5th Fiscal period (ended May 31, 2018)
Presentation Materials
Takara Leben Infrastructure Fund, Inc.
Securities code: 9281

http://www.tif9281.co.jp/en

Asset Manager

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

Table of Contents
I.

II.

Financial Result for 5th Fiscal Period

Appendix

Overview of 5th Fiscal Period Results (Ended May 2018) ・P3

Milestones・・・・・・・・・・・・・・・・・・・・

P24

Portfolio Performance・・・・・・・・・・・・・・・・・

P4

Balance Sheet for 5th FP (ended May 2018)・・・・・

P25

Statement of Income for 5th FP (ended May 2018)・・・

P26

Portfolio Data・・・・・・・・・・・・・・・・・・

P27

Change in Stock Price (July 2, 2016 to July 11, 2018)・

P28

Unitholder Status at the End of the 5th Fiscal Period(May 2018)・・・・・・・・・・・・・・・・・・・

P29

Principles and Investment Policy ・・・・・・・・・・

P30

Structure of the Investment Corporation・・・・・・・

P31

Business Environment・・・・・・・・・・・・・・・

P32

Major Topics for 5th Fiscal Period
New Solar Power Plants Acquisition・・・・・・・・・・・

III.

IV.

P9

Future Operation Strategies
Solar Power Plants Acquisition on June 1, 2018・・・・・

P11

Highlights of Operation・・・・・・・・・・・・・・・・

P12

Stable Growth through Solar Power Plant Acquisition・・・

P13

Portfolio Overview・・・・・・・・・・・・・・・・・・

P14

Stabilize Income・・・・・・・・・・・・・・・・・・・

P15

Dividends Policy・・・・・・・・・・・・・・・・・・

P16

Change in the Balance of Borrowings and LTV Ratio・・・

P17

External Growth・・・・・・・・・・・・・・・・・・・

P18

Internal Growth・・・・・・・・・・・・・・・・・・・・

P19

Performance Forecast for 6th, 7th and 8th Fiscal Period・・・

P20

Dividends Forecast and Result・・・・・・・・・・・・・

P21

Revenue Forecast for 6th Fiscal Period (ending November2018) ・・・・・・・・・・・・・・・・・・・・・・・・

P22
1

Ⅰ．Financial Result for 5th Fiscal Period

Ⅱ．Major Topics for 5th Fiscal Period

Ⅲ．Future Operation Strategies

Ⅳ．Appendix

2

Overview of 5th Fiscal Period Results (Ended May 2018)
Dividends/unit increased by 205 yen (+5.4%) to 3,976 yen, due to improved operating revenue
4th FP (ended Nov 2017)
Forecast

Result5th FP (ended May 2018)

Increase/decrease

InitialForecast asof Nov 28,
2017

Forecast asof Jan 27,
2018

ResultIncrease/
Decrease(note)

Operational status (Million Yen)
Operating revenue

1,025

1,062

+36

1,189

1,189

1,205

+15

Operating expenses

647

639

-8

742

726

731

-10

（Depreciation in Opex)

377

422

+45

447

463

473

+25

Operating income

322

369

+46

391

407

415

+23

Ordinary income

321

368

+46

390

406

414

+24

3,188 yen

3,586 yen

+398 yen

3,771 yen

3,908 yen

3,976 yen+205 yen

2,725 yen

3,123 yen

+398 yen

3,307 yen

3,444 yen

3,512 yen+205 yen

463 yen463 yen±0 yen464 yen464 yen464 yen±0

Net income

Dividends per unit
(including surplus earnings distribution)
Dividends per unit (excluding
surplus earnings distribution)（Note）Compared between initial forecast and result

