Summary of Accounts for Fiscal Period Ended November 30, 2017 (Infrastructure Fund)
January 12, 2018
Infrastructure Fund Issuer:
Securities Code: 9281
Representative:

Takara Leben Infrastructure Fund, Inc.
URL: http://www.tif9281.co.jp/
Masahide Kikuchi, Executive Director

Management Company:
Representative:
Contact:
TEL: 03-6262-6402

Takara Asset Management Co., Ltd.
Tetsuo Funamoto, President & CEO
Mamoru Takahashi, Director&CIO

Exchange for listing: TSE

Scheduled date of submission of securities report: February 27, 2018
Scheduled start date of payment of distributions: February 19, 2018
Availability of supplementary materials for disclosure of financial statements: Available
Holding of financial results briefing: Holding (for institutional investors and analysts)(Rounded down to nearest million yen)
1. Results of operations and assets for the fiscal period ended November 30, 2017 (June 1, 2017 to November 30, 2017)(1) Operating results(The percentages show the rates of change from the previous fiscal period.)
Operating revenue
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal period
ended November
1,062
159.4
422
150.8
369
146.3
368
146.8
30, 2017
Fiscal period
ended May 31,
409
7.0
168
-8.1
149
-7.2
149
-6.0
2017
Net income per unit
Yen
Fiscal period
ended November
30, 2017
Fiscal period
ended May 31,
2017

Ratio of net income to Ratio of ordinary income to Ratio of ordinary income toequity capital (ROE)
total assets (ROA)
operating revenue
%
%
%

3,136

4.6

2.3

34.8

3,020

3.1

1.7

36.6

(2) Results of distributions
Distribution perunit (excl.
surplus earnings
distribution)

Total
distribution(excl. surplus
earnings
distribution)
Million yen

Surplusearnings
distribution
per unit

Distribution per
Total
Ratio ofDividunit (incl.
distribution
dividend
end
surplus(incl. surplus
to netpayou
earnings
earnings
assetst ratio
distribution) distribution)(DOE)
Million yen
Yen Million yen
%
%

Total
surplusearnings
distribution

Yen
Yen
Fiscal period
ended November
3,123
368
463
54
3,586
423 100.0
3.2
30, 2017
Fiscal period
ended May 31,
3,021
149
3,021
149 100.0
3.1
2017(Note 1) The dividend payout ratio for the fiscal period ended May 31, 2017 is calculated according to the following calculation
formula.
Dividend payout ratio = distribution per unit (excluding surplus earnings distribution) / net income per unit x 100(Note 2) The dividend payout ratio for the fiscal period ended November 30, 2017 is calculated according to the following calculation
formula because new investment units are issued during the said fiscal period.
Dividend payout ratio = total distributions (excluding surplus earnings distribution) / net income x 100(Note 3) The dividend payout ratios and the ratio of dividend to net assets are calculated based on figures that do not include surplus
earnings distribution.
(Note 4) The entire amount of total surplus earnings distribution for the fiscal period ended November 30, 2017 is a refund ofcontributions that constitute distribution upon the decrease of contributions under the tax laws.
(Note 5) The ratio of surplus, etc. that decreases upon surplus earnings distribution (refund of contributions that constitute distribution
upon the decrease of contributions under the tax laws) during the fiscal period ended November 30, 2017 is 0.005.
The ratio of decreased surplus, etc. is calculated according to Item 4, Paragraph 1, Article 23 of the Order for Enforcementof the Corporation Tax Act.
－1 －

(3) Financial position

As of November
30, 2017
As of May 31,
2017

Total assets
Million yen

Net assets
Million yen

Capital adequacy ratio%

Net assets per unit
Yen

23,071

11,331

49.1

96,050

8,915

4,854

54.5

98,223(4) Results of cash flows

Million yen

Million yen

Million yen

Cash and cash
equivalents at the endof the term
Million yen-18-13,029

13,701

1,312

773

-496

-285

660

Cash flows fromoperating activities
Fiscal period
ended November
30, 2017
Fiscal period
ended May 31,
2017

Cash flows frominvesting activities－

2 －Cash flows fromfinancing activities

2. Forecast operating results for the fiscal period ending May 31, 2018 (December 1, 2017 to May 31, 2018), the fiscal period ending
November 30, 2018 (June 1, 2018 to November 30, 2018) and the fiscal period ending May 31, 2019 (December 1, 2018 to May 31,
2019)(The percentages show the rates of change from the previous fiscal period.)
Operating revenue

Fiscal period
ending May
31, 2018
Fiscal period
endingNovember30, 2018
Fiscal period
ending May
31, 2019

Operating income

Ordinary income

Distribution per unit
Distribution per unit
Surplus earnings(excl. surplus(incl. surplus
distribution perearnings
earnings
unit
distribution)
distribution)

Net income

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

Yen

Yen

1,189

12.0

463

9.6

407

10.2

406

10.3

3,444

464

3,908

1,139

-4.2

394

-14.9

337

-17.1

336

-17.1

2,855

331

3,186

1,190

4.4

440

11.5

384

13.8

383

13.9

3,251

317

3,568

(Reference) Forecast net income per unit (for the fiscal period ending May 31, 2018): 3,444 yen; forecast net income per unit (for the
fiscal period ending November 30, 2018): 2,855 yen; forecast net income per unit (for the fiscal period ending May 31,2019): 3,251 yen
Estimated total number of issued investment units at the end of the fiscal period: 117,976 units* Others(1) Change of the accounting policy, change in the estimates for the purpose of accounting, and revision and reclassification(i) Change of the accounting policy upon revision to the accounting standards, etc.: none(ii) Change of the accounting policy other than that described in (i) above: none(iii) Change in the estimates for the purpose of accounting: none(iv) Revision and reclassification: none
(2) Total number of issued investment units
As of
As of May
November
117,976units
49,424units
31, 2017
30, 2017
As of(ii) Number of treasury investment units at the end of the
As of May
November-units-unitsfiscal period
31, 2017
30, 2017(Note) For the number of investment units that is the basis for the calculation of net income per unit, please refer to the Notes for
Data per Unit stated on page 27 below.
(i) Total number of issued investment units at the end of the
fiscal period (including treasury investment units)* Indication regarding the state of audit procedures taken
This summary of accounts is not included in the scope of the audit procedures under the Financial Instruments and Exchange Act(Act No. 25 of 1948, including amendments thereto, hereinafter referred to as the “Act”). At the time of the publication of thissummary of accounts, the audit procedures under the Act are not completed.
* Explanations about the appropriate use of the forecasts of the operating results and other special notes
The statements about the outlook for the operating results stated herein and other future situations are based on the informationthat the Investment Corporation has obtained and certain assumptions that the Investment Corporation considers reasonable. The
actual operating results may differ substantially from them due to various causes. In addition, those forecasts do not guarantee theamounts of distributions. For the assumptions for the forecasts of the operating results, please refer to “Assumptions for Forecastsof Operating Results for Fiscal Period Ending May 31, 2018 (December 1, 2017 to May 31, 2018), the Fiscal Period Ending
November 30, 2018 (June 1, 2018 to November 30, 2018) and the Fiscal Period Ending May 31, 2019 (December 1, 2018 to May
31, 2019)” stated on page 7 below.

－

3 －1. Corporations affiliated with the investment corporation
Mechanism of the investment corporation
The disclosure of information about this item is omitted because no material changes have been made to the statements about themechanism of the investment corporation in the latest securities report (submitted on August 23, 2017).

2. Operational policy and operating results(1) Operational policy
The disclosure of information about the operational policy is omitted because no material changes have been made to thestatements about the investment policy, investment targets and distribution policy in the securities report that was submitted on
August 23, 2017.
(2) Operating results(i) Overall situation in the fiscal period under review
a. Major events of the Investment Corporation
The Investment Corporation was established with capital contributed of 200 million yen (2,000 units) on August 5, 2015 by
the promoter of Takara Asset Management (hereinafter referred to as the “Management Company”) according to the Act on
Investment Trust and Investment Corporations (hereinafter referred to as the “Investment Trust Act”) and was registered with
the Kanto Local Finance Bureau on September 2, 2015 (registration number: No. 105 of the Director-General of the Kanto
Local Finance Bureau).
The Investment Corporation additionally issued investment units (45,166 units) by public offering on June 1, 2016 and waslisted on the infrastructure fund of Tokyo Stock Exchange, Inc. (hereinafter referred to as “TSE”) (security code: 9281) on June2, 2016. On July 1, 2016, the Investment Corporation issued new investment units (2,258 units) by third-party allotment. In
June 2017 during the fiscal period under review, the Investment Corporation increased capital by public offering and thirdparty allotment. As a result, the total number of issued investment units as of November 30, 2017 is 117,976 units.
b. Actual operating results for the fiscal period under review
During the fiscal period under review, the Japanese economy was generally on a recovery trend against a background of
improved circumstances for employment and income and a moderate increase in personal consumption.
With respect to the environment surrounding the renewable energy power facilities, etc., the issues of the increase of the
primary energy self-sufficiency rate and the reduction of the emission of greenhouse effect gas remain. Such issues in Japan’s
energy policy are expected to be resolved by introducing renewable energy power facilities, etc. that utilize natural energy.
Under these circumstances, according to the basic policy for the investment and management of assets set forth in the rules,
etc., the Investment Corporation acquired seven properties that were photovoltaic power facilities, etc. (for the acquisition costof 12,607 million yen) on June 1, 2017 and acquired four additional properties that were additions to the assets already held(for the acquisition cost of 173 million yen) in October and November 2017 in order to expand external growth and increase
distributions based on net profit.
As a result, the total assets held by the Investment Corporation at the end of the fiscal period under review were 18
properties (total value: 23,535 million yen (note)), and the total panel output was 50.8 MW.
(Note) This value is the total sum of the assessed values of the assets held. The assessed values of the assets held are the median values calculated by theInvestment Corporation according to Item 1, Paragraph 2, Article 36 of its certificate of incorporation from among the range of the assessedvalues of the respective power plants stated in the valuation report indicating the values as of November 30, 2017 that was obtained fromPricewaterhouseCoopers Sustainability LLC. The same applies hereinafter.

－

4 －c. Summary of financing
During the fiscal period under review, the Investment Corporation secured 6,257 million yen with the additional issue ofinvestment units (68,552 units) by capital increase through public offering and third-party allotment in June 2017.
In addition, the Investment Corporation borrowed funds in an amount of 7,966 million yen on June 1, 2017 to appropriatethem to the funds for the acquisition of seven (7) properties that were the renewable energy power facilities, etc. and theexpenses related thereto (including national and local consumption taxes).
On the other hand, at the end of the fiscal period under review, the Investment Corporation made repayments under theagreements, and the loans at the end of the fiscal period under review were 11,643 million yen. As a result, the ratio of interestbearing debts to total assets was 50.5% at the end of the fiscal period under review.
For information, the rating obtained by the Investment Corporation as of November 30, 2017 is as shown below.
<Rating>
Credit rating agency

RatingTrend of rating

Japan Credit Rating Agency, Ltd.

