July 30, 2019
Press Release

Daiwa Energy & Infrastructure Co. LtdAttention
This document is an unofficial translation of a press release announced on July 30, 2019 by Daiwa
Securities Group Inc. The original press release is in Japanese.

DEI to Invest in Electricity North West Limited in U.K.
Daiwa Energy & Infrastructure Co. Ltd. (President: Morimasa Matsuda,Headquarters: Gran Tokyo North Tower, 1-9-1 Marunouchi, Chiyoda-ku, Tokyo /“DEI”) has entered into an agreement to acquire a part of the shares of Electricity
North West Limited (hereinafter referred to as "ENWL"), which will conduct power
distribution business in the United Kingdom (“UK”).
We have established a Japanese consortium (KDM Power Limited) in the UK with
Kansai Electric Power Co., Ltd. and Mitsubishi UFJ Lease & Finance Company
Limited. The Japanese consortium together with UK infrastructure fund, Equitix,
agreed to acquire 50% of ENWL shares from institutional investors First State
Investments and institutional investors advised by J.P. Morgan Asset Management.
As a result, we will indirectly hold ENWL's 9.62% stake through the Japaneseconsortium holding company.
ENWL is headquartered in Warrington, in the North West of England, and supplies
power to approximately 2.4 million households (approximately 5 million people) in
the Manchester and Cumbria areas. The company, which owns distribution cables
and wires covering a total length of approximately 57,300 km, lays about 78% of it in
the ground to avoid equipment failure caused by bad weather. In addition, byproviding a high level of maintenance and operation services for distribution-related
equipment, the company realizes stable power supply.
In the UK, rising environmental awareness is driving the adoption of EVs forautomobiles, and the government is planning to take measures to popularize heatpumps, and demand for electricity is expected to further expand. We will accelerate
investment in social infrastructure business by acquiring knowledge related to thepower distribution business through the investment participation.
The whole of the Daiwa Securities Group has proven strong with initiatives on theSustainable Development Goals (SDGs) adopted by the United Nations in 2015 andannounced the launch of the SDGs Promotion Committee chaired by Seiji Nakata,President and CEO of Daiwa Securities Group Inc. This investment in ENWL may
also contribute to achieving the United Nations’ 17 SDGs, in particular, Goal 7:
Affordable and Clean Energy, Goal 9: Industry, Innovation and Infrastructure andGoal 11: Sustainable Cities. Daiwa Securities Group will contribute to theachievement of SDGs going forward.

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Overview of ENWL
Company nameElectricity North West Limited

Headquarters

304 Bridgewater Place, Birchwood Park, Warrington, WA3 6XG

Capital£238.4 million (as of Mar 2019)

Total Assets£3,452 million (as of Mar 2019)

Sales£458.3 million (as of Mar 2019)

Net Profits£71.8 million (as of Mar 2019)

Representative

John Roberts (Chairman)

Shareholder
Composition

KDM Power Limited：

32.07%First State Investment：

25.00%JP Morgan Asset Management：

25.00%

Equitix：

17.93%

Overview of KDM Power Limited
Company name

KDM Power Limited

Headquarters

78 Cannon Street, London EC4N 6AF
The Kansai Electric Power Co., Inc.：
55.1%
Daiwa Energy & Infrastructure Co. Ltd.：
30.0%
Mitsubishi UFJ Lease & Finance Company Limited： 14.9%

Shareholder
Composition3.

17 Goals of SDGs *This investment contributes to three goals below【Goal 7】 ：Affordable and Clean Energy
By maintaining an efficient power distribution system, we contribute to the connectionof EVs and heat pumps and promote clean energy supply.
【Goal 9】 ：Industry, Innovation and Infrastructure
Through the power supply to EVs, etc., we contribute to the foundation oftechnological innovation.
【Goal 11】 ：Sustainable Cities
By maintaining and expanding power distribution network, we contribute to develop
sustainable cities.

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Overview of related parties

About First State Investments
First State Investments is an experienced global asset manager with in excess of €127 billion
managed on behalf of investors worldwide as at 31 December 2018. First State is a leading
manager of infrastructure investments with over €8.0 billion of unlisted infrastructure capital undermanagement, having been actively investing in long life infrastructure businesses since 1994. First
State’s unlisted infrastructure portfolio includes 21 transport, renewable and utility investments in
13 countries.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of USD 1.8 trillion (as June 30,2019), is a global leader in investment management. J.P. Morgan Asset Management's clients
include institutions, retail investors and high net worth individuals in every major market
throughout the world. J.P. Morgan Asset Management offers global investment management inequities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase &Co. (NYSE: JPM) is a leading global financial services firm with assets of USD 2.7 trillion (as of30 June 2019) and operations worldwide. Information about JPMorgan Chase & Co. is availableat www.jpmorganchase.com.
About Equitix Investment Management Limited
Founded in 2007 and headquartered in London, Equitix is a leading infrastructure investment
firm that manages over £4.5 billion on behalf of long term investors, including a large proportionof UK pension funds. Equitix manages six core infrastructure flagship funds, 14 co-investment
funds which are dedicated to larger infrastructure projects, and a number of segregated managed
accounts providing customized solutions. Equitix’s investment strategy focuses on core
infrastructure projects, predominantly located in the UK and covering a wide range of sectors
with a particular focus on social infrastructure, transportation, regulated utilities and renewables.
Across all of its core funds, Equitix seeks to hold assets for the life of the fund, which is typically
25 years. Equitix has acquired over 270 core infrastructure projects since our inception, thereby
establishing a strong reputation as a trusted partner, operator and fiduciary fund manager.

About Kansai Electric Power Co., Inc.
The Kansai Electric Power Company, Incorporated, established in May 1951, engages in theelectric power, heat supply, gas supply, and telecommunications businesses primarily in Japan
with annual revenues over USD 30 billion at 31 March 2019 and rated A3 by Moody’s. Kansai,
based in Osaka, is a Japanese leading energy company and is keen to contribute to the stablesupply of electric power in other countries through its IPP, electricity transmission and consulting
businesses. Today Kansai owns (or is developing) 18 projects in 11 countries with an aggregate net
generation capacity of approximately 3 GW.
About Daiwa Energy & Infrastructure Co. Ltd.（DEI）
DEI is a core strategic subsidiary of Daiwa Securities Group Ltd., for exploring further investment
opportunities in infrastructure assets, renewable energy and resource. The balance of investment is
JPY31 billion (GBP 210 million) at the end of March 2019.
About Mitsubishi UFJ Lease & Finance Company limited (MUL)MUL is a global leasing company based in Tokyo, Japan, and publicly listed on the Tokyo andNagoya Stock Exchanges, and a member of Mitsubishi UFJ Financial Group (MUFG), one of theworld’s largest financial companies. MUL addresses a diverse range of customer needs byexpanding upon the functions we offer, from lease finance, corporate finance, service provision,business participation, to business operation..
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