Canadian Solar Infrastructure Fund : Summary of Financial Results for Fiscal Period Ended June 30, 2022 (Infrastructure Fund)

Summary of Financial Results for Fiscal Period Ended June 30, 2022 (Infrastructure Fund)

Infrastructure Fund Issuer

S e c u r i t i e s C o d	e
R e	p r e	s e n t a t i	v e
Asset Management Company
R	e	p r e	s e n t a t i	v e
C		o n t a c	t

Scheduled filing date of securities report

Supplementary materials for financial results

Financial results briefing session

					August 16, 2022
Canadian Solar Infrastructure Fund, Inc.		L i s t e d S t o c k	Tokyo Stock
	E x c h a n g e	Exchange
9284		URL	https://www.canadiansolarinfra.com/
(Title)	Executive Director	(Name)	Hiroshi Yanagisawa
Canadian Solar Asset Management K.K.
(Title)	CEO and Representative	(Name)	Hiroshi Yanagisawa
Director
	Financial Planning
(Title)	Department	(Name)	Keiichi Yoshida
	CFO
Tel.	03(6279)0311
		Scheduled date of
September 29, 2022	commencement of cash	September 15, 2022
		distribution payment

YES

YES (For institutional investors and analysts)

																	(Amounts are rounded down to million yen)
1. Status of Management and Assets for Fiscal Period Ended June 30, 2022 (from January 1, 2022 to June 30, 2022)
(1) Management Status										(Percentage figures are the rate of period-on-period change)
			Operating revenues			Operating income		Ordinary income	Net income
Fiscal period ended		Million yen			%	Million yen			%		Million yen		%		Million yen	%
		4,060		13.1	1,743			29.6		1,509		34.4		1,509	34.4
Jun. 2022
Fiscal period ended			3,587		4.7	1,344			(7.8)		1,123		4.5		1,122	4.5
Dec. 2021
			Profit per unit			Rate of return on equity		Ordinary profit	Ordinary profit to
						to total assets ratio	operating revenue ratio
Fiscal period ended					yen					%				%				%
				3,902					3.8				1.9				37.2
Jun. 2022
Fiscal period ended					2,902					2.8				1.4				31.3
Dec. 2021
(2) Status of Cash Distributions
	Distributions per	Total									Distributions per			Total
		unit		distributions						Total		distributions
				Distributions in					unit (including				Ratio of
	(excluding		(excluding			distributions in			(including		Payout ratio
	distributions in	distributions in			excess of	excess of		distributions in	distributions in		distributions to
		earnings per unit			excess of				net assets
	excess of		excess of				earnings				excess of
									earnings)
	earnings)		earnings)												earnings)
Fiscal period			Yen	Million yen			Yen		Million yen			Yen		Million yen		%		%
	3,903			1,509			0				0		3,903		1,509		100.0		3.8
ended Jun. 2022
Fiscal period		2,902			1,122			848				327		3,750		1,449		100.0		2.8
ended Dec. 2021

(Note 1) The payout ratio is calculated according to the following formula.

Payout ratio = distributions per unit (excluding distributions in excess of earnings) / profit per unit x 100 (Note 2) The payout ratio and the ratio of distributions to net assets are calculated based on the numerical data excluding

distributions in excess of earnings.

(Note 3) Total distributions in excess of earnings are all refunds of investments that constitute distributions on the decrease of capital contribution under the tax law.

(Note 4) The ratio of the decrease in net assets upon distributions in excess of earnings (refunds of investments that constitute distributions on decrease of capital contribution under the tax law) is 0.009 for the fiscal period ended December 31.In this regard, the ratio of the decrease in net assets is calculated according to Item 4, Paragraph 1, Article 23 of the Ordinance for Enforcement of the Corporation Tax Act.

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(3) Financial Position

	Total assets	Net assets	Equity ratio	Net assets per unit
Fiscal period ended	Million yen	Million yen	%	yen
79,475	40,142	50.5	103,818
Jun. 2022
Fiscal period ended	80,633	40,082	49.7	103,665
Dec. 2021
(4) Status of Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	at the end of the fiscal
	operating activities	investing activities	financing activities
	period
Fiscal period ended	Million yen	Million yen	Million yen	Million yen
2,602	(39)	(2,581)	5,082
Jun. 2022
Fiscal period ended	5,588	(229)	(4,870)	5,101
Dec. 2021

2. Forecasts of Management Status for Fiscal Period Ending December 31, 2022 (from July 1, 2022 to December 31, 2022), Fiscal Period Ending June 30, 2023 (from January 1, 2023 to June 30, 2023) and Fiscal Period Ending December 31, 2023 (from July 1, 2023 to December 31, 2023)

(Percentage figures are the rate of period-on-period change)

