Ticker

9284

14 th FP（ended June 2024）

Asset Manager
Canadian Solar Asset management K.K.

Presentation Materials
Canadian Solar Infrastructure Fund, Inc.

Table of Contents
1.Financial Highlights ・・・・・・・・・・・・・・・ 2
Financial Highlights of 14th
FP ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Analysis of Operating Revenues in the 14th FP・・・・・・・・・・・・・・・・・・・・・・・

c. ESG・・・・・・・・・・・・・・・・・・・・・・・・・・・・

36

ESG Initiatives (UN PRI・ESG Report)・・・・・・・・・・・・・・・・・・・・・・・・・・
ESG Initiatives (Green Finance)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

37
38
39

3. Earnings Forecast・・・・・・・・・・・・・・・・・

40

15th, 16th & 17th FP Earnings Forecast
Impact of New Financial Policy on Distributions（Including estimation of EPU improvement through repurchase of investment
units）・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・<Ref.> Trend of Investment Unit Price・・・・・・・・・・・・・・・・・・・・・・・・・

41

3
4
Portfolio Power Generation Performance ・・・・・・・・・・・・・・・・・・・・・・・・・・ 5
AUM Snapshot ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6
Portfolio Diversification・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7
Asset List ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8
Impact of curtailment and installing online curtailment
controller・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
Output Curtailment Outlook・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11
Unit Price Performance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12
Historical and Forecasted
13
Dividend・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2.Mid- to Long-term Strategy ・・・・・・・・・・・ 14

Appendix・・・・・・・・・・・・・・・・・・・・

History from the
IPO・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15
CSIF’s Mid- to Long-term Strategy (1) -・・・・・・・・・・・・・・・・・・・・・・・・・・ 16

a.

a-1.

a-2.

ESG Initiatives（TCFD・SFDR）・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Canadian Solar Group’s Global Operations（1） ・・・・・ ・・・・・・・・・・・・・・・・
Canadian Solar Group’s Global Operations （2） ・・・・・・・・・・・・・・・・・・・・・

42
43

45
46
47

Mid- to Long-term Strategy(Management Strategy)・・・・・・・・・・・・・・・・・・ 17

Value Creation using the Sponsor Group’s Vertically Integrated Model (manufacturer,
developer, AM・O&M) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

48

CSIF’s Mid- to Long-term Strategy (2)Renewable Energy Market Conditions・・・・・・・・・・・・・・・・・・・・・・・・・・
CSIF’s Mid- to Long-term Strategy (3)Management Strategy 1・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Overview of Medium-Term Management Plan
“VISION 2030”・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

18

Organizational Structure・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

19

Asset List– Operational Result for 14th FP・・・・・・・・・・・・・・・・・・・・・・・・・

49
50

CSIF’s Mid- to Long-term Strategy (4)Management Strategy 2 (External Growth)・・・・・・・・・・・・・・・・・・・・・・・・
External Growth Strategy（Pipeline）・・・・・・・・・・・・・・・・・・・・・・・・・・・
Abundant Pipeline Centered on Sponsor-Developed Assets Assisting CSIF’s
Growth・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・～VISION 2030～
Acquisition of C-PPA projects・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

22
23
24

20

Management Strategy(External Growth)・・・・・・・・・・・・・・・・・・・・・ 21

25

Management Strategy(Internal Growth)・・・・・・・・・・・・・・・・・・・・・ 26
CSIF’s Mid- to Long-term Strategy (5)Management Strategy 3 (Internal Growth)・・・・・・・・・・・・・・・・・・・・・・・・[Reference] Preferential Measures for Output Curtailment for Storage Battery Utilization
Companies・・・・・・・・・・・・・・・・・・・・
Initiatives for Internal Growth・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

27
28
29

b.Financial Strategy・・・・・・・・・・・・・・・・・・・・・ 30
CSIF’s New Financial Policy (Cash Management Policy)(1)・・・・・・・・・・・・・・・・・ 31
CSIF’s New Financial Policy (Cash Management Policy)(2)・・・・・・・・・・・・・・・・・ 32
Initiatives Based on Cash Management Policy(Repurchase of investment units and New property acquisitions) ・・・・・・・・・・・・・

33

Debt Profile (1) – LTV, Fixed-to-variable interest rate ratio, DSCR and Credit
Rating・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Debt Profile (2) –Summary of Loans and Bonds・・・・・・・・・・・・・・・・・・・

34
35

CS Azuma Kofuji Power Plant, the largest Sponsor-developed project, has been transferred to
the Bridge Fund・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

52

Expand pipeline by utilizing the development capabilities of the sponsor
group・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

53

ESG Initiatives (Environment) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
ESG Initiatives (Social)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
ESG Initiatives (Governance)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Status of Unitholders ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Balance Sheet for 14th FP・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Statement of Income for 14th FP ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

54
55
56
57
58
59

Distributions based on stable cash flow under the FIT
system・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

60

Overview of curtailment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

61

Capacity increase of cross-regional interconnection lines
to reduce curtailment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

62

Main Points of the Revised Renewable Energy Act（1）・・・・・・・・・・・・・・・・・・

63

Main Points of the Revised Renewable Energy Act（2）・・・・・・・・・・・・・・・・・・

64
65
66

Main Points of the Revised Renewable Energy Act（3）・・・・・・・・・・・・・・・・・・
Disclaimer・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1

1. Financial Highlights

2

Financial highlights of 14 th FP
Actual energy output in the 14th FP was impacted by some unfavorable weather conditions and curtailment
imposed during the period, in particular, in Kyushu area in April, and fell short of the initial forecast. As a result,operating revenues was JPY4,367Mn, a decrease of JPY133Mn compared to the initial forecast.

Operating expense reduced due mainly to reduced repairment costs and non-operating expenses reduced due
mainly to reduction in borrowing related costs. As a result, net income was JPY1,361Mn, a decrease of JPY42Mn
compared to the initial forecast. Consequently EPU was JPY3,013, a decrease of JPY 94 from the initial forecast.
(Distribution in excess of earnings will be increased by JPY94 and the final DPU will be JPY3,775, unchanged fromthe initial forecast)Statement of Income
Data(million yen)

13th FP
Actual14th FP (ended June. 2024)
Forecast@Feb.15,2024

ActualIncrease /(Decrease)(vs Forecast)

Operating revenues

4,537

4,500

4,367

(133)

Operating income

1,846

1,671

1,608

(63)

Income before income taxes

1,386

1,404

1,361

(42)

Net income

1,385

1,403

1,361

(42)

Distribution per unit
(including distributions in excessof earnings)

3,750 yen

3,775 yen

3,775 yen-

Distributions per unit
(excluding distributions in excessof earnings)

3,067 yen

3,107 yen

3,013 yen

(94 yen)Distributions in excess of earnings
per unit

683 yen

668 yen

762 yen

94 yenVariance (vs. forecast)
Operatingrevenues

Operatingexpenses

Increase in variable
(133)
rent
Decrease in;
Repairment costs,

38

Other costs

15

NonDecrease in finance
operatingcost including
incomes andinterest expenses
expenses123

Analysis of Operating Revenues in the 14th FP
 In the 14th FP, January, March and June recorded surplus power generation, but because power generationin other months fell short of the initial forecast due primarily to curtailment, total rent income was
JPY4,367 down JPY133Mn from the initial forecast.

Transition of rent income for the 14th FP (period-ended Jun. 2024)
Million yen

Variable rent
losses bycurtailment

5,000

159

4,500

Rent increase
based onassumed full
power
generation

4,000

4,500

352

60
Settlement
amount by proxy
output curtailment(fixed amount)

4,367

3,500

3,000

期初予想賃料
Initialprojected rent

(Note) Proxy output curtailment means that when the actual output curtailment is carried out, the online control operator performs the output
curtailment that should be performed by the offline control operator instead, and under the law, the online control operator is deemed to havegenerated and supplied the electricity, and the online control operator will receive the adjustment amount at a later date, which will be calculated
based on the consideration at the procurement price applicable to there own power generation facilities.

実績賃料
Actualrent

4Portfolio Power Generation Performance Although actual energy output in the 14th FP improved from the 12 th FP, the result fell short of theforecast impacted by some unstable weather conditions and curtailment imposed during the period.
 14th FP actual energy output ÷ projected energy output = 95.34%(12th FP (corresponding period of the previous year): 88.05%)
 14th Fiscal Period（January 2024～June 2024）
Projected energy output(MWh)30,00025,00020,00015,00010,0005,000
0105.3%

15,99615,187

Jan.

91.4%

16,749Actual energy output
101.9%

22,621

22,18825,71025,657

Mar.

105.6%

24,597

19,82715,302

Feb.

95.7%

77.3%

Apr.

May.

100.7%

105.4%

23,052

21,830Jun.

 13th Fiscal Period（July 2023～December 2023）
Projected energy output(MWｈ)30,00025,00020,00015,00010,0005,000
0106.8%
24,40326,070

Jan.
7月

97.5%
26,641

25,974Feb.
8月

Actual energy output
96.8%
22,21521,503Mar.
9月

21,09921,244Apr.
10 月

16,67917,582

May
11 月

97.8%
14,541

14,223

Jun.
12 月

5

AUM Snapshot
 A summary of AUM as of the end of 14 th FP. The Fund has 31 power plants with total panel output ofapprox. 226MW and the total acquisition price is approx. JPY97Bn<Portfolio as of the end of 14 th FP># of projects

Panel output
of AUM

31 projects
226.4 MW

 Historical valuation and book value(after depreciation)

Total
acquisition
price as of theend of 14th FP
Total valuation
price(Note) as ofthe end of 14thFP

Valuation price

90.00¥97.0 Bn

79.03 77.17

80.00
70.00
60.00
50.00

47.09

30.00
20.00

49.58
50.02 51.49
48.89

35.96

40.00 33.86¥87.0 Bn

Book value

74.87 88.75 87.08
76.36
75.51

85.39 83.69
73.86
72.41
75.27
71.03 69.59

45.57
42.67
45.35
46.47
42.07

30.44 31.11

 Track Record of Consistent External Growth and Target of asset size (Acquisition price basis)（bn yen）

Third PO + 13th FP acquisitions

IPO acquisitionsFirst PO

Second PO

13 projects / 72.7MW

3 projects / 30.3MW

2 projects / 60.9MW

Third PO

5 projects / 41.4MW/¥16.7bn

13th FP acquisitions

1 project / 1.1MW/¥0.2bn

17.0
11.5

1.0
30.1

31.1

IPO

End of
2nd FP

上場時
2017年10月(Oct. 2017)

第2期（2018年6月）(June. 2018)

30.6

0.9

4.6

1.3

80.0

42.6

43.9

48.5

48.5

49.4

End of
3rd FP

End of
4th FP

End of
5th FP

End of
6th FP

End of
7th FP

第3期（2018年12月）(Dec. 2018)

第4期（2019年6月）(June. 2019)

第5期（2019年12月）(Dec. 2019)

第6期（2020年6月）(June. 2020)

20.0

第7期
（2020年12月）(Dec. 2020)

End of
8th FP
第8期（2021年6月）(June. 2021)

80.0

80.0

80.0

80.0

End of
9th FP

End of10th FPEnd of11th FPEnd of12th FP

第9期（2021年12月）(Dec. 2021)

第10期（2022年6月）(June. 2022)

第11期（2022年12月）(Dec. 2022)

第12期（2023年6月）(June. 2023)

97.0

第13期
（2023年12月）

End of13th FP(Dec. 2023)

97.0

End of14th FP
第14期（2024年6月）(June. 2024)

Prev. Mid-term
Target（note）(Note): The term “valuation price ”refers to the intermediate value of power plants whose property numbers in the Asset List on page 8-9 are S-01 through S-18 estimated by CSIF, based on the valuationsof power plants at the end of June. 2024 calculated by PricewaterhouseCoopers Sustainability LLC. As for power plants S-19 through S-30, “valuation price” is the median value calculated by
Kroll, LLC at the end of June. 2024, and for power plant S-31, “valuation price ” is estimated by CSIF, based on the valuations of power plants at the end of June. 2024 calculated by Japan Real
Estate Institute.

