takara leben infrastructure fund presentation material 6th fiscal...

Asset Manager

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

Takara Leben Infrastructure Fund Presentation Material

6th Fiscal Period ending November 30, 2018

Securities code: 9281

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

1

I. Overview of the 6th Fiscal Period

II. Recent Topics

III. Future Management Strategy

IV. Appendix

2

Overview the 6th Fiscal Period Results (Ended Nov 2018)

Dividends/unit increased by ¥361 (+10.3%) to ¥3,871, due to improved operating revenue

5th Fiscal Period (Ended May 2018) 6th Fiscal Period (Ended Nov 2018)

Forecast Actual DifferenceInitial

forecast

Forecast

as of Aug

23, 2018

Actual Difference

Operational status (Million

Yen)

Operating revenue 1,189 1,205 +15 1,430 1,467 1,493 +63

Operating expense 742 731 -10 925 932 938 +13

Operating income 447 473 +25 504 535 555 +50

Ordinary income 391 415 +23 438 466 488 +49

Net income 390 414 +24 437 465 487 +50

Dividends per unit (including surplus earnings

distribution)

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

Dividends per unit (excluding

surplus earnings distribution)¥3,307 ¥3,512 ¥+205 ¥3,160 ¥3,361 ¥3,521 ¥+361

Surplus earnings distribution

per unit (Return of capital)¥464 ¥464 ¥±0 ¥350 ¥350 ¥350 ¥±0

Major Factors

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

3

+8.8%

-2.6%-2.8%

+4.7% +4.2%+6.5%

+17.0%+24.2%

+5.3%

-15.8% +5.8%

+6.3%

3,908

4,409

5,073

6,275 6,449

6,698 6,779

7,289

8,093

6,464

5,946

5,086

4,255 4,291

4,927

6,575 6,721

7,137

7,935

9,060 8,528

5,442

6,292

5,411

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Dec, 2017 Jan, 2018 Feb, 2018 Mar, 2018 Apr, 2018 May, 2018 Jun, 2018 Jul, 2018 Aug, 2018 Sep, 2018 Oct, 2018 Nov, 2018

S-02 LS Chikusei

0

50,000

100,000

150,000

200,000

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

S-01 LS Shioya

0

100,000

200,000

300,000

400,000


■Forecasted power generation

■Actual power generation

(MWh)

Portfolio Performance

（kwh）（kwh）

（note 1) Forecasted power generation is based on the expected amounts of electricity generation in the 50th percentile of probability of exceedance calculated by a third party.

（note 2) Performance period is from December 2017 to November 2018

Entire Portfolio Performance

Individual Plants Performance

+8.8%

-2.6%-2.8%

+4.7% +4.2%

+6.5%

+17.0%+24.2%

+5.3%

-15.8%+5.8%

+6.3%

4

S-10 LS Tone Fukawa

0

100,000

200,000

300,000

400,000


S-04 LS Miho

0

50,000

100,000

150,000

200,000



S-09 LS Aomori Hiranai

0

100,000

200,000

300,000


S-08 LS Mito Takada

0

100,000

200,000

300,000

400,000


S-07 LS Miyagi Osato

0

100,000

200,000

300,000


S-06 LS Sosa

0

100,000

200,000

300,000


S-05 LS Kirishima Kokubu

0

100,000

200,000

300,000


S-03 LS Chiba Wakabaku

0

20,000

40,000

60,000

80,000

100,000


（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

■Forecasted power generation ■Actual power generation

5

S-11 LS Kamisu Hasaki

0

50,000

100,000

150,000

200,000

250,000


S-13 LS Hokota

0

100,000

200,000

300,000


S-15 LS Fujioka A

0

20,000

40,000

60,000

80,000

100,000

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovS-17 LS Fujioka B

0

100,000

200,000

300,000

400,000


S-18 LS Inashiki Aranuma2

0

50,000

100,000

150,000

200,000


S-16 LS Inashiki Aranuma1

0

100,000

200,000

300,000

400,000

500,000


S-14 LS Nasu Nakagawa

0

1,000,000

2,000,000

3,000,000


S-12 LS Tsukuba Bouchi

0

100,000

200,000

300,000

400,000


（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）



6(note) Acquisition date of LS Shizuoka Omezaki is February 28, 2018

S-19 LS Sakuragawa Shimoizumi

S-21 LS Shizuoka Omaezaki (note)

S-20 LS Fukushima Yamatsuri

S-23 LS Sakuragawa Nakaizumi

S-22 LS Mie Yokkaichi

S-24 LS Shirahama

S-25 LS Takahagi

0

500,000

1,000,000

1,500,000

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov0

100,000

200,000

300,000

400,000


0

50,000

100,000

150,000

200,000


0

50,000

100,000

150,000

200,000


100,000

200,000

300,000


0

50,000

100,000

150,000

200,000


100,000

200,000

300,000

400,000


（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）

（kwh）



7

（unit：Thousand Yen）

No. Plant Name

Minimum

Guaranteed Rent

Income

Performance-linked

Rent IncomeRent Expense（depreciation）

NOI

(after depreciation)

NOI

(before depreciation)