A-

Stable－5 －d. Summary of business results and distributions
As a result of the operations described above, the business results for the fiscal period under review were operating revenueof 1,062 million yen, operating income of 422 million yen, ordinary income of 369 million yen and net income of 368 million
yen.
With respect to the distributions, according to the policy for the distribution of money that is set forth in Article 38 of thecertificate of incorporation of the Investment Corporation, the amount thereof shall exceed an amount equivalent to 90/100
of the amount of profits available for dividends that is specified in Article 67-15 of the Act on Special Measures Concerning
Taxation.
In addition, the amounts remaining after reserving such cash and deposits as the Investment Corporation considers
appropriate to prevent any impact on the long-term repair plan and meet the demand for funds (such as capital expenditure forthe new acquisition of assets for investment and maintenance and the improvement of the portfolio assets, the working capitalof the Investment Corporation, the repayment of debts and the payment of distributions) based on the amount of capital
expenditure estimated for each accounting period under the long-term repair plan, taking into account the conditions of credit
lines, etc. are distributed to an extent that exceeds the amount of profits as the distribution of money beyond profits (refund ofcontributions).
The distributions to be paid for the fiscal period under review are the distribution of profits in the total amount of 368
million yen equivalent to the unappropriated retained earnings, exclusive of the portion corresponding to the distribution perinvestment unit of less than one (1) yen, and the surplus earnings distribution in an amount of 54 million yen, which is a
distribution upon the decrease of contributions under the tax laws that constitute a refund of contributions. As a result, thedistribution per investment unit is 3,586 yen.
(ii) Outlook for the following fiscal perioda. Future outlook for operations
The Japanese economy is expected to remain on a moderate recovery trend against a background of improvement in
employment and income conditions and a moderate increase in personal consumption, among other factors. However, thetrends of overseas economies should be closely observed.
In respect to the environment surrounding the photovoltaic power facilities that are included in the renewable energy power
facilities, the capacity of the photovoltaic power facilities with not less than 10 kW (for non-residence use) that were approved(as defined in Paragraph 3, Article 9 of the Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities (Act No. 108 of 2011, including amendments thereto) (hereinafter referred to as the“Renewable Energy Special Measures Act”; the Renewable Energy Special Measures Act before the amendment thereto by the
Act for Partial Revision of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources by Electricity Utilities enforced on April 1, 2017 (Act No. 59 of 2016) (hereinafter referred to as the “Act for Partial
Revision of the Renewable Energy Special Measures Act”) may be especially referred to as the “Former Renewable Energy
Special Measures Act,” and the Renewable Energy Special Measures Act after the amendment thereto by the Act for Partial
Revision of the Renewable Energy Special Measures Act may be especially referred to as the “Current Renewable Energy
Special Measures Act”; in addition, if the context requires, such approval may include the approval defined in Paragraph 1,
Article 6 of the Former Renewable Energy Special Measures Act; the same applies hereinafter) after the feed-in tariff wasintroduced was approximately 79 GW as of March 31, 2017, and the capacity of such facilities that were actually installed wasapproximately 28 GW. Based on the records of new approval and installation in the past, it is presumed that there were manycases where the facilities were not installed after the development period had passed from the approval event when such period
extends for about one (1) year. Accordingly, it is judged that there are quite a lot of cases where development is not in sight at
the present time. Meanwhile, according to the Ministry of Economy, Trade and Industry, the estimates for long-term energy
demand and supply as of July 2015 forecast a volume of installation of approximately 64 GW for the fiscal year 2030
(including that for non-residence use of approximately 55 GW). The ratio of the photovoltaic power facilities with a renewableenergy capacity of not less than 10 kW that were installed only after the feed-in tariff started is 93.8% as of March 31, 2017.
Given such circumstances, the Investment Corporation will make main investments in the photovoltaic power facilities for thetime being and acquire and manage assets according to the growth strategy described below.
b. Future operational policy(i) External growth strategy
The Investment Corporation and the Management Company consider that the unique know-how of the Management
Company and the operational know-how on the overall photovoltaic power business that can be obtained from the sponsor,
Takara Leben Co., Ltd. (hereinafter referred to as “Takara Leben”; and Takara Leben as the sponsor may be hereinafter－

6 －referred to as the “Sponsor”) that has been developed should be able to contribute to the growth of the Investment
Corporation in the medium to long term. In addition, the Management Company will expand the information network
among the entities other than Takara Leben and its subsidiaries (hereinafter referred to as the “Takara Leben Group”) andgather information about assets in order to expand, increase and promote the opportunity to acquire the photovoltaic power
facilities, etc. that are the main investment targets of the Investment Corporation. The Investment Corporation will aim toacquire the photovoltaic power facilities, etc. from persons other than the Takara Leben group (including acquisition throughthe secondary transaction for the photovoltaic power facilities, etc. that have been put into use for operation) based on theinformation about assets gathered by the Management Company.
In addition, the Investment Corporation and the Management Company may receive a range of support for external
growth from the Sponsor. This support should contribute to future external growth. The Investment Corporation intends toincrease assets by exercising the preferential right to negotiate purchases granted by the Sponsor. In addition, the Investment
Corporation considers that its right to receive information from the Sponsor under the sponsor support agreement should be
conducive to the future external growth of the Investment Corporation, because the Sponsor has such relations and networks
with and among the other enterprises, fund managers, sole proprietors and other persons engaging in the photovoltaic powerbusiness as have been established through the photovoltaic power projects in the past and, through such networks, has
obtained information about the sale of properties held by third parties－

7 －(ii) Internal growth strategy
The Investment Corporation will contract out or have its lessees contract out the O&M operations of the photovoltaic
power facilities to the contractors with the relevant technical know-how and ensure the appropriate equipment inspection,
repair and equipment replacement of the assets acquired to maintain and increase the asset value from a medium- to longterm perspective and thereby secure stable income in the medium to long term.
In addition, the Investment Corporation will formulate the repair plan for each asset, considering the situations andcharacteristics of the managed assets, among other factors, upon consultation with the operators and contractors engaging in
O&M and make the necessary repairs and capital expenditures to maintain and increase the returns from the managed assets
in the medium to long term. Repairs and capital expenditures shall be judged by the Investment Corporation in considerationof the depreciation costs for the entire portfolio assets, in principle. However, if the Investment Corporation reasonably
judges that any repair or capital expenditure should contribute to the maintenance or improvement of the performance of the
managed assets, the said repair or capital expenditure shall be implemented early. In this regard, the costs necessary for the
maintenance, management, repair and other operations of the renewable energy power facilities, etc. that are incurred during
the period of operations (including taxes and other public charges imposed on the renewable energy power facilities, etc.,
capital expenditure for the renewable energy power facilities, etc., the price for new equipment or parts upon thereplacement of the equipment or parts that constitute the renewable energy power facilities, outsourcing fees and otherexpenses payable to the contractors engaging in O&M, and insurance premiums for the insurances with the Investment
Corporation as the policyholder or the insured that cover the renewable energy power facilities) shall be borne by the ownerand lessor of the renewable energy power facilities, etc. (the Investment Corporation), and the costs necessary for the daily
maintenance, management, repair and other operations of the renewable energy power facilities, etc. other than those to beborne by the owner and lessor shall be borne by the lessee, in principle.
c. Forecasts of operating results
The operating results for the fiscal period ending May 31, 2018 (December 1, 2017 to May 31, 2018), the fiscal period
ending November 30, 2018 (June 1, 2018 to November 30, 2018) and the fiscal period ending May 31, 2019 (December 1,
2018 to May 31, 2019) are forecast as follows. For the assumptions for the forecast operating results, please refer to the“Assumptions for Forecasts of Operating Results for Fiscal Period Ending May 31, 2018 (December 1, 2017 to May 31, 2018),
Fiscal Period Ending November 30, 2018 (June 1, 2018 to November 30, 2018) and Fiscal Period Ending May 31, 2019
(December 1, 2018 to May 31, 2019)” stated on page 7 below.
Distribution
OperatingOperating

Ordinary

revenueincomeincomeFiscal period ending
May 31, 2018

1,189

463

407

406

(5th fiscal period)

million yen

million yen

million yen

million yen

1,139

394

337

336

million yen

million yen

million yen

million yen

1,190

440

384

383

million yen

million yen

million yen

million yen

Fiscal period ending
November 30, 2018
(6th fiscal period)
Fiscal period ending
May 31, 2019
(7th fiscal period)

Net income

per unit (excl.
surplusearnings
distribution)

Surplusearnings
distribution perunit

Distribution
per unit (incl.
surplusearnings
distribution)

3,444 yen

464 yen3,908 yen

2,855 yen

331 yen3,186 yen

3,251 yen

317 yen3,568 yen

(Note) The forecast figures stated above are calculated based on certain assumptions at the present time. Due to the future acquisition or disposal of therenewable energy power facilities, etc., the future additional issue of new investment units or change in the infrastructure market, interest rate orother conditions surrounding the Investment Corporation, among other causes, the actual operating revenue, operating income, ordinary income,net income, distribution per unit (excluding surplus earnings distribution), surplus earnings distribution per unit and distribution per unit
(including surplus earnings distribution) may change. In addition, the forecasts announced herein do not guarantee the amount of distributions
and surplus earnings distribution.

－

8 －(iii) Facts arising after the settlement of accounts
a. Borrowing of funds
To appropriate part of the funds for the acquisition of the new assets acquired and to be acquired as set forth in “b.
Acquisition of assets” below and the expenses related thereto (including national and local consumption taxes), the Investment
Corporation executed the agreement for the following loans on November 28, 2017, and some of the loans were extended.
Categ

Amount ofborrowings

Lenderory

Interest rate
(Note 1)

(Million yen)

Resona Bank, Limited
Sumitomo Mitsui Banking

1,395

Corporation

adding 0.5% tothe six-monthMizuho Bank, Ltd.
Resona Bank, Limited

term

loans

repayment

Sumitomo Mitsui Banking
Corporation

475

obtained byadding 0.5% tothe six-month
Japanese Yen

Repayment

Securitymethod(Note 3)(Note
4)

Repayme
December 1,
2017

November30, 2027

Japanese Yen
TIBORInterest rate

Long-

Date of
final

Interest rate
obtained by

Mizuho Bank, Ltd.
Longterm

Date ofextension ofnt ininstallme
nts inpart

Unsecured
UnguaranteedDate when theInvestment
Corporation
issues a notice toMizuho Bank,

November30, 2027

Ltd.
(Note 2)

TIBOR

Repayment ininstallme
nts inpart

Unsecured
Unguaranteed(Note 1) Fees for loans, etc. paid to the lenders are not included.
The interest rate applicable to the interest paid on the date of the payment of interest (hereinafter referred to as the “Base Rate”) is the six-month
Japanese TIBOR that the JBA TIBOR Administration publicly announces on the date that occurs two (2) business days before the date of theextension of the loan or the respective date of the payment of interest. The said Base Rate is reviewed for each date of payment of interest.
However, if no rate for the period of the calculation of interest is available, the Base Rate for the said period shall be calculated according to themethod set forth in the agreement. In addition, if such interest rate falls below 0%, the Base Rate shall be 0%. For information, the Base Rate forthe first period of the calculation of interest on the loan extended on December 1, 2017 is 0.11636%.
(Note 2) The date of such notice will be the scheduled date of acquisition of LS Shizuoka Omaezaki stated in “b. Acquisition of assets” below.
(Note 3) Part of the principal (the amount obtained by dividing the total amount of loans by 34) shall be repaid on the last day of May and November of eachyear starting from May 31, 2018 (if the said day falls on a non-business day, the business day immediately following the said day, and if the saidbusiness day falls within the following month, the business day immediately preceding the said non-business day), and the remaining principal
shall be repaid in a lump sum on the last due date of repayment on November 30, 2027.
(Note 4) The said loan is limited by the financial covenant to maintain the debt ratio (D/E ratio) and the indexes for assessing the ability to pay the principal
and interest (DSCR) of the Investment Corporation as of each date of closing accounts of the Investment Corporation. In the case of a violation of
the said limitation, the provision of security may be demanded, among other actions.

b. Acquisition of assets
The Investment Corporation executed the purchase agreements for the renewable energy power plant facilities, etc.
described below on November 28, 2017. In addition, the Investment Corporation acquired the LS Sakuragawa Shimoizumi andthe LS Fukushima Yamatsuri on December 1, 2017.
PropertyNo.