6

Diversified PortfolioSince the IPO, CSIF has reduced its concentration risk of assets under management byconsistently acquiring PV projects.
The remaining FIT period is also diversified over a long period of time, aiming to build aportfolio that will support stable cash flows in the future.
Changes in portfolio income diversification (panel output basis)
End of 12th FP（ended June. 2023）

At IPO

TBU

3.5%

65.6%

5.4%
CS Mashiki-machi PP
CS Minami Shimabara-shi PP (east & west)
CS Hiji-machi PP

End of 14th FP（ended June. 2024）

23.6%

29.0%

21.1%

14.8% 25.9%

12.1%

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP

CS Daisen-cho PP (A & B)

CS Daisen-cho PP (A & B)

Remaining FIT period of CSIF portfolio (panel output basis)
（MW）

100.0
80.0

¥40/kWh
40円/kWh
32円/kWh¥32/kWh
21円/kWh¥21/kWh¥36/kWh
36円/kWh
24円/kWh¥24/kWh¥18/kWh
18円/kWh

Projects reaching FIT expiration after 2034
6.0

60.0
40.0
20.0
0.0
2024

0.9
2.3

51.2
FIT period: 10 years

1.2

6.3
11.9

2034

2035

3.0
1.7
2036

27.3
2037

53.4
12.9
2038

2039

21.0
22.2
3.3
2040

1.1
2041

2042

7

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

AcquisitionPrice(million yen)

Valuation Price(million yen)
(Note)

540

411

0.5%

1,224.00

Portfolio%

Panel
Output(kW)

Electric
Power
service area

Curtailment
rules

Onlinecurtailment
system status

40

Kyushu30-day rule○○FIT Price
(yen)

S-01

CS Shibushi-shi Power Plant

Shibushi-shi,
Kagoshima

S-02

CS Isa-shi Power Plant

Isa-shi, Kagoshima

372

272

0.3%

931.7740

Kyushu30-day ruleS-03

CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

907

777

0.9%

2,127.84

40

Tokyo

30-day rule

S-04

CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

778

563

0.7%

2,013.99

36

Kyushu30-day rule

○

S-05

CS Yusui-cho Power Plant

Aira-gun,Kagoshima

670

485

0.6%

1,749.30

36

Kyushu30-day rule

○

S-06

CS Isa-shi Dai-san Power Plant Isa-shi, Kagoshima

949

703

0.8%

2,225.08

40

Kyushu30-day rule

○

S-07

CS Kasama-shi Dai-ni Power
Plant

Kasama-shi, Ibaraki

850

669

0.8%

2,103.75

40

Tokyo

30-day rule

S-08

CS Hiji-machi Power Plant

Hayami-gun, Oita

1,029

758

0.9%

2,574.99

36

Kyushu30-day rule

○

989

739

0.9%

2,347.80

40

Kyushu30-day rule

○

1,733

1,356

1.6%

3,928.86

40

Kyushu30-day rule

○

1,018

862

1.0%

2,448.60

32

Tokyo

30-day rule

514

432

0.5%

1,336.32

36

Tokyo

30-day rule

19,751

17,67820.3%

47,692.62

36

Kyushu30-day rule

246

200

0.2%

636.0032

Tohoku30-day rule

746

573

0.7%

1,930.50

32

Chugoku

30-day rule○

Ashikita-gun,
Kumamoto
Shimabara-shi,
NagasakiChichibu-gun,
SaitamaTagata-gun,Shizuoka
Kamimashiki-gun,
Kumamoto
Koriyama-shi,
Fukushima
Tsuyama-shi,
Okayama

S-09

CS Ashikita-machi Power Plant

S-10

CS Minamishimabara-shi
Power Plant (East & West)

S-11

CS Minano-machi Power Plant

S-12

CS Kannami-cho Power Plant

S-13

CS Mashiki-machi Power Plant

S-14

CS Koriyama-shi Power Plant

S-15

CS Tsuyama-shi Power Plant

S-16

CS Ena-shi Power Plant

Ena-shi, Gifu

757

627

0.7%

2,124.20

32

Chubu

360-hour rule

○

S-17

CS Daisen-cho Power
Plant(A)(B)

Saihaku-gun,Tottori

10,447

8,501

9.8%

27,302.40

40

Chugoku

30-day rule

○

S-18

CS Takayama-shi Power Plant

Takayama-shi, Gifu

326

262

0.3%

962.2832

Chubu

360-hour rule

○

S-19

CS Misato-machi Power Plant

Kodama-gun,
Saitama

470

380

0.4%

1,082.88

32

Tokyo

30-day rule

S-20

CS Marumori-machi Power
Plant

Igu-gun, Miyagi

850

670

0.8%

2,194.50

36

TohokuUnlimited andUncompensated
rule

○

○

8

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

AcquisitionPrice(million yen)

Valuation Price(million yen)
(Note)

S-21

CS Izu-shi Power Plant

Izu-shi, Shizuoka

4,569

3,939

4.5%

10,776.80

S-22

CS Ishikari Shinshinotsumura Power Plant

Ishikari-gun, Hokkaido

680

540

0.6%

S-23

CS Osaki-shi Kejonuma
Power Plant

Osaki-shi, Kejonuma

208

174

S-24

CS Hiji-machi Dai-ni Power
Plant

Hayami-gun, Oita

27,851

S-25

CS Ogawara-machi Power
Plant

Shibata-gun, Miyagi

S-26

CS Fukuyama-shi Power
Plant

S-27

Panel
Output(kW)

Electric
Power
service area

Curtailment
rules

36

Tokyo

30-day rule

2,384.64

24

Hokkaido

0.2%

954.9921

Tohoku25,66329.5%

53,403.66

40

Kyushu30-day rule

○

2,745

2,484

2.9%

7,515.35

32

TohokuUnlimited andUncompensatedrule○

Fukuyama-shi,
Hiroshima

1,340

1,305

1.5%

3,316.95

40

Chugoku

30-day rule○

CS Shichikashuku-machi
Power Plant

Katta-gun,
Miyagi

3,240

3,542

4.0%

9,213.12

36

Tohoku30-day rule

○

S-28

CS Kama-shi Power Plant

Kama-shi,
Fukuoka

586

565

0.7%

2,242.96

36

KyushuS-29

CS Miyako-machi Saigawa
Power Plant

Miyako-gun,
Fukuoka

5,780

5,830

6.7%

13,011.20

36

Kyushu

S-30

CS Kasama-shi Dai-sanPower Plant

Kasama-shi,
Ibaraki

5,840

5,866

6.7%

13,569.36

32

Tokyo

30-day ruleS-31

CS Yamaguchi-shi Power
Plant

Yamaguchi-shi,
Yamaguchi-ken

230

249

0.3%

1,107.60

18

Chugoku

Unlimited andUncompensatedrule

97,01787,080100.00%226,434.31

-

-

-

Portfolio Total

Portfolio%

FIT Price(yen)

Unlimited andUncompensatedrule
Unlimited andUncompensatedrule

Unlimited andUncompensatedrule
Unlimited andUncompensatedrule

Onlinecurtailment
system status
15 th FP
(Scheduled)
○
○

○
○

○
-

(Note): The term “valuation price ”refers to the intermediate value of power plants whose property numbers in the Asset List on page 12 are S-01 through S-18 estimated by CSIF, based on the valuations of
power plants at the end of June. 2024 calculated by PricewaterhouseCoopers Sustainability LLC. As for power plants S-19 through S-30, “valuation price” is the median value calculated by
Kroll, LLC at the end of June 2024, and for power plant S-31, “valuation price ” is estimated by CSIF, based on the valuations of power plants at the end of June. 2024 calculated by Japan Real Estate
Institute.

9Impact of curtailment and installing online curtailment
controller■ Impact of curtailment on CSIF
Number of days of curtailment

7th Fiscal Period(period-ended
Dec. 2020)
2 days

8th Fiscal Period(period-ended
Jun. 2021)
90 days

9th Fiscal Period(period-ended
Dec. 2021)
22 days

10th Fiscal Period(period-ended
Jun. 2022)
41days11th Fiscal Period(period-ended
Dec. 2022)
7 days12th Fiscal Period(period-ended
Jun. 2023)
93 days

13th Fiscal Period(period-ended
Dec. 2023)
50 days

14th Fiscal Period(period-ended
Jun. 2024)
91 daysNumber of times CSIF power
plants underwent curtailment

1

206

96

136

24

691

151

494

Estimated variable rent losses(thousand Yen)
Ratio of estimated variable
rent losses to projected rental
revenues

95

320,420

91,821

114,722

19,773

857,252

99,413385,9130.004%

9.47%

2.46%

3.10%

0.53%

23.24%

2.22%

8.57%

Generally, the number of curtailment tends to increase in early spring when supply and demand slacken.
Although the number of curtailment at power plants subject to the unlimited and uncompensated ruleincreased significantly, actual variable rent reduction (vs forecast) are within a certain extent■ Rationale behind installing online curtailment controller
Transition from all-day curtailment to hourly
curtailment with the introduction of online
curtailment controller, it is possible to limit
curtailment to peak hours only

OutputHours subject
to curtailment

Offline output curtailment(all-day curtailment)

OutputCurtailment limited
to peak hours only

Full day output curtailment
regardless of peak hours
7時 8am
8時 9am10am
9時 10時11時12時13時14時15時16時
7am
11am12pm1pm 2pm 3pm 4pm 17時
5pm

Online output curtailment(hourly curtailment)

Time

7時
10時11時12時13時14時15時16時
7am 8時8am 9時9am10am
11am12pm1pm 2pm 3pm 4pm17時
5pm

Time

Reduction of electricity sales loss by installing a curtailment controller■ Promotion of installing online curtailment controller in power plants located in Kyushu

Electric Power Transmission and Distribution Co., Inc. and other distributors

Output curtailment has commenced in many grids across Japan; In addition to Kyushu Electric Power Transmission and Distribution
Co., Chugoku Electric Power Transmission & Distribution Co., Inc. and Shikoku Electric Power Transmission & Distribution Company,
Incorporated as of April 2022, Hokkaido Electric Power Network, Inc. as of May 2022, The Okinawa Electric Power Company, Inc. asof January 2023, Chubu Electric Power Grid Co.,Inc. as of April 2023 and The Kansai Electric Power Company, Inc. as of June 2023.
CSIF has already installed online curtailment controller for solar power plants in Kyushu region, and has been actively installing
online curtailment controllers to other region to reduce negative impact from curtailment.

10Output Curtailment Outlook■

Initiatives to reduce curtailment of renewable energy power output
METI’s “Mass Renewable Energy Introduction / Next Generation Energy Network Committee” convened a meeting in June21, 2023, in which experts agreed to compile new countermeasure packages for the reduction of curtailment of renewableenergy power output within 2023 after broadly discussing possible actions to be taken each for supply, demand and grid.
On December 19, 2023, the subcommittee introduced a “Renewable output curtailment countermeasure package” which
outlines the following.

