
22,190 (17,261)
22,612 (16,353)
18,922 (12,504)
29,200 (21,533)
18,152 (11,000)
35,222 (23,046)
24,727 (16,439)
191,149 (154,396)
8,681 (4,578)
35,041 (20,276)
32,573 (20,441)
18,697 (11,100)
32,683 (19,544)
17,271 (10,002)
14,001 (8,356)
24,910 (17,946)
33,917 (22,914)
99,520 (61,769)
11,825 (7,797)
810,758 (562,018)

57,99623,474
12,62423,73937,65530,03635,28539,08025,86349,226
18,04545,96431,563374,025
10,044
41,20743,887
17,72145,41020,357
18,34433,32750,058117,268
17,347
1,219,555

28,066
14,411
7,875
14,522
19,857
16,03618,02422,727
13,35927,692
7,045
22,917
15,124
219,629
5,465
20,93023,445
6,620
25,866
10,355
9,988
15,381
27,14355,4989,550
657,536（Note 1）Number less than one thousand has been omitted.
（Note 2）Revenue for S-01 to S-10 shows minimum guaranteed rent which equals to estimated generation income based on 50th percentile of excess probability mentioned in the thirdparty report. Revenue for S-11 to S-25 shows minimum guaranteed rent which equals to estimated generation income based on 75th percentile of excess and performance-linked rent basedon 50th percentile of excess probability mentioned in the third-party report.

29

I. Overview of the 6th Fiscal Period

II. Recent Topics

III. Future Management Strategy

IV. Appendix

30

Unitholder Status at the End of the 6th Fiscal Period (ended November 2018)
Number of investment units

Number ofinvestment units

138,574

Number of unitholders■Individuals/others

85,577 (61.75％)■ Other domestic corporation

25,022 (18.05％)

Number of■Financial Institutions■Financial Institutions

23,336 (16.84％)

unitholders（incl. financial instruments firms）

10,968（incl. financial instruments firms）■ Foreign corporation. etc.

■Individuals/others

4,639 (3.34％)

Name

10,742 (97.93%)
43 (0.39%)■ Other domestic corporation

148 (1.34%)■ Foreign corporation. etc.

35 (0.31%)

Number of investment units held
(units)Unitholding ratio
in the total number ofinvestment units issued(%)

1

Takara Leben Co., Ltd.

19,686

14.2

2

The Rokinren Bank

3,133

2.24

3

GOLDMAN SACHS INTERNATIONAL

2,974

2.14

4

Yamato Shinkin Bank

2,118

1.52

5

THE BANK OF FUKUOKA , LTD.

1,905

1.37

6

Aozora Bank, Ltd

1,710

1.23

7

Kagawaken Shinyo Kumiai

1,700

1.22

8

Individual

1,619

1.16

9

The Kagawa Bank, Ltd.

1,011

0.72

10

The Joyo Bank, Ltd.

1,000

0.72

10

Fukoku Mutual Life Insurance Company

1,000

0.72

Total

37,85627.31
31

Balance Sheet for 6th FP (ended November 2018)（Unit：Thousand Yen）

（Unit：Thousand Yen）

32

Statement of Income for 6th FP (ended November 2018)（Unit：Thousand Yen）

33

Portfolio Data
No.

Property Name

S-01
S-02
S-03
S-04
S-05
S-06
S-07
S-08
S-09
S-10
S-11
S-12
S-13
S-14
S-15
S-16
S-17
S-18
S-19
S-20
S-21
S-22
S-23
S-24
S-25

LS Shioya
LS Chikusei
LS Chiba Wakabaku
LS Miho
LS Kirishima Kokubu
LS Sosa
LS Miyagi Osato
LS Mito Takada
LS Aomori Hiranai
LS Tone Fukawa
LS Kamisu Hasaki
LS Tsukuba Bouchi
LS Hokota
LS Nasu Nakagawa
LS Fujioka A
LS Inashiki Aranuma1
LS Fujioka B
LS Inashiki Aranuma2
LS Sakuragawa Shimoizumi
LS Fukushima Yamatsuri
LS Shizuoka Omaezaki
LS Mie Yokkaichi
LS Sakuragawa Nakaizumi
LS Shirahama
LS Takahagi