Factors for increase/decrease

Minimum guaranteed rent income -3
Performance-linked rent income +18

Tax -15
IR-related expenses +6
3

Portfolio Performance
S-01 LS Shioya

400,000

300,000

300,000

200,000

200,000

100,000

100,000
0

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

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

S-06 LS Sosa

（kwh）

（kwh）

400,000

400,000

300,000

300,000

200,000

200,000

100,000

100,000

00

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

S-03 LS Chiba Wakabaku

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

S-07 LS Miyagi Osato（kwh）

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

400,000
300,000
200,000
100,000
0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

S-04 LS Miho

Actual Generation（kwh）

400,000

0

S-02 LS Chikusei

Estimated Generation

S-05 LS Kirishima Kokubu（kwh）

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

S-08 LS Mito Takada（kwh）

400,000（kwh）

400,000

300,000

300,000

200,000

200,000

100,000

100,000

0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

4

Portfolio Performance
S-09 LS Aomori Hiranai

S-13 LS Hokota（kwh）

Estimated Generation（kwh）

400,000

400,000

300,000

300,000

200,000

200,000

100,000

100,000

00

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

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

S-14 LS Nasu Nakagawa

S-10 LS Tone Fukawa

（kwh）

（kwh）

400,000

3,000,000

300,000

2,000,000

200,000

1,000,000

100,000

00

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

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

S-11 LS Kamisu Hasaki

Actual Generation

S-15 LS Fujioka A

（kwh）

（kwh）

400,000
300,000
200,000
100,000
0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

100,000
80,00060,00040,00020,0000
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

S-16 LS Inashiki Aranuma1

S-12 LS Tsukuba Bouchi
（kwh）

（kwh）

400,000

400,000

300,000

300,000

200,000

200,000

100,000

100,000

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

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

5

Portfolio Performance
S-17 LS Fujioka B

S-20 LS Fukushima Yamatsuri（kwh）

Estimated Generation

Actual Generation（kwh）

400,000

400,000

300,000

300,000

200,000

200,000

100,000

100,000

00

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

S-18 LS Inashiki Aranuma2

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

S-21 LS Shizuoka Omaezaki

（kwh）

（kwh）

400,000

200,000

300,000

150,000

200,000

100,000

100,000

50,0000
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

S-19 Sakuragawa Shimoizumi

0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May（kwh）

400,000
300,000

200,000
100,000
0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May(Note 1) The estimated generation is the total of the expected amounts of electricity generation in the 50th percentile of probability of exceedance calculated by a third party on the basis of the database forhourly solar radiation for a year and others(Note 2) Periods for Estimated Generation and Actual Generation is June 2017 to May 2018.

6

Portfolio Performance（unit：Thousand Yen）
Plant No.

Plant Name

Minimum
Guaranteed Rent
IncomePerformancelinked Rent
IncomeRent Expense（depreciation）

NOI(after depreciation)

NOI(before depreciation)