Demand-side countermeasures

Supply-side countermeasures

Household sector

 Further promotion of online conversion of renewable facilities
 Lowered minimum output of newly-built thermal plants (50% to30%), request existing thermal plants to follow suit
 Lowered output of unregulated power supply in surrounding
areas of sectors that are undergoing output curtailment
 Boost operational efficiency of thermal power plants
 Optimize output curtailment by utilizing hydroelectric energy
 Promote FIP to stimulate renewable energy to better adapt toenergy demand/supply fluctuations in the market

 Stimulating demand (and transition) by introducing residential
solar battery storage, heat pump water heaters, among others
 DR Readiness of equipment (installation of communication
control devices) Promote consumer behavioral changes to utilize demand-side
resources (initiatives to stimulate demand during output
curtailment)

Industrial sector

 Grid: Stimulate demand of and transition towards usage ofbattery storages, (renewable) adjacent battery storages, andhydrogen electrolyzers
 Corporates: Promote battery storages and provide assistance for
installing communication control devices
 Promote DR for furnaces used by energy-intensive industries
 Introduce new locations and/or alter demand dynamics forenergy-intensive industries to adapt to new supply/demand
dynamics■

Grid countermeasures
Grid reinforcement
 Expand intra-region grid transmission by revamping current
interconnection operations
 Expand intra-region grid transmission by reinforcing crossregional interconnection lines
Energy market dynamics (medium-long term agenda) Adjust and stimulate demand/supply through chained price index
mechanism

Initiatives to reduce curtailment of renewable energy power output
Against the backdrop of the lack of timely and accurate disclosures by some electricity transmission and distribution
companies, we submitted a questionnaire and opinion letter to these companies through the Listed Infrastructure Council(formed in Nov. 2023) in order to obtain more transparency.
11

Unit Price Performance

Since the beginning of 2024, the TSE REIT Index and the TSE Infrastructure Fund Index have been sluggish incontrast to the upward trend of the Nikkei Average, affected by investors’ funds outflow from yield products
to equities against a backdrop of the outlook for higher interest rates.



TSE Infrastructure Fund Index remains on a downward trend, affected by some media reports on renewableenergy including the articles in June reporting that the Japanese government is considering mandatory
recycling of used solar panels.
(Yen)
(円)
150,000

CSIF
Investment Unit Trading Volume
本投資法人の出来高（右軸）(Right axis)
日経平均（左軸）
NikkeiAverage (Left axis)

CSIF
Investment Unit Prices (Left axis)
本投資法人投資口価格（左軸）

TSEInfrastructure Fund Index (Left axis)
東証インフラファンド指数（左軸）(口)(Unit)TSE
REIT Index (Left axis)
東証REIT指数（左軸）10,000145,000

9,000

140,000

8,000

135,000

7,000

130,000

6,000

125,000

5,000

120,000

4,000

115,000

3,000

110,000
105,000

2,000

100,000

1,000

95,0002023/702023/82023/92023/102023/112023/122024/12024/22024/32024/42024/5

Source: Tokyo Stock Exchange, Inc.
Note: The figures for TSE Infrastructure Fund Index, Nikkei Average and TSE REIT Index are normalized based on the closing price of CSIF investment unit priceas of July 3, 2023, showing the fluctuations since July 3, 2023.

2024/6

12

Historical and Forecasted Dividend
 CSIF has maintained stable distributions ever since it realized a distribution of JPY3,600 per
unit for the 3rd FP
 CSIF distributed JPY 3,775 per unit in 14 th FP, an increase of 25 yen from the previous period

（yen）

4,500
4,000

3,600

3,500

3,650

577

3,000
2,500

3,650

3,700

3,700

708

601

1,340

1,817

3,700

3,750

924

848

2,000

3,750
612

3,750

1,156

3,750

3,775

683

762

3,067

3,013

13th FP

14th FP

3,903
3,073

1,500
1,000

3,903

2,310

1,783

2,992

3,099

6th FP

7th FP

2,776

2,902

8th FP

9th FP

3,138

2,594

500
0

3rd FP

4th FP

5th FPDPU (excl. distributions in excess of earnings)

10th FP

11th FP

12th FPPer unit distributions in excess of earnings

13

2. Mid- to Long-term Strategy

14

History from the IPO
 Since the IPO, CSIF has continuously acquired high-quality solar power plants andachieved steady growth in DPU/EPU with the aim of maximizing unitholders’ value.
At IPO

Portfolio

Earnings
Indicator

Financial
Indicator

Asset Size
(Acquisition
price basis)

DPU / EPU

¥30.1Bn¥97.0Bn Through 3 POs, the asset
size has grown more than
3.2 times since listing.

3,650 yen
/ 2,540 yen

3,775 yen
/3,107 yen Achieving steady DPU/EPU
growth through continuous
external growth.

JCR：A（Stable）
R&I：A-（Positive）

 New ratings received from
JCR in 2019 and R&I in
2020.

（Forecast for 4th）

CreditRatings

End of 14th FP（ended June. 2024）-（Forecast for 14th）15

CSIF’s Mid- to Long-term Strategy (1) - Summary In light of the ever-changing renewable energy market environment, CSIF aims to maximize
unitholders’ value through policies based on (1) management strategy and (2) financial
strategy

Financialstrategy

Change the use of funds on handunder new cash management policy

Aiming to maximize unitholders’ value

Management
strategy

Study and design flexible management
initiatives that meet emerging trends inthe renewable energy market

16

a. Mid- to Long-term Strategy(Management Strategy)

17

CSIF’s Mid- to Long-term Strategy (2)Renewable Energy Market EnvironmentAt the time of CSIF’s IPO, the renewable energy market was in the inception phase of the FIT system with most projects
having a few years of operation and high FIT. Currently, the “secondary market” is growing parallel with the increase in
the number of solar power plants under the FIT system.
At the moment, the market has some uncertainties in terms of profitability and the business model in the Post-FIT phase.
On the other hand, business opportunities in the Post-FIT phase can be found in areas such as repowering, storage
battery and FIP/Corporate PPA (“CPPA”) projects backed by the ongoing technological innovations reducing costs andgrowing demand for renewable energy.
IPO

Present

10 years

15 years

20 years
Factors affecting CSIF
in the Post-FIT phase

Market expansion
through high FIT projects

Many projects having only few yearsof operation and high FIT•

Gradually expanding ”secondary
market” of solar power plants

Renewable
EnergyMarketEnvironment•••

Reducing remaining life in FIT period, and declining
selling price expected in the Post-FIT phase.
Potential change in regulation such as reserve
requirement for future panel recycling.
Non-extension of the conduit requirements for thecurrent 20-year corporate tax exemption period after
the IPO.

Expanding business opportunities
in the Post-FIT phase•

Increasing “FIP/C-PPA projects” along with growing demand
for renewable energy•

Increasing “Repowering projects” and “active use of storage
batteries” in line with the Japanese government’s policy ofcontinuous use of renewable power facilities

Post-FIT Phase•

18

CSIF’s Mid- to Long-term Strategy (3) Management
Strategy 1CSIF has formulated the following mid-to long-term management strategy amid the changing business environment,
where business opportunities are shifting from FIT-focused projects to Post-FIT and FIP/CPPA projects.
While CSIF continues to focus on growing its AUM to improve “Market capitalization,” “Liquidity” and “Investor base”
primarily by acquiring high-FIT projects, simultaneously prepare for Post-FIT phase by gradually investing into newareas such as FIP/CPPA projects.
Furthermore, CSIF aims to underpin future revenues in the Post-FIT phase through upgrading existing power plants byrepowering and/or adding storage facilities.
IPO

Present

10 years

20 years

15 years

CSIF’s
Mgmt.
Strategy•

Increase market cap.

•

Enhance liquidity•

Expand investor base

Identifying New
Revenue Source

Preparation for the
Post-FIT phase

Growing AUM•

Transform the revenue
model toward the PostFIT phase••

Promote power sales inview of the Post-FIT phase
Diversify revenue sources
covering selling pricedeclineInitiatives:
External growth focusing
primarily on high-FIT projects•

In addition to the “Sponsor
pipelines”, actively look at
acquiring “third-party developed
projects”

Acquisition of FIP/CPPA
projects•

In addition to FIT projects, •acquire “FIP/CPPA
projects”

Upgrade existing plants
to underpin profitability
Replace assets in theportfolio; Repowering of oldpanels; Install battery storage
facilities

Aiming to maximize unitholders’ value

Objectives:

19Overview of Medium-Term Management Plan
"VISION 2030"
 CSIF set the Medium-Term Management Plan “VISION 2030” in order to enhance unitholders’value and lay the foundation for the continued growth in the Post-FIT Phase.
Period of change
2030～2040

The first stage
IPO～Present“Vision 2030”
Present～2030

A business entitywith sustainable
operation andcontinued growth

Basic Strategy of “VISION 2030”
Growing AUM
Diversifying sourcing channels

Acquiring CPPA projects

Repowering of existing plants
Conversion from FIT to FIP withbattery storage facilities

2030 Medium-Term Targets
Dividends Growth

Asset Size

Reach ¥300Bn

3% Growth in EPU at thetime of new PO to acquire
new assets

Credit Ratings

Achieve
AA category rating20

a-1. Management Strategy(External Growth)

21

CSIF’s Mid- to Long-term Strategy (4)Management Strategy 2 (External Growth)

In response to the expanding secondary market, CSIF has been actively acquiring "third-party developed projects" in addition tosponsor-developed properties. Sponsor Group has won bids* totaling ~180MW of mega solar power projects, which have beencertified under the FIT/FIP systems, and is expected to continue offering solid pipeline to CSIF.
In an environment where FIT prices are decreasing and installation costs of solar power generation facilities are falling as a resultof technological innovations, the CPPA market is expected to grow against the backdrop of strong demand for renewable energy
from corporate users. Under such circumstances, CSIF plans to prepare for the future market by acquiring FIP/CPPA projects andalso looking into possible collaboration with corporate off-takers.

[External Growth Strategy]
CSIF management growth strategy

Market environment for renewable energy

Expandingsecondarymarket forsolar power
generation
facilities

Cumulative size of the secondary
market for solar power
generation facilities

(GW)
22.7

27.9

33.3

38.5

43.5

79.4

49.2

FY22
FY23
FY24
FY25
2020年度 2021年度 2022年度
2023年度
2024年度
2025年度
FY20
FY21
(E)
(P)
(P)
(P)
見込み
予測
予測
予測

FY30
2030年度(P)
予測

External
growthfocusing
primarilyonhigh-FIT
projects

Sponsor
Pipeline

345.8MW

Third-party
developed
projects

45.8MW* Prepared by CSIF based on “Renewable Energy Market in 2030: Solar Power Generation”
published by Yano Research Institute(JPY100mn)
Increasing
the numberof “FIP/CPPA
projects”

10

Projected size of domestic PPA
service market

38

94

175

255

700

350

2020年度 2021年度 2022年度
2023年度
2024年度
2025年度
FY22
FY23
FY24
FY25
FY20
FY21
（予測）
（予測）
（予測）
(（見込）
E)
(P)
(P)
(P)

Acquisitionof FIP/CPPA
projects
2030年度
FY30
（予測）
(P)

Investing in
FIT projects
with diverse
price ranges

Investing in
FIP/CPPA
projects*Prepared by CSIF based on “2022 Current Status and Future Prospects of Renewable
Energy introduced via a PPA scheme" published by Yano Research Institute※ As of the end of July 2024

22

External Growth Strategy（Pipeline）(Pipeline including projects owned by Bridge Fund, the numbers are as of June 30, 2024)
 Accelerating AUM growth in the medium term by acquisitions of third-party development
projects, in addition to acquisitions from abundant sponsor pipeline
Sponsor-Developed Assets