Name of property

S-19

LS Sakuragawa Shimoizumi

S-20

LS Fukushima Yamatsuri

S-21

LS Shizuoka Omaezaki (Note 2)

Location
Sakuragawa-shi, Ibaraki
Yamatsuri-machi, HigashiShirakawa-gun, Fukushima
Omaezaki-shi, Shizuoka

Total portfolios

Acquisition cost
(Million yen) (Note 1)

Seller955

Takara Leben Co., Ltd.

468

Takara Leben Co., Ltd.

484

Takara Leben Co., Ltd.

1,907

－

(Note 1) The acquisition costs described above are the purchase price stated in the purchase agreement for the respective assets acquired (exclusive of thecontract fees and other expenses for the acquisition of assets, fixed assets, city planning, consumption and other taxes and other charges) androunded down to the nearest million yen.

－

9 －(Note 2) The date of acquisition of the LS Shizuoka Omaezaki is the date separately agreed on by and between the seller and the buyer that occurs within
15 business days from the date when the conditions set forth in the purchase agreement are satisfied (the condition that the seller is approved as
the business operator as set forth in Paragraph 3, Article 9 and Paragraph 1, Article 10 of the Act on Special Measures Concerning Procurementof Electricity from Renewable Energy Sources by Electricity Utilities (Act No. 108 of 2011, including amendments thereto) (hereinafter referred
to as the “Renewable Energy Special Measures Act”) in relation to the renewable energy power project for power generation using the said power
plant facilities and the supply of electricity to electricity utilities (as defined in Paragraph 1, Article 9 of the Renewable Energy Special MeasuresAct) (including the documents set forth in Paragraph 2, Article 4 of the supplementary provisions of the Act for Partial Revision of the Act on
Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (Act No. 59 of 2016, including
amendments thereto)) (such approval shall be hereinafter referred to as the “Approval of the Project”) and the condition where the seller succeeds
to the status of the party to the specific contract and the agreement for connection regarding the said power plant facilities).

－

10 －

Assumptions for Forecasts of Operating Results for Fiscal Period Ending May 31, 2018 (December 1, 2017 to May 31, 2018), Fiscal
Period Ending November 30, 2018 (June 1, 2018 to November 30, 2018) and Fiscal Period Ending May 31, 2019 (December 1, 2018
to May 31, 2019)
Items

Assumptions

Accounting period

Fiscal period ending May 31, 2018 (5th fiscal period): December 1, 2017 to May 31, 2018 (182 days)
Fiscal period ending November 30, 2018 (6th fiscal period): June 1, 2018 to November 30, 2018 (183 days)
Fiscal period ending May 31, 2019 (7th fiscal period): December 1, 2018 to May 31, 2019 (182 days)
・The assumption is a holding of 21 properties in total: the breakdown of them is 18 properties held as ofNovember 30, 2017 (hereinafter referred to as the “Portfolio Assets”), two properties acquired on

Managed assets

December 1, 2017 (hereinafter referred to as the “Acquired Assets”) and one property to be acquired on
February 1, 2018 (hereinafter referred to as the “Asset to Be Acquired”).
・The assumptions for forecasting the operating results are that the Assets to Be Acquired will be acquiredon the dates described above and that there will be no change to the assets under management (such as theacquisition of new assets and the disposal of the Portfolio Assets) until the end of the fiscal period ending
May 31, 2019 (7th fiscal period).
・There is a possibility that in reality, there may be a change due to the acquisition of new assets other thanthe Acquired Assets or the disposal of the Portfolio Assets, among other causes.
・The revenues from the lease of 10 properties acquired on June 2, 2016 that are included in the Portfolio
Assets are calculated based on the minimum rent guaranteed, which is set forth in the agreement for thelease of the photovoltaic power facilities, etc. that is in force and in effect as of today’s date, in theamount equivalent to the forecast revenues from sales of electric power for the relevant month, which is
calculated in consideration of the forecast electric power output (probability of exceedance P (percentile)50) calculated by a third party based on the database of annual solar radiation by hours and other data.
The revenues from the lease of the LS Kamisu Hasaki that was acquired on February 7, 2017 and theseven (7) properties acquired on June 1, 2017 are calculated based on the sum of the minimum rent
guaranteed, which is set forth in the agreement for the lease of the photovoltaic power facilities, etc. thatis in force and effect as of today’s date, and the variable rent linked to the actual output, which is based on

Operating revenue

the assumption that the electric power output is the forecast electric power output (probability ofexceedance P (percentile) 50) calculated by a third party based on the database of annual solar radiation
by hours and other data. The revenues from the lease of the Acquired Assets and the Asset to Be Acquired
are calculated based on the sum of the minimum rent guaranteed, which is set forth in the agreement for
the lease of the photovoltaic power facilities, etc. that is in force and in effect on the date of acquisition
and for the Asset to Be Acquired, and the variable rent linked to the actual output, which is based on theassumption that the electric power output is the forecast electric power output (probability of exceedance
P (percentile) 50) calculated by a third party based on the database of annual solar radiation by hour andother data.
・The assumption for operating revenue is the revenues from the lease, not the disposal of assets.
・The assumption for the revenues from the lease is that there will be no default in the payment of rent or
non-payment of rent.
・Of the expenses for the lease business that are the main items of the operating expenses, the items otherthan depreciation are calculated based on the actuals for the past, reflecting the variable factors of
expenses. In addition, the expenses for the Acquired Assets and the Asset to Be Acquired are calculated
based on the actuals for the past and the estimates obtained from the respective contractors, among otherdata, by referring to the information provided by the former owners of the respective Acquired Assets andOperating expenses

other persons concerned, reflecting the variable factors of expenses.
・In the acquisition of the photovoltaic power facilities, etc., the Investment Corporation plans to settle thefixed assets and other taxes with the current owner proportionately in accordance with the period ofownership. The amount of the said settlement will be included in the acquisition cost for the fiscal year ofacquisition. Accordingly, the fixed assets and other taxes for the fiscal year 2017 on the Acquired Assets
are not posted under expenses, and the fixed assets and other taxes for the fiscal year 2018 on the Asset to
Be Acquired are not posted under expenses. In addition, the total amount of the settlement of the fixed
assets and other taxes to be included in the acquisition costs for the Acquired Assets and the Assets to Be－

11 －Acquired is estimated at two (2) million yen. The fixed assets and other taxes on the Portfolio Assets, theAcquired Assets and the Asset to Be Acquired are estimated, considering the subsidy for the invitation ofcompanies that will be paid for LS Nasu Nakagawa, at 49 million yen for the fiscal period ending May
31, 2018 (5th fiscal period), 67 million yen for the fiscal period ending November 30, 2018 (6th fiscal
period) and 68 million yen for the fiscal period ending May 31, 2019 (7th fiscal period).
・The expenses for the maintenance and management of the photovoltaic power facilities are estimated at
61 million yen respectively for the fiscal period ending May 31, 2018 (5th fiscal period), the fiscal period
ending November 30, 2018 (6th fiscal period) and the fiscal period ending May 31, 2019 (7th fiscal
period). The utilities expenses are estimated at five million yen for the fiscal period ending May 31, 2018
(5th fiscal period) and six million yen respectively for the fiscal period ending November 30, 2018 (6thfiscal period) and the fiscal period ending May 31, 2019 (7th fiscal period).

－

12 －

ItemsAssumptions
・The fees for operators are estimated at 15 million yen for the fiscal period ending May 31, 2018
(5th fiscal period), 14 million yen for the fiscal period ending November 30, 2018 (6th fiscal

Operating expenses

period) and 15 million yen for the fiscal period ending May 31, 2019 (7th fiscal period).
・Depreciation expenses are calculated, including incidental expenses, according to the straightline method and estimated at 450 million yen for the fiscal period ending May 31, 2018 (5thfiscal period) and 453 million yen respectively for the fiscal period ending November 30, 2018
(6th fiscal period) and the fiscal period ending May 31, 2019 (7th fiscal period).
・The organization expenses and the expenses for the issue of new investment units are estimatedat eight million yen respectively for the fiscal period ending May 31, 2018 (5th fiscal period), theNon-operating expenses

fiscal period ending November 30, 2018 (6th fiscal period) and the fiscal period ending May 31,
2019 (7th fiscal period).
・Interest expenses and other borrowing-related expenses are estimated at 47 million yen
respectively for the fiscal period ending May 31, 2018 (5th fiscal period) and the fiscal period
ending November 30, 2018 (6th fiscal period) and 45 million yen for the fiscal period ending
May 31, 2019 (7th fiscal period).
・The balance of loans of the Investment Corporation as of November 30, 2017 is 11,643 million
yen. The assumptions for the said loans are that according to the agreement, the repayment of thesaid loans will be made on May 31, 2018 and November 30, 2018, and that the amount of therepayment is 360 million yen for each repayment date.
・The assumption is that the Investment Corporation will obtain loans in the total amount of 1,870
million yen from the qualified institutional investors specified in Item 1, Paragraph 3, Article 2

Loansof the Financial Instruments and Exchange Act (limited only to the institutional investors set
forth in Item 1 b. (2), Paragraph 1, Article 67-15 of the Act on Special Measures Concerning
Taxation) on December 1, 2017 and February 1, 2018.
・The ratio of interest-bearing debts to total assets (LTV: loan to value) at the end of the fiscal
period ending May 31, 2018 (5th fiscal period) is estimated at about 53.6%.
・In the calculation of the ratio of interest-bearing debts to total assets (LTV: loan to value), thefollowing calculation formula is used:
Ratio of interest-bearing debts to total assets (LTV: loan to value) = total amount of interestbearing debts / total amount of assets x 100
・The total number of issued investment units as of the date of this document is assumed to be
117,976 units. The assumption is that there will be no change in the number of investment units

