For Translation Purposes Only

January 10, 2019
For Immediate Release
Infrastructure Fund Issuer
Takara Leben Infrastructure Fund, Inc.
Representative:

Masahide Kikuchi,

Executive Director
Security Code: 9281

Management Company
Takara Asset Management Co., Ltd.
Representative:

Mamoru Takahashi,

President & CEO

Contact:

Masahide Kikuchi,

Vice President & Director ofInfrastructure Fund Division.,
Investment Management
Department
TEL: +81-3-6262-6402

Notice Concerning the Execution of Wholesale Electricity Supply Agreement by the Lessee and theOperator of the Solar Energy Power Generation Facilities Owned by the Investment Corporation and Partial
Amendment on Lease Agreement of Domestic Infrastructure Properties
Takara Leben Infrastructure Fund (hereinafter referred as the “Investment Corporation”) hereby announces
today that Takara Leben Co., Ltd (hereinafter referred as “Takara Leben”), the lessee and the operator of LS
Shizuoka-Omaezaki and LS Mie-Yokkaichi (hereinafter collectively referred as the “power generation
facilities concerned”) owned by the Investment Corporation, and Minna-Denryoku, Inc. (hereinafter referred
as “Minna Denryoku”) has executed an agreement regarding wholesale electricity supply (hereinafter referredas “wholesale electricity supply agreement”).
In addition, the Investment Corporation also announces today that it has decided to amend a part of thelease agreement of the power generation facilities concerned as a result of the execution of the wholesale
electricity supply agreement.
The lessee of the power generation facilities concerned fall under the interested person or other close
affiliate (hereinafter referred to as “Interested Persons”) pursuant to the Act on Investment Trusts andInvestment Corporations (hereinafter referred to as “the Investment Trust Act”) and also fall under theinterested parties and equivalent pursuant to the Asset Manager’s internal Regulations on Transactions withInterested Parties, etc. The Asset Manager therefore obtained consent from the Executive Board of Takara
Leben Infrastructure Fund at the meeting held on January 10, 2019 in accordance with the Investment Trust
Act and the Regulations on Transactions with Interested Parties, etc.

1. Overview of the wholesale electricity supply agreement(1) New scheme after the execution of the wholesale electricity supply agreement(2) Grounds for the execution of the wholesale electricity supply agreement
Through supply of electricity, Minna Denryoku is conscious of new commonsense ---“generating” and“consuming” electricity---, promotes regional revitalization, and supports inter-regional collaboration viaelectricity.
With the execution of the wholesale electricity supply agreement with Minna Denryoku, Takara Leben,
the lesser and the operator of the power generation facilities concerned, aims to contribute society throughpromoting decarbonization and renewable energy and supplying electricity through Minna Denryoku toconsumers and firms that prefer environment-friendly energy (Note).
(Note) Electricity generated at the power generation facilities concerned will be sold to Chubu Electric Power Co., Inc.(hereinafter referred
as “Chubu Electric”), the utility company, under a specific contract executed with Chubu Electric and then supply to Minna Denryoku
under specific wholesale electricity contract executed between Chubu Electric and Minna Denryoku. Since the renewable energy
surcharge paid by all consumers as a part of their electricity bill goes to cover the expense of purchasing renewable energy under therenewable electric energy feed-in tariff, with the entire consumers rather than specific ones should be benefited from non-CO2
greenhouse gas emission supplied the electricity concerned.

Since such measurements match the Investment Corporation’s basic principles; “create value throughutilization of natural energy resource, provide regional employment opportunities and develop a social
economy, and limit the global warming and improve domestic energy dependence”, the Investment
Corporation would like to fully collaborate and corporate with these measurements.
Furthermore, the Investment Corporation believes the execution of the wholesale electricity supply
agreement coincides the Investment Corporation’s basic principle and maximizes unitholders value interms of the following items.
(a) Contribute to promote renewable energy
It is to contribute to improving energy independence rate by promoting decarbonization, and eco-friendly
energy through supplying electricity to environment-friendly consumers.
(b) Maintaining regional connection through electricity supplyThrough 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.