									Distributions per		Distributions per
									unit (excluding	Distributions in	unit (including
	Operating revenues	Operating income	Ordinary income	Net income	distributions in	excess of earnings	distributions in
									excess of	per unit	excess of
									earnings)		earnings)
	Million	%	Million	%	Million	%	Million yen	%	yen	yen	yen
	yen	yen	yen
Fiscal period
3,725
ending Dec.	(8.3)	1,404	(19.5)	1,190	(21.1)	1,189	(21.2)	3,077	673	3,750
2022
Fiscal period	3,689
ending Jun.	(1.0)	1,397	(0.5)	1,193	0.2	1,192	0.2	3,084	666	3,750
2023
Fiscal period	3,705
ending Dec.	0.4	1,409	0.9	1,208	1.3	1,207	1.3	3,123	627	3,750
2023

(Reference)

Fiscal period ending December 31, 2022 (184 days): Forecast total number of investment units issued and outstanding at end

of the period: 386,656 units, Forecast profit per unit: 3,077 yen

Fiscal period ending June 30, 2023 (181 days): Forecast total number of investment units issued and outstanding at end of the

period: 386,656 units, Forecast profit per unit: 3,084 yen

Fiscal period ending December 31, 2023 (184 days): Forecast total number of investment units issued and outstanding at end

of the period: 386,656 units, Forecast profit per unit: 3,123 yen

• Other
• 1. Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement

(i) Changes in accounting policies associated with amendments to accounting standards, etc.: No

(ii) Changes in accounting policies other than (i):	No
(iii) Changes in accounting estimates:	No
(iv) Retrospective restatement	No

1. Total number of investment units issued and outstanding

1. Total number of investment units issued and outstanding (including treasury units) at end of period
2. Number of treasury units at end of period

Fiscal period	386,656	Fiscal period	386,656
Jun. 2022	Dec. 2021
Fiscal period	0	Fiscal period	0
Jun. 2022	Dec. 2021

(Note) For the number of investment units based on which profit per unit is calculated, please refer to "Notes on regarding per unit information" on page 29 below.

* Summary of Financial Results is out of scope from the audit by chartered accountant or corporate auditor.

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• Explanation of Appropriate Use of Forecast of Management Status and Other Matters of Special Note
  Forecast of management status and other forward-looking statements contained in this document are based on information that is currently available and certain assumptions that are deemed reasonable by Canadian Solar Infrastructure Fund. Accordingly, the actual management status, etc. may differ materially due to various factors. In addition, the forecast is not a guarantee of the amount of cash distributions. For details of the assumptions underlying the forecast of management status, please refer to "Assumptions Underlying Forecast of Management Status for Fiscal Period Ending Fiscal Period Ending December 31, 2022 (July 1, 2022 to December 31, 2022) ,Fiscal Period Ending June 30, 2023 (January 1, 2023 to June 30, 2023) and Fiscal Period Ending December 31, 2023 (July 1, 2023 to December 31, 2023)," described on or after page 11 below.

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1. Management Policy and Management Status

(1) Management Status

I. Overview of the Fiscal Period under Review

a. Brief History of Canadian Solar Infrastructure Fund

Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as "CSIF") was established on May 18, 2017 with money invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K. (hereafter referred to as the "Asset Manager") as the founder under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951 including subsequent amendments; hereinafter referred to as the "Investment Trusts Act"). Registration with the Kanto Local Finance Bureau was completed on June 9, 2017 (registration number 127, filed with the Director of the Kanto Local Finance Bureau).

CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017, listed its investment units on Tokyo Stock Exchange Inc.'s (hereinafter referred to as the "Tokyo Stock Exchange") Infrastructure Fund Market on October 30, 2017 (security code: 9284), and issued new investment units (2,890 units) through third-party allotment on November 28, 2017.

In addition, CSIF issued new investment units (46,667 units) through public offering on September 5, 2018 and issued new investment units (2,333 units) through third-party allotment on October 4, 2018.

CSIF then issued new investment units (151,500 units) through public offering on March 5, 2021 and issued new investment units (3,966 units) through third-party allotment on April 7, 2021.

As a result of the above, the total units issued at the end of the fiscal period under review (as of June 30, 2022) were 386,656 units.

b. Investment Environment and management performance for the fiscal period under review

During the fiscal period under review, Japan's economy performed better than expected in the preliminary estimate or the consensus estimate of economists surveyed by Bloomberg, with real GDP in January-March 2022 declining by 0.1% quarter on quarter (0.5% on an annualized basis). Although Japan continues to see a certain level of coronavirus cases and deaths, a "living-with-COVID-19" policy of reopening the economy whilst accepting certain levels of infection is gaining traction, partly thanks to the rollout of booster shots, and, as a result, a tendency towards a recovery in economic activity driven by the consumption of services is expected to accelerate.