S-01 LS Shioya 59,737 2,022 39,216 (29,981) 52,525 22,543

S-02 LS Chikusei 25,135 771 12,935 (9,050) 22,023 12,972

S-03 LS Chiba Wakabaku 15,803 0 7,272 (4,742) 13,272 8,530

S-04 LS Miho 26,643 1,065 13,470 (9,216) 23,456 14,239

S-05 LS Kirishima Kokubu 45,949 415 25,306 (17,797) 38,855 21,058

S-06 LS Sosa 37,648 1,580 22,632 (13,999) 30,595 16,596

S-07 LS Miyagi Osato 39,484 1,074 23,053 (17,261) 34,766 17,505

S-08 LS Mito Takada 45,025 758 21,813 (16,353) 40,325 23,972

S-09 LS Aomori Hiranai 39,656 437 19,595 (12,504) 33,001 20,497

S-10 LS Tone Fukawa 55,252 1,251 28,468 (21,533) 49,569 28,035

S-11 LS Kamisu Hasaki 25,413 1,965 16,444 (11,000) 21,935 10,934

S-12 LS Tsukuba Bouchi 54,381 2,674 37,906 (23,046) 42,195 19,149

S-13 LS Hokota 38,194 3,603 24,934 (16,439) 33,303 16,864

S-14 LS Nasu Nakagawa 371,322 30,244 190,704 (154,740) 365,604 210,864

S-15 LS Fujioka A 12,485 1,121 9,015 (4,595) 9,186 4,591

S-16 LS Inashiki Aranuma1 57,033 3,556 35,282 (20,276) 45,584 25,308

S-17 LS Fujioka B 49,526 4,420 32,046 (20,439) 42,342 21,903


S-19 LS Sakuragawa Shimoizumi 51,455 3,879 34,058 (20,584) 41,861 21,277

S-20 LS Fukushima Yamatsuri 26,720 1,353 18,299 (10,597) 20,371 9,773

S-21 LS Shizuoka Omaezaki 23,656 1,098 12,602 (10,000) 22,154 12,153

S-22 LS Mie Yokkaichi 43,556 1,911 22,485 (18,132) 41,115 22,982

S-23 LS Sakuragawa Nakaizumi 53,970 2,959 30,490 (22,955) 49,395 26,439

S-24 LS Shirahama 166,284 11,879 91,645 (62,278) 148,796 86,518

S-25 LS Takahagi 20,999 914 10,331 (7,869) 19,455 11,586

Total 1,410,840 82,879 798,684 (566,499) 1,261,547 695,048


8


II. Recent Topics


IV. Appendix

9

Solar Power Plants Acquisition on June 1, 2018

S-22 LS Mie Yokkaichi

S-23 LS Sakuragawa Nakaizumi

S-24 LS Shirahama

Panel Output 1,984.50kW

Operator Takara Leben

Output Capacity 1,500.00kW

FIT 40 yen/kWh

End of FIT September 18, 2034

Land Rights Superficies



Output Capacity 1, 980.00kW

FIT 36 yen/kWh

End of FIT September 22, 2036




Output Capacity 6,400.00kW

FIT 36 yen/kWh

End of FIT May 31, 2037


S-25 LS Takahagi



Output Capacity 750.00kW

FIT 33 yen/kWh

End of FIT December 25, 2037

Land Rights Ownership

Acquired 4 plants with total panel output of 13.71MW for 4.93 Billion Yen through the

second public offering.

Offering Overview

Offering form Undocumented Offering

Issue resolution date May 10, 2018

Condition Determination Date May 22, 2018

Issue Price ¥ 113,384/ unit

Investment Units (PO) 19,618 units

Investment Units(third-party allotment) 980 units

Issued investment units 137,594 units

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

Borrowing Overview

Interest rate(Note) Base interest rate +0.5%

Drawdown date June 1, 2018

Final repayment date May 31, 2028

Repayment method Install repayment in part

Collateral Unsecured and unguaranteed

Borrowing ¥ 3,024 million

10

■FIT policy requires electric power companies to purchase electricity generated from

renewable energy sources on a fixed-period contract at a fixed price.

■Purchase price under the FIT system is annually revised based on procurement

price

■Purchase price for each solar power generation facilities is final and will not be amended (note 1)(note 1) Except under circumstances where a commodity price or any other economic condition, such as hyperinflation, deflation and/or stagflation, has substantially changed or is likely to

substantially change, and when the Minister of Economy, Trade and Industry finds it especially necessary, the minister may revise a purchase price and period for existing facilities.

■TIF believes that recent news coverage regarding possible price drop on FIT policy only

applies to future approved solar power generation facilities and not apply to purchase prices for

existing approved facilities.

Overview of FIT policy

Fiscal year (April 1 to March 31） Purchase price per 1kWh before tax Purchase period

2012 40 yen 20 years



2015 （April 1 to June 30） 29 yen 20 years

2015 （July 1 to March 31） 27 yen 20 years




＜Change in Purchase Price (note 2) ＞

(note 2) After 2017, purchase price for non-residential solar power generation facilities over 2MW were determined through successful bid at renewable energy auctions

Recent New Coverages on Price Change of Feed-in Tariff Policy

11

Recent New Coverages on Price Change of Feed-in Tariff Policy

Impacts on operation performance of TIF in the event of

FIT policy changes

Electric power companies are required to purchase power generated

from solar power generation facilities owned by both TIF and the

Sponsor for 20 years from the day of grid connection. Therefore TIF

believes that there is no impact expected for FIT policy changes as

announced by various news sources.

