Corporate
Overview

erex Co., Ltd.

Kyobashi �-�-�, Chuo-Ward, Tokyo, Japan
Kyobashi EDOGRAND ��F

https://www.erex.co.jp/en/

To continue to grow steadily toward the realization of a de- carbonizedsociety as a leading renewable energy company
erex Group has steadily developed its business under
the corporate philosophy of "Contributing to theRealization of a De-Carbonized Society as a Leading
Renewable Energy Company”.
We aim to grow toward a de-carbonized society withrenewable energy as the core by integrating fourbusinesses; fuel business, power generation business,trading business, and power retail business, all ofwhich are electric power business, an indispensableenergy for everyday life and industry.
In recent years, the environment surrounding theelectric power business has changed dramatically.
With the government's “Green Growth Strategy
Through Achieving Carbon Neutrality in ����”, asigniﬁcant increase in greenhouse gas reduction
targets, the acceleration of a de-carbonized society,and a historic surge in resource prices, etc., the energy
business is facing major changes.
On the other hand, Russia's invasion of Ukraine sinceFebruary ���� has caused not only a serious
humanitarian crisis, but also a drastic change in the
global socio-economic environment, resulting indiﬃcult situations such as soaring resource prices andserious logistics disruptions.
In this drastically changing business environment,
erex Group has integrated its four businesses; fuelbusiness, power generation business, tradingbusiness, and power retail business, in which eachbusiness complements each other to stabilize theentire value chain, and has been achieving growth bydiversifying risks.
In addition, we will continue to reﬁne our ability torespond to changes in the external environments,
reallocate resources, reform the way we conductbusiness by responding to cross-divisional businessissues in a speedy manner, etc., and strive tostrengthen our management base and achieve steadyearnings growth.
The realization of a de-carbonized society is a majorsocial issue and we recognize that addressing the�issue of global warming is an important management
issue.
We have launched a new mid-term business plan,"New Innovation toward De-Carbonization," with bothde-carbonization and stable energy supply as the core.
As a trusted and responsible energy company, we will
steadily strengthen our existing businesses and invest
in new areas toward carbon neutral in ����.
Even as the electric power business undergoes majorchanges, we will strive to achieve steady growth byfurther strengthening the foundations of existing
businesses and the de-carbonization business for thefuture with the management philosophy of "Opening
up the Future with New Ideas and Abilities to Act" and"Challenge and Speed".
We would like to thank our stakeholders for theircontinued understanding and support.

UnitsDevelopment ofRenewable Energy
Sources Overseas

JapanFuelDeCarboni
zationOverseas

Generation
CO²-Free Power
SourcesRetailJapan Credit
Mechanism (JCM)

Trading

By integrating four businesses ranging from fuel procurement to power
generation, trading, and retailing, erex Group is actively promoting thedissemination and expansion of renewable energy businesses in Japanand overseas, while securing stable earnings and diversifying risks.

Representative Director and President
Hitoshi Honna

���Biomass Power Plants Operated in Japan

Total Power
Generating
Capacity:Overseas

In addition, new businesses are being developed one after another��-Year Growth Rate

MWＸ

※ Sales in ���� and ���� are compared��

CO² Reduction in ����Aimingformilliontons

Our BusinessContributing to the realiz ation of a de-carbonized society through four core businesses

Fuel BusinessRealizing stable supply of high-quality biomass fuel andcost reduction through global procurement

Power Generation Business

Operating seven biomass power plants
in Japan with a total output ofIn Operation
approximately ��� MW*
Under Planning(* including units under planning)

Non-FIT
Mega Biomass Power Plant
Power Generation Output: ��� MWFIT
Buzen Biomass Power PlantPower Generation Output: �� MW

FIT
Saiki Power Plant
Power GenerationOutput: �� MW
Indonesia, Plantation of erex Group’s Partner Company

A strong supply chain has been established in collaboration with local suppliers, trading companies, shippingcompanies, and other partners.
We have a high level of procurement capability, combining the functions of "business operator + tradingcompany”, such as selling fuel to third parties in addition to providing fuel for in-house power plants.