On the other hand, it is feared that Russia's invasion of Ukraine will have global impacts on supplies of energy and agricultural commodities and, with Europe in particular teetering on the brink of an energy crisis, downside risks to the economic outlook have increased significantly. Russian energy resources account for 3.7% of Japan's primary energy consumption and, from a mid- to long-term perspective, Japan is once again under pressure to secure non fossil fuel energy sources. Furthermore, Ukraine is one of the world's largest producers of grain, making an especially significant contribution to global production for barley, wheat and potatoes. Soaring grain prices as a result of grain shortages are, therefore, anticipated, with the impact on the Mediterranean Region and developing countries causing particular concern.

Looking at the monetary policies of central banks around the world, the FRB aggressively tightened its monetary policy stance, with the Federal Open Market Committee (FOMC) deciding at its meeting on 14-15 June 2022 to raise the target range for the federal funds rate by 75 basis points to 1.50-1.75%. Meanwhile, at the Monetary Policy Meeting on June 16-17, 2022, the BOJ maintained its current monetary policy. As a result, unlike many central banks that are raising interest rates, Japan is keeping interest rates low. Consequently, the yen has continued to weaken sharply against other major currencies since March 2022, creating a situation that will also have impacts for corporate earnings in the future.

Meanwhile, during the fiscal period under review, conditions on the Infrastructure Fund Market were such that investment corporations maintained comparatively stable business operations despite the economic environment described above. The TSE Infrastructure Fund Index also fluctuated in a comparatively narrow range, falling slightly at the beginning of 2022 to a low of 1,071.50 points on February 24 but then rallying and reaching a high of 1,160.00 points on June 9.

"Output curtailment," which is implemented by an electricity transmission and distribution business operator (Note 1) to adjust the supply-demand balance, was implemented in the Kyushu Electric Power jurisdiction with respect to "renewable energy power generation facilities" (Note 2) held by CSIF, for 10 days in January, two days in February, nine days in March, twelve days in April, and eight days in May, totaling 41 days during the period under review. This was much less frequent than in the same period of the previous year. This reduction in frequency is perhaps attributable to a policy of securing electricity from renewable energy sources in face of soaring global energy and raw material prices caused by Russia's invasion of Ukraine mentioned earlier. However, given that some output curtailments were introduced in the Tohoku Electric Power, Chugoku Electric Power and Shikoku Electric Power jurisdictions in April 2022 and in the Hokkaido Electric Power jurisdiction in May 2022, these developments will need to be monitored in the future.

On October 22, 2021, the Cabinet approved the 6th Strategic Energy Plan. The 6th Strategic Energy Plan indicates the direction of energy policies for achievement of carbon neutrality by 2050 (goal declared in October 2020) along with the new target of reducing greenhouse gas emissions by 46% by FY2030 and trying to push the reduction as high as 50% (targets declared in April 2021) (Note 5). It positioned "overcoming issues in Japan's energy supply-and-demand structure" as an important theme (Note 5) and committed to maximizing efforts to realize Japan's goal of "S+3E" (the conventional three E's of energy security, economic efficiency, and environmental protection, plus safety) (Note 3). The ambitious new power-source composition for 2030 would be 36-38% for renewable energies (up from 22-24% in the current projected mix), 20-22% for

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nuclear power (unchanged), 20% for LNG (down from 27%); 19% for coal (down from 26%), and 2% for oil (down from 3%). The renewable energy mix would be 14-16% for solar power, 5% for wind power, 1% for geothermal power, 11% for hydroelectric power, and 5% for biomass.

As for the system to ensure a reserve of decommissioning costs for solar power generation facilities (Note 4), (i) this will apply to all FIT- and FIP-certified solar projects (includes multiple solar projects) of 10 kW or more. (ii) As for the reserve method, the 2020 Amendment to the Renewable Energy Special Measures Act stipulates that certified solar project developers must reserve the decommissioning costs externally at the Organization for Cross-regional Coordination of Transmission Operators (OCCTO) through direct withholding of the required amounts from revenue, in principle. However, in exceptional cases, internal reserve will be permitted provided certain requirements are satisfied, and listed infrastructure funds will also be permitted to opt for internal reserve upon satisfying certain conditions such as recording funds in their financial statements in an appropriate manner. The decommissioning reserve scheme became applicable from April 2022.

