Establishment of "Sparks Sapporo-Hokkaido GX Fund," Japan's First Region-Specific Public-Private Partnership GX Fund

Sparks Group Co., Ltd. (hereinafter referred to as "the Company") is pleased to announce the establishment of "Sparks Sapporo-Hokkaido GX Fund" (hereinafter referred to as "the Fund"), Japan's first ⁽*⁾ region-specific public-private partnership Green Transformation fund, which has now commenced operations with investments from 14 organizations, including the City of Sapporo.

Leveraging Hokkaido's significant potential for renewable energy, "Team Sapporo-Hokkaido" (hereinafter referred to as "TSH") was established in 2023 by 21 industry, academia, government, and financial institutions. Furthermore, in 2024, the City of Sapporo and Hokkaido were designated as a "GX Finance and Asset Management Special Zone," accelerating the promotion of the GX industry and the development of an investment environment.

The Fund will invest in GX projects within Hokkaido, focusing on the eight priority GX areas and renewable energy-related projects outlined by TSH. By utilizing subsidies, tax incentives, and deregulation under the special zone system to create high-quality investment opportunities, the Fund aims to act as a "catalyst" to attract domestic and international capital into Hokkaido's GX industry.

With investment commitments from 14 organizations, including the Company and other TSH member companies and organizations, the Fund aims for a total scale of approximately 10 billion yen, while promoting coexistence with the region and building a sustainable capital supply base for Hokkaido.

⁽*⁾According to research by the City of Sapporo.

https://www.city.sapporo.jp/somu/koho/hodo/202509/documents/20250910gxfund2.pdf

1. Scheme Diagram

2. Fund Overview

Fund Name Sparks Sapporo-Hokkaido GX Investment Business Limited Partnership (Commonly known as: Sparks Sapporo-Hokkaido GX Fund)

Investment Target GX projects in Hokkaido related to TSH's eight priority GX areas and renewable energy (1) Offshore Wind (2) Next-Generation Semiconductors (3) Data Centers (4) Hydrogen (5) SAF (6) Storage Batteries (7) Submarine DC Power Transmission (8) Electric and Hydrogen Transport Vessels

Investors General Partner: Sparks Group Co., Ltd. Limited Partners: Ain Holdings Inc. / Ashikita Town (Kumamoto Prefecture) / City of Sapporo / Japan Green Investment Fund Inc. / Nakayama Corporation / Development Bank of Japan Inc. / Heiwa Real Estate Co., Ltd. / The Hokuyo Bank, Ltd. / Hokkaido Foundation for Promotion of Science and Technology / The Bank of Hokkaido, Ltd. / Mizuho Bank, Ltd. / Sumitomo Mitsui Banking Corporation / MUFG Bank, Ltd. (in Japanese alphabetical order)

Asset Management Company Sparks Asset Trust & Management Co., Ltd.

Fund Operation Period Until February 2, 2036

Fund Size Target: 10 billion yen Investment Solicitation Deadline...