S-01

LS Shioya

67,574315

39,502（29,981）

58,36828,386

S-02

LS Chikusei

27,560319

12,548（9,050）

24,382

15,333S-03

LS Chiba Wakabaku

15,256-

7,057（4,742）

12,941

8,198

S-04

LS Miho

28,161300

13,164（9,216）

24,514

15,298S-05

LS Kirishima Kokubu

45,34250

24,269（17,797）

38,921

21,123

S-06

LS Sosa

37,453-

20,164（13,999）

31,28817,289S-07

LS Miyagi Osato40,420-23,137（17,261）

34,543

17,282S-08

LS Mito Takada

45,57025

21,977（16,353）

39,971

23,620S-09

LS Aomori Hiranai

32,446-

19,773（12,504）

25,177

12,673

S-10

LS Tone Fukawa

57,181-

28,600（21,533）

50,11428,580S-11

LS Kamisu Hasaki

24,816

1,191

15,339（11,000）

21,668

10,667S-12LS Tsukuba Bouchi

57,303

2,013

34,966（23,046）

47,39624,350S-13

LS Hokota

39,276

1,915

23,209（16,439）

34,422

17,982

S-14

LS Nasu Nakagawa

405,443

13,333

190,766（154,740）

382,750

228,012

S-15

LS Fujioka A

13,949866

7,935（4,595）

11,476

6,880

S-16

LS Inashiki Aranuma1

55,155

3,669

32,128（20,276）

46,973

26,697

S-17

LS Fujioka B

55,2383,383

28,794（20,439）

50,26629,829

S-18

LS Inashiki Aranuma2

24,935

2,126

17,237（11,100）

20,924

9,823

S-19

LS Sakuragawa Shimoizumi

57,733

2,641

30,919（20,584）

50,04029,456

S-20

LS Fukushima Yamatsuri

27,313629

16,063（10,597）

22,477

11,879S-21

LS Shizuoka Omaezaki

13,654787

7,937（6,667）

13,172

6,509

1,171,787

33,569615,494（451,929）

1,041,793

589,877

Total

7

Ⅰ．Financial Result for 5th Fiscal Period

Ⅱ．Major Topics for 5th Fiscal Period

Ⅲ．Future Operation Strategies

Ⅳ．Appendix

8

New Solar Power Plants Acquisition
On November 28, 2017, TIF announced to acquire three new solar plants:
LS Sakuragawa Shimoizumi, LS Fukushima Yamatsuri and LS Shizuoka Omaezaki
Overview of Properties
S-21 LS Shizuoka Omaezaki
Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

S-19 LS Sakuragawa Shimoizumi
Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

2,535.04kW
Takara Leben
1,980.00kW¥36/kWh
October, 23 2036
Superficies

S-20 LS Fukushima Yamatsuri
Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

1,327.36kW
Takara Leben
1,220.00kW¥36/kWh
November 11, 2036
Superficies

Total Panel Output

1,098.24kW
Takara Leben
990.00kW¥36/kWhMarch 29, 2035
Ownership

4.96MW

Total Acquisition Price 1.9Billion JPY(note) TIF acquired LS Sakuragawa Shimoizumi and Fukushima Yamatsuri as of December 1, 2017

Summary of Borrowing
Type

LenderAmount（Million JPY)

Interest Rate

Drawdown Date

Final Repayment
Date

CollateralLong-term

Mizuho Bank Ltd.
Risona Bank Ltd.
Sumitomo Mitsui Banking Corp

1,870

Base Interest Rate + 0.5%

December 1, 2017

November 30, 2027

UnsecuredandUnguaranteed

Long-term

Mizuho Bank Ltd.
Risona Bank Ltd.
Sumitomo Mitsui Banking Corp

475

Base Interest Rate + 0.5%

April 27, 2018

November 30, 2027

UnsecuredandUnguaranteed
9

Ⅰ．Financial Result for 5th Fiscal Period

Ⅱ．Major Topics for 5th Fiscal Period

Ⅲ．Future Operation Strategies

Ⅳ．Appendix

10Solar Power Plants Acquisition on June 1, 2018
On June 1, 2018, TIF acquired four new solar power plants: LS Mie Yokkaichi. LS Sakuragawa Nakaizumi, LS
Shirahama and LS Takahagi (Total Panel Output: 13.71MW and Total Acquisition Price: 4.93 Billion Yen)
S-24 LS Shirahama

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

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

Offering Overview
Offering form

7,839.76kW
Takara Leben
6,400.00kW¥36/kWhMay 31, 2037
Superficies

Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

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

S-25 LS Takahagi

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

Panel Output
Operator
Output Capacity
FIT
End of FITLand Rights

2,698.24kW
Takara Leben
1, 980.00kW¥36/kWh
September 22, 2036
Superficies

Borrowing Overview
Undocumented Offering

Issue resolution date

May 10, 2018

Condition Determination
Date

May 22, 2018

Issue Price¥ 113,384/ unit

Investment Units (PO)19,618 units

Investment Units(third-party allotment)

