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September 14, 2018
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,Contact:

Masahide Kikuchi,

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

Regarding Recent News Coverages on Possible Price Change of Feed-in Tariff Policy
Due to latest news coverages that possible procurement price digression of Feed-in Tariff (hereinafter referred as“FIT”) system were discussed by the Ministry of Economy, Trade and Industry (hereinafter referred as “METI”),
the Takara Leben Infrastructure Fund, Inc., (hereinafter referred as “Investment Corporation”) has received
increased volume of inquiries from investors over this particular news. The Investment Corporation hereby
announces an assumed impact on the operation of the Investment Corporation in case of procurement pricedigression will take effect as according to the news coverages.
Overview of FIT system
Under the FIT system for renewable energy, electric power companies are obliged to purchase electricity
generated from renewable energy sources at a fixed price on a fixed-period contract. Costs of purchased electricity
generated from renewable energy shall be transferred to electricity customers in the form of a nationwide surcharge
in order to foster high-cost renewable energy sources. FIT system enables to cover high construction cost ofrenewable energy sources and eventually expands use of them in Japan.
Under the FIT system, a purchase price is annually revised based on procurement price either determined by
Minister of Economy, Trade and Industry or through successful bid at renewable energy auctions.
Sources: http://www.enecho.meti.go.jp/category/saving_and_new/saiene/kaitori/surcharge.html (Japanese)
Basically, each procurement price will be fixed during the contracted period and will not be changed once theprocurement price for particular renewable energy generation facility is approved (note 1). Therefore, news
coverage on possible procurement price digression will apply to future-approved renewable energy generation
facilities, and the Investment Corporation assumes that it will not apply to the approved procurement price ofexisting photovoltaic solar energy generation facilities.
(note 1) Where “a commodity price or any other economic condition” has substantially changed or is likely to substantially change, and when theMETI finds it especially necessary, the minister may revise a purchase price and period for existing facilities. A hyperinflation, deflation,stagflation and/or other extreme economic circumstance are assumed for a “a change in a commodity or any other economic condition”

Assumed impact on the Investment Corporation by possible price change under FIT system
As of the day of this press release, the portfolio of the Investment Corporation’s contains total of 25 photovoltaic
power energy generation facilities: 6 facilities were approved with procurement FIT price of 40 JPY per kWh, 18facilities approved with procurement FIT price of 36 JPY per kWh, and one (1) facility with procurement FIT priceof 32 JPY per kWh. In addition, all of the Investment Corporation’s photovoltaic energy generation facilities has
been contracted with electric power companies to sell electricity generated by photovoltaic energy for a period of 20years after the start of electricity connection. In other words, the selling price for all of the photovoltaic energy
generation facilities remains fixed for 20 years after the start of electricity connection. Furthermore, the same rules
apply to photovoltaic energy generation facilities owned by Takara Leben Co., Ltd (hereinafter referred as“sponsor”) by whom the Investment Corporation are entitled to the first refusal rights agreement, and sponsor’s
developing and planning facilities (hereinafter referred as “sponsor’s portfolio”) as well.
Thereby, photovoltaic energy generation facilities owned by the Investment Corporation and sponsor’s portfolio
have been guaranteed at fixed procurement price for 20 years after the start of electricity connection. TheInvestment Corporation assumes that the effect of the possible price digression is insignificant to the operation of
the investment corporation.
The Investment Corporation discloses a forecast of the operation based above assumptions.
End.

TIF Website: http://tif9281.co.jp/en/