October 31, 2016

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 Lease Based Acquisition of Property, Plant, And Equipment(Large Scale Solar Energy Power Plant Facilities)

Tamagawa Holdings announces that is has resolved to acquire by conclusion of a leasing agreement a 2MW solar
energy power plant scheduled for construction in Noboribetsu city, Hokkaido prefecture, under plans of GP Energy 6Co., Ltd., a subsidiary of Tamagawa Holdings' consolidated subsidiary GP Energy Co., Ltd., with details as follows.
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.
Concerning the large scale solar energy power plant to be built in Noboribetsu city, Hokkaido prefecture, thelocation enjoys excellent conditions and the project will be able to keep operating for a 20-year period at a priceof ¥40 (excluding tax) per 1kWh.
Additionally, it is planned to set up on the same site 12 units of automatic tracking systems which are expected
to enhance the efficiency of the power generation derived from solar energy and are seen to contribute to thesales and earning capabilities of Tamagawa Holdings Group.
The contractor for the construction of this power plant will be KCCS Mobile Engineering Co., Ltd., amember of Kyocera Group known for proactively advancing its environment and energy related business
operations. KCCS Mobile Engineering Co., Ltd. is engaged in nationwide installation and construction workfor public and industrial-use solar energy power generation systems and expected to expediently and reliably
carry out the construction of this high-quality power generation facility.
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 lease arrangement
A leasing scheme will be used to promote the efficient management of funds.
3. Content of the assets to be leased
Designation (provisional)

Place

Noboribetsu city, Hokkaido

Kaminoboribetsu-cho,prefecture

Noboribetsu city,

Large scale solar energy power plant

Hokkaido prefecture

Outline of the assets to be leased Total acquisition
and the total lease rate amountSet of solar energy power
generation system
Total lease rate ¥711,000
thousandprice¥490,000
thousand4. Outline of the lessor under the lease agreement(1) Name

Ricoh Leasing Company, Ltd.

(2) Location

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

Daisuke Segawa, President and CEO(4) Business lines

Leasing, installments, and financial services business(5) Capital¥7,896.86 million(6) Established

December 1976

(7) Net assets¥147.6 billion(8) Total assets¥882.1 billion(9) Main shareholders and shareholder

Ricoh Co., Ltd. 52.8%

percentages
No capital relations and personnel relations exist. Transaction
relationships exist such as lease agreement, etc. Details areavailable in the releases dated May 15, 2014, and December 12,(10) Relationships between exchange listedcompanies and the subject company

2014, entitled “Tamagawa Holdings Announces Lease Based
Acquisition of Property, Plant, And Equipment (Large Scale
Solar Energy Power Plant Facilities)”
The subject company is not an interested party with respect toTamagawa Holdings.

5. Lease schedule (prospective)

Resolution of the board of directors

October 31, 2016

Execution of the lease agreement

October 31, 2016

Lease start dateAugust 2017 (prospective)

6. Outline of the large scale solar energy power plant in Noboribetsu city, Hokkaido prefecture(1) Location

Kaminoboribetsu-cho, Noboribetsu city(2) Operator

GP Energy 6 Co., Ltd. (subsidiary of a fully-owned consolidated
subsidiary of Tamagawa Holdings)(3) EPC business operator

KCCS Mobile Engineering Co., Ltd. (Kyocera Group)(4) Site area

Approximately 72,000 m2(5) Electric power generating capacity

Approximately 2 Megawatt(6) Electric power sales price (fixed for 20 years) ¥40/kWh (tax excluded)(7) Income from electric power sales

Approximately ¥94 million per year(prospective)(8) Estimated electric power generation in the

Approximately 2,350,000 kWh

first fiscal year (projected)
7. Further outlook
Effects on the financial results of Tamagawa Holdings Group for the current fiscal year are negligible.
Full-scale operations of the subject power plant are scheduled to commence in the following fiscal year andsteady sales and earnings are expected after the start of electric power sales.