February 3, 2021
To whom it may concern,
Company: Tamagawa Holdings, Co., Ltd.
Representative: President, Toru Masuzawa(JASDAQ Code: 6838)
Contact: Management Planning Division, Ryota Tanaka
Tel: 03-6435-6933

Notice on establishment of an agricultural corporation
as a subsidiary of the subsidiary (sub-subsidiary) of the Company
Please be advised that Tamagawa Energy Co., Ltd, as the 100% subsidiary of the Company, resolved toestablish an agricultural corporation as a new subsidiary in the board of directors’ meeting held today, as detailed
in the following.
1. Objective
To take the first step in the scheme to commercialize smart city infrastructure construction as the medium- tolong-term vision, the Company made a resolution to establish an agricultural corporation as the subsidiary of
Tamagawa Energy, the subsidiary of the Company, in order for the group company to engage in both electric
power sales and farming at the solar sharing power plant to be constructed in Suwa City, Nagano Prefecture,
for the purpose of verifying the business model that combines renewable energy with information andcommunications.
Specifically, ICT (Information and Communication Technology: cloud-type farming support system) ofAppliances Company, the in-house company of Panasonic Corporation, will be implemented to scientifically andlogically manage the farm field and to achieve sustainable recycling-based agriculture that will lead to highefficiency and high-quality cultivation, as well as to visualization of soil quality.
During the busy season, harvesting, shipment, etc. will be outsourced to businesses that hire individuals withdisabilities under Part B in cooperation with Nagano SELP Center as part of social contribution activities.
As we announced in the “Notice on commencement of electric power sales at Shimada Solar Sharing PowerPlant” dated March 20, 2018, Shimada Solar Sharing Power Plant has already been in operation and is
performing well with approximately 6% higher FY2019 power sales than originally expected.

Although

Shimada Solar Sharing Power Plant is currently outsourcing farming to another company, the solar sharing
power plant to be constructed in Suwa City will incorporate ICT and welfare activities into farming by adding
value to renewable energy, aiming to become a next-generation model of agricultural corporation that utilizes
accumulated information and know-how.
In the course of considerable changes in needs of the times and society, our group company plans to expand
our business by discovering issues and new needs and by expanding the existing territory into a new territory.

12.

Overview of the subsidiary
(1)

Name

TAMAGAWA ENERGY CO., LTD.

(2)

Location

VORT HAMAMATSUCHO I, 1-6-15, Hamamatsucho, Minato-ku, Tokyo

Title/name of therepresentative
Description ofbusiness

(3)
(4)

Capital fund

(6)

Date of foundation

February 5, 2013

(7)

Investment ratio

Tamagawa Holdings Co., Ltd.

Relation between
the listed companyand the company

10 mil. yen

Capitalrelationship
Personnelrelationship
Businessrelationship100%

A subsidiary 100% invested by Tamagawa Holdings Co., Ltd.
Representative Director/President, an outside director, a parttime director, full-time auditor, and an employee of Tamagawa
Holdings Co., Ltd. also hold these posts.
No relationship

Overview of subsidiary (our sub-subsidiary) to be newly established
(1)

Name

TAMAGAWA ESG NAC CO., LTD.

(2)

Location

VORT HAMAMATSUCHO I, 1-6-15, Hamamatsucho, Minato-ku, Tokyo

Title/name of therepresentativeDescription ofbusiness

(3)
(4)

President: Michiyo Nakachi
Farming business(5)

Capital fund

(6)

Date of foundation

February 5, 2021 (scheduled)(7)

Investment ratio

TAMAGAWA ENERGY CO., LTD. 100%

(8)

4.

Sales business of renewable energy system

(5)

(8)

3.

President: Michiyo Nakachi

Relation between
the listed company
and the company

3 mil. yen

Capitalrelationship
Personnel
relationship
BusinessrelationshipA subsidiary 100% invested by TAMAGAWA ENERGY CO.,LTD., which is a 100% subsidiary of Tamagawa Holdings
Co., Ltd.
An employee of Tamagawa Holdings Co., Ltd. also hold thepost of the company.
No relationship

Outlook
The relevant subsidiary to be newly established (sub-subsidiary of the Company) will become aconsolidated subsidiary of the Company, while the influence on consolidated results is minor for the first yearof establishment.
If the influence on consolidated results is expected to become important in the future, the effect shall be
disclosed accordingly.

2