19 projects, 292.9MW

Third Party-Developed Assets

Total portfolio

2 projects, 47.0MW

21 projects, 339.9MW

 Pipeline List
Project name

 Pipeline snapshot
Location

Panel Output (kW)Developer
SponsorIbaraki

11.3

CS Hiroshima Suzuhari PP

Hiroshima

17.8

SponsorCS Azuma Kofuji PP

Fukushima

100.0

SponsorCS Yamaguchi Hofu PP

Yamaguchi

8.0

Sponsor

CS Gunma Takasaki KG PP

Gunma

24.5

Sponsor

CS Tochigi Kitsuregawa PP

Tochigi

1.2

Sponsor

CS Tottori Daisen Dai-ni PP

Tottori

1.9

Sponsor

CS Gunma Minakami Dai-ni PP

Gunma

2.2

SponsorOita

8.1

Sponsor

CS Ibaraki Takamihara PP

Ibaraki

1.2

SponsorCS Okayama Shinyubara PP

Okayama

28.8

Sponsor

CS Gunma CC PP

Gunma

21.0

SponsorFukushima

3.0

Sponsor

CS Aomori Maita PP

Aomori

3.0

SponsorCS Shizuoka Gotenba PP

Shizuoka

SponsorCS Nagano Omachi PP

Nagano2.0
3.0

CS Fukushima Ishikawa PP

Fukushima

19.4

SponsorCS Ishikawa Chausuyama PP

Ishikawa

8.9

SponsorCS Kumamoto Ueki PP

Kumamoto

27.1

Sponsor

CS Chiba Sakura PP

Chiba

1.2

Third Party

CS Tochigi Yuzukami Kita PP

Tochigi

45.8

Third Party

CS Ibaraki Kurusu PP

CS Oita Munechika PP

CS Fukushima Sabara PP

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

SponsorBy size (per asset)
50MW -

1

4

10MW - 50MW

85
3

5MW - 10MW

2MW - 5MW

- 2MW

23

Abundant Pipeline Centered on Sponsor-Developed
Assets Assisting CSIF’s Growth● Operational● Under construction● Under development

Lower row in each box ; size (MW)/ FIT
price in JPY/ anticipated COD

Pink box for sponsor development
projects held by bridge FundBlue box for third-party development
projects held by bridge Fund

CS Tottori Daisen Dai-ni PP
1.9 MW/PPA/2024
CS Okayama Shinyubara PP
28.8 MW/13.47/2025

CS Aomori Maita PP
3.0 MW/10.89/2025

CS Gunma Takasaki KG PP
24.5 MW/14.49/2023
CS Gunma CC PP
21.0 MW/11.99/2028
CS Gunma Minakami Dai-ni PP
2.2 MW/18/2023
CS Nagano Omachi PP
3.0 MW/10.14/2025
CS Ishikawa Chausuyama
PP8.9MW/24/TBD

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

CS Fukushima Ishikawa PP
19.4MW/FIP/2026
CS Tochigi Kitsuregawa PP
1.2 MW/32/2023
CS Ibaraki Kurusu PP
11.3 MW/24/2022

CS Chiba Sakura PP
1.2MW/21/2023

CS Yamaguchi Hofu PP
8.0 MW/14.25/2023(as of June 30, 2024）

CS Azuma Kofuji PP
100.0 MW/36/2022

CS Ibaraki Takamihara PP
1.2 MW/PPA/2024

CS Hiroshima Suzuhari PP
17.8 MW/17.97/2022

CS Oita Munechika PP
8.1 MW/32/2023

CS Fukushima Sabara PP
3.0 MW/10.79/2026

CS Shizuoka Gotenba PP
2.0 MW/27/2023

CS Tochigi Yuzukami Kita PP
45.8MW/36/2023

CS Kumamoto Ueki PP
27.1MW/32/2025

24

～VISION 2030～
Acquisition of C-PPA projectsAcquire profitable solar power plants even if applicable FIT prices are lower, by diversifying sourcing
channels in the secondary market.
Secure income source for the Post-FIT phase by acquiring CPPA projects.
Japan's Renewable Energy Potential Compared to the World
Although Japan ranks second in the world in the number of companies
participating in RE100, the utilization rate of renewable energy is low,
and there is a possibility that the demand for renewable energy use
by companies will increase further in the future.
RE100 Participants by Country (Top 10 Countries)
America
Japan
UK
Korea
TaiwanGermany
Australia
Switzerland
FranceNetherlands
India

17
17
15
13
10
10

25

31

49

80

98

Switzerland
Netherlands
Germany
UK
FranceAmerica
Japan
India
Korea
Taiwan9%4%

出所： RE100HP（2023年12月末時点）

Examples of CPPA in JapanGUELPH, ON, June 17, 2024 /PRNewswire/ -- Canadian Solar Inc. (the"Company", or "Canadian Solar") (NASDAQ: CSIQ) announced today that its
first portfolio of Japan's feed-in premium (FIP) PV projects begancommercial operation on June 1, 2024.
The projects that have reached commercial operation include a 1.2 MWp
project in Tsukuba City, Ibaraki Prefecture and a 1.9 MWp project in Daisen
Town, Tottori Prefecture. Both projects are powered by CS7N-660W bifacial
modules. Initially awarded a feed-in tariff (FIT) through auctions held in
2020, the Company decided to switch the projects from FIT to FIP in
response to the rising demand for renewable energy. FIP-awarded projects
will generate additional revenue through Non-Fossil Certificates (NFCs).
( Extract from Canadian Solar Inc.’s Press Release)

Rate of use of renewable energy(out of top 10 RE100 companies by country)

AustraliaCanadian Solar Announces Operation of First FIP Projects in Japan and PPA
Signing with Toyota Tsusho

32%
25%
23%

96%
93%
89%
88%
81%
77%

Renewable energy is expected to be supplied tomany companies through CPPAs

Current status of CSIF's Initiatives
Offered to RE100 and
ESG-focused companies
Power
SupplyRequest Currently, many corporates have contacted our group,and CSIF aim to acquire power plants with executed
corporate PPAs in the near future.

25

a-2. Management Strategy(Internal Growth)

26

CSIF’s Mid- to Long-term Strategy (5)Management Strategy 3 (Internal Growth)
Mass Renewable Energy Introduction / Next Generation Energy Network Committee established by the
Agency for Natural Resources and Energy of Japan emphasizes the importance of continuous use ofrenewable energy power generation facilities.
CSIF aims to increase the value of existing facilities by “re-powering” and installing “storage battery
facilities” to make best use of our assets and support the profitability in the Post-FIT phase.

[Organic Growth Strategy]
CSIF management growth strategy

Market environment for renewable energy

Facility repowering
Repowering existing
facilities to increase value

Emphasisplaced oncontinued
use ofrenewableenergyfacilities

Consolidation of renewable energy
operators

Ensuring
stableprofitability
byenhancingthe value ofexisting
power plants

time

Installation of storage batteries
Amount ofelectricity
generated

Better use of existing facilities
Installation of storage battery facilities
Demand for renewable energy from
corporate users

Amount ofelectricity
generated

Necessity for stable provider ofrenewable energy

Compensating the losses of electricity
selling prices due to output control
Sell stored
electricity

PowerdemandNigh
夜t※

As of the end of July 2024

Solar power generation
MorninDay
Evening
朝
昼time 夕
g

Nigh

夜 t

27

[Reference] Preferential Measures for Output
Curtailment for Storage Battery Utilization CompaniesWith regard to the “Preferential measures for output curtailment for operators utilizing storage batteries” published in
an article in the Nikkei newspaper on August 6, 2024, METI’ｓ Agency for Natural Resources and Energy announced
the following preferential measures Plan
METI is considering changing the order of output curtailment in the priority electric supply rule to FIT power and then
FIP power from fiscal 2026 at the earliest.
Until a certain amount of power sources (25% of total FIT/FIP) is shifted to FIP power sources, intensive support for
utilization of storage batteries and prediction of power generation related to FIP power sources is suggested.
Planned Priority electric supply rule
~ (Order of output curtailment)~
Curtail thermal, pumped-storage hydroelectric energy generation1
charging of storage batteries for adjusting supply and demand

Curtailment of biomass
3
energy generation

2 Supply electricity outside the area through interconnection
3 Curtailment of biomass energy generation
4 Supply curtailment of local biomass energy generation

Supply curtailment of local
4biomass energy generation

FIT
FIP

FIT
FIP

5 Curtail natural variable renewable energy generation(solar and wind power)
6 Instruction provided by Organization for Cross-regional Coordinationof Transmission Operators
7 Curtailment of long-term fixed power source energy generation(nuclear, hydro and geothermal power)

Curtail natural variable
5 renewable energy generation(solar and wind power)

FIT
FIP

In the “Issues Concerning the Introduction of Renewable Energies” released by the Agency for Natural Resources and Energy on August 7, 2024,
it was suggested that the order of output curtailment in the priority electric supply rule should be FIT power sources → FIP power sources, andthat support for utilization of storage batteries and prediction of power generation related to FIP power sources should be strengthened.
Source: METI’s Agency for Natural Resources and Energy website

28

Initiatives for Internal Growth■ Tracking information disclosure and expansion of demand for renewable energy
In light of the rapidly increasing awareness of global efforts towards
carbon neutrality amongst Japanese electricity consumers, CSIF will
grant access to tracking information (key information on renewable
Power Plant as specified in the FIT Non-Fossil Certificate) of CS
Daisen-cho Power Plant (A), Daisen-cho Power Plant (B), and CS
Marumori-machi Power Plant for electricity consumers.
At the Electricity and Gas Strategic Policy Subcommittee held in
December 2022, a proposal to raise the minimum price of
renewable energy traded in the Non-Fossil Value Trading Market has
been submitted for panel review. CSIF believes that the need forrenewable energy trading is rising amongst consumers.

（Summary image of tracking information）
Power producers
Wind PP“A”
FIT NonFossil
Certificate

Power producers

Solar PP
“B”

Geothermal“C”

FIT NonFossil
Certificate

FIT NonFossil
Certificate

JEPX Non-Fossil
Value Trading
Market？？

FIT NonFossil
Certificate

FIT NonFossil
Certificate

Wind PP“A”

Solar PP
“B”

Geothermal“C”

FIT NonFossil
Certificate

FIT NonFossil
Certificate

FIT NonFossil
Certificate

FIT NonFossil
Certificate

Electricity retailers (consumers)

Electricity retailers (consumers)■ New Specific Wholesale contracts with Retail Electricity provider
For the following Power Plants, CSIF has reviewed the existing specific wholesale contracts for premium electricity sales
and concluded new specific wholesale contracts for renewable electricity and with retail electricity providers in April 2023
and June 2023.
CSIF believes that it will contribute to the spread of renewable energy and at the same time, contribute to the realizationof internal growth through the recording of additional rental income.
Power Plant

Renewal Period/
Termination of contract

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP
CS Izu-shi PP
CS Ogawara-machi PP

Renewal for 1 year
after 2 years

Contract Date

Start Date of SpecificWholesale

April 24, 2023

July 1, 2023

June 30, 2023

September 1, 2023

June 30, 2023

September 1, 2023

June 30, 2023

September 1, 2023

29

b. Financial Strategy

30

Financial Policy (New Cash Management Policy)


CSIF has revised its cash management policy to strategically use the funds on hand in accordance with themarket and business situation instead of allocating mainly to distributions in excess of earnings (refund ofinvestments),.

Strategic use of funds in accordance with the market and business conditions
Previous cash management policy

CSIF
Financial
PolicyDistributions in excess ofearnings

New cash management policy

Capital expenditures(Repowering, storage
batteries, etc.)

Distribution in excess ofearnings to certain level
Funds on hand(After debt service)

Repurchase of investment
units
Asset acquisitions

Aiming to maximize unitholders’ value

Funds on hand(After debt service)

Dept Prepayment

31

CSIF’s New Financial Policy (Cash Management Policy)


CSIF has revised its policy on distributions in excess of earnings (refund of investments)
In order to achieve continuing sustained growth, CSIF will focus on distributions based on Funds fromOperations, aiming to maximize unitholders’ value through increasing net income.
1. Current policy
2. New policy
CSIF makes distributions in excess of earnings only when distributable profit islower than forecast due to large repair projects or unfavorable weather
conditions, etc. CSIF decide the use of cash based on market and businesssituations.

