February 23, 2018
Company name: Tamagawa Holdings Co., Ltd.
Representative: Toru Masuzawa, President(JASDAQ securities code: 6838)
Contact: Junya Tokumoto,Corporate Planning Department
TEL: 03-6435-6933
Announcement on acquisition of the right to sell electric power relating
to small-sized wind power generation businessThis is to notify that our company made a resolution in the board of directors meeting held today toacquire the right to sell electric power for 50 locations in order to engage in the small-sized windpower generation business (hereafter the “Business”) in the Tohoku and Hokkaido districts.
1. Overview of the BusinessOur group companies have been attempting to expand the solar power plant business since theintroduction of Feed-in Tariff Scheme for Renewable Energy and maintaining satisfactory powersales at power plants currently in operation. At this time, we are going to engage in full-scale
development of small-sized wind power stations as the next pillar of clean energy by utilizing theknow-how, etc. cultivated in this business in the past.
In the case of wind power generation, power is generated even at night if the wind blows;
therefore the capacity factor is higher in comparison with solar power generation, ensuring highfeasibility by selecting locations with good wind conditions. The 20-year purchase price for the50 locations acquired at this time is fixed at 55 yen/kWh, which are expected to be highly
profitable power stations.
2. History until acquisition of the BusinessOur group companies own one small-sized wind power generation facility in Tateyama-shi, Chiba
to verify product reliability, performance, etc. since two years ago or so, and have been making
efforts to accumulate know-how on profitability verification, etc. from a relatively early stage. In
regards to wind speed prediction which becomes important for the wind power generation
business, our company is also able to predict more accurate wind speed prediction and power
generation prediction by using our unique simulation software.
While working on such survey and verification, our company reached a conclusion that theTohoku and Hokkaido districts are the most suitable locations for small-sized wind power
generation, and chose and acquired 50 areas with good wind conditions in these districts.
Please note that the information on acquisition destination as well as the acquisition amount is notdisclosed due to confidentiality agreement with the other party.

13. Overview about the profitability of the Business
50 small-sized wind power stations are to be constructed as the right to sell electric power for 50
locations is purchased at this time. The following is indicating per-plant numbers for reference.
① Power output (AC base)

Approximately 20Kw

② Expected power generation amount85,600Kwh(one year)③ Expected income from selling power4,708,000 yen(one year)④ Completion date (plan)

In sequence starting around March 2019

⑤ Real yield (20-year average)

Approximately 9% (on the assumption of 36
million yen to construct one station)* Numbers in ②, ③, and ⑤ above are calculated on the premise of 6m/s annual average wind speed.

4. Future outlook
The actual construction period of these power stations is to be determined through conferencewith utility firms on the interconnected power system in the future; therefore there is no influenceon the business results of our company for this fiscal period.
Construction of 50 power stations is planned after the next fiscal period according to the current
plan, and we will determine whether to own them or sell them to outside parties by assessing thebusiness environment. Details are to be announced as soon as possible.

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