TIF discloses forecast performance based on above

assumptions

■Among 25 solar power plants owned by TIF, 6 plants were approved

with purchase price of 40 yen per kWh, 18 plants approved with

purchase price of 36 JPY per kWh and 1 plant approved with purchase

price of 32 yen per kWh.

■Above purchase prices for all of 25 solar power plants are honored

20 years from the day of grid connection.

■Same rules and principles applies to solar power generation facility

projects owned by our Sponsor, Takara Leben Co., Ltd.

Overview of TIF

(note 1) As of December 1, 2018

No NameFIT price

(Yen/kWh)

Remaining

FIT period (note 1)

S-01 LS Shioya 40 14 years 7 months

S-02 LS Chikusei 40 15 years 3 months

S-03 LS Chiba Wakabaku 40 15 years 3 months

S-04 LS Miho 36 15 years 7 months

S-05 LS Kirishima Kokubu 40 15 years 9 months

S-06 LS Sosa 36 16 years

S-07 LS Miyagi Osato 36 16 years 3 months

S-08 LS Mito Takada 36 16 years 3 months

S-09 LS Aomori Hiranai 36 16 years 7 months

S-10 LS Tone Fukawa 36 17 years

S-11 LS Kamisu Hasaki 36 17 years 3 months

S-12 LS Tsukuba Bouchi 40 15 years 7 months

S-13 LS Hokota 36 17 years 3 months

S-14 LS Nasu Nakagawa 36 17 years 3 months

S-15 LS Fujioka A 36 17 years 7 months

S-16 LS Inashiki Aranuma1 36 17 years 7 months

S-17 LS Fujioka B 36 17 years 10 months

S-18 LS Inashiki Aranuma2 36 18 years 1 months

S-19 LS Sakuragawa Shimoizumi 36 17 years 10 months

S-20 LS Fukushima Yamatsuri 36 17 years 11 months

S-21 LS Shizuoka Omaezaki 36 16 years 3 months

S-22 LS Mie Yokkaichi 40 15 years 9 months

S-23 LS Sakuragawa Nakaizumi 36 17 years 9 months

S-24 LS Shirahama 36 18 years 5 months

S-25 LS Takahagi 32 19 years

12

Curtailment Orders against our solar power plants

Curtailment Orders Against Solar Power Plants In Kyusyu Area

All power plants are leased to Takara Leben and we receive rent revenue.

Minimum guaranteed rents Takara Leben is paying are fixed for entire lease term regardless

enforcement of curtailment orders

Performance-linked rent income of LS Kirishima Kokubu is not expected for forecasted

performance for the fiscal period ending November 30, 2018.

Overview of Curtailment

Suspended Date

Ratio of loss of power generation to

total estimated power generation of

the entire portfolio for the fiscal

period ending November 30, 2018

Impact for forecast of performance

for 6th Fiscal Period (ended

November 30, 2018)

October 21, 2018 (Sunday) 0.02% (note) No Impact

November 11, 2018 (Sunday) 0.03% (note) No Impact

(note) The ratio is rounded off to third decimal place

Two curtailment orders were enforced against our solar power plants LS Kirishima Kokubu (S-05)

Impact for forecast of performance

13

ESG Participation

Donation to “Miyagi Disaster Prevention Forests

Partnership Promotion Project “ through Hometown

Taxation Program for Companies

Takara Leben Infrastructure Fund, Inc.Takara Asset Management Co., Ltd. (Asset Manager)

On December 21, 2018, we and our Asset Manager has decided a donation to

project to recover Disaster Prevention Forests in Miyagi Prefecture

In Miyagi Prefecture where we own a solar power plants, significant scales of

Disaster Prevention Forests has been lost due to the tsunami caused by Great

East Japan Earthquake

As a part of exercising our basic principles of engaging environmental issues

and contributing to local community, the Investment Corporation has decided to

donate for the promotion project.

14

Execution of New wholesale Electricity Supply Agreement with Minnna Denryoku

Through supply of electricity, Minna Denryoku is commitited to create new commonsense: generating” and “consuming” electricity,

promotes regional revitalization, and supports inter-regional collaboration via electricity.

Promotion of Renewable Energy

No S-21 S-22

Name LS Shizuoka-Omaezaki LS Mie-Yokkaichi

Execution Date January 10, 2019 January 10, 2019

Panel Output 1,098.24kW 1,984.50kW

Operator Takara Leben Takara Leben

Wholesale Supplier Minna Denryoku Minna Denryoku

<Overview>

Minna Denryoku

15

Takara Leben, the lesser and the operator of the solar power plants, aims to contribute society through

promoting decarbonization and renewable energy and supplying electricity through Minna Denryoku to

consumers and firms that prefer environment-friendly energy

We believe that this movement matches the our basic principles; “create value through utilization of

natural energy resource, provide regional employment opportunities and develop a social economy, and

limit the global warming and improve domestic energy dependence”, we fully collaborate and

corporate with these movements.