In an eﬀort to protect the natural environment and to utilize sustainable biomass fuels, GGL certiﬁcation ※ hasbeen obtained, the ﬁrst in Japan as a power generation company. Various other certiﬁcations covering supply
chain management and others have also been obtained.
※Green Gold Label: A certiﬁcation that covers the production, processing, transportation, and end use of sustainable bioenergy and ensures independent
tracking and recording

Trading Business

Reducing the impact of market
ﬂuctuations by leveraging
the extensive knowledge and experience

Even in the face of drastic changes in the external
environment, such as soaring crude oil prices and risingfuel costs, extensive knowledge and experience are used toreduce costs through a wide range of trading capabilities.
We contribute to the realization of a de-carbonized society
through the trading and creation of environmental value,including CO² emissions trading.

FIT
Sakaide Hayashida Biomass
Power Plant (Tentative Name)Power Generation Output: �� MWFIT
Ofunato Biomass
Power Plant(Equity Method Aﬃliated Company)

Power GenerationOutput: �� MWFIT
Nakagusuku Biomass
Power Plant
Power Generation Output: �� MWFITTosa Power Plant
Power GenerationOutput: �� MW※ FIT (Feed-in Tariﬀ) is a system that requires electric power companies to purchase electric power generated using biomass and other energy sources for acertain period at a price set by the government.

Since starting power generation business in ���� with the launch of Tosa Power Plant in Kochi Prefecture, ﬁve
power plants are currently in operation and two others are under construction planning.

Biomass power generation is environmentally friendly due to its carbon neutrality, and contributes to therealization of a de-carbonized society as a highly reliable and stable baseload power source that can maintain astable supply of electric power.

Retail Business

Providing electric power menus that combine environmental value andeconomic eﬃciency to customers nationwide
We supply electric power to customers nationwide through Evergreen Marketing Co., Ltd. and othergroup companies with various special characteristics.
As a leading company in biomass power generation, we
have established a community-based sales networkwith a variety of sales agents throughout Japan.
We provide “CO² Free Plan", which is ���% renewableenergy in substance (zero CO² emissions) to customers.
We are expanding our plans to be moreenvironmentally friendly, and are contributing to thedissemination and realization of energy with lessenvironmental burden.

For more information on each business, please scan this QR code.

Expanding our business domains with "Culture of Challenge”

Our Evolution
Hydrogen Power Generation
Demonstration Project

Demonstration operation of Japan's ﬁrst hydrogen single-fuel-ﬁred power
plant, a next-generation clean energy source
Overview of the Power Generation FacilityConstruction

March ����Power Generation
MethodHydrogen Single-Fuel-FiredEngine (Made in Germany)

Site Area

Power GenerationOutput

Power Generation Eﬃciency
Hydrogen Consumption

��� ㎡

Biomass Conversion Business ofCoal-Fired Power Plants

Promoting transition business for existing coal-ﬁred power plants as a new
initiative to realize a de-carbonized society
Our proprietary low-cost biomass fuel can be co-ﬁred or single-fuel-ﬁred at coal-ﬁred power plants,
contributing to the reduction of CO²

By utilizing existing power plants, transitions that both pursue economic rationality and maintain supply
capacity can be realized.
Biomass co-ﬁring can reduce power generation costs as compared to ammonia co-ﬁring.

��� kW (Equivalent toapproximately �� households)
��％��� N㎥/h

Operation started in April ���� in Fujiyoshida City,
Yamanashi Prefecture.
The project aims to identify and resolve issues related
to hydrogen’s production, power generation, andutilization for power retail for the hydrogen society thatis expected to come in the future.

Roadmap for coal-ﬁred
power plants to convert to biomass
co-ﬁring and single-fuel-ﬁring（MW）

We aim to expand the business by generating electric
power using safe and inexpensive hydrogen producedby Hydrogen Technology's proprietary technology andby further reducing costs.