980 units

Issued investment units

138,574 units

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

Type

LenderLongterm

Syndicate Loan:
Mizuho Bank Ltd.
(Arranger)
Risona Bank Ltd.
(Arranger)
Sumitomo Mitsui
Banking Corp
(Co-arranger)

Borrowing(Million Yen)

3,024

Debt balance（as of Jan 15,
2018）(Million Yen)

Interest
Rate

Drawdown DateFinal
Repaym
ent Date

Collateral

3,024

Base
Interest
Rate +
0.5%

June 1,
2018

May 31,
2028

UnsecuredandUnguaranteed

The base rate applicable to the interest rate payable on the due date of payment of interest shall be the Japanese Yen TIBOR forsix (6) months as of the day at least two business days prior to the date of execution of loans or each due date of payment ofinterest that the Japanese Bankers Association TIBOR Administration publishes.

11

Highlights of Operation
The First Listed Infrastructure Fund in Japan1

Sustainable
Growth Strategy

Our rent scheme allows

3

through stable asset acquisition

Total Panel Output :69.5 MW*1

Total AcquisitionPrice:30.16 Billion Yen*1

Majority of our solar power plants
locate on

2 Strong Demand Area
Kanto Region*2:76.5%

Power Demandin Kanto Region*3:241,520GWh/year

Profit-based
Dividends

Total Dividends/unit :3,976Yen*4
Profit Dividends/unit :3,123Yen*4
Rent scheme with stable and upside potential

4

Stable and Strong
Financial Foundation
since we are the only rated
infrastructure fund in JapanJCR Credit Rating
Long-term Issuer Rating: AOutlook: Stable(rating published on May 16, 2018)*1 Combined total amount of PwC evaluation value of all properties owned at the end of the 5th fiscal term and acquisition price for properties acquired during 6th fiscal term.
*2 Kanto region includes Tokyo, Kanagawa, Chiba, Saitama, Ibaraki, Gunma and Tochigi.
*3 Annual Power Demand in Tokyo Electric Power Company in fiscal year of 2016.
*4 5th Fiscal Period, ended May 2018.

12

Stable Growth through Solar Power Plant Acquisition
Total Acquisition Value and Panel Output(million yen)

■ Owned Solar Power Plants■ Acquired Solar Power Plants

8.49 Billion Yen
17.8MW

8.99 Billion Yen
19.0MWIPO

3rd FP
Acquisition

22.88 Billion Yen
50.0MW

23.06 Billion Yen
50.8MW

1st PO

Panel
Expansion

25.23 Billion Yen
55.8MW

5th FP
Acquisition

30.16 Billion Yen
69.5MW

2nd PO* Acquisition value based on combined total amount of PwC evaluation value of all properties owned at the end of the 5th fiscal period and acquisition price for properties acquired during the
6th fiscal period.

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
(Forecast and Actual) (Yen)13Portfolio Overview
Numbers of Asset

Total Asset Acquired

25solar power plants 30.16Billion Yen

Total Pannel Output

69.5MW

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

14

Stabilize Income
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%

With Feed-in Tariff (FIT), lessees are guaranteed with buyout of electricity over a long term.
Electric utilities
operators

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.

15

Dividends Policy
Focus: increase in net income
based dividends>

Surplus earnings distribution(return of capital)

Maximization of unitholders value through cash management
 Concept of dividends

Operating revenue
Expenses related to rent business, etc.
Depreciation
1.
Repayment ofborrowings

2.
Capital expenditure

3.
External growth

Maintenance/improvementof owned solar power
plantsNew acquisition ofproperties& necessary internal
reserves

Remainder from
1. – 3.
Surplus earnings
distribution
return of capital

Dividends basedon net income

ＤＰＵ(Note1)(Note 1) Based on 137,594 units (Figures as of the end of June 1, 2018)(Note 2) Surplus earnings distribution (return of capital) and acquisition of treasury investment units are not scheduled in the 3rd fiscal period (ending May 2017).