Promotion of Renewable Energy (2)

Improving energy independence rate by promoting decarbonization, and eco-friendly energy through

supplying electricity to environment-friendly consumers

Through supplying electricity to Minna Denryoku, undertaking interregional cooperation via electricity, it will

challenge new commonsense that focus on “generating” and “consuming” electricity, promotes

revitalization of regional communities.

Maintaining regional connection through electricity supply

Contribute to promote renewable energy

With amendment of Lease agreement with Takara Leben, Premium Bill paid by Minna Denryoku will be

equally shared with us and Takara Leben.

Maximization of unitholders value through our assets

Grounds of Execution

Overview of Execution

16

I. Features of Takara Leben Infrastructure Fund, Inc.

II. Recent Topics


IV. Appendix

17

The First Listed Infrastructure Fund in Japan

Portfolio located in

High-Demand Area

II

The only credit rated

Infrastructure Fund in

Japan

IV

Profit-based Dividends

III

Sustainable

Growth Strategy

I

18

Stable Growth through Solar Power Plant Acquisition

Dividends Forecast and Results: Growing dividends through acquisition of solar power plants

* Total Asset Price is based on appraisal value as of November 30, 2018

IPO3rd FP

Acquisition1st PO

Panel

Expansion

5th FP

Acquisition

2nd PO

Acquisition

8.16 Billion Yen

17.8MW

8.65 Billion Yen

19.0MW

22.14 Billion Yen

50.0MW

22.51Billion Yen

50.8MW

24.63 Billion Yen

55.8MW

30.24 Billion Yen

69.5MW

■Owned Assets

■Newly Acquired Asset

Forecast Actual

3rd Fiscal Period

May 2017

Forecast Actual

4th Fiscal Period

Nov 2017

Forecast Actual

5th Fiscal Period

May 2018

■Estimated Dividends per Unit (excl. surplus earnings distribution) (Yen)

■Actual Dividends per Unit (excl. surplus earnings distribution) (Yen)

■Surplus earnings distribution per Unit (Estimated and Actual) (Yen)

Total Asset Price and Panel Output

Forecast Actual

2nd Fiscal Period

Nov 2016

Forecast Actual

6th Fiscal Period

Nov 2018

19

Portfolio Overview

30.24Billion Yen

Total Asset Acquired

69.5MW

Total Pannel Output

25solar power plants

Numbers of Asset

LS Kirishima

Kokubu

LS Shizuoka

Omaezaki

LS Aomori

Hiranai

LS Miyagi

Osato

LS Fukushima

Yamatsuri

LS Shioya

LS Chiba

Wakabaku

LS Miho

LS Chikusei

LS Tone

Fukawa

LS Mito Takada

LS Sosa

LS Fujioka A

LS Nasu

Nakagawa

LS Hokota

LS Tsukuba

Bouchi

LS Kamisu

HasakiLS Sakuragawa

Shimoizumi

LS Inashiki

Aranuma2

LS Fujioka

LS Inashiki

Aranuma1

LS Mie

YokkaichiLS Shirahama LS Sakuragawa

NakaizumiLS Takahagi

20

Portfolio Breakdown

Total Asset Size

30.24Billion Yen

Significant investment ratio in regions where high power generation demand is anticipated.

■Breakdown of Portfolio by Region

■ Electric Energy Sold in 2016

Investment Ratio for regions under Tokyo, Chubu

and Kansai power company’s jurisdictions：

89.6%

Source, “FACT BOOK 2018” published by Hokuriku Electric Power Company

75.0%

4.2%

10.4%

3.2%

6.9%

0%

0%

0%

0%

0%

0%

(GWh)

Investment Ratio

(Based on acquisition price)

As of November 30, 2018

■Kanto Region 75.0%

■Kansai Region 10.4%

■Tohoku Region 6.9%

■Chubu Region 4.2%

■Kyusyu Region 3.2%

“Kanto Region” refers to Tokyo, Chiba, Ibaraki, Kanagawa, Gunma, Saitama, and Tochigi

“Kansai Region” refer to Osaka, Kyoto, Nara, Hyogo, Shiga , and Wakayama.

“Tohoku Region” refers to Fukushima, Aomori, Akita, Iwate,, Miyagi and Yamagata,

“Chubu Region” refers to Aichi, Niigata, Yamanashi, Shizuoka, Nagano and Mie.

“Kyushu Region” refers to Fukuoka, Oita, Kagoshima, Kumamoto, Saga, Nagasaki, and

Miyazaki.

241,520

121,821

121,500

78,619

74,258

57,254

28,104

26,806

25,697

7,813

0 50,000 100,000 150,000 200,000 250,000 300,000

Tokyo Electric Power Company

Chubu Electric Power

Kansai Electric Power Company

Kyushu Electric Power

Tohoku Electric Power

Chugoku Electric Power Company

Hokuriku Electric Power Company

Hokkaido Electric Power Company

Shikoku Electric Power

Okinawa Electric Power Company

21

6.02%

5.65%

4.15%

2.44%

0.65%

1.98%

2.52%

3.88%

6.67%

7.63%

6.67%

6.32%

4.54%(incl. SPE)

2.48%

0.44%

0.15%

0.13%

0% 1% 2% 3% 4% 5% 6% 7% 8%

Takara Leben Infrastructure Fund

Infrastructure Fund A

Infrastructure Fund B

Infrastructure Fund C

Average J-REIT

TOPIX Forecast

AA Rating Corporate Bond 9 to 10Y

AA Rating Corporate Bond 4 to 5Y

Japanese Government Bond 10Y

■Dividends(excluding surplus dividends)

■Surplus dividends

Our Dividends Policy

Strengths of our dividends policy

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

funds.

