March 1, 2017

Company name: Tamagawa Holdings Co., Ltd.
Representative: Toru Masuzawa, President(JASDAQ Code 6838)
Contact:
Junya Tokumoto,Corporate Planning Department
Telephone:+81-3-6435-6933

Tamagawa Holdings Announces Acquisition of Property, Plant, and Equipment (Large Scale
Solar Energy Power Plant Facility) through an Installment Purchase Agreement
Tamagawa Holdings announces that its consolidated subsidiary GP Energy B LLC has resolved to acquire byconclusion of an installment purchase agreement a large-scale solar energy power plant located in Kasumigaura city,Ibaraki prefecture, which is scheduled start feeding into the power grid in late March 2017 with an approximate
power output of 2.4 MW.

1. Outline
Tamagawa Holdings Group has been promoting the expansion of its large scale solar energy power plantbusiness since the implementation of the renewable energy fixed-priced feed-in regulations. Large scale solar
energy power plants currently operating in Tateyama-shi, Chiba prefecture; Sodegaura city, Chiba prefecture;and Shimonoseki city, Yamaguchi prefecture, have been realizing steady power sales.
The construction of the solar energy power plant to be acquired in Kasumigaura city, Ibaraki prefecture (the"Power Plant") has been in progress, with prospects to initiate electric power sales late in March 2017. ThePower Plant was initially under consideration for sale to an external customer by Tamagawa Energy Co., Ltd., aconsolidated subsidiary of Tamagawa Holdings engaged in renewable-energy system sales operations. However,as the result of an in-depth review weighing the extent of contributions to earnings over the course of twentyyears of ownership by Tamagawa Holdings Group against the one-time income from the sale of the Power Plant
to an external buyer, from a medium-term and long-term perspective it was judged that ownership byTamagawa Holdings Group will deliver long-term, stable cash flows that will strengthen the earnings structure
and the financial structure of Tamagawa Holdings Group. As a consequence, it was decided to acquire andoperate the Power Plant as a business owned by Tamagawa Holdings Group.
Tamagawa Holdings Group will continue to build and operate power plants that use renewable energy,
specifically solar power, with the aims of raising sales and earning capabilities, promoting the proliferation ofenvironment-friendly renewable energy, and contributing to society by reducing the load on the environment.
2. Reason for the acquisition of the Power Plant through an installment purchase agreement
The conclusion of the installment purchase agreement serves to promote the efficient managementof the capital of Tamagawa Holdings Group.
3. Description of the assets to be acquired under the installment purchase agreement
Designation (provisional)

Place

Outline of the assets

Total acquisition

and total installment purchase price

price

Kasumigaura city, Ibaragi prefectureKasumigaura city,

Set of solar energy power

1,000,000

Large scale solar energy power plant

Ibaragi prefecture

generation systemthousand yen

Total amount payable: 1,280,000
thousand yen

4. Summary of the counterparty of the installment purchase agreement(1) Name

Ricoh Leasing Company, Ltd.

(2) Location

1-7-12 Shinonome, Koto-ku, Tokyo(3) Representative's position and name

Daisuke Segawa, Representative Director, President and CEO(4) Business lines

Leasing, installments, and financial services business(5) Capital

7,896.86 million yen(6) EstablishedDecember 1976

(7) Net assets

145.5 billion yen(8) Total assets(9) Main shareholders and shareholder
percentages

878.5 billion yen(10) Relationships between exchange listedcompanies and the subject company

Ricoh Co., Ltd. 52.8%
No capital relations and personnel relations exist. Transaction
relationships exist such as lease agreement, etc. Details areavailable in the releases dated May 15, 2014, December 12, 2014,
October 31, 2016, and January 16, 2017 entitled “TamagawaHoldings Announces Lease Based Acquisition of Property, Plant,
And Equipment (Large Scale Solar Energy Power PlantFacilities).”
The subject company is not an interested party with respect toTamagawa Holdings.

5. Schedule (prospective)

Resolution of theboard of directors
Execution of thelease agreement

February 28, 2017

Installment
purchase start date

Late March 2017 (prospective)

February 28, 2017

6. Outline of the Power Plant(1) Location

Kamo, Kasumigaura city, Ibaragi prefecture(2) Operator

GP Energy B LLC (Subsidiary of a fully-owned subsidiary of
Tamagawa Holdings)(3) Site area

Approximately 40,354 m2(4) Electric power generating capacity

Approximately 2.4 Megawatt(5) Electric power sales price (fixed for 20 years) 36 yen / kWh (tax excluded)(6) Income from electric power sales

105 million yen / year (approx.)(prospective)(7) Estimated electric power generation in the

Approximately 2,900,000 kWh

first fiscal year (projected)(8) Start date of electric power sales

End of March 2017(prospective)
7. Further outlook
Full-scale revenues from electric power sales from the operations of the Power Plant will commence in thenext fiscal year. As to the effects on consolidated financial results for the current fiscal year arising from theownership of the Power Plant by Tamagawa Holdings instead of its sale, information is available in the"Tamagawa Holdings Announces Revision of Results Projections" disclosed as of the same date as this notice.