Distribution conducted twice a year with account settlements in May and November
16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

13.1

14.1

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

4
2
0
1st FP 2nd FP 3rd 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

49.0

46.1

45.3 50.5

53.4

54.3

53.6

52.8

52.1

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.

20
100June 2, End of End of End of End of June 1, End of End of End of2016 2nd FS 3rd FS 4th FS 5th FS 2018 6th FS 7th FS 8th FS

Borrowing spare capacity
by Amortization
17

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

Completed by Takara Leben

32 plants

81.2MW

Currently Developing by
Takara Leben

2 plants

22.6MW

Planned to be Developed by
Takara Leben

1 plants

30.0MW

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 underdevelopment)• Diversified renewable energy power generation facilities,
including solar power, wind power and biomass

Numbers of plants transaction
information introduced to AssetManagement Company

117
37
3rd
Fiscal Period

4th
Fiscal Period
18Internal Growth
Stable revenue centering on guaranteed minimum rent over the 20 year period
and upside potential of performance-linked rent
Minimum guaranteed rent based on
projected amount of electricity
generation＋

Performance-linked rent

(Note 1) Method of setting guaranteed minimum rent and performance-linked rent differs depending on the contents of the lease agreement of each property.
(Note 2) Performance-linked rent may not arise depending on the actual amount of electricity generation.

Well-planned capex (including maintenance) for maintaining/improving medium- to long-term
revenue stream 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.

19Performance Forecast for 6th, 7th and 8th Fiscal Period

Operational status(Unit: Million Yen)

As of
Nov 28,2017

6th fiscal period

7th fiscal period

8th fiscal period(ending Nov, 2019)(ending May, 2019)(ending Nov, 2019)

As of
Jan 12,
2018

As of
May 10,2018

As of
Nov 28,2017

As of
Jan 12,
2018

As of
May 10,
2018

As of
May 10,2018

Operating revenue

1,139

1,139

1,430

1,190

1,190

1,468

1,423

Operating expense

776

745

925

780

750

940

951

Operating income

363

394

504

409

440

527

472

Ordinary income

306

337

438

354

384

457

407

Net income

305

336

437

353

383

456

406

2,920 yen

3,186 yen

3,510 yen

3,311 yen

3,568 yen

3,631 yen

3,271 yen

2,589 yen

2,855 yen

3,160 yen

2,994 yen

3,251 yen

3,297 yen

2,935 yen

331 yen331 yen

350 yen

317 yen

317 yen

334 yen

336 yenDividends 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 based on press releases and financial statement and subject to change factors not limited to acquisition or sale of renewable energy power generation
facilities changes in infrastructure markets fluctuation in interest rates and other changes in circumstances surrounding the Investment Corporation. Forecasts do not guarantee any
dividends amount.

20

Dividends Forecast and Result■Estimated Dividends per Unit
■Actual Dividends per Unit
■Surplus earnings distribution (Return of capital)
4,000

3,771

(Unit: Yen)

3,976
464

3,586

3,510

464
3,188

3,121
3,000

2,981

463

3,186

3,021
2,852

2,920

463

350

3,311

3,568

3,631

317

334

317

3,271
336

331

331

2,000

2,981

3,121
2,852

3,123

3,021

3,307

3,512
3,160
2,855

2,725

2,994

3,251

3,297
2,935

2,589

1,000

0
Forecast

Actual

2nd FS(ended Nov 2016)

Forecast

Actual

3rd FS(ended May 2017)

Forecast

Actual

4th FS(ended Nov 2017)

Forecast

Actual

5th FS(ended May 2018)

Forecast as Forecast as Forecast asof Nov 28, of Jan 12, of May 10,
2017
2018
2018

Forecast as Forecast as Forecast asof Nov 28, of Jan 12, of May 10,
2017
2018
2018

Forecast asof May 10,
2018

6th FS(ending Nov 2018)

7th FS(ending May 2019)

8th FS(ending Nov 2019)21

Revenue Forecast for 6th Fiscal Period (ending November 2018)
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)