Total number of issued
investment units

due to the issue of new investment units and other reasons until the end of the fiscal period
ending May 31, 2019 (7th fiscal period).
・Distribution per unit (excluding surplus earnings distribution), surplus earnings distribution perunit and distribution per unit (including surplus earnings distribution) are calculated based on theforecast number of investment units issued at the end of the fiscal period, which is 117,976 units.
・Distribution per unit (excluding surplus earnings distribution) is calculated based on theDistribution per unit
(excl. surplus earnings
distribution)

assumption that all the profits will be distributed according to the policy for the distribution ofmoney that is set forth in the rules of the Investment Corporation.
・There is a possibility that distribution per unit (excluding surplus earnings distribution) may
change due to a change of the lessees, a change in the rent revenues due to the amendment of theterms and conditions of the lease agreement or unexpected repair and various other causes.
・Surplus earnings distribution per unit is calculated according to the policy for the distribution ofmoney set forth in the certificate of incorporation of the Investment Corporation and theSurplus earnings distribution
per unit

guidelines for investment that are the internal rules of the Management Company.
・The policy of the Investment Corporation is to generally distribute all the amounts remaining
after reserving such cash and deposits as the Investment Corporation considers appropriate toprevent any impact on the long-term repair plan and meet the demand for funds (such as capital
expenditure for the new acquisition of assets for the investment and maintenance and－13 －improvement of the Portfolio Assets, working capital of the Investment Corporation, repayment
of debts and payment of distributions) based on the amount of capital expenditure estimated foreach accounting period under the long-term repair plan, taking into account the conditions of thecredit line, etc. The amounts exceeding the amount of profits will be distributed as the
distribution of money beyond profits (refund of contributions). However, such distribution islimited to an extent that will have no adverse impact on the financial position of the Investment
Corporation and to the amount stipulated in laws (including the regulations established by theInvestment Trusts Association, Japan).
・According to the policy described above, the amounts exceeding the amount of profits remaining
after reserving such cash and deposits as the Investment Corporation considers appropriate are
divided by the forecast number of investment units issued at the end of the fiscal period, which is
117,976 units respectively for the fiscal period ending May 31, 2018 (5th fiscal period), the fiscal
period ending November 30, 2018 (6th fiscal period) and the fiscal period ending May 31, 2019
(7th fiscal period) to determine the surplus earnings distribution per unit. The total surplus
earnings distribution is estimated at 54 million yen for the fiscal period ending May 31, 2018
(5th fiscal period), 39 million yen for the fiscal period ending November 30, 2018 (6th fiscal
period) and 37 million yen for the fiscal period ending May 31, 2019 (7th fiscal period).
・Distribution of money beyond profits (refund of contributions) may not be paid, considering the
economic environment, the market conditions for the renewable energy power generation
business, the financial position of the Investment Corporation and other circumstances in acomprehensive manner, including other possible uses of funds such as appropriation to repair
and capital expenditure, the repayment of loans, funds for the acquisition of new properties andthe acquisition of treasury investment units.
・Distribution of money beyond profits (refund of contributions) involves a decrease in funds on
hand. Accordingly, there is a possibility of a shortage of funds on hand in the event that capital
expenditure beyond the estimate of the Investment Corporation is needed due to any sudden
events and other causes. There is also a possibility that such a decrease in funds on hand may
limit the funds for the flexible acquisition of properties. In addition, the amount of distribution ofmoney beyond profits (refund of contributions) will be deducted from the total amount ofunitholders’ capital or the capital surplus.
・The assumption is that there will be no amendments to the laws and regulations, tax systems,
accounting standards, listing rules that Tokyo Stock Exchange, Inc. establishes, rules of theInvestment Trusts Association, Japan and other rules that affect the forecast figures described
Other

above.
・The assumption is that there will be no unexpected material change in the general economic
trends, the market conditions for the photovoltaic power facilities, the real-estate market
conditions and other circumstances.

－

14 －

(3) Investment risk
The disclosure of investment risk is omitted because no material changes have been made to the statements about investment
risk in the securities report that was submitted on August 23, 2017.

－

15 －

3. Financial Statements(1) Balance sheets(Unit: Thousand yen)Previous term
(As of May 31, 2017)
AssetsCurrent assets
Cash and deposits
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Deferred tax assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
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
Intangible assets
Leasehold right
SoftwareTotal intangible assets
Investments and other assets
Guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Deferred organization expenses
Investment unit issuance expenses
Total deferred assets
Total assets

－

16 －

Current term
(As of November 30, 2017)

660,506
2,386
22,948
10,87710
152696,881

1,312,797
5,578
31,123
818,09415
2,167,608

1,926,547-87,618
1,838,929
4,757,341-196,273
4,561,068
96,748-24,338
72,4091,596,343
12,9648,081,715

7,286
-159
7,127
6,198,864-237,837
5,961,026
11,372,576-435,934
10,936,642
197,192-46,887
150,305
3,523,094
756
20,578,953

52,461
1,216
53,677

173,105
1,064
174,169

10,00042,16520
52,185
8,187,578

10,000108,74720
118,767
20,871,889

223
30,53630,7608,915,219

195
32,05432,25023,071,748

(Unit: Thousand yen)Previous term
(As of May 31, 2017)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - other
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
Surplus
Unappropriated retained earnings (undisposedloss) (-)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

*1

－

17 －

Current term
(As of November 30, 2017)

3,625
252,352
17,572685
1,073
8275,319

16,720720,941
78,444923
750
16817,796

3,785,294
6
3,785,300
4,060,620

10,922,235
11
10,922,246
11,740,043

4,705,280

10,963,186

149,319

368,519

149,319
4,854,599
4,854,599
8,915,219

368,519
11,331,705*1 11,331,705
23,071,748

(2) Statement of income(Unit: Thousand yen)Previous term
Current term
(From December 1, 2016 to May (From June 1, 2017 to November
31, 2017)
30, 2017)
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
Insurance 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

409,518*1

409,518

*1

－

18 －

203,189

1,062,234
1,062,234*1

541,497

12,2854,442
2,400
18,526
240,844
168,674

64,4196,042
2,400
24,904
639,264
422,969

3
2,865
2,868

4
23
0
28

12,589
3,552
28
5,374
21,544
149,998
149,998686
6
693
149,304
14
149,319

36,360
8,624
28
8,557
53,569369,428
369,428923-5918
368,5099368,519

(3) Statement of unitholders’ equity
Previous term (From December 1, 2016 to May 31, 2017)(Unit: Thousand yen)
Unitholders’ equity
Surplus
Unitholders’ capital

Balance at the beginning of the

Unappropriatedretained earnings(undisposed loss)(-)

4,705,280

term

Total unitholders’equityTotal net assets

154,266

4,859,546

4,859,546---

Total surplus

154,266

Changes of items during period
Issuance of new investment
units
Dividends of surplus-154,252-154,252-154,252-154,252

Net income

149,304

149,304

149,304

149,304--4,947-4,947-4,947-4,947

4,705,280

149,319

149,319

4,854,599

4,854,599

Total changes of items during
the term
Balance at the end of the term

*1

Current term (From June 1, 2017 to November 30, 2017)(Unit: Thousand yen)
Unitholders’ equity
Surplus
Unitholders’ capital

Balance at the beginning of the

Unappropriatedretained earnings(undisposed loss)(-)

Total surplus

Total unitholders’equityTotal net assets

4,705,280

149,319

149,319

4,854,599

4,854,599

6,257,906--

6,257,906

6,257,906

Dividends of surplus-149,309-149,309-149,309-149,309

Net income

368,509368,509368,509368,5096,257,906

219,199

219,199

6,477,106

6,477,106

10,963,186

368,519

368,519

11,331,705

11,331,705

term
Changes of items during period
Issuance of new investment
units

Total changes of items during
periodBalance at the end of the term

*1

－

19 －

(4) Statement of distribution of money
Previous term
(From December 1, 2016 to May
31, 2017)

Current term
(From June 1, 2017 to November
30, 2017)

I. Unappropriated retained earnings
II. Additional surplus earnings distribution

149,319,442 yen

368,519,439 yen

Deduction from unitholders’ capital
III. Amount of distribution-- yen149,309,904 yen

54,622,888 yen
423,061,936 yen(3,021) yen
149,309,904 yen(3,586) yen
368,439,048 yen(3,021) yen-- yen(3,123) yen
54,622,888 yen-- yen9,538 yen(463) yen
80,391 yen(Amount of distribution per investment unit)
Distribution of profits included(Distribution of profits per unit included)
Surplus earnings distribution included(Surplus earnings distribution per unit included)
IV. Retained earnings carried forward
Method of calculation of amount of distribution

According to Paragraph 1,
Article 38 of the certificate of

According to Paragraph 1,
Article 38 of the certificate ofincorporation of the Investment
Corporation, the amount ofincorporation of the Investment
Corporation, the amount of

distribution shall exceed an amount distribution shall exceed an amountequivalent to 90/100 of the amount equivalent to 90/100 of the amountavailable for dividends as set forthin Article 67-15 of the Act onavailable for dividends as set forthin Article 67-15 of the Act on

Special Measures Concerning
Taxation.

Special Measures Concerning
Taxation.

The distribution to be paid for
The distribution to be paid forthe fiscal period under review is the the fiscal period under review isdistribution of profits in the total
the distribution of profits in theamount of 149,309,904 million yen total amount of 368,439,048 yen
equivalent to the unappropriatedretained earnings (149,319,442

equivalent to the unappropriatedretained earnings (368,519,439

yen) excluding the portion
corresponding to the distributionyen) excluding the portion
corresponding to the distribution

per investment unit of less than one per investment unit of less thanyen. As a result, the distribution per one yen.
investment unit is 3,021 yen.
The distribution of money

In addition, according to thepolicy for the distribution of money

exceeding profits as set forth inParagraph 2, Article 38 of thethat is set forth in Paragraph 2,
Article 38 of the certificate ofcertificate of incorporation of theincorporation, the Investment
Investment Corporation will not be Corporation decided to pay the
paid.

distribution of money exceeding
profits (refund of contributions that
constitute distribution upon thedecrease of contributions under the
tax laws) in the amount of
54,622,888 yen.
As a result, the distribution perinvestment unit is 3,586 yen.

(Note) The policy of the Investment Corporation is to distribute the amounts remaining after reserving such cash and deposits as the Investment Corporationconsiders appropriate to prevent any impact on the long-term repair plan and meet the demand for funds (such as capital expenditure for the newacquisition of assets for investment and the maintenance and improvement of the portfolio assets, working capital of the Investment Corporation,
repayment of debts and payment of distributions) based on the amount of capital expenditure estimated for each accounting period under the long-term
repair plan, taking into account the conditions of the credit line, etc., to an extent that exceeds the amount of profits, as the distribution of money

－

20 －

exceeding profits (refund of contributions). According to this policy, the distributions paid for the fiscal period under review include the distribution ofmoney exceeding profits (refund of contributions) in an amount of 54 million yen.

(5) Statement of cash flows(Unit: Thousand yen)Previous term
Current term
(From December 1, 2016 to May (From June 1, 2017 to November
31, 2017)
30, 2017)
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment unit issuance expenses
Amortization of deferred organization expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable(negative figures show increases)
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in operating accounts payable(negative figures show decreases)
Increase (decrease) in accounts payable - other
Increase (decrease) in deposits received
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the term
Cash and cash equivalents at the end of the term

149,998
157,9345,374
28-312,589369,428
412,7408,557
28-436,360-2,386-3,191

471,822-807,217

313

13,095-65
820-11,598
2,726-156
787,3963-12,589-819
773,990

63,098-323-8,174-66,581324
18,1384-36,360-686-18,903-489,848-7,093-496,942-12,910,745-119,128-13,029,874-126,176-6,320-153,457-285,954-8,905
669,412*1 660,506

7,966,000-360,470
6,257,906-12,775-149,591
13,701,068
652,290
660,506*1 1,312,797(Note) The statements of cash flows were prepared according to the Ordinance on Terminology, Forms, and Preparation Methods of Financial Statements(Ordinance of the Ministry of Finance No. 59 of 1963), and are attached hereto as reference materials. This statement of cash flows is not included in thescope of the audit by the accounting auditors according to the provisions of Article 130 of the Investment Trust Act.