Pursuit profit-based returning; maintain low SED

compare to other infrastructure funds.

Secure higher yield than other products such as

corporate bond and J-REIT.

Source: Data from each funds and companies, as of January 4 , 2019

22

The only credit-rated infrastructure Fund in Japan

Long-term Issuer

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

Issued by Japan Credit Rating Agency

23

49.0 46.1 45.3 50.5 53.4 53.2 52.7 52.0 51.2 50.4

0

10

20

30

40

50

60

70

June 2,2016

End of2nd FP

End of3nd FP

End of4nd FP

End of5nd FP

End of6th FP

End of7th FP

End of8th FP

End of9th FP

End of10th FP

Change in the Balance of Borrowings and LTV Ratio

Transition of borrowings

Transition of LTV ratio

■ IPO Financing ■ PO Financing ■ 5th FP Financing ■ 6th FP Financing(Billion Yen)

（％）

Borrowing spare capacity

by Amortization

Debt strategy (LTV ratio)

The interest-bearing debt ratio limits up to 60%

as a principle.

This limit, however, may temporary exceeded

for acquiring properties.

Meanwhile, TIF aimed to conservatively

maintain 50% by considering portfolio scales

during facing.

■ LTV Ratio ■ Remaining Borrowing Spare Capacity

4.2 4.0

11.6

13.1

15.6 15.1

14.6 14.1

13.6 13.1

12.6 12.1

11.6 11.1

10.6 10.1

9.6 9.1

8.6 8.1

0

2

4

6

8

10

12

14

16

1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP

24

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

External Growth

Acquisition Opportunity from the Sponsor’s Solar Power Plants

Completed by Takara Leben 33 plants 92.7MW

Currently Developing by

Takara Leben2 plants 41.8MW

As of end of November 2018

Third Party Acquisitions through Asset Manager’s network

• Asset Management Company holds own network to collect Information of solar power plants

transaction from secondary markets (Completed properties/properties under development)

• Diversified renewable energy power generation facilities, including solar power, wind power

and biomass

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

25

Minimum guaranteed rent

based on projected amount of

electricity generation＋ Performance-linked rent

Outsourcing O&M (Note) of solar energy generation facilities to highly skilled third-party O&M service

firms (Note) stands for Operation & Maintenance

Developing capex (inclusive of maintenance) plans for each property.

Lessees basically bear expenses for regular maintenance, management, repair, etc.

Internal Growth

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

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

Well-planned capex (including maintenance) to maintain and improve medium- to long-term

revenue

Stable and upside potential revenue scheme through combination of 20 years-long minimum

guaranteed rent and performance-linked rent

26

Stabilized Income Scheme

Guaranteed minimum rent and stabilization of income

Under the Feed-in Tariff (FIT) policy, electric power companies are required to purchase electricity generated from renewable

energy at a fixed priced on fixed-period contract

Electric power sales TIFElectric power companies

Electric power sales price

Lease of solar energy generation

facilities, etc.

Rent of solar energy generation

facilities, etc.

Lessees Electricity generation utilities operators

IPO solar power plants

(10 plants)

Post-IPO acquisition

of solar power plants

(15 plants)

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

100%

110%

P50に設定P75に設定

Set to

P50

Set to

P75

Performance- linked

rent

Guaranteed

minimum rent

100% Actual power

sales amount

27

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

Performance Forecast

(Note 1) Amounts are rounded down to the nearest million yen.

(Note 2) The above forecasts are subject to change due to acquisition or sale of renewable energy power generation facilities changes in infrastructure markets fluctuation in interest rates and other

changes in circumstances surrounding the Investment Corporation. Forecasts do not guarantee any dividends amount.

7th fiscal period(ending May, 2019)

8th fiscal period(ending Nov, 2019)

9th fiscal period(ending May, 2020)

Operational status(Unit: Million Yen)

Forecast as of

May 10, 2018

Forecast as of

May 10, 2018

Forecast as of

May 10, 2018

Operating revenue 1,468 1,423 1,460

Operating expense 940 951 942

Operating income 527 472 517

Ordinary income 457 407 454

Net income 456 406 453

Dividends per unit(including surplus earnings distribution)

¥3,631 ¥3,271 ¥3,594

Dividends per unit(excluding surplus earnings distribution)

¥3,297 ¥2,935 ¥3,274

Surplus earnings distribution per unit(return of capital)

¥334 ¥336 ¥320

28

■Estimated dividends per unit

■Actual dividends per unit

■Surplus earnings distribution (return of capital) (Unit: Yen)

Dividends Results and Forecast

2,981 3,121

2,852 3,021

2,725

3,123 3,307

3,512

3,160 3,361

3,521 3,297

2,935

3,274

463

463

464

464

350

350 350

334

336

320

2,981 3,121

2,852

3,021

3,188

3,586

3,771 3,976

3,510

3,711 3,871

3,631

3,271

3,594

0

1,000

2,000

3,000

4,000

Forecast Actual Forecast Actual Forecast Actual Forecast Actual

Forecast

(May 10,

2018)