59,737
25,13515,806
26,64845,94937,64839,48445,02539,65655,252
25,41354,381
38,194
371,322
12,48557,03349,52625,50251,45526,72023,65643,55653,970166,284
20,9991,410,848

520
1,075
756
6,787
240
1,125
954
522
990
443
500
724
1,053
3,379
419
19,49339,526(30,014)
13,108(9,050)
7,362(4,742)
13,626(9,216)
25,474(17,797)
21,402(13,999)
24,695(17,261)
22,064(16,353)
20,824(12,504)
28,494(21,533)
18,347(11,000)
35,318(23,046)
24,858(16,439)
190,507(154,396)
8,709(4,578)
35,376(20,276)
32,738(20,440)
18,840(11,100)
33,125(19,544)
17,402(10,002)
11,423(8,356)
22,575(17,946)
30,597(22,914)
90,656(61,769)
10,519(7,797)
797,577(562,082)

50,22521,077
22,23822,23838,27230,24632,05039,314
31,33648,291
18,58643,18430,531
341,998
8,595
43,05838,182
18,28538,865
19,76321,08839,652
47,341
140,777
18,696
1,194,847

20,21012,027
13,021
13,021
20,474
16,246
14,78922,961
18,831
26,757
7,586
20,13814,092
187,602
4,016
22,782
17,742
7,185
19,3209,761
12,732
21,70624,42679,008
10,898632,764（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.

22

Ⅰ．Financial Result for 5th Fiscal Period

Ⅱ．Major Topics for 5th Fiscal Period

Ⅲ．Future Operation Strategies

Ⅳ．Appendix

23Milestones
August 3, 2015

Notification of incorporation by the founder (Takara Asset Management) under Article 69 (1) of the Investment Trust Law.

August 5, 2015

Registration of incorporation under Article 166 of the Investment Trust Law.

August 14, 2015

Application for registration under Article 188 of the Investment Trust Law.

September 2, 2015

Registered with the Prime Minister of Japan under Article 187 of the Investment Trust Law. (Registration number 105, filed with the
Director of the Kanto Local Finance Bureau).

July 2, 2016

Listed on the Tokyo Stock Exchange Infrastructure Fund Market (code：9281）

July 2, 2016

Acquired 10 solar power plants Purchase Price：7,870 million yen, Total Panel Output：17,881.63kW）

February 7, 2017

Acquired LS Kamisu Hasaki（Purchase Price：470 million yen, Total Panel Output：1,200.00kW）

June 1, 2017

Acquired seven solar power plants （Purchase Price：12,607 million yen, Total Panel Output：30,942.00kW）

October 2, 2017

Acquired panel expansion for LS Inashiki Aranuma 1（Purchase Price：36 million yen, Total Panel Output：199.68kW）

October 12, 2017

Acquired panel expansion for LS Chikusei（Purchase Price：21 million yen, Total Panel Output：122.43kW）

November 16, 2017

Acquired panel expansion for LS Chiba Wakabaku（Purchase Price：48 million yen, Total Panel Output：209.88kW）

November 27, 2017

Acquired panel expansion for LS Miho（Purchase Price：67 million yen, Total Panel Output：318.00kW）

November 28, 2017Concluded agreement to purchase three solar power plants（Purchase Price：1,907 million yen, Total Panel Output：
4,960.64kW）

May 10, 2018

Concluded agreement to purchase four solar power plants（Purchase Price：4,930 million yen, Total Panel Output：
13,717.10kW）
24

Balance Sheet for 5th FP (ended May 2018)（Unit：Thousand Yen）
AssetsLiabilities

Current assets
Cash and deposits

2,000,428

Operating accounts receivable

15,299Prepaid expenses

58,048Consumption taxes receivable

62,946

Deferred tax assets
Other

11
19,079Total current assets

2,155,814

Non-current assets
Property, plant and equipment
Buildings

7,286

Accumulated depreciation-319

Buildings, net

6,967

Structures

6,640,529

Accumulated depreciation-397,735

Structures, net

6,242,793

Machinery and equipment

12,651,444

Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

LandConstruction in progress
Total property, plant and equipment-703,218
11,948,225
217,267-71,474
145,793