－

21 －

(6) Notes regarding the premise of going concern
Not applicable.
(7) Notes regarding the matters relating to important accounting policies
1. Method of depreciation of non- ①Property, plant and equipment
current assets
The straight-line method is used.
For information, the useful life of major property, plant and equipment is as shown
below.
Buildings
Structures

23 years
19 years to 22 years

Machinery and equipment
22 years to 25 years
Tools, furniture and fixtures
3 years to 6 years②Intangible assets
The straight-line method is used.
For information, the useful life is as shown below.
Software5 years③Long-term prepaid expenses
The straight-line method is used.
2. Method of accounting of deferred ①Deferred organization expenses
assetsThe deferred assets are amortized according to the straight-line method (for five years).
(ii) Investment unit issuance expenses
The deferred assets are amortized according to the straight-line method (for three years).
In the issuance of new investment units by public offering on June 1, 2017, theagreement for underwriting for subscription under which the underwriting securities
companies shall underwrite the new investment units at the issue price and offer themfor subscription to general investors at a different offering price from the issue price(called the “spread system”).
In the spread system, the difference between the offering price and the issue price issubstantially the underwriting fees received by the underwriting securities company.
Accordingly, the Investment Corporation did not pay the underwriting fees to theunderwriting securities companies. In the issue of new investment units by public
offering on June 1, 2017, the difference between the offering price and the issue pricewas 274,993 thousand yen in total. The said difference would be accounted for by
posting it under investment unit issuance expenses if the underwriting securities
companies underwrote the new investment units issued at the issue price and offered forsubscription to general investors at the same offering price (the agreement that provides
for such conditions for underwriting for subscription is called the “usual system”).
Accordingly, the investment unit issuance expenses recorded on the balance sheet in thecase of the spread system are 229,160 thousand yen less than in the case of the usual
system. In the same way, ordinary income and income before income taxes recorded are
45,832 thousand yen more than in the case of the usual system.
3. Standards for posting revenues and Method of accounting of fixed assets and other taxes
expenses
For the fixed assets, city planning, depreciable assets and other taxes on theinfrastructure and other similar assets held, the Investment Corporation adopts the methodof posting the amount of taxes assessed for the relevant accounting period as rent expenses.
In this regard, the Investment Corporation does not post the amount of settlement of
fixed assets and other taxes that it pays to the transferors, etc. upon the acquisition of theinfrastructure and other similar assets (namely, the amount equivalent to the fixed assets
and other taxes) under rent expenses, and includes the said amount in the acquisition costfor the said infrastructure and other similar assets.
The amount equivalent to the fixed assets and other taxes included in the acquisition
cost for the infrastructure and other similar assets for the fiscal period under review is46,154 thousand yen.
4. Scope of funds included in the
The funds (cash and cash equivalents) indicated in the statement of cash flows are cash
statement of cash flows
on hand and deposits that can be drawn at any time and short-term investments with an－

22 －insignificant risk of fluctuation in value whose date of maturity occurs within three (3)moths from the date of the acquisition thereof that can be easily realized.
5. Other important basic matters for Method of accounting of consumption and other similar taxes
the preparation
statementsoffinancial

With respect to the accounting of national and local consumption taxes, these taxes are
not included in the accounting of each account title. However, the consumption taxes, etc.
not to be deducted for the acquisition of assets are posted under long-term period expenses.

－

23 －

(8) Notes regarding financial statements[Notes regarding the balance sheet]*1 Amount of minimum net assets as set forth in Paragraph 4, Article 67 of the Investment Trust Act(Unit: Thousand yen)Previous term
(May 31, 2017)

Current term
(November 30, 2017)
50,00050,000[Notes regarding the statement of income]Previous term
From December 1, 2016
to May 31, 2017

(Unit: Thousand yen)
Current term
From June 1, 2017 toNovember 30, 2017

*1 Breakdown of profit or loss of lease business - renewable energy
power production facilities, etc.
A. Operating revenue - lease of renewable energy power production
facilities, etc.
Lease revenue - renewable energy power production facilities,
etc.
(Minimum rent guaranteed)

404,516

1,015,514

4,996
4

46,70910

409,518

1,062,234(Outsourcing fees - management)(Repair expenses)

20,0342,305

69,326-(Taxes and other public charges)(Utilities expenses)

16,037
1,418

32,0582,865(Insurance expenses)(Depreciation)

2,951
157,782

7,159
412,588(Payment of land rent)(Other lease business)

2,247
412

16,737761

Total business expenses - lease of renewable energy power
production facilities, etc.

203,189

541,497

C. Profit or loss of lease business - renewable energy power production
facilities, etc. (A-B)

206,328

520,736

Operating revenue
Outsourcing fees - management (operators’ fees)

409,513356

1,062,223
12,686

Transaction value - other than business transactions
Acquisition of photovoltaic power facilities, etc.

470,000

12,780,000(Variable rent linked to actual output)(Incidental revenues)
Total operating revenue - lease of renewable energy power
production facilities, etc.
B. Business expenses - lease of renewable energy power production
facilities, etc.
Lease expenses - renewable energy power production facilities,etc.

2. Transaction value with major unitholders
Transaction value of business transactions

－

24 －

[Notes regarding the statement of unitholders’ equity]*1 Total number of authorized investment units and total number of issued investment units
Previous term
From December 1, 2016 to May 31,
2017
Total number of authorized investment
units
Total number of issued investment units－

Current term
From June 1, 2017 to November 30,
2017

10,000,000 units

10,000,000 units

49,424 units

117,976 units

25 －[Notes regarding the statement of cash flows]*1 Relationship between the balance of cash and cash equivalents at the end of the fiscal period and the amounts of accounttitles stated on the balance sheet(Unit: Thousand yen)Previous term
From December 1, 2016 to May 31,
2017

Current term
From June 1, 2017 to November 30,
2017

Cash and deposits

660,506

1,312,797

Cash and cash equivalents

660,506

1,312,797－

26 －[Notes regarding lease transaction]
Operating lease (on the part of the lender)
Future lease payments(Unit: Thousand yen)Previous term
As of May 31, 2017

Current term
As of November 30, 2017

Less than 1 year
More than 1 year

815,337
6,472,395

2,097,281
16,817,576

Total

7,287,733

18,914,858[Notes regarding financial instruments]
1. Matters regarding the state of financial instruments(1) Action policy for financial instruments
The Investment Corporation will secure funds for appropriation to the acquisition of new assets to be managed andthe repayment of loans by borrowings from financial institutions or the issue of investment units, among other means.
The basic policy is to establish stable and sound financial management to achieve the maintenance and increase ofrevenues and the growth of the scale and value of the managed assets in the medium to long term.
(2) Details of financial instruments and risk thereof and risk management system
Long-term loans payable are one of the means to secure the funds for the acquisition of assets to be managed andinvolve the risk of fluctuations in interest rates and liquidity, among others. This risk is reduced through the appropriate
control of various indexes, especially the general application of the upper limit of the ratio of interest-bearing debts,
which is 60%, as well as the appropriate balancing of the loan period and the interest rate type and diversification oflenders.
(3) Supplementary explanation of matters regarding the market value of financial instruments
The market value of financial instruments includes the value quoted on the market and the value reasonably
determined when the value is not quoted on the market. In determining such value, certain assumptions are applied, andthus the value may differ if any different assumptions are applied.
2. Matters regarding the market value of financial instruments
The value recorded on the balance sheet and the market value as of May 31, 2017 and the difference between them are
as shown below. In addition, those whose market value cannot be determined in any way are not included in the tablebelow.
(Unit: Thousand yen)Amount posted on thebalance sheet(1) Cash and deposits

Market value

Difference

660,506

660,506-

Total assets

660,506

660,506-(1) Current portion of long-term loans
payable252,352

252,352-(2) Long-term loans payable

3,785,294

3,785,294-

Total liabilities

4,037,647

4,037,647

-

－

27 －

The value recorded on the balance sheet and the market value as of November 30, 2017 and the difference between
them are as shown below. In addition, those whose market value cannot be determined in any way are not included in thetable below.
(Unit: Thousand yen)Amount posted on thebalance sheet(1) Cash and deposits

Market value

Difference

1,312,797

1,312,797-

Total assets

1,312,797

1,312,797-(1) Current portion of long-term loans
payable

720,941

720,941-(2) Long-term loans payable

10,922,235

10,922,235-

Total liabilities

11,643,176

11,643,176-(Note 1) Method of determination of the market value of financial instruments
Assets(1) Cash and deposits
These items are settled in a short period of time, and thus the market value almost equals the book value. Accordingly, the book value is used.
Liabilities(1) Current portion of long-term loans payable, (2) Long-term loans payable
Long-term loans payable at a variable interest rate will reflect the market interest rate for a short period of time, and the market value thereof willalmost equal the book value thereof. Accordingly, the book value is used.
(Note 2) Amount of repayment of monetary claims scheduled after the date of closing accounts (May 31, 2017)

－

28 －

(Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Cash and deposits

660,506

-

-

-

-

-

Total

660,506

-

-

-

-

-

Amount of repayment of monetary claims scheduled after the date of closing accounts (November 30, 2017)(Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Cash and deposits

1,312,797

-

-

-

-

-

Total

1,312,797

-

-

-

-

-

(Note 3) Amount of repayment of long-term loans payable scheduled after the date of closing accounts (May 31, 2017)(Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Long-term loans payable
Total

252,352

252,352

252,352

252,352

252,352

2,775,882

252,352

252,352

252,352

252,352

252,352

2,775,882

Amount of repayment of long-term loans payable scheduled after the date of closing accounts (November 30, 2017)(Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Long-term loans payable
Total

720,941

720,941

720,941

720,941

720,941

8,038,470

720,941

720,941

720,941

720,941

720,941

8,038,470[Notes regarding securities]
Previous term (As of May 31, 2017)
Not applicable.
Current term (As of November 30, 2017)
Not applicable.
[Notes regarding derivative transactions]
Previous term (As of May 31, 2017)
Not applicable.
Current term (As of November 30, 2017)
Not applicable.

－

29 －

[Notes regarding retirement benefits]
Previous term (As of May 31, 2017)
Not applicable.
Current term (As of November 30, 2017)
Not applicable.
[Notes regarding tax effect accounting]
1. Breakdown of deferred tax assets and deferred tax liabilities by cause(Unit: Thousand yen)Previous term
As of May 31, 2017

Current term
As of November 30, 2017

Accrued business tax not deductible fromtaxable income

1015

Total deferred tax assets

10

15

Deferred tax assets, net

1015

2. Breakdown of major items that cause material differences between the effective tax rate designated by laws and the ratio of
the burden of corporate tax, etc. after the application of tax effect accounting

Previous term
May 31, 2017
Effective statutory tax rate
(Adjustment)
Dividends paid,
expenses

includedin

deductible

Other
Ratio of burden of corporate tax, etc. after theapplication of tax effect accounting[Notes regarding equity earnings of affiliate companies]
Previous term (As of May 31, 2017)
Not applicable.
Current term (As of November 30, 2017)
Not applicable.