CSIF makes distributions in excess of earnings forevery fiscal period, in addition to distributions
based on net income.
Limit

Limit

Capital expenditure

Capital expenditures

Depreciation

 Debt Installment

Debt Installment
Depreciation

Surplus funds after dividendof the previous period

Distribution in excessof earnings
Surplus funds

 Capital expenditures(Repowering, storage
batteries, etc.)

Debt Installment

Distribution in excess of earnings

ChangeSurplus funds

FFO

Bank
 Distributions in excessof earnings as a control
valve Repurchase ofinvestment units
Investors

 New property
acquisitions

NCF
Net income

Distribution

Net income

Distribution

NCF (Net Cash Flow)=FFO (Funds from Operation)= Net income + Depreciation± Gain/loss on sales of renewable
Operating profit – debt (principal and interest) + surplus cash from previous period energy power plants

Note: The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the ratio of CSIF's rental revenues
or cash distributions in excess of earnings. CSIF may decide not to make any amount of cash distributions in excess of earnings or reduce the planned amount for aparticular fiscal period, based on a consideration of factors such as economic or renewable energy market conditions or financial conditions, among other factors, after
taking into account of our financial situation and alternative uses of cash, such as the execution of repair plans and capital expenditures, the dept repayment and property
acquisition opportunities. CSIF may, in place of making cash distributions in excess of earnings, decide to acquire its own investment units.

32

Initiatives Based on Cash Management Policy(Repurchase of investment units and asset acquisitions)

Based on the new cash management policy, CSIF will select repurchase of investment units and acquisition of
new asset out of five alternatives taking into account of the current business environment and investment
unit prices.
Overview of repurchase of investment units
CSIF believes increasing EPU through repurchase will increase unitholders’ value in the mid-to long term.

Total number of own
investment units
to be acquired

12,000 units (maximum)(2.66% of the total number of outstanding investment units (excluding
the number of own investment units))

Total amount ofacquisition price

1,000 million yen (maximum)

Acquisition period

From August 19, 2024 to November 29, 2024

Overview of Anticipated Acquisitions
S-32 CS Sakura-shi Power Plant
Third-Party-Developed assets

Third-Party-Developed asset that utilizes the Asset Manager’s
proprietary sourcing channels
Operator

Canadian Solar Projects
K.K.

FIT Term End

February 11, 2041

O&M Provider

EAST ENGINEERING

Type of Panel

Monocrystal Silicon

EPC Service Provider

R&L Co.,Ltd.

Panel Output

1,218.30kW¥21/kWhPower Output

1,000.00kW

FIT Procurement
Price
Applicable
Curtailment Rule

360-hour rule

Land Area

29,465.00㎡

Land Rights

Ownership

Panel
Manufacturers
PCS
Manufacturer
Availability Factor onFirst Operating Year
(forecast)

TrinaSolar Co., Ltd.
Huawei－33

LTV, Fixed-to-variable interest rate
ratio, DSCR and Credit Rating

Debt Profile (1) –■ Issuer’s ratings

CSIF is the only TSE-listed infrastructure fund rated by both of JCR and R&I as of June 30, 2024.

JCR A（Stable）

R&I A-（Positive）(As of August 17, 2023)(As of August 4, 2023)■ Key financial indicators

CSIF intends to build a stable and strong financial base by maintaining a high fixed interest rate ratio
and keeping an appropriate LTV level.
Average borrowing Interest# of financial institutions

DSCR

As of June 30, 2024

As of June 30, 2024

As of June 30, 2024

0.887%

23

1.96x

Fixed interest rate ratio

LTV
As of June 30, 2024

As of June 30, 2024

52.59%

As of June 30, 2024

51.88%

89.8%

3.00

60%

51.58%

50%

53.74%
49.78%

47.00%

45%

55.52%

54.31%

IPO

2.49x

2.50
51.75%

51.97%

52.59%
49.91%

50.81%

51.88%

48.81%

44.67%
40%

87.9%■ Historical DSCR

■ Historical LTV
55%

As of June 30, 2024

2.00
1.50

1.80x

2.00x
2.11x

2.29x
2.01x

2.12x
1.96x

1.00
0.50
0.00

2nd FP 3rd FP 4th FP 5rh FP 6th FP 7th FP 8th FP 9th FP 10th FP 11rd FP 12th FP 13th FP 14th FP

1.30x

1.60x 1.70x
1.40x1.50x

1.90x

IPO

2nd FP 3rd FP 4th FP 5rh FP 6th FP 7th FP 8th FP 9th FP 10th FP 11rd FP 12th FP 13th FP 14th FP

34

Debt Profile (2) – Summary of Loans and Bonds■ Overview of Interest-bearing Debts (As of June 30, 2024)
Category

Loan

Bond

Type

Initial amount(yen millions)

Long
term

15,700

10,228

Long
term

8,000

5,510

Long
term

17,00013,637

Long
term

5,800

5,451

Long
term

5,800

Long
term
Long
term

Total /
Average

Outstanding(yen millions)Interest rate

Interest rate
type

Drawdown date

Maturity

Floating(Fixed)October 31,
2017

10 years from drawdown date
JCR Green Finance Evaluation

Floating(Fixed)September 6,
2018

10 years from drawdown date
JCR Green Finance Evaluation

Base rate plus 0.45%(fixed at 0.845% upon executing interest rate
swap)
Base rate plus 0.45%(fixed at 1.042% upon executing interest rate
swap)
Base rate plus 0.45%(fixed at 0.8199% upon executing interest rate
swap)
Base rate plus 0.45%(fixed at 1.2695% upon executing interest rate
swap)

Floating(Fixed)March 8, 2021

10 years from drawdown date
JCR Green Finance Evaluation

Floating(Fixed)July 19, 2023

10 years from drawdown date
JCR Green Finance Evaluation

5,451

Base rate plus 0.45%

Floating

July 19, 2023

10 years from drawdown date
JCR Green Finance Evaluation

1,100

1,100

0.71%

Fixed

November 6,
2019

5 years from issuance date
JCR Green Finance Evaluation

3,800

3,800

0.80%

Fixed

January 26,
2021

5 years from issuance date
JCR Green Bond Evaluation

58,30045,178－－－－■ Stable lender formation with a total of 23 banks, including 3 megabanks, SBI Shinsei Bank andSumitomo Mitsui Trust Bank as arrangers/co-arrangers (excl. consumption tax bridge loans)
SBI Shinsei Bank, Limited

15.2%

Sumitomo Mitsui Banking Corporation 13.7%

Total Debt
（41.7bn yen）

Resona Bank, Limited.

2.9%

The TOCHIGI BANK, LTD.

1.5%

The Oita Bank, Ltd.

2.9%

The Senshu Ikeda Bank, Ltd.

1.4%

MUFG Bank, Ltd.

12.8%

The Tottori Bank, Ltd.

2.8%

The BANK OF SAGA LTD.

1.4%

Mizuho Bank, Ltd.

10.7%

The Chugoku Bank, Ltd.

2.7%

The Bank of Nagoya, Ltd.

1.4%

Sumitomo Mitsui Trust Bank, Limited

7.8%

The 77 Bank, Ltd.

2.1%

The Fukuho Bank,Ltd.

1.0%

The Nanto Bank,Ltd.

6.0%

The Ashikaga Bank, Ltd.

1.8%

The BANK OF FUKUOKA., LTD.

0.6%

THE ASAHI SHINKIN BANK

4.2%

ORIX Bank Corporation

1.6%

San ju San Bank,Ltd.

0.3%

The Hiroshima Bank, Ltd.

3.8%

THE SHONAI BANK, Ltd.

1.5%

35

c. ESG36

ESG Initiatives (UN PRI・ESG Report)■ Signatory to UN PRI and Formulation of the “Approach to UN PRI Guidelines” by CSAM

As of August 13, 2019, CSAM became the first Japanese asset manager
of a listed infrastructure fund to be a signatory to the UN PRI (United
Nations supported Principles for Responsible Investment), as asignatory to the UN PRI, CSAM devised an “Approach to UN PRI
Guidelines”.

■

ESG Report

CSAM endorsed the TCFD (Task Force on Climate-related Financial
Disclosures) recommendations in February 2022.
CSIF and CSAM published the ESG report in February 2023.



CSIF selects ESG subjects (materiality) of particular importance to CSIF
and promote efforts to achieve and further improve targets by setting
KPIs and implementing specific measures for materiality items throughfuture activities.

37

ESG Initiatives（TCFD・SFDR）■ The first listed infrastructure fund to conduct disclosures under TCFD guidelines


TCFD was established by the Financial Stability Board (FSB) to promotetransparency on climate-related information disclosures and discuss
implementation methods for financial institutions.



As of February 14, 2022, CSIF conducts climate-related disclosures inaccordance with the guidelines of the “TCFD Recommendations.

■

Adherence to EU Sustainable Finance Disclosure Regulation (SFDR) Article 8 disclosure requirements



SFDR requires financial market participants to disclose information such as policies regarding consideration ofsustainability risk in investment decisions, and also requires disclosure of information for each of the threeclassifications of financial products, according to the applicable classification of the financial products.



CSIF conducted SFDR Article 8 disclosure requirements of pre-defined ESG (including Article 8) for “financial
products that promote environmental or social characteristics” factors.
Article 6

Article 8

Other financial products

Financial products promoting
environmental or social
characteristics

Article 9
Financial products designed tosustainable investments

CSIF

38

ESG Initiatives (Green Finance)■ CSIF revised a new Green Finance Framework which obtained a Green1(F) assessment from JCR, thehighest assessment rating as of June 30, 2023.

Assets acquiredin the 3rd PO

1
2

Stakeholders

Reporting onfund allocation
andenvironmental
improvement

IPO acquisitions

Acquisitions after IPO

3

JCR, Shinsei Green
Loan
Assessment
Anticipatedborrowings(Green loan)

Financial
institutions

Borrowings(Green loan)

Financial
institutions

Investment
corporation
bonds (Green bond)

Bond investors

4 Investment unit

Equity investors(Green equity)

Green1(highest JCR evaluation)

Green1(F)(highest JCR evaluation)

CSIF obtained a Green1 (the highest rating) assessment from JCR and a Shinsei Green Loan Assessment from Shinsei Bank, Limited (Current SBI Shinsei Bank,
1 Limited),
which is one of CSIF’s arranger banks, for the borrowings of 17.0 bn yen allocated towards acquisitions during the 8th Fiscal Period (acquired on March 8,2021). In addition, as a result of review by JCR, indicates the continuation of the same Green1 (the highest rating) assessment as of August 17, 2023.

borrowings amounting to 15.7 bn yen which was allocated towards the funds for acquiring the acquisitions for the IPO obtained a Green1 (the highest rating)
2 The
assessment by JCR as of November 22, 2017, based on JCR’s evaluation of the use of proceeds and CSIF’s management / operation / transparency. Also, after anannual review, the borrowings continued to be assessed as Green1 as of August 17, 2023.
And the borrowings amounting to 11.6 bn yen which was allocated towards acquisitions during the 13th Fiscal Period (acquired on July 19, 2023) obtained a Green1(the highest rating) assessment by JCR as of June 30, 2023,

of January 26, 2021, CSIF issued a 5-year Green Bond of 3.8 bn yen, which was given JCR Green1 assessment and the proceeds will be used for the repayment of
3 Asborrowings.
Also, after an annual review, the Bond continued to be assessed as Green1 as of August 17, 2023.
with this offering, CSIF has revised its Green Finance Framework to make it also applicable to the issuance of investment units. CSIF plans to obtain a
4 Simultaneously
third-party evaluation of the revised Green Finance Framework from JCR as of June 30, 2023 for the issuance of investment units as green equity in accordance with
the new Green Finance Framework.

