Project Finance Arranged for Chitose BESS GK's Merchant Grid-Connected Battery Energy Storage System Project

May 19, 2026

Aozora Bank, Ltd. Daiwa Securities Group Inc.

Daiwa Energy & Infrastructure Co. Ltd.

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TOKYO, May 19, 2026 - Aozora Bank, Ltd. (President and CEO: Hideto Oomi; Head Office: Tokyo) ('Aozora' or 'the Bank'), Daiwa Securities Group Inc. (President and CEO: Akihiko Ogino; Head Office: Tokyo) ('Daiwa Securities Group'), and its wholly owned subsidiary, Daiwa Energy & Infrastructure Co. Ltd. (President and Representative Director: Hideo Nakajima; Head Office: Tokyo) ('Daiwa Energy & Infrastructure'), are pleas ed to announce that Aozora entered into a loan agreement (hereinafter the 'Agreement') for project finance for a grid-connected battery energy storage system ('BESS') on March 31, 2026, with Chi tose BESS GK (Executive Officer: Terumitsu Nosaka; Head Office: Tokyo) (the 'GK'), which is invested in by Daiwa Energy & Infrastructure.

The Agreement is for a project finance transaction of a grid-connected battery storage system project in Chitose City, Hokkaido. In this project, ITOCHU Corporation will provide the battery storage system, Kyocera Communication Systems Co., Ltd. will be responsible for the engineering, procurement, and construction of the BESS, Osaka Gas Co., Ltd. will manage battery operations and trading in the electricity market, and Daiwa Real Estate Asset Management Co., Ltd. will oversee management of the BESS. The GK will generate revenue through electricity sales, supply of balancing capa city, and capacity supply in the wholesale electricity market, supply-demand adjustment market, and capacity market, among others. The project's revenue will not be based on a fixed pric e but instead on a "full merchant model." The

project will primarily serve an important supply-demand balancing function within the power grid, contributing to the stabilization of output fluctutaions from multiple power plants, including renewable energy sources such as solar and wind pow er, as well as ensuring a stable supply of power. Aozora and Daiwa Energy & Infrastructure hav e leveraged Aozora's experience and expertise developed through project finance and Daiwa Energy & Infrastructure's extensive power development experience and diverse project investme nt track record to jointly develop a project finance structure with full merchant revenue as the repayment source, leading to the execution of the Agreement.

The Aozora Group has established Investment and Len ding Policies regarding Environmental and Societal Issues as part of its sustainability i nitiatives. By promoting investments and lending that support its customers' efforts to address environmental and societal challenges, Aozora will

actively contribute to the sustainable development of society through the promotion of renewable energy and the development and commercialization of related technologies that contribute to high efficiency and low environmental impact.

Daiwa Securities Group will continue to work with stakeholders to create a prosperous future and enhance corporate value through financial and capital markets under the management vision "Vision 2030".

[Overview of Chitose BESS GK]

Established February 7, 2024

Location 1-1-7 Moto-Akasaka, Minato-ku, Tokyo

Sponsor Daiwa Energy & Infrastructure (100%)

[Overview of Chitose Battery Storage System Facility]

Name Chitose Battery Storage System Facility Commercial Operation Date Scheduled for October 2027

Location 4-4 Ryutsu 3-chome, Chitose City, Hokkaido , and other locations

Grid Connection Capacity 38 MW

Battery Storage Capacity 160.32 MWh

[Environmental and Economic Benefits of This Projec t]

1. Reduction of Greenhouse Gas Emissions through S tabilization and Maximum Utilization of Renewable Energy Output

   The installation of the grid-connected BESS will te mporarily store fluctuating electricity from solar, wind, and other sources, charging during per iods of oversupply and discharging during shortages. This will serve to maintain the balance between supply and demand across the grid, reduce curtailment of renewable energy output, and effectively utilize electricity that would otherwise be wasted, thereby contributing toGHG emission reductions by displacing existing power sources.

2. Alleviation of Transmission Grid Congestion, Re duction of Transmission Costs, and Stable Electricity Supply

This project takes transmission capacity into consi deration and stores electricity, thereby avoiding large-connected transmission line expansio n work and saving time and costs.

Additionally, it discharges within milliseconds when frequency drops to perform grid frequency regulation, reducing the risk of power outages and contributing to a stable electricity supply.

[Collaboration with Daiwa Securities Group]

Aozora and Daiwa Securities Group entered into a ca pital and business alliance in May 2024 and have been building a collaborative framework that leverages the different strengths and management resources of both companies.

This project has been developed as a contribution t o the advancement of investment and financing for grid-connected battery storage system projects, which are still in their nascent stage in Japan, by leveraging the development and investm ent track record that Daiwa Energy & Infrastructure, the core company for energy and infrastructure investment under Daiwa Securities Group, has cultivated over many years, combined wit h the value-added financing capabilities in

strategic investments business that Aozora has deve loped over the years. Going forward, we will continue to promote pioneering development in investment and financing in the energy and infrastructure sector, contributing to the resolutoi n of social challenges and the cultivation and sustainable growth of domestic industries.

• Overview of Aozora Bank, Ltd.

  Company Name	Aozora Bank, Ltd.
  Established	April 1, 1957
  Head Office	6-1-1 Kojimachi, Chiyoda-ku, Tokyo
  Representative	Hideto Oomi, President and CEO
  Capital	125.9 billion yen
  Business	Banking

• Overview of Daiwa Securities Group Inc.

  Company Name	Daiwa Securities Group Inc.
  Established	April 26, 1999
  Head Office	1-9-1 Marunouchi, Chiyoda-ku, Tokyo
  Representative	Akihiko Ogino, President and CEO
  Capital	247.3 billion yen
  Business	Management and control of group company business ac tivities

• Overview of Daiwa Energy & Infrastructure Co., Ltd.

Media Contacts:

Aozora Bank, Ltd.

Corporate Communications Division, Public Relations Group Yamaguchi & Kubo, 03-6752-1217

Daiwa Securities Group Inc.

Corporate Communication Department Hayashi, 03-5555-1169

Daiwa Energy & Infrastructure Co. Ltd. Corporate Planning Department, Public Relations 03-5555-6100