－

30 －

Current term
November 30, 201731.74%

31.74%-31.59%-31.65%

0.32%

0.16%

0.46%

0.25%

[Notes regarding related party transaction]
1. Parent company and major corporate unitholders, among others
Previous term (From December 1, 2016 to May 31, 2017)

Category

Name ofcompany,
etc. orpersons

Address

Capital stockorBusiness
investments description
in capitalor(Thousand occupation
yen)

1-8-2
TakaraMajor
Marunouchi,
Leben Co.,4,819,809
unitholders
Chiyoda-ku,
Ltd.
Tokyo

Real estatebusiness

Ratio ofholding ofinvestment
units, etc.
(ratio ofinvestment
units, etc.
held)

Relationship
Concurrent
holding of Businessposition as relations
officer, etc.

14.2%

Not
Major
applicable unitholders

Transaction
Specifics ofvaluetransaction(thousandyen)

Account
title

Balance atthe end of
the fiscal
period(thousandyen)

Acquisitionofphotovoltaic
power
facilities, etc.

470,000--

Receipt of
rents

409,513--

Payment ofoperators’
fees

356

-

-

(Note 1) The transaction value described above does not include consumption taxes, and the balance at the end of the fiscal period includes consumption taxes.
(Note 2) The terms and conditions for the transaction are decided by referring to the market value and other information.

Current term (From June 1, 2017 to November 30, 2017)

Category

Name ofcompany,
etc. orpersons

Address

Capital stockorBusiness
investments description
in capitalor(Thousand occupation
yen)

1-8-2
TakaraMajor
Marunouchi,
Leben Co.,4,819,809
unitholders
Chiyoda-ku,
Ltd.
Tokyo

Real estatebusiness

Ratio ofholding ofinvestment
units, etc.
(ratio ofinvestment
units, etc.
held)

Relationship
Concurrent
holding of Businessposition as relations
officer, etc.

14.2%

Not
Major
applicable unitholders

Specifics oftransaction

Transaction
value(thousandyen)

Account
title

Acquisitionofphotovoltaic
power
facilities, etc.

12,780,000-

Receipt ofrents

Operating
1,062,223 accounts
receivable

Payment ofoperators’fees

12,686

Balance atthe end of
the fiscal
period(thousand
yen)

-

5,578

-

(Note 1) The transaction value described above does not include consumption taxes, and the balance at the end of the fiscal period includes consumption taxes.
(Note 2) The terms and conditions for the transaction are decided by referring to the market value and other information.

2. Affiliated companies, etc.
Previous term (From December 1, 2016 to May 31, 2017)
Not applicable.
Current term (From June 1, 2017 to November 30, 2017)
Not applicable.
－

31 －

-

3. Companies under common control, etc.
Previous term (From December 1, 2016 to May 31, 2017)
Not applicable.
Current term (From June 1, 2017 to November 30, 2017)
Not applicable.
4. Officers and major individual unitholders, among others
Previous term (From December 1, 2016 to May 31, 2017)
Not applicable.
Current term (From June 1, 2017 to November 30, 2017)
Not applicable.
[Notes regarding asset retirement obligations]
Previous term (As of May 31, 2017)
Not applicable.
Current term (As of November 30, 2017)
Not applicable.
[Notes regarding real estate for rent, etc.]
The Investment Corporation has renewable energy power production facilities, etc. The amount thereof recorded on thebalance sheet, the amount of change in the current term and the value thereof assessed at the end of the term are as shown
below.
(Unit: Thousand yen)Previous term
From December 1, 2016 to
May 31, 2017

Current term
From June 1, 2017 toNovember 30, 2017

Amount posted on the balance sheet(Note 2)
Balance at the beginning of thetermChange in the current term
(Note 3)
Balance at the end of the term
Value assessed at the end of the term
(Note 4)

7,795,017

8,121,212

326,195

12,630,090

8,121,212

20,751,302

9,071,000

23,535,500(Note 1) The real estate that the Investment Corporation has will be used for the operation of the renewable energy power production facilities.
Accordingly, the amount recorded on the balance sheet and the value assessed at the end of the term respectively include the total sum of therenewable energy power production facilities and the relevant real estate.
(Note 2) The amount recorded on the balance sheet is the result of the deduction of the accumulated depreciation from the acquisition cost.
(Note 3) The increase for the current term is mainly attributable to the acquisition of the photovoltaic power facilities, etc. (13,042,678 thousand yen).
The increase for the current term is mainly attributable to depreciation (412,588 thousand yen).
(Note 4) The value above is the total sum of the median values calculated by the Investment Corporation according to Item 1, Paragraph 2, Article 36 of
its certificate of incorporation from among the range of the assessed values stated in the valuation report indicating the values as of May 31,2017 and November 30, 2017 that was obtained from PricewaterhouseCoopers Sustainability LLC.

The profit and loss of the renewable energy power facilities, etc. for the fiscal period ended May 31, 2017 (3rd fiscal period)
and the fiscal period ended November 30, 2017 (4th fiscal period) are as stated in the “Notes Regarding the Statement of
Income” above.

－

32 －

[Notes regarding segment information]
1. Segment information
Previous term (From December 1, 2016 to May 31, 2017)
The statement of the segment information is omitted because the business of the Investment Corporation is only the leaseof renewable energy power facilities, etc.
Current term (From June 1, 2017 to November 30, 2017)
The statement of the segment information is omitted because the business of the Investment Corporation is only the leaseof renewable energy power facilities, etc.
2. Related information
Previous term (From December 1, 2016 to May 31, 2017)(1) Information for each product and service
The statement of this information is omitted because the operating revenue from the sales of the single product/service
to customers outside the Investment Corporation exceeds 90% of the operating revenue recorded on the statement ofincome.
(2) Information for each region① Operating revenue
The statement of this information is omitted because the operating revenue from sales to customers outside theInvestment Corporation in Japan exceeds 90% of the operating revenue recorded on the statement of income.
② Property, plant and equipment
The statement of this information is omitted because the value of property, plant and equipment located in Japanexceeds 90% of the value of the property, plant and equipment recorded on the balance sheet.
(3) Information for each major customer(Unit: Thousand yen)
Name of customer

Net sales

Takara Leben Co., Ltd.

Name of related segments
409,513

Lease of the renewable energy
power facilities, etc.

Current term (From June 1, 2017 to November 30, 2017)(1) Information for each product and service
The statement of this information is omitted because the operating revenue from the sales of the single product/service
to customers outside the Investment Corporation exceeds 90% of the operating revenue recorded on the statement ofincome.
(2) Information for each region① Operating revenue
The statement of this information is omitted because the operating revenue from sales to customers outside theInvestment Corporation in Japan exceeds 90% of the operating revenue recorded on the statement of income.
② Property, plant and equipment
The statement of this information is omitted because the value of property, plant and equipment located in Japanexceeds 90% of the value of the property, plant and equipment recorded on the balance sheet.
(3) Information for each major customer(Unit: Thousand yen)
Name of customer

Net sales

Takara Leben Co., Ltd.

Name of related segments
1,062,223－

33 －Lease of the renewable energy
power facilities, etc.

[Notes regarding data per unit]
Previous term
Current term
From December 1, 2016 to May From June 1, 2017 to November
31, 2017
30, 2017
Net assets per unit

98,223 yen

96,050 yen

Net income per unit

3,020 yen

3,136 yen

(Note 1) Net income per unit is calculated by dividing the net income by the weighted average number of investment units that is based on the number ofdays. In addition, diluted net income per investment unit for the current term is not stated because there are no dilutive investment units.
(Note 2) The basis for the calculation of net income per unit is as shown below.

Previous term
Current term
From December 1, 2016 to May 31,
From June 1, 2017 to November 30, 20172017
Net income (thousand yen)Amount not vested in ordinary unitholders (thousand yen)
Net income corresponding to common investment units (thousandyen)
Average number of investment units during the term (units)

－

34 －

149,304

368,509-－

149,304

368,50949,424

117,494

[Notes regarding important events after the reporting period]
1. Borrowing of funds
To appropriate part of the funds for the acquisition of the new assets acquired and to be acquired as set forth in “2.
Acquisition of assets” below and the expenses related thereto (including national and local consumption taxes), theInvestment Corporation executed the agreement for the following loans on November 28, 2017, and a portion of the loans
was extended.
Amount of
Categ
ory

borrowings

LenderInterest rate
(Note 1)

(Millionyen)Interest rate
obtained by adding

Mizuho Bank, Ltd.
Longterm

Resona Bank, Limited
Sumitomo Mitsui Banking

1,395

Corporation

Date of
final

Repayment methodloans

repayment(Note 3)

December 1,
2017

November30, 2027

TIBOR
Interest rate
obtained by adding

Mizuho Bank, Ltd.
Longterm

0.5% to the sixmonth Japanese Yen

Date ofextension of

Resona Bank, Limited
Sumitomo Mitsui Banking

475

Corporation

0.5% to the sixmonth Japanese Yen
TIBOR

Date when theInvestment
Corporation issues November
a notice to Mizuho 30, 2027
Bank, Ltd.
(Note 2)

Security(Note 4)

Repayme

Unsecurnt ininstallmeed
Unguarants in part

nteed

Repayme

Unsecurnt ininstallmeed
Unguarants in part

nteed

(Note 1) Fees for loans, etc. paid to the lenders are not included.
The interest rate applicable to the interest paid on the date of the payment of interest (hereinafter referred to as the “Base Rate”) is the six-month
Japanese TIBOR that the JBA TIBOR Administration publicly announces on the date that occurs two (2) business days before the date of theextension of the loan or the respective date of the payment of interest. The said Base Rate is reviewed for each date of payment of interest.
However, if no rate for the period of the calculation of interest is available, the Base Rate for the said period shall be calculated according to themethod set forth in the agreement. In addition, if such interest rate falls below 0%, the Base Rate shall be 0%. For information, the Base Rate forthe first period of the calculation of interest on the loan extended on December 1, 2017 is 0.11636%.
(Note 2) The date of such notice will be the scheduled date of acquisition of LS Shizuoka Omaezaki stated in “2. Acquisition of assets” below.
(Note 3) Part of the principal (the amount obtained by dividing the total amount of loans by 34) shall be repaid on the last day of May and November of eachyear starting from May 31, 2018 (if the said day falls on a non-business day, the business day immediately following the said day, and if the saidbusiness day falls within the following month, the business day immediately preceding the said non-business day), and the remaining principal
shall be repaid in a lump sum on the last due date of repayment on November 30, 2027.
(Note 4) The said loan is limited by the financial covenant to maintain the debt ratio (D/E ratio) and the indexes for assessing the ability to pay the principal
and interest (DSCR) of the Investment Corporation as of each date of closing accounts of the Investment Corporation. In the case of a violation of
the said limitation, the provision of security may be demanded, among other actions.

2. Acquisition of assets
The Investment Corporation executed the purchase agreements for the renewable energy power plant facilities, etc.
described below on November 28, 2017. In addition, the Investment Corporation acquired the LS Sakuragawa
Shimoizumi and the LS Fukushima Yamatsuri on December 1, 2017.
PropertyNo.