39

3. Earnings Forecast

40

15th, 16th and 17th FP Earnings Forecast
 Earnings Forecast
15th Fiscal Period(ending December 2024)

16th Fiscal Period(ending June 2025)

17th Fiscal Period(ending December 2025)

Operating revenues

4,477

4,502

4,458

Operating profit

1,644

1,691

1,645

Ordinary profit

1,386

1,445

1,403

Net profit

1,385

1,444

1,402

3,066 yen

3,198 yen

3,104 yen

3,066 yen

3,198 yen

3,104 yen

- yen

- yen

- Yen

DPU (incl. distributions in excess ofearnings)
DPU (excl. distributions in excessof earnings)
Per unit distributions in excess ofearnings

CSIF aims for growth while maintaining a stable level of distribution payout(Note 1) Figures are rounded down to the nearest million yen.
(Note 2) Above forecasts are based on earnings summary dated August 16, 2024 and is subject to change due to factors including without limitation, acquisition orsale of renewable energy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF.
Forecasts do not guarantee any dividend amounts.

41

Impact of New Financial Policy on Distributions（Including estimation of EPU improvement through repurchase of investment units）


Although the amount of distribution in excess of earnings will decrease due to the repurchase of investment
units using surplus cash, EPU is expected to increase along with the increase in the total amount ofrepurchase.
Estimation of EPU by repurchase of investment units
Total amount of repurchase

500 mn yen

Unit Price

600 mn yen

800 mn yen

900 mn yen

1,000 mn yen

90,000 yen

3,104 yen

3,112y en

3,120 yen

3,128 yen

3,135yen

3,143 yen

92,500 yen

3,103 yen

3,111 yen

3,118 yen

3,126 yen

3,133yen

3,141 yen

95,000 yen

3,102 yen

3,109 yen

3,117 yen

3,124 yen

3,132yen

3,139 yen

97,500 yen

3,101 yen

3,108 yen

3,116 yen

3,123 yen

3,130yen

3,137 yen

100,000 yen

3,100 yen

3,107 yen

3,114 yen

3,121 yen

3,128yen

3,135 yen

In case of completion of repurchase of investment units（Estimate）

Distributions in excess of earnings per UnitDPU (excl. distributions in excess of earnings)# of investment
units issued
and outstanding

700 mn yen

Total amount of repurchaseTotal amount of repurchaseTotal amount of repurchaseprice：500 mn yen

price：750 mn yen

price：1,000 mn yen

451,756 unit

451,756 unit

446,200 unit

443,423 unit

440,645 unit

DPU

Previous
Forecast EPU

Previous
Forecast EPU

Previous
Forecast EPU

Previous
Forecast EPU

3,775yen

755 yen＋1.78％＋2.78％＋4.07％＋5.40％

3,020 yen

3,066 yen

3,104 yen

3,124 yen

3,143 yen

15thFP
Previous Forecast

15thFP
Forecast

15thFP
Forecast(After repurchase of investment units)※Investment unit price assumed to be 90,000yen

42

<Ref.> Trend of Investment Unit Price

Since the listing, the sum of CSIF’s market cap and interest-bearing liabilities balance has exceeded the plantvaluation at the end of each period, and it is extremely rare for CSIF to fall below the total plant valuation.

（JPY100mn）
1,000Market
時価総額
capInterest-bearing
有利子負債残高
liabilities balance(Market cap + Interest-bearing liabilities（時価総額＋有利子負債）÷発電所評価額
balance)/valuation of power plants
120.0%

115.0%

750

110.0%

105.0%

500

100.0%

95.0%

250

90.0%

85.0%

0

80.0%

43

<Ref.> Trend of Investment Unit Price

CSIF’s FFO (net income + depreciation), which indicates the earning power of a fund, has been increasing
steadily, driven by continued external growth.
On the other hand, its FFO multiple (investment unit price/FFO per unit) has been at its lowest level ever.
FFO per Unit（左軸）
(lhs)
(JPY)
（円）
10,000Overvalued

9,000

FFO倍率（右軸）
FFO multiple (rhs)(Times)

（倍）

24.0

22.0

20.0
8,000
18.0
7,000
16.0
6,000
14.0

5,000

Undervalued

4,000

12.0

10.0

44

Appendix

45

Canadian Solar Group’s Global Operations（1） Key achievements of Canadian Solar Group
Share of shipping
PV modules

2023 Global share

Top 5

Source: PVeye April 2024,
Vis On Press Co.,Ltd.

Bankability#1 PV module

company consideredbankable in 2022

Source: Bloomberg New Energy
Finance“PV Module and Inverter Bankability
2022”

Operational solar
power plants

Solar power plants underdevelopment or
constructionMore than
125 GW

Approx. 26 GW(as of March 31, 2024)(panel output basis as ofMarch 31, 2024)

 Canadian Solar Group’s history
 Founded in Ontario, Canada in 2001
 Listed on NASDAQ (CSIQ) in 2006
 Entered the Japan market in 2009 and established aproven track record for shipping PV modules
 Over 20,000 employees as of March 31, 2024
 More than 125 GW of cumulative solar panels
shipped

94GW以上のソーラーOver 125GW
モジュールを出荷
solar modules shipped

Active buying customers
in more than 160
countries

26 GW project pipeline
36GWを超えるモジュール容量
25GWプロジェクトパイプライン
Module capacity exceeding 58 GW
セル容量は約21.0GW
47GWhエネルギープロジェクト
56 GWh energy project pipeline
Cell capacity approx. 48.4 GW
パイプラインof CSIQ

Subsidiaries in 23 countries& regions on 6 continents

26 manufacturing facilities
in Asia & Americas

46

Canadian Solar Group’s Global Operations（2）Canadian Solar Group’s Global Operations(As of March 31, 2024)

Solar panel factory (including plants under construction in the U.S.)：5 countries
EuropeNorth America
Canada• Guelph： Global HQ

Spain
Germany• Madrid: EMEA GE HQ• Munich, EMEA CSIS HQ• Sevilla• Framlfirt• Barcelona,
U.K.
• Badajoz• London
Italy• Colchester• MilanPoland• Rome• Warsaw
France• Biarritz
Netherland• Amsterdam

U.S.
• Austin: North America HQ• Mesquite,Texas• Jeffersonville, Indiana• Walnut Creek• New York City

Latin America
Brazil• São Paulo
Mexico• Mexico City
Colombia• Bogota
Chile• Santiago

Source： The above map was compiled by CSAM based Canadian Solar Inc. Investor Presentation May 2024

Asia Pacific
China
South Korea• Seoul• Suzhou: China HQ• Gwangju• Yancheng
India• Yangzhou• New Delhi• Funing
Thailand• Suqian• Chonburi• Luoyang
Vietnam• Baotou• Hai Phong• Hohhot
Malaysia• Jiaxing• Kuala Lumpur• Xining
Singapore• Beijing• Singapore• JinanAustralia• Guangzhou• Melbourne• Kunming• Sydney• Wuhan• Wuhu• Hong Kong, SAR
Taiwan• Hsinchu
Japan• Tokyo• Osaka

Middle East
and Africa
U.A.E• DubaiSouth Africa• Cape Town

47

Value Creation using the Sponsor Group’s VerticallyIntegrated Model (manufacturer, developer, AM・O&M)
CSIF operates by fully utilizing the outstanding knowledge that the Canadian Solar Group has accumulated
to date as a total provider of solar power generation as a "vertically integrated model," and considers thecharacteristics of CSIF, including the vertically integrated model, as shown in the figure below.

48

Organizational Structure

Canadian Solar Group, under its vertically integrated business model, supports CSIF’s PV plant asset
management by integrating its knowhow and expertise accumulated from a broad range of PV businessdomains
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
Established in June 2016

Canadian Solar Projects K.K.
(Sponsor / Operator)
Engaged in construction and operation of solar
energy facilities
Established in May 2014

Asset Managemet
Agreements
Asset
Manager
EquityInterest

SponsorSupportAgreements

Investment
Corporation(Fund)(Note)

Solar Energy
Projects

Sponsor /Operator
O&M Service
Agreements

Provides O&M services to solar energy facilities
including our currently-owned projects
Established in June 2016

Sales of PV modules for use in residential andindustrial solar power systems
Established in June 2009

Loan
Agreements

O&M

Lenders

Landowners

Lease / Operation
Agreements

Canadian Solar Japan K.K.


Investors
EquityLease /
Purchase
Agreements

Canadian Solar O&M Japan K.K.


Distributions

Asset Managemet
Service Agreements

LesseeOperator
SPC, etc.

Utilities
PPAs /
Interconnection
Agreements

Note: In the event that CSIF will acquire trust beneficiary rights, the lessor will be the trustee and will be outsourced to conduct facility operations and O&M operations.

49

Asset List– Operational Result for 14 th FP(in thousand yen)

Basic Rent

Variable Rent
and Other
Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

No.

Project name

S-01

CS Shibushi-shi Power Plant

17,597

5,575

14,055

9,546

9,117

S-02

CS Isa-shi Power Plant

13,435

4,735

12,151

7,925

6,018

S-03

CS Kasama-shi Power Plant

34,42912,812

22,651

14,956

24,590S-04

CS Isa-shi Dai-ni Power Plant

27,7009,769

24,873

16,547

12,595S-05

CS Yusui-cho Power Plant

25,1784,470

21,702

14,364

7,946

S-06

CS Isa-shi Dai-san Power
Plant

33,48011,00930,856

19,971

13,633S-07

CS Kasama-shi Dai-ni Power
Plant

34,011

13,05327,826

18,077

19,238

S-08

CS Hiji-machi Power Plant

35,622

15,70332,032

22,166

19,293

S-09

CS Ashikita-machi Power
Plant

33,524

11,37430,136

20,306

14,762

S-10

CS Minamishimabara-shi
Power Plant (East & West)59,572

21,33756,79435,421

24,116

S-11

CS Minano-machi Power Plant

34,622

8,170

23,928

16,212

18,865

S-12

CS Kannami-cho Power Plant

19,1497,630

15,205

9,671

11,574

S-13

CS Mashiki-machi Power Plant

623,059

256,184

478,947

344,149

400,297

S-14

CS Koriyama-shi Power Plant

7,850

3,971

5,998

4,193

5,823

S-15

CS Tsuyama-shi Power Plant

23,662

9,358

20,112

13,163

12,908

S-16

CS Ena-shi Power Plant

25,735

3,589

22,247

14,526

7,077

50

Asset List– Operational Result for 14 th FP(in thousand yen)No.

Project name

Basic Rent

Variable Rent
and Other
Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

S-17

CS Daisen-cho Power
Plant(A)(B)

319,236

219,991

308,770

214,753

230,457

S-18

CS Takayama-shi Power Plant

10,797

3,872

9,766

5,808

4,902

S-19

CS Misato-machi Power Plant

14,9906,378

11,172

7,604

10,195

S-20

CS Marumori-machi Power
Plant

31,69017,68330,117

17,05919,255

S-21

CS Izu-shi Power Plant

152,681

72,362

133,995

87,851

91,048

S-22

CS Ishikari Shinshinotsu-muraPower Plant

20,74618,15021,674

13,047

17,221

S-23

CS Osaki-shi Kejonuma Power
Plant

6,727

4,123

6,195

3,600

4,655

S-24

CS Hiji-machi Dai-ni Power
Plant

833,477

302,810

635,923475,624

500,363

S-25

CS Ogawara-machi Power
Plant

103,515

39,50983,13254,54559,892

S-26

CS Fukuyama-shi Power Plant

56,704

13,40042,284

23,15327,820S-27

CS Shichikashuku-machi Power
Plant

138,236

65,765

102,797

58,935

101,203

S-28

CS Kama-shi Power Plant

27,451

3,940

19,775

11,687

11,616

S-29

CS Miyako-machi Saigawa Power
Plant

177,549

23,610109,918

77,89091,242S-30

CS Kasama-shi Dai-san Power
Plant

172,191

53,172

121,967

93,636

103,395

S-31

CS Yamaguchi-shi Power Plant

7,281

2,196

6,344

3,209

3,132

3,121,911

1,245,714

2,483,360

1,729,608

1,884,266

Total

51

CS Azuma Kofuji Power Plant, the largest Sponsor-developed
project, has been transferred to the Bridge Fund

Completed transfer of CS Azuma Kofuji Power Plant, the largest (100MW) sponsored development projectin Japan and one of the largest development projects in Japan for which CSIF holds preferential negotiationrights to the Bridge Fund.