Period-end
Acquisition appraisal
Ratio Panel output FIT price
Remaining FIT
Location
pricevalue of(%)(kW)
(Yen/kWh)period(MY)power plant(Note)(MY)
1,356 4.5
2,987.25
40 14 years 7 months
Shioya-gun, Tochigi
1,315
575 1.9
1,205.67
40 15 years 3 months
Chikusei-shi, Ibaraki
540
337 1.1
705.1040 15 years 3 months
Chiba-shi, Chiba
271
592 2.0
1,373.70
36 15 years 7 months
Inashiki-gun, Ibaraki
498
972 3.2
2,009.28
40 15 years 9 months
Kirishima-shi, Kagoshima937
693 2.3
1,796.08
36
Sosa-shi, Chiba
666
16 years
850 2.8
2,040.00
36 16 years 3 months
Kurokawa-gun, Miyagi
818
1,037 3.4
2,128.00
36 16 years 3 months
Mito-shi, Ibaraki
991
734 2.4
1,820.00
36 16 years 7 months
Higashi-tsugaru-gun, Aomori
705
1,315 4.3
2,467.08
36
Kita-soma-gun, Ibaraki
1,261
17 years
491 1.6
1,200.00
36 17 years 3 months
Kamisu-shi, Ibaraki
470
1,013
3.3
Tsukuba-shi, Ibaraki
2,469.60
40 15 years 7 months
890
760 2.5
Hokota-shi, Ibaraki
1,913.60
36 17 years 3 months
735
8,782 29.0
Nasu-gun, Tochigi
19,800.00
36 17 years 3 months
8,315
271 0.9
Tochigi-shi, Tochigi
612.0036 17 years 7 months
265
1,061 3.5
Inashiki-shi, Ibaraki
2,725.68
36 17 years 7 months
925
1,189 3.9
Tochigi-shi, Tochigi
2,420.80
36 17 years 10 months
1,091
483 1.6
Inashiki-shi, Ibaraki
1,200.00
36 18 years 1 months
422
1,098 3.6
Sakuragawa-shi, Ibaraki
2,535.04
36 17 years 10 months
955
532 1.8
Higashi-shirakawa-gun, Fukushima
1,327.36
36 17 years 11 months
468
493 1.6
Omaezaki-shi, Shizuoka
1,098.24
36 16 years 3 months
484
805 2.7
Yokkaichi-shi, Mie
40 15 years 9 months
740
1,984.50
1,165
3.9
Sakuragawa-shi, Ibaraki
36 17 years 9 months
980
2,698.24
3,146 10.4
Kamitonda-cho, Wakayama
36 18 years 5 months
2,810
7,839.76
485 1.6
Takahagi-Shi, Ibaraki
32400
1,194.60
19 years

Portfolio total(Note 1) Appraisal value based on November 30, 2018

27,95730,242

100

69,551.58－－

Operator

Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben
Takara Leben－
34

Change in Stock Price (July 2, 2016 to November 30, 2018)(Yen)(Unit)TIF (Right)

TSE REIT INDEX（Right）

Trading Volume (Left)

140,000

14,000135,000

12,000130,000

125,000
10,000120,000
8,000
115,000

6,000

110,000

105,000
4,000
100,000
2,000
95,000090,00035

Principles and Investment Policy
Value creation through utilization of natural energy
Annual CO2 reduction

Annual power generation

Stable cash flow andprofitSocially
responsible
investment

Maximization of unitholder value*1 Annualized CO2 reduction relative to fossil fuels based on total panel output of the portfolio.
*2 Estimate power consumption of each household as 247.3KWh per month.

36

Structure of the Investment Corporation
Connecting / Purchasing electric utilities
operators

Electric
power
sales

Assets undermanagement

Electric
powersales priceLessee andoperator

Takara Leben Infrastructure Fund, Inc.
(TIF)
Borrowings

Lenders, etc.

