Investment in Hitoyoshi Solar and the right to increase the ownership interest after completion

「In the renewable energy power generation segment of our group during the first quarter of the current fiscal year, the 人吉ソーラー匿名組合事業, with output of 20.8MW based on generation-end capacity, began commercial operations in June 2023. Generation increased steadily as small-scale distributed solar power plants under Non-FIT arrangements, including corporate PPAs and FIP schemes, also began operations successively. With respect to the 人吉ソーラー匿名組合事業, we exercised our right on 31 May 2023 under the memorandum of understanding concerning the transfer of anonymous partnership interests and other interests to acquire additional interests held by the joint sponsor, bringing our ownership interest to 100%.」

「Completion of the power plant is scheduled for June 2023, although the date may change depending on construction progress.」

「We acquired an interest in the 人吉ソーラー匿名組合事業 in 人吉 City, Kumamoto Prefecture, which operates the 人吉ソーラー power generation project led by our company, with module-based capacity of 20.8MW. Since our ownership interest in the 人吉ソーラー匿名組合事業 is 38.0%, we have accounted for it as an equity-method affiliate from the third quarter of the current fiscal year. Under the memorandum of understanding concerning the transfer of anonymous partnership interests and other interests in 合同会社人吉ソーラー, we have the right, after the completion date of the 人吉ソーラー power plant, to acquire all of the anonymous partnership interest held by the joint sponsor, representing 62.0%.」