Expected to generate approximately 110 million kWh per year, which is equivalent to the electricity
generated by about 31,000 households (September 2022 in operation).

Acquisition flow via bridge fundPrevious owner owning period

Bridge fund holding period

Asset Manager

Previous Owner
Facilities, ID,
Land, Land use rights,
SPCs owned

Transfer

Bridge Fund
(Limited liability
company)

Sale

Basic agreement

CSAM holds preferential
negotiating rights toacquire the asset in the
futureAsset Management
Investment Corporation

CS Azuma Kofuji Power Plant Overview
North 1
Zone

East 1 Zone

North 2
Zone

East 2 Zone

South 1
Zone
West 1 Zone

South 2 Zone

West 2 Zone

 CS Azuma Kofuji Power Plant utilizes abandoned
farmland, and the construction of a large-scale solar
power plant makes a significant contribution to therevitalization and promotion of local farming and fishingcommunities.
 Located in an area where horseradish production isthriving, where high water quality for agriculture isrequired, and a series of water quality tests have been
carried out to eliminate concerns about water pollution
related to the development.

52

Expand pipeline by utilizing the development capabilitiesof the sponsor groupCanadian Solar Group has been involved in the development of solar power facilities, O&M and asset management
since the introduction of the FIT programs, and has actively participated in the FIT auction systemTo date, Sponsor Group has won bids for mega solar power projects (2MW and over) with a cumulative output
capacity of 186.7MW, which accounts for 12.4% of the total bids for mega solar power projects certified under the
FIT/FIP programs Operational start years and status of Sponsor Pipeline(panel output basis as of June. 30, 2024)
Operational
稼働済資産

（MW）

Under
建設中資産
construction

Under
開発中資産
development

292.9MW300

 Track record of participation in FIT auction biddingby sponsor group (as of July 31, 2024)
Total capacity of FIT and FIP projects that Sponsor Grouphas won bids
To date, the cumulative output capacity of mega-solar plants(2MW and over), for which Sponsor Group has won bids, is
186MW, accounting for 12.4% of the capacity of mega-solar
plants certified under the FIT/FIP programs

250

12.4%

200

53.3%

150

100

50

0

In
稼働済
operation

2025
2025年

2026
2026年

20272027年以降

TBD
未定

Total
累計

The cumulative output
capacity of mega solar bids
certified under the FIT and
FIP programs

Percentage of projects forwhich Sponsor Group has won
bids

53

ESG Initiatives（Environment）
 In consideration of the environment, CSIF and the Canadian Solar Group contributes to theutilization of renewable energy through renewable energy investments.
 Incorporate measures to reduce environmental impact from manufacturing solar panels


The Canadian Solar Group is focused on reducing the environmental impact from solar panel manufacturing
processes such as greenhouse gases and industrial waste water and have achieved the following reductions in
our environmental
impact from 2017 to 2023.
Reduction of greenhouse gas
emissions (/ MW)2017

Approx.

154 ton-37%

Reduction of industrial water
consumption (/ MW)

2023

2017

Approx.

Approx.

97 ton2,249 ton

2023

-72%

Approx.

636 tonSource： 「Sustainability Report 2023」 (Canadian Solar Inc.)

 Environmentally-conscious development and operation of CS Daisen-cho Power Plant

Given that Mount Daisen located near CS Daisen-cho Power Plant owned by CSIF, is in close proximity to an
ecosystem rich with forests, plants and wild birds, the Sponsor made efforts to refrain from using chainsaws when developing the project to avoid damaging the habitat of rare species of indigenous falcons aswell as painting the fence around the site using camouflage colors.

54

ESG Initiatives (Social) Canadian Solar Group's relationship with local communities at Hiji-machi


CSAM is sponsoring the Xavier‘s Way Walking in Hiji-machi,
where CS Hiji-machi Power Plant and CS Hiji-machi Dai-Ni
Power Plant are located. In 2023, CSAM employees participatedin this event, which is a walk along a historic trail that Francisco
Xavier is said to have passed through.

 Canadian Solar Group’s relationship with the local community around CS Daisen-cho
The Sponsor constructed the Daisen Canadian Garden and donated it to the Daisen-cho Town Government incommemoration of the completion of CS Daisen-cho Power Plant, now owned by the CSIF after development, and as partof its contribution to local communities in an effort to create harmony between nature and the large-scale solar power
plant. In addition, it repaired the Hima Jinja Shrine in the same town and donated an incense holder made of white
granite to the Shimpukuji Temple.

Repaired the Hima Jinja Shrine

Donated an incense holder made of white granite to
Shimpukuji Temple

In the Daisen Canadian Garden, there is amonument created in the motif of the local mountain,
Mt. Daisen.

 Donation to Marumori-machi, Igu-gun, Miyagi prefecture where CS Marumori-machi is located

The sponsor and CSAM offered donations to the Marumori-machi Town Government. The town was severely hit by
Typhoon Hagibis in October 2019.
55

ESG Initiatives (Governance) Aligning the interest of unitholders with that of the Sponsor


CSIF aims to increase unitholders’s value by aligning the interest of unitholders with that of the sponsor.

Number of units held by the sponsor and holding ratio:
65,672 units 14.53%
 Decision-making Procedures for Asset Purchase and Transfer Transactions with Related Parties


CSAM has implemented measures in the Regulations for Related-Party Transactions to limit adverse effects inconnection with transactions with related parties such as Canadian Solar Group companies where conflicts ofinterest are highly likely to emerge.
Decision-Making Structure Concerning Transactions with Related Parties in connection with Asset Acquisitions and Transfers
Transactions with related parties(such transactions worth 5 bn yen or more)

Transactions with related parties(other transactions)

Drafting of asset acquisition and other plans by the Investment
Management Department

Drafting of asset acquisition and other plans by the Investment
Management Department

Approval by the Chief Compliance Officer(confirmation of the presence or absence of compliance problems including
the state of compliance with laws and regulations)

Approval by the Chief Compliance Officer(confirmation of the presence or absence of compliance problems including
the state of compliance with laws and regulations)

Deliberation and resolution by the Compliance Committee
Deliberation and resolution by theInvestment Management Committee
Deliberation and resolution by the Board of Directors of the AssetManagerApproval by the Board of Directors of the Investment Corporation
and Agreement by the Investment Corporation

Send
proposalback

Rejection andsend proposal
back
Rejection andsend proposal
back
Rejection andsend proposal
back
Rejection,
disagreement
and send
proposal backDeliberation and resolution by the Compliance Committee
Deliberation and resolution by theInvestment Management Committee
Approval by the Board of Directors of the Investment Corporation
and Agreement by the Investment Corporation
Report to the Board of Directors of the Asset Manager

Send
proposalback

Rejection andsend proposal
back
Rejection andsend proposal
back
Rejection,
disagreement
and send
proposal back56

Status of Unitholders
 Unitholding (as at period-ended June 2024)
 By unitholding amount# ofInvestment
units:
451,756

 By unitholders■Individuals / others■Financial institutions

257,648（57.03%）■Domestic Corporates

97,495（21.58%）(incl. financial instruments firms)■Foreign entities & individuals

61,198（13.54%）
35,415 （7.83%）

Name

# of
Unitholders:
19,948■Individuals / others■ Financial institutions

19,376（97.13%）(incl. financial instruments firms)■ Domestic Corporates■ Foreign entities & individuals

Number of investment
units held (units)

Canadian Solar Projects K.K.

65,672

14.53%

2

The Bank of Fukuoka, Ltd.

7,830

1.73%

3

THE BANK OF NEW YORK MELLON SA/NV 10

7,339

1.62%

4

Custody Bank of Japan, Ltd. (Trust Account)

6,187

1.36%

5

JP MORGAN CHASE BANK 385650

5,910

1.30%

6

SSBTC CLIENT ONMIBUS ACCOUNT

4,715

1.04%

7

The Master Trust Bank of Japan, Ltd.

4,225

0.94%

8

Individual investor

4,210

0.93%

9

JP MORGAN CHASE BANK 380646

4,087

0.90%

10

The Higashi-Nippon Bank, Ltd.

4,072

0.90%

114,247

25.28%(Note): Unitholding ratio is rounded down to the nearest hundredth.

368 （ 1.84%）
153 （ 0.76%）

Unitholding ratio to total
issued units (％)

1

Total

51 （ 0.25%）

57

Balance Sheet for 14 th FP 14th Fiscal Period (ended June 2024)
 Assets(in thousands of yen)

Current assets
Cash and bank deposit
Operating accounts receivable

6,081,866
1,384,716

Accounts receivable
Prepaid expenses

244,506

Consumption tax receivable

45,089Total current assets

7,756,179

Fixed assets
Property and equipment
Structures
Accumulated depreciation
Total structures (net)
Machinery and equipment
Accumulated depreciation
Total machinery and equipment (net)
Tools, equipment and supplies
Accumulated depreciation
Total tools, equipment and supplies (net)Land
Structures in trust
Accumulated depreciation
Total structures in trust (net)
Machinery and equipment in trust
Accumulated depreciation
Total machinery and equipment in trust (net)
Tools, equipment and supplies in trust
Accumulated depreciation
Total tools, equipment and supplies in trust (net)Land in trust
Trust construction in progress
Total property and equipment

1,074,228△259,111
815,116
43,344,549△10,860,056
32,484,493
593,797△150,568
443,228
4,571,427
7,925,298△852,530
7,072,767
33,005,488△3,251,527
29,753,961
134,095△14,196
119,898
6,948,625
3,751
82,213,270

Intangible assets
Leasehold rights
SoftwareTotal intangible assets

1,486,690
1,854
1,488,544

Investments and other assets
Long-term prepaid expenses
Capital investments
Deferred tax asset
Long-term deposits
Guarantee deposits
Total investments and other assets
Total fixed assets
Deferred assets
Investment corporation bond issuance cost
Total deferred assets
Total assets

 Liabilities and Net Assets
Current liabilities

856,22710
12
23,40046,909926,559
84,628,375
6,581
6,581
92,391,135(in thousands of yen)

Operating accounts payable
Short-term borrowings
Long-term borrowings to be repaid within 1 year
Investment corporation bond to be repaid within 1 year
Accounts payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Deposits received
Total current liabilities
Fixed liabilities

92,8432,881,493
1,100,000
226,823
128,187802
369,870
1,916
4,801,937

Investment corporation bondLong-term borrowings
Long-term Accounts payable
Total fixed liabilities
Total liabilities
Unitholders’ equity
Unitholders’ capital
deduction from Unitholders’ capital
Allowance for temporary difference adjustments
Other deduction from Unitholders’ capital
Total deduction from Unitholders’ capital
Unitholders’ capital (net)
Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

3,800,000
37,397,078
67,46741,264,545
46,066,483
47,953,452△1,807△2,988,218△2,990,025
44,963,427
1,361,225
1,361,225
46,324,652
46,324,652
92,391,135

58

Statement of Income for 14 th FP 14th Fiscal Period (ended June 2024)(in thousands of yen)

Operating revenues
Rental revenues
Total operating revenue
Operating expenses
Rental expenses of renewable energy projects
Asset management fee
Administrative service fees
Director’s compensation
Tax and dues
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Dividend income
Refund surcharge
Gain on forfeiture of unclaimed dividends
Insurance claim income
Compensation income
Settlement revenue among utilities
Total non-operating income
Non-operating expenses
Interest expenses