Forecast

(Aug 23,

2018)

Actual

Forecast

(May 10,

2018)

Forecast

(May 10,

2018)

Forecast

(Jan 15,

2019)

2nd Fiscal Period

(ended Nov 2016)

3rd Fiscal Period

(ended May 2017)

4th Fiscal Period

(ended Nov 2017)

5th Fiscal Period

(ended May 2018)

6th Fiscal Period

(ended Nov 2018)

7th Fiscal Period

(ended May 2019)

8th Fiscal Period

(ended May 2019)

9th Fiscal Period

(ended May 2019)

29

（Unit：Thousands yen）

No. Plant Name

Minimum

Guaranteed Rent

Income

Performance-linked

Rent IncomeRent Expense（depreciation）

NOI

(after

depreciation)

NOI

(before

depreciation)

S-01 LS Shioya 67,229 - 39,163 (29,930) 57,996 28,066

S-02 LS Chikusei 27,422 - 13,010 (9,062) 23,474 14,411

S-03 LS Chiba Wakabaku 15,179 - 7,304 (4,749) 12,624 7,875

S-04 LS Miho 28,020 - 13,498 (9,216) 23,739 14,522

S-05 LS Kirishima Kokubu 45,112 - 25,254 (17,797) 37,655 19,857

S-06 LS Sosa 37,263 - 21,226 (13,999) 30,036 16,036

S-07 LS Miyagi Osato 40,215 - 22,190 (17,261) 35,285 18,024

S-08 LS Mito Takada 45,339 - 22,612 (16,353) 39,080 22,727

S-09 LS Aomori Hiranai 32,282 - 18,922 (12,504) 25,863 13,359

S-10 LS Tone Fukawa 56,892 - 29,200 (21,533) 49,226 27,692

S-11 LS Kamisu Hasaki 24,691 505 18,152 (11,000) 18,045 7,045

S-12 LS Tsukuba Bouchi 57,012 1,127 35,222 (23,046) 45,964 22,917

S-13 LS Hokota 39,078 773 24,727 (16,439) 31,563 15,124

S-14 LS Nasu Nakagawa 403,404 7,373 191,149 (154,396) 374,025 219,629

S-15 LS Fujioka A 13,879 267 8,681 (4,578) 10,044 5,465


S-17 LS Fujioka B 54,960 1,058 32,573 (20,441) 43,887 23,445

S-18 LS Inashiki Aranuma2 24,809 508 18,697 (11,100) 17,721 6,620

S-19 LS Sakuragawa Shimoizumi 57,443 1,105 32,683 (19,544) 45,410 25,866

S-20 LS Fukushima Yamatsuri 27,176 450 17,271 (10,002) 20,357 10,355

S-21 LS Shizuoka Omaezaki 23,492 496 14,001 (8,356) 18,344 9,988

S-22 LS Mie Yokkaichi 39,632 659 24,910 (17,946) 33,327 15,381

S-23 LS Sakuragawa Nakaizumi 59,891 1,169 33,917 (22,914) 50,058 27,143

S-24 LS Shirahama 151,931 3,087 99,520 (61,769) 117,268 55,498

S-25 LS Takahagi 20,957 418 11,825 (7,797) 17,347 9,550

Total 1,448,199 20,095 810,758 (562,018) 1,219,555 657,536

Revenue Forecast for 7th Fiscal Period (ending May 2019)

Revenue Forecast of Portfolio

（Note 1）Number less than one thousand has been omitted.

（Note 2）Revenue for S-01 to S-10 shows minimum guaranteed rent which equals to estimated generation income based on 50th percentile of excess probability mentioned in the third-

party report. Revenue for S-11 to S-25 shows minimum guaranteed rent which equals to estimated generation income based on 75th percentile of excess and performance-linked rent based

on 50th percentile of excess probability mentioned in the third-party report.

30


II. Recent Topics


IV. Appendix

31

Number of

investment units

138,574

Number of

unitholders

10,968

■Individuals/others 10,742 (97.93%)

■Financial Institutions 43 (0.39%)

（incl. financial instruments firms）

■ Other domestic corporation 148 (1.34%)

■ Foreign corporation. etc. 35 (0.31%)

Number of investment units Number of unitholders

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

■Individuals/others 85,577 (61.75％)

■ Other domestic corporation 25,022 (18.05％)

■Financial Institutions 23,336 (16.84％)

（incl. financial instruments firms）

■ Foreign corporation. etc. 4,639 (3.34％)

NameNumber of investment units held

(units)

Unitholding ratio

in the total number of

investment units issued

(%)

1 Takara Leben Co., Ltd. 19,686 14.2

2 The Rokinren Bank 3,133 2.24

3 GOLDMAN SACHS INTERNATIONAL 2,974 2.14

4 Yamato Shinkin Bank 2,118 1.52

5 THE BANK OF FUKUOKA , LTD. 1,905 1.37

6 Aozora Bank, Ltd 1,710 1.23

7 Kagawaken Shinyo Kumiai 1,700 1.22

8 Individual 1,619 1.16

9 The Kagawa Bank, Ltd. 1,011 0.72

10 The Joyo Bank, Ltd. 1,000 0.72

10 Fukoku Mutual Life Insurance Company 1,000 0.72

Total 37,856 27.31

32

Balance Sheet for 6th FP (ended November 2018)

