Special Feature

My name is Hironobu Nakamura and I have been appointed Executive Director. I would like to take this opportunity to thank all unitholders for the continued support you have shown this Investment Corporation.
Since its listing, the Investment Corporation has sought to achieve a sustainable society and provide stable returns to unitholders by specializing in solar infrastructure. I will use the experience I have gained on-site in investing in domestic and overseas infrastructure and renewable energy to continually work on portfolio growth, improving portfolio quality and further raising capital efficiency.
At the same time, I will tenaciously pursue operations that contribute to addressing social issues, such as the promotion of decarbonization, stable supply of electricity, coexistence with local communities, sustained growth and further improvement of unitholder value. Even in these times of rapid changes in the market and environment, I will focus on the highly transparent disclosure of information and careful dialogue, while working to maximize long-term returns.
I respectfully ask for your continued support.

We were generally blessed with good weather in the 16th fiscal period (January – June 2025) , and solar radiation itself was favorable. However, the impact of output control, particularly from March to May, exceeded our initial assumption, and the production of electricity was below the projected amount. This affected the rental revenue received, which is linked with the production of electricity, and had a negative impact on operating revenue.
To mitigate the impact of output control as much as possible, the Investment Corporation has been introducing online output control equipment, mainly in the areas within the jurisdiction of Kyushu Electric Power Co., Inc. This has helped shorten the output control time and minimize the suspension of power generation. Going forward, we will continue with these measures, including their expansion to other areas.
Meanwhile, we steadily implemented measures to expand our portfolio in the 16th fiscal period. During the 16th fiscal period, the Investment Corporation acquired two plants, namely CS Hiroshima-shi Suzuhari Power Plant in Hiroshima Prefecture and CS Sakura-shi Kitsuregawa Power Plant in Tochigi Prefecture. As a result, the number of assets held increased to 34, and panel output expanded to 246.3 MW. With these new acquisitions, our portfolio was further diversified, and dependence on large projects has been lowered.
In this operating environment, the partial use of distributions in excess of earnings allowed total distributions to be maintained at the initially forecast level. We will continue to work to strengthen our operating platform and improve the quality of our assets, giving highest priority to ensuring stable returns.

The Investment Corporation will continue to combine core external and internal growth strategies.
Regarding external growth, we will make maximum use of the development capability and pipelines of the Canadian Solar Group, our sponsor, to work on the robust expansion of our portfolio, including the acquisition of projects developed by third parties. In particular, amidst the ongoing transition from the Feed-in Tariff (FIT) , the importance of non-FIT projects that adopt new electricity sale schemes, such as Feed-in Premium (FIP) and Corporate Power Purchase Agreement (CPPA, meaning long-time power purchase agreements with companies) , is growing in recent years, and the Investment Corporation will focus on the selection and acquisition of such projects. Looking at the pipeline, there are already several power plants that respond to such schemes, and we feel that future development has entered a realistic phase.
Meanwhile, we will further advance internal growth initiatives. In the past, we sought to improve the power generation performance of our portfolio mainly by enhancing preventive maintenance and oversight systems and through facility improvement. Going forward, we will examine operational schemes that combine the parallel establishment of storage batteries and the transition to the FIP and will seek to establish a profit model that is resilient to the impact of output control.
We are also examining ways to increase the value of existing assets by such means as replacing low-performance assets and repowering facilities. Through these measures, we will work on the steady accumulation of earnings per unit (EPU) .
The Investment Corporation will pursue growth in assets, in terms of both quality and quantity, by utilizing the operational know-how specializing in solar power and comprehensive capabilities of the sponsor group. We will steadily implement improvements toward the next stage by ensuring that we respond to changes in the environment.

The Investment Corporation seeks to provide stable returns to unitholders while also pursuing operations that contribute to solving social issues. In particular, it places importance on promoting decarbonization, achieving a stable supply of electricity and coexisting with local communities.
Looking firstly at the position of promoting decarbonization, we continue to contribute to the reduction of greenhouse gas emissions in Japan through the supply of electricity derived from renewable energy sources. Given that Japan’s Seventh Strategic Energy Plan aims to reduce greenhouse gas emissions by 73% by FY2040 compared to FY2013 levels, we are always conscious of how we can help to achieve that target as an infrastructure fund. We aim to work to visualize the reduction of our portfolio-derived carbon dioxide and to offer more sophisticated information disclosure.
Second, regarding the stable supply of electricity, we will contribute to reducing the load in the operation of electrical systems associated with rises in the ratio of renewable energy, through means such as operational improvements to limit output control, the introduction of online output control equipment and the response to shifting peak demand through the parallel establishment of storage batteries, among other initiatives. Going forward, our policy is to examine the transition to a more flexible and market-consistent power generation model, including the transition from FIT to FIP and the parallel establishment of electricity storage facilities. We will also participate in initiatives for the sustainable use of renewable energy.
Lastly, regarding coexistence with local communities, we place importance on building trust with local communities at each region where we operate a power plant by implementing O&M in cooperation with local companies, giving consideration to the landscape and safety, holding careful dialogues with local residents and transmitting information, among other approaches. We will continue our effort to make a contribution to regional employment and tax revenue through the power generation business.
We believe that these activities do not just have the meaning of fulfilling our corporate social responsibility, but will result in the improvement of unitholder value through risk reduction and the stabilization of earnings. Going forward, we will meet our responsibilities as a sustainable infrastructure investment corporation with the aim of achieving both social and economic value.