4,367,626
4,367,626
2,483,360
166,242
30,6132,400
6476,5852,759,267
1,608,359
391
0
1,202
542
4,781
1,736
8,653
186,266

Interest expenses on investment corporation bond

19,052

Amortization of investment corporation bondissuance expenses

2,779

Borrowing-related expenses
Investment unit issuance expenses
Loss on retirement of fixed assets
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes
Income tax adjustments
Total income taxes
Net income
Profits brought forward
Unappropriated retained earnings(accumulated deficit)

47,009255,108
1,361,904
1,361,904
862
4
866
1,361,037
187
1,361,225

59

Distributions based on stable cash flow
under the FIT system
Solar power plants that CSIF invests in have a fixed procurement price and period under a feed-in tariff(FIT system), and since the projects under CSIF’s ownership are structured to secure basic rents, CSIF
believe that potential declines in rental revenue is limited.
Structure of electricity sales revenue (source of basic rent and variable rent)
that is less susceptible to economic fluctuations
Electricity
sales revenue

FIT Price

Power generation (power generation
output x the amount of solar radiation)

Generate stable
cash flow

Guaranteed by Japanese Government to sellelectricity at a fixed price for 20 years

Reduce the impact of weather fluctuations bybalancing power generation through regional
diversification

Calculation method of basic rent and variable rent of projects under management and Anticipated acquisitions
Basic rentMonthly projected energy output (P50) ×(100－Y)%
× 70% × FIT purchase price

Even if actual energy output is lower than 70% of projectedenergy output (P50), the operator will be able to receive basic
rent from lessee

Variablerent(Monthly actual energy output × (100－Y)% × FIT
purchase price) － Basic rent

If actual energy output exceeds 70% of projected energy output(P50), possible to obtain variable rent

Diagram of rent structure60

Overview of curtailment
 In order for electric power companies in each region to stabilize the supply of electricity, each company curtails the output of
power generators to control supply in the event that the supply of electricity in its grid largely exceeds demand.

 Output curtailment of each energy source is implemented according to the priority electric supply dispatch rule. According to thisrule, solar energy output is curtailed after thermal and biomass energy generation, pumped-storage hydroelectric energy
generation, charging of storage batteries for adjusting supply and demand, and electricity is supplied outside the area throughinterconnection.
 Furthermore, output curtailment is equally distributed by introducing a rule that sets the priority of output curtailment by group.
By reducing the burden of output curtailment on all solar power plants, it is expected that output curtailment will be equallydistributed even if solar power plants installed with curtailment controllers will be curtailed less than solar power plants without
curtailment controllers.

 Rules on output curtailment

 Generic output curtailment scenario~Priority electric supply rule (Order of output curtailment)~
Curtail thermal, pumped-storage hydroelectric energy generation charging of

1 storage batteries for adjusting supply and demand

Volume ofgenerated electricity

2 Supply electricity outside the area through interconnection

Curtailment of solar
and wind generators

3 Curtailment of biomass energy generation
4 Supply curtailment of local biomass energy generation
Curtail natural variable renewable energy generation

5 (solar and wind power)

Instruction provided by Organization for Cross-regional Coordination of

6 Transmission Operators

Electricity
demandCurtailment of long-term fixed power source energy generation (nuclear,

7 hydro and geothermal power)

Thermal power generation adjusted to the output
levels of solar and wind power
Geothermal and hydroelectric power generation(excluding pumped-storage hydroelectric power generation)
Nuclear power
Midnight

Morning

Noon

Afternoon

Midnight

Output curtailment volume~Concept of output curtailment by group~Group EGroup GGroup B

Group DGroup GGroup B

Group AGroup CGroup F

Group AGroup E

Day 1

Day 2

Day 3

Day 4

Day X

…

Group F

Source: Compiled by CSAM based on the “Operational Policy on Power Transmission and Distribution” by theOrganization for Cross-regional Coordination of Transmission Operators and “Guideline on Fairness of
Output Curtailment (formulated on March 2017, amended October 2019, April 2021 and April 2022)” by
METI’s Agency for Natural Resources and Energy

61

Reinforcement of inter-regional interconnection lines toreduce the amount of output control
 Amid growing needs for wide-area wholesale power trading, such as “activation of wholesale power market trading (wide-area procurementof electricity),” “construction of disaster-resistant power networks,” and “contribution to the realization of carbon neutrality,” the interregional interconnection lines are being reinforced.
 The interconnection line between Tohoku and Tokyo is scheduled to be reinforced by FY2027, and CSIF believes that the output control
may be reduced by increasing transmission capacity to the Tokyo area, which is a major power consumption area.

Maintenance in the past 10 years
Currently under Construction
Plan in development

50Hz

60Hz
1.2 million kW
10 million kW

600,000 kW → 900,000 kW(operation to start in March 2019)
Hokkaido
Okinawa

Hokkaido and Honshu

Considering expansion of
approximately +2.8 million kW in the future

New construction of 2 million kW(under consideration aiming for FY2030)

2011：0.6 million kW
End of May, 2021 Plan formulation
Oct. 2023：0.9 million kW
Henceforth：1.2 million kW
FY 2027 Scheduled completion

Tohoku

Mid-Area Enhancement
Tohoku-Tokyo

Hokuriku

Feb 2017 Plan formulation
Oct.2023：Approximately 5.5 million kW
Henceforth：Approximately 10.28 million kW
November 2027 Scheduled completion

Hokuriku-Kansai
Kyushu-Chugoku

ChugokuKansai-Chugoku
Kansai

Chugoku-Shikoku
Shikoku
Kyushu州

Tokyo
Chubu
Tokyo-Chubu

Frequency Converter

2011：1.2 million kW
June 2016 Plan formulation
October 2023：2.1 million kW
Henceforth：3 million kW
FY 2027 Scheduled completion

1.2 million kW → 2.1 million kW（operation to start in March 2021）
Source：Agency for Natural Resources and Energy, “Future Renewable Energy Policy (June 21, 2023)” and “Next-Generation Electric Power Network (October 31, 2023)”

62

Main Points of the Revised Renewable Energy Act（1） Overview of FIP system

The FIP system allows for the sale of electricity to the wholesale market and arms length transactions as well as paying a premium, thespread between the designated standard price and market price.
Under the FIP system, buyers are not limited to power distributors of large utility companies and retailers. In addition, the purchaseprice fluctuates depending of the time of day.



Revenue dynamics of FIP system
Revenue aftersubsidy

Anticipated revenue after subsidy(designated standard pricea.k.a. FIP price)*pre-determined

Premium

Difference between FIT and FIP
FIT Power purchased at fixed price Buyers are power distributers oflarge utility companies

FIP Receive subsidy calculated based onmarket price Buyers are wholesalers and retailers

Power producer

Power producer

Anticipated revenue frommarket transaction(reference price)

Market price
Designated standard price - Reference price =*linked to fluctuations in
expected revenue frommarket transactions

Aggregator

TSO(Top utilities)

Wholesale market

Premium

Wholesale market

Corporate PPA

Reference method for anticipated revenue (reference price) of market transactions, etc.,
and flow of premium allocation

Determination of the average market price for the previous year



Determination of the unadjusted premium unit price for the current month

Determination of adjusted premium unit price for the current month

Determination of the amount of premium for the current month－Calculate using the formula: adjusted premium unit price for the current month x electricity supply* in the FIP business for the current month－ Calculate the one-year weighted average of spot and pre-market prices by area, taking into account power generation characteristics.
－Calculate using the formula: “annual average market price for the previous year + monthly adjusted price (= monthly average market price for the current year - monthly
average market price for the previous year)”－Calculate using the formula: premium unit price before adjustment for the current month × total electricity supply for all areas by power source for the current month (incl.
0.01 yen/kWh time slot) divided by total electricity supply for all areas by power source for the current month (excl. 0.01 yen/kWh slot)(* Amount of renewable electricity generated by certified power generation facilities and supplied on the market during the current month (excl. 0.01 yen/kWh slot )To be determined after taking into account other factors, including premium during the curtailment time, values outside the wholesale electricity market, balancing costs,
rules on aggregation business and requirements for shifting FIT to FIP
Source: Agency for Natural Resources and Energy website
Note: TSO stands for Transmission System Operator.

63

Main Points of the Revised Renewable Energy Act（2）

In 2024, CSIF started to maintain cash reserve as demolition costs of its solar power generation facilities (10kW or more), as required by the "Guidelines for Formulation of Business Plans"

Cash Reserve System for power plant demolition costs
Categories subject tothe cashreserve system

All PV operations with FIT/FIP certificates of more than 10 kW or more

Cash reserve method

In principle, PV operators with FIT/FIP certificates put cash reserve for demolition cost on OCCTO by withholding such cash
reserve from incoming electricity revenue. Exceptionally, cash reserve within PV operators shall be permitted under certain
conditions⇒ For listed infrastructure funds internal, cash reserve was permitted as meeting certain requirements above

Cash reserve period

For ten years prior to the end of the FIT period with a monthly frequency

Cash reserve amountFor accredited solar power plants whose procurement prices have already been determined by FY2019, the reserve amount is
the level of assumed costs for decommissioning, etc. in the procurement price calculation determined by the Procurement
Price Calculation Committee

Start of Cash Reserve as Demolition Costs by CSIF Started to maintain cash reserve in 2024

Cash reserve method
adopted by CSIF The amount of cash reserve is the level of demolition costs assumed in the calculation of the procurement price by theProcurement Price Calculation Committee
 The frequency of cash reserve shall be determined at the beginning of each accounting period The cash reserve shall be managed in time deposit account dedicated to the reserve for demolition costs
 The cash reserve status will be posted on CSIF’s corporate website

64

Main Points of the Revised Renewable Energy Act（3） Discussions on Wheeling Charge

In 2024, concerning the regulation on the Wheeling Charge where power producers (including renewable energy
producers) must bear 10% of consignment charges which the retailer previously paid the full cost, the exemption ofwheeling charges for FIT/FIP-certified projects until after the FIT period expires has been started.
•

In addition to levy methods and detailed calculation methods, discussions on the Wheeling Charge on existing FITcertified projects were held. However, at the “Mass Renewable Energy Introduction / Next Generation Energy Network
Committee” held in December 2021, the government ultimately decided to reach a decision during FY2022 with thecommon understanding that the effective date will be postponed from FY2023 to FY2024.

•

At the “Mass Renewable Energy Introduction / Next Generation Energy Network Committee” held in November 2022,
the members decided that careful discussions on how to regulate FIT energy sources without interrupting the growthof renewable energy. Considering the burden on the Japanese citizens a motion to either allow installment payments orcompletely exempt the Wheeling Charge on existing FIT/FIP-certified projects has been submitted.

•

The aforementioned committee held in December 2022 decided that the Wheeling Charge are exempt for existing
FIT/FIP projects during their respective FIT periods. In addition, prior to the start of the system in April 2024, eachgeneral electricity transmission and distribution company submitted an application to the Minister of Economy, Tradeand Industry for the unit price of Wheeling Charge in December 2023.

•

In April 2024, FIT/FIP projects approved before April 2024 started to be exempted from the charges during the FIT
period.

Summary of the detailsof Wheeling Charge

Scheme of Wheeling Charge (All of CSIF's assets are already FIT-certified projects)
Wheeling
ChargePower Producers

Consignment
ChargeGrid operators
10%

Utilities bill

Retailers

End Users

90%

Policy to be organized under the basic concept of thatthe reduction of consignment charge due to the introduction of “Power Producer-side Wheeling
Charge” should be appropriately borne by the power producers.

65

Disclaimer• 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 andExchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulations of the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document includes
figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based on data/index and otherinformation 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 suchinformation. Analysis, judgment and other non-factual views of the Asset Manager represent views of the Asset Manager at thispoint 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 inthe rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors. Readers arealso 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 otherinformation released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, these statements do notguarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

66