（Unit：Thousand Yen）（Unit：Thousand Yen）

33

Statement of Income for 6th FP (ended November 2018)

（Unit：Thousand Yen）

34

Portfolio Data

No. Property Name Location

Acquisition

price

(MY)

Period-end

appraisal

value of

power plant

(MY) (Note)

Ratio

(%)

Panel output

(kW)

FIT price

(Yen/kWh)

Remaining FIT

periodOperator

S-01 LS Shioya Shioya-gun, Tochigi 1,315 1,356 4.5 2,987.25 40 14 years 7 months Takara Leben

S-02 LS Chikusei Chikusei-shi, Ibaraki 540 575 1.9 1,205.67 40 15 years 3 months Takara Leben

S-03 LS Chiba Wakabaku Chiba-shi, Chiba 271 337 1.1 705.10 40 15 years 3 months Takara Leben

S-04 LS Miho Inashiki-gun, Ibaraki 498 592 2.0 1,373.70 36 15 years 7 months Takara Leben

S-05 LS Kirishima Kokubu Kirishima-shi, Kagoshima 937 972 3.2 2,009.28 40 15 years 9 months Takara Leben

S-06 LS Sosa Sosa-shi, Chiba 666 693 2.3 1,796.08 36 16 years Takara Leben

S-07 LS Miyagi Osato Kurokawa-gun, Miyagi 818 850 2.8 2,040.00 36 16 years 3 months Takara Leben

S-08 LS Mito Takada Mito-shi, Ibaraki 991 1,037 3.4 2,128.00 36 16 years 3 months Takara Leben

S-09 LS Aomori Hiranai Higashi-tsugaru-gun, Aomori 705 734 2.4 1,820.00 36 16 years 7 months Takara Leben

S-10 LS Tone Fukawa Kita-soma-gun, Ibaraki 1,261 1,315 4.3 2,467.08 36 17 years Takara Leben

S-11 LS Kamisu Hasaki Kamisu-shi, Ibaraki 470 491 1.6 1,200.00 36 17 years 3 months Takara Leben

S-12 LS Tsukuba Bouchi Tsukuba-shi, Ibaraki 890 1,013 3.3 2,469.60 40 15 years 7 months Takara Leben

S-13 LS Hokota Hokota-shi, Ibaraki 735 760 2.5 1,913.60 36 17 years 3 months Takara Leben

S-14 LS Nasu Nakagawa Nasu-gun, Tochigi 8,315 8,782 29.0 19,800.00 36 17 years 3 months Takara Leben

S-15 LS Fujioka A Tochigi-shi, Tochigi 265 271 0.9 612.00 36 17 years 7 months Takara Leben

S-16 LS Inashiki Aranuma1 Inashiki-shi, Ibaraki 925 1,061 3.5 2,725.68 36 17 years 7 months Takara Leben

S-17 LS Fujioka B Tochigi-shi, Tochigi 1,091 1,189 3.9 2,420.80 36 17 years 10 months Takara Leben

S-18 LS Inashiki Aranuma2 Inashiki-shi, Ibaraki 422 483 1.6 1,200.00 36 18 years 1 months Takara Leben

S-19 LS Sakuragawa Shimoizumi Sakuragawa-shi, Ibaraki 955 1,098 3.6 2,535.04 36 17 years 10 months Takara Leben

S-20 LS Fukushima Yamatsuri Higashi-shirakawa-gun, Fukushima 468 532 1.8 1,327.36 36 17 years 11 months Takara Leben

S-21 LS Shizuoka Omaezaki Omaezaki-shi, Shizuoka 484 493 1.6 1,098.24 36 16 years 3 months Takara Leben

S-22 LS Mie Yokkaichi Yokkaichi-shi, Mie 740 805 2.7 1,984.50 40 15 years 9 months Takara Leben

S-23 LS Sakuragawa Nakaizumi Sakuragawa-shi, Ibaraki 980 1,165 3.9 2,698.24 36 17 years 9 months Takara Leben

S-24 LS Shirahama Kamitonda-cho, Wakayama 2,810 3,146 10.4 7,839.76 36 18 years 5 months Takara Leben

S-25 LS Takahagi Takahagi-Shi, Ibaraki 400 485 1.6 1,194.60 32 19 years Takara Leben

Portfolio total 27,957 30,242 100 69,551.58 －－－

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

35

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

90,000

95,000

100,000

105,000

110,000

115,000

120,000

125,000

130,000

135,000

140,000TSE REIT INDEX

（Right）TIF (Right) Trading Volume (Left)

(Unit)(Yen)

Change in Stock Price (July 2, 2016 to November 30, 2018)

36

Principles and Investment Policy

Maximization of unitholder value

Annual CO2 reduction Annual power generation

Stable cash flow and

profit

Socially

responsible

investment

*1 Annualized CO2 reduction relative to fossil fuels based on total panel output of the portfolio.

*2 Estimate power consumption of each household as 247.3KWh per month.