(c) Maximization of unitholders value through our assets
The Investment Corporation has executed the lease agreement in which adapts minimum-guaranteed rent
and performance-linked rent scheme with Takara Leben. Under the wholesale electricity agreement with
Mina Denryoku, Takara Leben will receive Contracted Premium Bill (Note) from Minna Denryoku inproportion to the level of energy consumption of each consumer of Minna-Denryoku. Such Contracted
Premium Bill shall be equally shared between the Investment Corporation and Takara Leben by amending
part of the lease agreement.
(Note) The Contracted Premium Bill etc. is as follows: Contracted premium rate (yen/kwh) multiplies the electricity consumption volume
which is supplied under the electricity wholesale agreement to Minna Denryoku through Utility Company (consumption tax included).
However, Minna Denryoku may change the contracted premium rate (yen/kwh) based on the discussion with Takara Leben, whenchanged the amount calculated by the method specified by Order of the Ministry of Economy, Trade and Industry as the amount ofexpenses which would be incurred for generating or procuring electricity in an amount equivalent to the amount of electricity fromrenewable energy sources used that was procured by the electricity utility based on a specified contract if that electricity utility
generated or procured the electricity by itself in Article 29 (2) of Act on Special Measures Concerning Procurement of Electricity
from Renewable Energy Sources by Electricity Utilities, The Contracted Premium Bill etc. may be terminated or altered. The same
shall apply hereinafter.

(3) Overview of the wholesale electricity supply agreement
No.
Name (Note 1)

S-21
LS Shizuoka-Omaezaki

S-22
LS Mie-Yokkaichi

Execution Date

January 10, 2019

January 10, 2019

January 15, 2019

January 18, 2019

Operator
Utility CompanyTakara Leben
Chubu Electric Power Co., Inc.

Takara Leben
Chubu Electric Power Co., Inc.

Wholesale Supplier

Minna Denryoku

Minna Denryoku

Expected start date of thewholesale electricity supply
agreement(Note 1) “LS” stands for “Leben Solar” and hereinafter.
(Note 2) A period for the contracted premium is one year from date of commencement of wholesale electricity supply. A period is annually
renewed unless Takara Leben or Minna Denryoku serve a termination notice to either party or otherwise stated in wholesale electricitysupply agreement.

2. Amendment of the lease agreement of the solar power facilities concerned(1) New rent scheme after the execution of the wholesale electricity supply agreement(2) Grounds for the amendment
As a result of the execution of the wholesale electricity supply agreement, Takara Leben has right toreceive Contracted Premium Bill paid by Minna Denryoku.
Since an origin of the Contracted Premium Bill is the electricity from the solar power generation
facilities owned by the Investment Corporations, the Contracted Premium Bill is deemed to be theextension of performance-linked rent income and shall be equally shared between the Investment
Corporation and Takara Leben. Therefore, the lease agreements executed between the Investment
Corporation and Takara Leben are partly to be amended.
The amendment sections of the lease agreement are excerpt from “Annual Securities Report for the5th fiscal period ending May 31, 2018” (Japanese only) published on August 30, 2018 for LS
Shizuoka-Omaezaki and “Notice of Purchase and Lease of Domestic Infrastructure Properties”
published on May 10, 2018 for LS Mie-Yokkaichi, and changes are underlined.
<Before>(omit)
3.

The monthly performance-linked rent (X), which excludes consumption tax and local consumption tax, shallbe calculated using the formula shown below. Any fraction of less than one yen generated in the calculation
shall be disregarded.
(1) If the actual power sales amount (x) does not exceed the estimated power sales amount (y)X=0Rent(2) If the actual power sales amount (x) exceeds the estimated power sales amount (y)X = (x - y) × 0.5
Where X is the monthly performance-linked rent, x is the actual power sales amount for the month concerned
and y is the estimated electricity sales revenue for the month concerned.
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<After>(omit)
２. The monthly performance-linked rent (X), which excludes consumption tax and local consumption tax, shallbe calculated using the formula shown below. Any fraction of less than one yen generated in the calculation
shall be disregarded.
(1) If the actual power sales amount (x) does not exceed the estimated power sales amount (y)X = 0 +ｚ×0.5
Rent(2) If the actual power sales amount (x) exceeds the estimated power sales amount (y)X = (x - y＋z) × 0.5
Where X is the monthly performance-linked rent, x is the actual power sales amount for the month concerned,
y is the estimated electricity sales revenue for the month concerned, and z is the income (if any) paid by retailenergy supplier to the lesser for the month concerned under wholesale electricity supply agreement.
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