3,633,796
6,079
21,983,655

Intangible assets
Leasehold right
SoftwareTotal intangible assets

246,491912
247,403

Investments and other assets
Guarantee deposits

10,000Long-term prepaid expenses

116,619

Other
Total investments and other assets
Total non-current assets

Current liabilities
Operating accounts payable
Current portion of long-term loans
payableAccounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’capitalUnitholders’ capital (netvalue)
Surplus
Unappropriated retained
earnings (undisposed loss) (-)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

12,384
830,941

102,024
220
851
2,555
14
948,991
12,266,764
9
12,266,774
13,215,765

10,963,186-54,622
10,908,563

414,348414,348
11,322,911
11,322,911
24,538,677

20
126,639
22,357,697

Deferred assets
Deferred organization expenses（Unit：Thousand Yen）

25
167

Statement of Income for 5th FP (ended May 2018)（Unit：Thousand Yen）
Operating revenue
Rent revenue - renewable energy power production facilities, etc.
Total operating revenue
Operating expenses
Rent expenses on renewable energy power production facilities, etc.
Asset management fee
Asset custody fee and administrative service fees
Directors' compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Interest on refund
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing-related expenses
Amortization of deferred organization expenses
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss) (-)

1,205,371
1,205,371

615,494
72,2597,416
2,400
34,259731,829473,542
7
1,075
1,082
40,512
10,40328
8,557
59,501
415,123
415,123852
3
855
414,26780
414,348

26

Portfolio Data
No.

Property Name

Location

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

Shioya-gun, Tochigi
Chikusei-shi, Ibaraki
Chiba-shi, Chiba
Inashiki-gun, Ibaraki
Kirishima-shi, Kagoshima
Sosa-shi, Chiba
Kurokawa-gun, Miyagi
Mito-shi, Ibaraki
Higashi-tsugaru-gun, Aomori
Kita-soma-gun, Ibaraki
Kamisu-shi, Ibaraki
Tsukuba-shi, Ibaraki
Hokota-shi, Ibaraki
Nasu-gun, Tochigi
Tochigi-shi, Tochigi
Inashiki-shi, Ibaraki
Tochigi-shi, Tochigi
Inashiki-shi, Ibaraki
Sakuragawa-shi, Ibaraki
Higashi-shirakawa-gun, Fukushima
Omaezaki-shi, Shizuoka
Yokkaichi-shi, Mie
Sakuragawa-shi, Ibaraki
Kamitonda-cho, Wakayama
Takahagi-Shi, Ibaraki

Portfolio total

Purchase
price
(MY)

Period-end
appraisal Ratio Panel output
FIT
valuet(%)(kW)(Yen/kWh)(MY) (Note)

1,315
540
271
498
937
666
818
991
705
1,261
470
890
735
8,315
265
925
1,091
422
955
468
484
740
980
2,810
400

1,378 4.6
584 1.9344 1.1
603 2.0996 3.3
708 2.3
867 2.9
1,055 3.5
752 2.5
1,341 4.4
502 1.7
1,035 3.4
778 2.6
9,048 30.0
277 0.9
1,085 3.6
1,214 4.0
492 1.6
1,120 3.7
544 1.8504 1.7
740 2.5
980 3.2
2,810 9.3
400 1.3

2,987.25
1,083.24
495.001,055.70
2,009.28
1,796.08
2,040.00
2,128.00
1,820.00
2,467.08
1,200.00
2,469.60
1,913.60
19,800.00
612.002,526.00
2,420.80
1,200.00
2,535.04
1,327.36
1,098.24
1,984.50
2,698.24
7,839.76
1,194.60