Name of property

S-19

LS Sakuragawa Shimoizumi

S-20

LS Fukushima Yamatsuri

S-21

LS Shizuoka Omaezaki (Note 2)

Location
Sakuragawa-shi, Ibaraki
Yamatsuri-machi, HigashiShirakawa-gun, Fukushima
Omaezaki-shi, Shizuoka

Total portfolios

Acquisition cost
(Million yen) (Note 1)

Seller955

Takara Leben Co., Ltd.

468

Takara Leben Co., Ltd.

484

Takara Leben Co., Ltd.

1,907

－

(Note 1) The acquisition costs described above are the purchase price stated in the purchase agreement for the respective assets acquired (exclusive of thecontract fees and other expenses for the acquisition of assets, fixed assets, city planning, consumption and other taxes and other charges) androunded down to the nearest million yen.

－

35 －

(Note 2) The date of acquisition of the LS Shizuoka Omaezaki is the date separately agreed on by and between the seller and the buyer that occurs within
15 business days from the date when the conditions set forth in the purchase agreement are satisfied (the condition that the seller is approved as
the business operator as set forth in Paragraph 3, Article 9 and Paragraph 1, Article 10 of the Act on Special Measures Concerning Procurementof Electricity from Renewable Energy Sources by Electricity Utilities (Act No. 108 of 2011, including amendments thereto) (hereinafter referred
to as the “Renewable Energy Special Measures Act”) in relation to the renewable energy power project for power generation using the said power
plant facilities and the supply of electricity to electricity utilities (as defined in Paragraph 1, Article 9 of the Renewable Energy Special MeasuresAct) (including the documents set forth in Paragraph 2, Article 4 of the supplementary provisions of the Act for Partial Revision of the Act on
Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (Act No. 59 of 2016, including
amendments thereto)) (such approval shall be hereinafter referred to as the “Approval of the Project”) and the condition where the seller succeeds
to the status of the party to the specific contract and the agreement for connection regarding the said power plant facilities).

(9) Change in the total number of issued investment units
During the fiscal period under review, the Investment Corporation secured funds in a total amount of 6,257 million yen bycapital increase through public offering (65,288 units) on June 1, 2017 and third-party allotment (3,264 units) on June 28,
2017. For information, the unitholders’ capital contributed after the establishment of the Investment Corporation before May
31, 2017 and the change in the total number of issued investment units are shown below.

Date

Summary

Unitholders’ capital (Million
yen)ChangeAugust 5, 2015

Establishment byprivate offering

June 1, 2016

Capital increase by
public offering

July 1, 2016

Capital increase by
third-party

Balance

Total number of issued
investment units
Remarks(Units)ChangeBalance

200

200

2,000

2,000

(Note 1)

4,290

4,490

45,16647,166(Note 2)

214

4,705

2,258

49,424(Note 3)

5,959

10,66565,288

114,712(Note 4)297

10,963

3,264

117,976(Note 5)allotment
June 1, 2017

Capital increase by
public offering

June 28, 2017

Capital increase by
third-party
allotment(Note 1) Upon its establishment, the Investment Corporation issued its investment units at the issue price per unit of 100,000 yen.
(Note 2) The Investment Corporation issued new investment units by public offering for the purpose of securing funds for the acquisition of new
properties at the issue price per unit of 100,000 yen (the price that the underwriter pays the issuer is 95,000 yen).
(Note 3) The Investment Corporation issued new investment units by third-party allotment at the issue price per unit of 95,000 yen.
(Note 4) The Investment Corporation issued new investment units by public offering for the purpose of securing funds for the acquisition of new
properties at the issue price per unit of 95,499 yen (the price that the underwriter pays the issuer is 91,287 yen).
(Note 5) The Investment Corporation issued new investment units by third-party allotment at the issue price per unit of 91,287 yen.

－

36 －

4. Change of officers(1) Change of officers of the Investment Corporation
There was no change of officers during the fiscal period under review.
(2) Change of officers of the management company(i) New assumption of office
On June 20, 2017: director (part-time), Yuji Hamaoka(i) Retirement
On June 20, 2017: director (part-time), Takahiko Hasegawa
On October 31, 2017: director and general manager of finance administration, Ryuichi Ema

－

37 －

5. Reference information(1) State of investment(As of November 30, 2017)
Category by region, etc.
(Note 1)

Asset type

Total value of investments

Ratio of investments to total

held(Note 2) (Thousand yen)value of assets(Note 3) (%)

Tohoku region

1,188,959

5.2

Kanto region

15,122,686

65.5

Kyushu region

736,3293.2

17,047,974

73.9

Tohoku region

260,083

1.1

Kanto region

3,114,661

13.5

Kyushu region

155,4760.7

3,530,222

15.3

Tohoku region--

Kanto region

173,105

0.8

Kyushu region--

173,105

0.8

Tohoku region

1,449,042

6.3

Kanto region

18,410,453

79.8

Kyushu region

891,806

3.9

20,751,302

89.9

Total renewable energy power facilities, etc.

20,751,302

89.9

Deposits and other assets

2,320,446

10.1

Total value of assets (Note 2)

23,071,748

100.0

Renewable energy power
facilities

Subtotal

Real estate

Subtotal

Leasehold right

Subtotal

Renewable energy power
facilities, etc.

Subtotal

Ratio of investments to total
Amount (Thousand yen)value of assets(Note 3) (%)

Total value of liabilities (Note 2)

11,740,043

50.9

Total value of net assets (Note 2)

11,331,705

49.1(Note 1) In category by region, etc., “Tohoku region” refers to Aomori, Akita, Iwate, Fukushima, Miyagi and Yamagata Prefectures, “Kanto region”
refers to Ibaraki, Kanagawa, Gunma, Saitama, Tochigi, Chiba and Tokyo Prefectures, and “Kyushu region” refers to Oita, Kagoshima, Kumamoto, Saga,
Nagasaki, Fukuoka and Miyazaki Prefectures.
(Note 2) The values described above are the values recorded on the balance sheet as of November 30, 2017. In addition, the total value ofinvestments held for the category of cash and other deposits include construction in progress of 756 thousand yen.
(Note 3) The ratio is rounded off to one decimal place.

(2) Investment assets(i) Major issues of investment securities
Not applicable.
(ii) Real estate for investment
Not applicable.
－

38 －(iii) Other major investment assets
a. Summary of renewable energy power facilities, etc.
The renewable energy power facilities, etc. that the Investment Corporation holds as of November 30, 2017 are summarized
below.
Categoryof facilities

N
o.

Name

Location

Date ofLand

acquisition

area
(m2)

(Note)

Photovoltaic

hase
price

Date ofapproval(Yen)

Expiry dateof purchaseperiod36,72740

DecemberJuly 30, 2033
21, 2012

June 2, 2016

18,54640

March 6,2013

March 17,2034

June 2, 2016

6,930

40

February27, 2013

March 26,
2034

June 2, 2016

21,18936

September
July 21, 2034
2, 2013

Kokubushigehisa, Kirishima-shi,
June 2, 2016
Kagoshima and one other parcel of

47,29040

March 29, September 15,
2013
2034

25,22436

September December 17,
2, 20132034

June 2, 201657,31136

November
1, 2013

March 29,2035

June 2, 2016

36,61636

December
5, 2013

March 26,
2035

June 2, 2016

61,17136

March 17,
July 20, 2035
2014

Photovoltaic
LS Tonepower
S-10
Fukawafacilities

5777-2, Sanbanwari, Fukawa,Tone-machi, Kitasoma-gun, Ibaraki June 2, 2016

33,05336

February December 10,
25, 2014
2035

Photovoltaic

2487-1, Murago, Hasaki, Kamisu-

February 7,
201712,81936

December
5, 2013

June 1, 201733,25040

March 25,
July 13, 2034
2013

Photovoltaic
power
S-13 LS Hokota

932-1, Maeno, Kamigama, Hokotashi, Ibaraki and eight other parcels June 1, 201731,15036

December24, 2013

March 24,2036

facilitiesof land

Photovoltaic
LS Nasu
power
S-14
Nakagawa
facilities

1279-17, Hanukisawa, Miwa,
Nakagawa-machi, Nasu-gun,

798,374

36

August 19,
2013

March 30,
2036

power
facilities

S-01 LS Shioya

Photovoltaic
power
facilities

1601-19, Yashio, Tadokoro,
June 2, 2016
Shioya-machi, Shioya-gun, Tochigi

Purc

492, Numata, Higuchi, ChikuseiS-02 LS Chikusei

shi, Ibaraki and 10 other parcels oflandPhotovoltaic
LS Chiba
power
S-03
Wakaba-ku
facilities

1336-16, Norocho, Wakaba-ku,
Chiba-shi, Chiba and two otherPhotovoltaic
power
S-04 LS Miho

2872-1, Osumi, Kihara, Mihomura, Inashiki-gun, Ibaraki andfacilities

eight other parcels of land

Photovoltaic
LS Kirishima
power
S-05
Kokubufacilities

parcels of land

4566-1, Shinogasako,

land

Photovoltaic
power
S-06 LS Sosa

3994-1, Shiobagata, Higashikozasa,
June 2, 2016
Sosa-shi, Chiba and one otherfacilities

parcel of land

Photovoltaic
LS Miyagi
power
S-07
Osato
facilities
Photovoltaic
LS Mitopower
S-08
Takadafacilities
Photovoltaic
LS Aomori
power
S-09
Hiranaifacilities

power
facilities

S-11

Photovoltaic
power
facilities

S-12

LS Kamisu
Hasaki

1-5, Itayahigashiyama,
Higashinarita, Osato-cho,
Kurokawa-gun, Miyagi and one
other parcel of land
15-1, Dai, Takada-cho, Mito-shi,
Ibaraki and eight other parcels of
land
9-11, Tsutsumigasawa, Nakano,
Hiranai-machi, Higashitsugarugun, Aomori and 11 other parcelsof landand 10 other parcels of landshi, Ibaraki and 12 other parcels ofland

LS Tsukuba

98, Irikubo, Bochi, Tsukuba-shi,

Bochi

Ibaraki and 23 other parcels of landTochigi and 130 other parcels of－39 －June 1, 2017

March 21,
2036

land
Photovoltaic

4402, Shiroyama, Fujioka, FujiokaJune 1, 2017

20,55136

March 27,
July 25, 2036
2014

June 1, 201732,55636

March 24,
July 27, 2036
2014

Photovoltaic
power
S-17 LS Fujioka B

4225-1, Shiroyama, Fujioka,
Fujioka-machi, Tochigi-shi, Tochigi June 1, 201739,26336

March 27,
2014

October 3,2036

facilities

and two other parcels of land

Photovoltaic
LS Inashiki
power
S-18
Aranuma 2
facilities

1585-1, Aranuma Otsu, Edosaki,
Inashiki-shi, Ibaraki and four other

17,82736

March 10,2014

January 11,
2037

power
facilities

S-15 LS Fujioka A

Photovoltaic
power
facilities

S-16

LS Inashiki
Aranuma 1

machi, Tochigi-shi, Tochigi and 31
other parcels of land
1585-5, Aranuma Otsu, Edosaki,
Inashiki-shi, Ibaraki and two otherparcels of land

June 1, 2017

parcels of land

(Note) The Investment Corporation also acquired the additions to LS Chikusei, LS Chiba Wakaba-ku, LS Miho and LS Inashiki Aranuma 1 on October 12, 2017,
November 16, 2017, November 27, 2017 and October 2, 2017, respectively.