Details of producer-side charges were previously expected to be determined by the end of the FY2021. However, the 6th Basic Energy Plan approved by the Cabinet in October 2021 outlines the intention to continue considering the matter including the need for introduction, aiming for smooth introduction of a producer-side charge scheme based on a policy that, on the major premise of S+3E, utilization of renewable energy as the major power source will be ensured. Based on the judgment that, given the circumstances, a decision is unlikely any time soon, the Subcommittee on Mass Introduction of Renewable Energy and Next-Generation Electricity Networks indicated, at its meeting on December 24, 2021, a plan to consider at relevant meetings the nature of recovery of expenses relating to transmission and distribution including producer-side charges aiming for realization as soon as possible, with FY2024 in mind, and to aim to reach a conclusion during FY2022. Subsequently, at a meeting on April 21, 2022, the Expert Committee for System Design of the Electricity and Gas Market Surveillance Commission stated that the environment surrounding the electricity industry including energy policy had changed significantly since the start of consideration of producer-side charges and, although certain energy sources such as solar power and wind power are likely to be given some consideration, including from the perspective of "smooth introduction of a producer-side charges scheme," which was specifically mentioned in the 6th Basic Energy Plan, the aims and effects of a producer-side charges scheme were consistent with the content and direction of current energy policy measures. As a result, the committee stated that although no actual figures would be proposed at present, it was appropriate to continue considering the nature of recovery of expenses relating to transmission and distribution including producer-side charges at relevant meetings.

Under such conditions, during the fiscal period under review, CSIF did not acquire any new assets nor sell any of the assets it owns but it continued to be the largest operator among listed infrastructure funds as of the end of the fiscal period under review, holding a portfolio consisting of 25 facilities (with a total panel output (Note 5) of 183.9 MW, a total acquisition price (Note 6) of ¥80.0 billion, and a total price (Note 7) of ¥76,365 million as of the end of the fiscal period under review.

(Note 1) For the purposes of this report, the term "electricity transmission and distribution business operator" collectively refers to a general electricity transmission and distribution business operator (refers to a "general electricity transmission and distribution business operator" defined in Article 2, Paragraph 1, Item 9 of the Electricity Business Act (Act No. 170 of 1964; including subsequent amendments; hereinafter referred to as the "Electricity Business Act") and specified electricity transmission and distribution business operator (refers to "specified electricity transmission and distribution business operator" defined in Article 2, Paragraph 1, Item 13 of the Electricity Business Act).

(Note 2) For the purposes of this report, the term "renewable energy power generation facilities" refers to renewable energy power generation facilities (excludes facilities which fall into the category of real estate) defined in Article 2, Paragraph 2 of the Act on Special Measures Concerning Promotion of Utilization of Electricity from Renewable Energy Sources (Act No. 108 of 2011, including subsequent amendments; hereinafter referred to as the Renewable Energy Special Measures Act). The Renewable Energy Special Measures Act before amendment based on the Act for Partial Amendment of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (2016 Act No. 59) is referred to as the "2016 Renewable Energy Special Measures Act" and the Renewable Energy Special Measures Act after amendment based on the Act to Partially Amend the Electricity Business Act and Other Acts in Order to Establish a Resilient and Sustainable Electricity Supply System (Act No. 49 of 2020) is referred to as the "2020 Renewable Energy Special Measures Act."). For the purposes of this report, "renewable energy generation facilities, etc." refers collectively to renewable energy generation facilities, and real estate, real estate leases (includes subleases) and land lease rights (hereinafter referred to as the "site, etc.") necessary to install maintain and operate renewable, energy generation facilities. Hereinafter, any mention of "renewable energy power generation facilities" or "renewable energy power generation facilities, etc." which CSIF is said to have invested in or acquired or operate shall also cover "renewable energy power generation facilities" and "renewable energy power generation facilities, etc." that support CSIF's assets under management. The same shall apply hereunder. Renewable energy may also hereinafter sometimes be referred to as "renewables."

(Note 3) All the above information is based on the "Outline of the Basic Energy Plan" published by the Agency for Natural Resources and Energy in October 2021.

(Note 4) The term "photovoltaic power generation facilities" refers to renewable energy power generation facilities that generate electricity using sunlight as an energy source. The same shall apply hereunder. The term "photovoltaic power generation facilities" refers to photovoltaic power generation facilities as well as their site, etc. The same shall apply hereunder.

(Note 5) "Panel output" shall mean output calculated by multiplying rated output per solar cell module (meaning the maximum output stated in specifications of solar cell module) used in each solar energy facility by the total number of panels. "Total panel output" shall mean the total panel output rounded off to one decimal place. The same shall apply hereunder.

(Note 6)The term "acquisition price" represents transaction price (excluding remuneration for business outsourcing concerning the acquisition of assets and other acquisition costs, property taxes, city planning taxes, amount equivalent to consumption taxes, etc. and other commissions, etc.; the same shall apply hereunder) specified in the sales agreement for each asset held. The term "total acquisition price" is total of the transaction prices specified in the sales agreements for all the assets held rounded down to the nearest ten million yen. The same shall apply hereunder.

(Note 7) The term "price" refers to the price calculated based on appraised value as of the end of the fiscal period under review. The price of the

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