27,95730,161 100.0

69,551.58

Remaining FIT
period (Note 2)

40 15 years 1 months
40 15 years 9 months
40 15 years 9 months
36 16 years 1 months
40 16 years 3 months
36 16 years 6 months
36 16 years 9 months
36 16 years 9 months
36 17 years 1 months
36 17 years 6 months
36 17 years 9 months
40 16 years 1 months
36 17 years 9 months
36 17 years 9 months
36 18 years 1 months
36 18 years 1 months
36 18 years 4 months
36 18 years 7 months
36 18 years 4 months
36 18 years 5 months
36 16 years 9 months
40 16 years 3 months
36 18 years 3 months
36 18 years 11 months
32 19 years 6 months-

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－(Note 1) Appraisal value for S-01 to S-22 based on November 30, 2017
(Note 2).Remaining FIT period represents the period in months from June 1, 2018 to the expiration date of the procurement period. Any fractional portion of less than one month is disregarded.

27

Change in Stock Price (July 2, 2016 to July 10, 2018)(Unit)

15,000(Yen)

TIF (Right)

TRE REIT INDEX（Right）

Trading Volume (Left)

140,000

135,000

130,000

125,000
10,000120,000

115,000

110,000

5,000
105,000

100,000

95,000090,00028

Unitholder Status at the End of the 5th Fiscal Period (May 2018)
Number of unitholders

Number of investment units

Number of■Individuals/others

76,009 units (64.43％）■Financial Institutions

17,128 units（14.52％）

investment units（incl. financial instruments
firms）

117,976 Units■ Other domestic corporation

21,335 units（18.08％）■ Foreign corporation. etc.

3,504 units（2.97％）

Name

Number of
投資主数
unitholders
7,552人9,290■Individuals/others

9,092（97.87％）■Financial Institutions

37（0.40％）（incl. financial instruments
firms）■ Other domestic corporation

121（1.30％）■ Foreign corporation. etc.

40（0.43％）

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

1

Takara Leben Co., Ltd

16,76214.20

2The Rokinren Bank

2,939

2.49

3

Goldman Sachs International

2,622

2.22

4

Yamato Shinkin Bank

2,118

1.79

5

Individual

1,820

1.54

6 Aozora Bank

1,765

1.49

7

Kagawaken Shinyo Kumiai

1,700

1.44

8

Individual

1,635

1.38

9

The Bank of Fukuoka, Ltd

1,430

1.21

1,200

1.01

33,991

28.81

10 Individual
Total（Note) Rounded down to the nearest second decimal place.

29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.

30

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.

Amount of borrowings
Solar Power Plant¥16.12 billion

Rent

Loans

Repayment ofprincipal andinterest

Operatingfee

SponsorSponsorsupport¥30.16 billion

Unitholders’ equity¥13.13 billion• Unsecured andunguaranteed

Listed on the Tokyo
Stock Exchange

Investment

Total acquired assets• 19 financial
institutions

Investment

Unitholders• 9,000+ individual investors(64% of total)• 37+ financial institutions

Asset Manager(14% total)

Management

Number of assets
Dividends

25 solar power plants
Management
entrustment• 121+ domestic corporations(18% of total)• 40 +foreign corporations(2% of total)(Note) Figures as of the end of May, 2018

* Figures as of June 1st, 2017.

31

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.)Impact of FIT legislature on numbers of approved
and installed solar energy generation facilities (10kWor larger) its forecast in 2030
(10 MW)
8,000
7,000
6,000

5,500

5,000
4,000
3,000
2,000
1,000
0

█ Solar power generation 93.3%█ Biomass power generation 2.4%
█ Wind power generation
3.4%█ 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

July
2012

Jan.
2013

Newly approved

July

Jan.
2014

July

Jan.
2015

July

Jan.
2016
Expected installation in FY2030

Newly approved and installed

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)32

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.
33