Value creation through utilization of natural energy

37

Electric power sales

Electric power

sales price

Rent

Operating

fee

Sponsor

support

Management

Management

entrustment

Takara Leben Infrastructure Fund, Inc.

(TIF)

Assets under management

Solar power plant

Borrowings

Investment

Lessee and operator

Connecting / Purchasing electric utilities

operators

Structure of the Investment Corporation

(note) All figures are as of November 30, 2018

Sponsor

Asset Manager

Total acquired plants

¥30.24 billion

Number of plants

25 solar power plants

Total Amount

¥15.61 billion

Unitholders’ equity

¥13.19 billion

Repayment of principal and

interest

Loans

Dividends

Investment

Listed on the Tokyo

Stock Exchange

Lenders, etc.

• 19 financial institutions

• All loans are unsecured and unguaranteed

Unitholders

• 10,000+ individual investors (64% of total)

• 43 financial institutions (16% total)

• 148 domestic corporations(18% of total)

• 35 foreign corporations (2% of total)

(Note) Figures as of the end of May, 2018

38

1.9

8.4

17.4

24.9

31.7

64

0

10

20

30

40

50

60

70

June, 2013 June, 2014 June, 2015 June, 2016 September,2017

2030(expected)

Long-term Energy Demand and Supply Forecast

■2013 ■2030■LNG ■Coal ■Oil, etc.

■Nuclear ■Water power

■Geothermal and Renewable energy

■LNG ■Coal ■Oil, etc.

■Nuclear ■Water power

■Geothermal and Renewable energy

43.2％

30.3％

14.9％

2.2％

8.5％

1.0％

27.0％

26.0％

3.0％

22.0％

8.8％

13.4％

22~24％

● Ratio of renewable energy

Solar Power accounts

7%

Source:

i. Data from the website for announcing the Feed-in Tariff Scheme by Agency for Natural Resources and Energy of the Ministry of Economy,

Trade and Industry for the period up to April 2016.

ii.Expected installation in FY2030 based on the data on the document related to the long-term energy supply and demand outlook by the

Ministry of Economy, Trade and Industry (Agency for Natural Resources and Energy, July 2015)

Installed solar energy generation facilities (10kW or

larger) its forecast in 2030Volume ratio of renewable energy newly

introduced after the start of FIT Scheme (For solar power generation, 10kW or larger are included.)

█ Solar power generation 94.4%

█ Biomass power generation 2.7%

█ Wind power generation 2.1%

█ Water power generation 0.8%

Geothermal power generation0.0%

Source: Data from the website for announcing the Feed-in Tariff Scheme by

Agency for Natural Resources and Energy of the Ministry of Economy,

Trade and Industry

Business Environment

(GW)

TIF Listed

39

Profile of Asset Manager

Name Takara Asset Management Co., Ltd.

Address

Main Office

Otemachi Nomura Bldg. 16F 2-1-1 Otemachi, Chiyoda-ku, Tokyo, JAPAN

Shin-Otemachi Building Branch

Shin-Otemachi Bldg. 8F 2-1-1 Otemachi, Chiyoda-ku, Tokyo, JAPAN

Established October 28, 2013

Capital 250,000,000 JPY

Representative CEO, Mamoru Takahashi

Business Domain Asset Management, Type II Financial Instruments, Investment Consulting

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

Licenses

Building Lots and Buildings Transaction Business: No. (1) 96550, Governor of Tokyo

Discretionary Transaction Agent: No. 89, Minister of Land, Infrastructure,

Transportation and Tourism

Financial Instruments Business: No. 2851, Director-General, Kanto Finance Bureau

(Financial Instruments and Exchange Act)

Participation

The Investment Trusts Association, Japan

Type II Financial Instruments Firms Association

Japan Investment Advisers Association

Tokyo Real Estate Association

Japan Housing, Land, and Building Business Society

Japan Association of Asset Management

•This document has been prepared to provide information, and is not for soliciting and inviting investments in or recommendingtransaction of certain

products. We request investors to make investments with their own responsibility and judgment.

•This document does not constitute a disclosure document or a management report based on the Financial Instruments and Exchange Act, the Act on

Investment Trusts and Investment Corporations or the listing regulations of the Tokyo Stock Exchange.

•In addition to information on Takara Leben Infrastructure Fund, Inc. (the "Investment Corporation"), this document includes figures, tables and data

prepared by Takara Asset Management Co., Ltd. (the "Asset Manager") based on data/index and other information released by third parties. Analysis,

judgment and other views of the Asset Manager on such information at the time of preparation are also included in this document.

•The information contained in this document is not audited and there is no assurance of the accuracy and certainty of such information. Analysis,

judgment and other non-factual views of the Asset Manager represent views of the Asset Manager at this point in time. Different views may exist or the

Asset Manager may change its views in the future.

•Figures under the same items of other disclosed materials may differ from figures presented in this document due to difference in the rounding of

fractions, etc.

•While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors. Readers are also cautioned that the

contents of this document may be corrected or changed without prior notice.

•The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes and other information released by third

parties.

•This document includes statements regarding future policies, etc. of the Investment Corporation. However, these statements donot guarantee said

future policies, etc.

•For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

TEL: +81-3-6262-6402

E-Mail: [email protected]

Contact

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