－

40 －

Name of
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

Name

LS Shioya

LS Chikusei

LS Chiba Wakaba-ku

LS Miho

LS Kirishima Kokubu

LS Sosa

LS Miyagi Osato

LS Mito Takada

LS Aomori Hiranai

LS Tone Fukawa

LS Kamisu Hasaki

LS Tsukuba Bochi

LS Hokota

specified
suppliers, etc.

Name of theother party to

Acquisition costthe specificcontract

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated
Takara Leben Co.,Ltd.
Takara Leben Co.,Ltd.

TEPCO Energy
Partner,(Millionyen)(Note 1)

1,315

540

TEPCO Energy
Partner,

271

Takara Leben Co., Kyushu Electric
Ltd.
Power Co., Inc.

937

Partner,
Incorporated

666

818

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

991

Takara Leben Co., Tohoku Electric
Ltd.
Power Co., Inc.

705

Ltd.
Takara Leben Co.,TEPCO Energy
Partner,

Takara Leben Co.,Ltd.

at the endof theother assets(Million yen)

the fiscal
periodterm(Million(Note 3)
(upper part:

underreviewyen)(Note 2)

facilities andequipment)(Millionyen)(lower part: realestate)(Note 5)

1,072

910

324

325

425

364

169

158

229

187

115

78

477

377

129

103

855

736

142

155

676

586

43

45

747

653

128

121

796

699

267

251

613

535

145

139

1,025

899

325

306

499

458

8

7

1,050

859

24

27

777

705

25

30

1,396

594

344

606

997

720

875

1,063

758

TEPCO Energy
Partner,
Incorporated

Ltd.

value atthe end of

TEPCO Energy

Takara Leben Co., Tohoku Electric
Ltd.
Power Co., Inc.

Takara Leben Co.,the value of
infrastructure andIncorporated
498

Ltd.

Book

Value
assessed

Incorporated

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

Takara Leben Co.,

Matters regarding
the assessment of

1,261

470

1,350

508

Incorporated
TEPCO Energy
Partner,

890

1,075

Incorporated

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated
－

41 －

735

803

Matters regarding

No.

Name

Name of theName of specified
other party to the
suppliers, etc.
specific contract

Acquisition cost(Millionyen)(Note 1)Value

the assessment of
the value ofBookvalue atassessedat the end

infrastructure andother assets

the end of
the fiscalof theterm(Million yen)
(Note 3)

periodunder(Millionyen)(upper part:
facilities andreview(Million(Note 2)equipment)(lower part: realyen)
(Note 5)

estate)
S-14

S-15

S-16

S-17

S-18

LS Nasu Nakagawa

LS Fujioka A

LS Inashiki Aranuma 1

LS Fujioka B

LS Inashiki Aranuma 2

Total

Takara Leben Co.,Ltd.
Takara Leben Co.,Ltd.

TEPCO Energy
Partner,
Incorporated

8,315

TEPCO Energy
Partner,
Incorporated

265

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

925

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

1,091

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

422

－

－

21,120

7,634

6,722

1,670

1,582

190

179

94

94

1,042

891

49

36

1,007

873

237

225

498

406

20

15

19,617

17,047

3,918

3,703

9,304

284

1,092

1,244

519

23,535(Note 1) The acquisition cost described above is the purchase price (excluding national and local consumption taxes and transaction fees and other charges) set
forth in the respective purchase agreements for the power facilities, etc. that are the assets acquired.
(Note 2) The value assessed at the end of the term described above is the median value calculated by the Investment Corporation according to Item 1, Paragraph 2,
Article 36 of its certificate of incorporation from among the range of the total assessed values including renewable energy power facilities and realestate, leasehold or superficies calculated by PricewaterhouseCoopers Sustainability LLC.
(Note 3) In the section of the matters regarding the assessment of the value of the infrastructure assets above, the upper part shows the estimates of the value
assessed of the renewable energy power facilities after the deduction of the assessed real estate value calculated by CBRE K.K. from the value assessedthat is described above (Note 2), and the lower part shows the value stated in the real estate appraisal report prepared by CBRE K.K. Real estateincludes superficies or leasehold of real estate.
(Note 4) In the section of book value at the end of the fiscal period under review, the upper part shows the book value of the renewable energy power facilities atthe end of the fiscal period under review, and the lower part shows the book value of the real estate at the end of the fiscal period under review.

－

42 －

b. Results of revenues and expenditures of individual renewable energy power facilities
4th fiscal period (from June 1, 2017 to November 30, 2017)
Property number(Unit: Thousand yen)

S-01

S-02

S-03

S-04

S-05

portfolios

LS Shioya

LS Chikusei

LS Chiba
Wakaba-ku

LS Miho

LS Kirishima
Kokubu1,015,514

60,04324,018

11,68521,09846,18346,709

749

206

173

470

451

10

-

1

-

0

-

1,062,234

60,792

24,226

11,85821,57046,634

Taxes and other public charges

32,058

7,220

1,831

806

1,648

3,644

(Fixed assets and other related
taxes included)

31,994

7,220

1,830

806

1,646

3,644

64

-

1

-

2

-

Sundry expenses

96,850

2,661

1,276

1,035

1,425

2,329

(Outsourcing fees management)

69,326

1,944

1,088

876

1,250

1,769

(Repair expenses)

-

-

-

-

-

-

(Utilities expenses)

2,865

291

3

3

7

174

(Insurance expenses)

7,159

390

151

70

134

355

(Payment of land rent)

16,737

-

-

-

0

0

761

33

33

85

33

29

412,588

29,981

8,747

4,269

8,409

17,797

Name of property

Total

Lease revenue - renewable energy
power production facilities, etc.
Minimum rent guaranteed
Variable rent linked to actual
outputIncidental revenues
Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)
Lease expenses - renewable energy
power production facilities, etc.

(Other taxes included)(Other lease expenses included)
Depreciation(Buildings)

159

-

-

-

-

-

(Structures)

150,219

2,906

3,729

1,329

2,013

3,533

(Machinery and equipment)

239,660

19,499

4,940

2,638

6,140

14,264(Tools, furniture and fixtures)

22,548

7,574

76

300

255

-

541,497

39,862

11,855

6,110

11,483

23,771

520,736

20,93012,370

5,748

10,08722,862

Lease expenses - renewable energy
power production facilities, etc.
(subtotal B)
Profit or loss of lease business renewableenergypower
production facilities, etc. (A－B)

－

43 －

Property No.

S-06

S-07

S-08

S-09

S-10

S-11

Name of property

LS Sosa

LS Miyagi
Osato

LS MitoTakadaLS Aomori
Hiranai

LS ToneFukawaLS Kamisu
HasakiLease revenue - renewable energy
power production facilities, etc.
Minimum rent guaranteed

37,83939,68545,25339,85755,531

25,541

1,217

1,453

70

452

1,027

1,563

-

-

2

-

-

-

39,057

41,13845,32640,31056,558

27,104

Taxes and other public charges

2,790

3,256

3,624

2,550

4,628

28

(Fixed assets and other related
taxes included)

2,790

3,256

3,624

2,550

4,628

-

-

-

-

-

-

28

Sundry expenses

3,471

2,775

2,199

4,717

2,638

3,353

(Outsourcing fees management)

1,585

2,228

1,754

4,189

2,110

2,027

(Repair expenses)

-

-

-

-

-

-

(Utilities expenses)

73

157

122

203

152

3

(Insurance expenses)

248

349

285

287

295

168

(Payment of land rent)

1,530

-

-

-

43

1,068

33

40

36

36

37

85

13,99917,261

16,353

12,504

21,533

11,000

Variable rent linked to actual
outputIncidental revenues
Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)
Lease expenses - renewable energy
power production facilities, etc.

(Other taxes included)(Other lease expenses included)
Depreciation(Buildings)

-

-

-

-

-

-

(Structures)

6,394

7,399

3,693

2,842

8,565

4,204

(Machinery and equipment)

7,605

7,928

12,452

9,517

11,486

6,213

-

1,933

207

144

1,481

583

20,26023,292

22,176

19,77128,80014,383

18,797

17,84623,15020,53827,75812,721(Tools, furniture and fixtures)
Lease expenses - renewable energy
power production facilities, etc.
(subtotal B)
Profit or loss of lease business renewableenergypower
production facilities, etc. (A－B)

－

44 －

Property No.

S-12

S-13

S-14

S-15

S-16

S-17

Name of property

LS Tsukuba
Bochi

LS Hokota

LS Nasu
Nakagawa

LS Fujioka A

LS Inashiki
Aranuma 1

LS Fujioka B

54,65838,387373,197

12,54854,577

49,775

2,955

2,482

23,978

942

3,051

3,703

-

-

2

-

-

3

57,61340,870397,178

13,491

57,62853,483

Taxes and other public charges

3

3

4

4

7

4

(Fixed assets and other related
taxes included)

-

-

-

-

-

-

3

3

4

4

7

4

Sundry expenses

8,845

5,031

34,245

2,261

8,673

5,129

(Outsourcing fees management)

3,301

3,180

29,554

2,095

3,664

4,657

(Repair expenses)

-

-

-

-

-

-

(Utilities expenses)

193

2

1,271

4

96

98

(Insurance expenses)

320

267

2,897

124

291

340

(Payment of land rent)

4,999

1,548

445

-

4,587

-

Lease revenue - renewable energy
power production facilities, etc.
Minimum rent guaranteed
Variable rent linked to actual
outputIncidental revenues
Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)
Lease expenses - renewable energy
power production facilities, etc.

(Other taxes included)(Other lease expenses included)
Depreciation

30

32

75

36

32

32

23,046

16,439155,345

4,595

19,764

20,439(Buildings)

-

-

159

-

-

-

(Structures)

10,846

9,568

62,407

1,749

7,827

8,153

(Machinery and equipment)

10,871

6,763

89,031

2,190

11,68911,459(Tools, furniture and fixtures)

1,327

106

3,746

655

247

826

Lease expenses - renewable energy
power production facilities, etc.

31,895

21,474

189,594

6,860

28,44425,57325,71819,395

207,583

6,630

29,18427,909(subtotal B)
Profit or loss of lease business renewableenergypower
production facilities, etc. (A－B)

－

45 －

Property No.

S-18

Name of property

LS Inashiki
Aranuma 2

Lease revenue - renewable energy
power production facilities, etc.
Minimum rent guaranteed
Variable rent linked to actual
outputIncidental revenues

25,6301,758-

Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)

27,389Lease expenses - renewable energy
power production facilities, etc.
Taxes and other public charges

5(Fixed assets and other related
taxes included)-(Other taxes included)5

Sundry expenses

4,779(Outsourcing fees management)

2,048(Repair expenses)-(Utilities expenses)

4(Insurance expenses)

178(Payment of land rent)

2,514(Other lease expenses included)
Depreciation

32
11,100(Buildings)-(Structures)

3,053(Machinery and equipment)

4,966(Tools, furniture and fixtures)

3,080

Lease expenses - renewable energy
power production facilities, etc.
(subtotal B)

15,885

Profit or loss of lease business renewableenergypower
production facilities, etc. (A－B)

11,503－46 －