Total AmountSolar power plant¥15.61 billion

Rent

Loans

Repayment ofprincipal andinterest

Operatingfee

SponsorSponsorsupport¥30.24 billion

Unitholders’ equity¥13.19 billion• All loans are
unsecured andunguaranteed

Listed on the Tokyo
Stock Exchange

Investment

Total acquired plants• 19 financial
institutions

Investment

Unitholders• 10,000+ individual investors(64% of total)• 43 financial institutions

Asset Manager(16% total)

Management

Number of plants
Dividends

25 solar power plants
Management
entrustment• 148 domestic corporations(18% of total)• 35 foreign corporations(2% of total)(Note) Figures as of the end of May, 2018

(note) All figures are as of November 30, 201837

Business EnvironmentLong-term Energy Demand and Supply Forecast■2013■LNG ■Coal ■Oil, etc.
■Nuclear ■Water power■Geothermal and Renewable energy■2030● Ratio of renewable energy■LNG ■Coal ■Oil, etc.
■Nuclear ■Water power■Geothermal and Renewable energy

22~24

2.2％

1.0％

13.4％
8.8％

8.5％
14.9％

43.2％
22.0％

％

Solar Power accounts

7%

27.0％
26.0％

30.3％

3.0％

Volume ratio of renewable energy newly
introduced after the start of FIT Scheme(For solar power generation, 10kW or larger are included.)Installed solar energy generation facilities (10kW orlarger) its forecast in 2030
(GW)

70

64

60
50
40

31.7

30

24.9
17.4

20
10
█ Solar power generation 94.4%█ Biomass power generation 2.7%
█ Wind power generation
2.1%█ Water power generation
0.8%
Geothermal power generation0.0%
Source: Data from the website for announcing the Feed-in Tariff Scheme by
Agency for Natural Resources and Energy of the Ministry of Economy,
Trade and Industry

8.4

1.9

0
June, 2013

June, 2014

June, 2015

June, 2016 September,
2017
TIF Listed

2030(expected)

Source:i. Data from the website for announcing the Feed-in Tariff Scheme by Agency for Natural Resources and Energy of the Ministry of Economy,
Trade and Industry for the period up to April 2016.
ii. Expected installation in FY2030 based on the data on the document related to the long-term energy supply and demand outlook by the
Ministry of Economy, Trade and Industry (Agency for Natural Resources and Energy, July 2015)

38

Profile of Asset Manager
Name

Takara Asset Management Co., Ltd.
Main Office
Otemachi Nomura Bldg. 16F 2-1-1 Otemachi, Chiyoda-ku, Tokyo, JAPAN

Address
Shin-Otemachi Building BranchShin-Otemachi Bldg. 8F 2-1-1 Otemachi, Chiyoda-ku, Tokyo, JAPAN
Established

October 28, 2013

Capital250,000,000 JPY

Representative

CEO, Mamoru Takahashi

Business Domain

Asset Management, Type II Financial Instruments, Investment Consulting

Stakeholder

100% owned by Takara Leben (securities code: 8897, Tokyo Stock Exchange)

Licenses

Building Lots and Buildings Transaction Business: No. (1) 96550, Governor of Tokyo
Discretionary Transaction Agent: No. 89, Minister of Land, Infrastructure,
Transportation and Tourism
Financial Instruments Business: No. 2851, Director-General, Kanto Finance Bureau(Financial Instruments and Exchange Act)

Participation

The Investment Trusts Association, Japan
Type II Financial Instruments Firms Association
Japan Investment Advisers Association
Tokyo Real Estate Association
Japan Housing, Land, and Building Business Society
Japan Association of Asset Management
39

Contact

TEL: +81-3-6262-6402
E-Mail: info@takara-am.co.jp• This document has been prepared to provide information, and is not for soliciting and inviting investments in or recommending transaction of certain
products. We request investors to make investments with their own responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial Instruments and Exchange Act, the Act on
Investment Trusts and Investment Corporations or the listing regulations of the Tokyo Stock Exchange.
• In addition to information on Takara Leben Infrastructure Fund, Inc. (the "Investment Corporation"), this document includes figures, tables and dataprepared by Takara Asset Management Co., Ltd. (the "Asset Manager") based on data/index and other information released by third parties. Analysis,
judgment and other views of the Asset Manager on such information at the time of preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty of such information. Analysis,
judgment and other non-factual views of the Asset Manager represent views of the Asset Manager at this point in time. Different views may exist or the
Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due to difference in the rounding of
fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors. Readers are also cautioned that thecontents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes and other information released by third
parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, these statements do not guarantee said
future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.