Mega Biomass Power Plant

Constructing the world's largest level non-FIT mega biomass power plant
Overview of Business

Planned Construction Site

Seiro Town, Kitakanbara County,
Niigata Prefecture

Facility Output

���MW (World's Largest Level)

Estimated Annual Power
Generation

Approximately �,���GWh

Power Generation Method��������

���� (year)

Ultra-Supercritical Pressure Reheat Method

Fuel Usage

Approximately �.� million t/year ※Project Area

Approximately ���,��� ㎡

CO Reduction²Conceptional
完成予想図 drawing

Sequentially switchedto single-fuel-ﬁring

Equivalent to � million tons per year
※ Caloriﬁc Value �,��� kcal/kg Conversion

We will contribute to the realization of a de-carbonized society with the world's largest level non-FIT megabiomass power plant.

It will be the ﬁrst mega biomass power plant in Japan that is independent of the FIT (Feed-in Tariﬀ) system,without the burden of renewable energy levy on the public.

For more information on each business, please scan this QR code.

Expanding our business domains with "Culture of Challenge”

Our Globalization
Renewable Energy Business
Development in Asian Countries

Industrial contribution to developing countries through power
generation businessWe will promote renewable energy business in Vietnam, Cambodia, and other Asian countries.

Promoting development of diverse new biomass fuels such as new sorghum
We are developing and producing new fuels such as new sorghum that can be grown fast and at low cost.
By investing in the development of a variety of fuels, we will be able to procure stable andlarge quantities of fuels.

We contribute to the development of the local economy by creating jobs and increasing incomes through“local production for local consumption”

Promoting “local production for local consumption” renewable energy business can be expected to increase
the country's energy self-suﬃciency, reduce CO² emissions, and even create jobs.

���We will promote the development of diverse biomass fuels to build a strong renewable energy system.

���

Through renewable energy business, we will contribute to the economic development of developing countries
and the realization of global de-carbonization.
Among renewable energy sources (solar, wind, biomass, etc.), biomass power generation is not aﬀected byweather conditions and thus ensures stable supply capacity.

Biomass power generation business plan in Vietnam
Signiﬁcance of biomass power generation

TOTAL

�nd STEP➀ Stable power supply➁ Contribution to de-carbonization

�.�GW

�st STEP

�.�GW����

�.�GW����

�.�GW

TOTAL

�.�GW
�.�GW
�.�GW

�.�GW
����

Accelerating co-ﬁring forexisting coal-ﬁred
power plants(Target ��%)Utilizing newly developed biomass
fuels such as new sorghum, etc.,
New construction �nd group
New construction �st group,
Utilizing existing biomass
resources in Vietnam

�.�GW� milliontons

Candidate Areas for
New Sorghum Cultivation
Phu Yen Province���Tay Ninh Province������
�����➂ Contribution to employment➃ Increase in self-suﬃciency through increase indomestically produced energy

Sorghum Pellet Production (��,��� tons/year)

Approximately

Binh Thuan Province���������������� (year)

Long An Province

Cambodia Hydropower Project

Participation in a project to construct a hydroelectric power plant withan output of �� MW
Outline of Business

Power Generation Capacity

��MWElectric Power Sold toElectricite deCambodge (EDC)

Total Investment

�.�GW

����- (year)

VietnamUnit Price of ElectricPower Sold

Dam Area, Water Storage
Capacity
Start of Operation

USD��� million

�.�¢/kWh(for �� years)

��㎢ (�.� billion m�)���� (schedule)This hydroelectric power generation system has a large water storage capacity and is capable of stable power
generation throughout the year, contributing to a stable supply of electric power.
The project will contribute to solving Cambodia's energy problems and to the country's economicdevelopment.

We will contribute to the de-carbonization of Asia by expanding renewable energy power generation.

For more information on each business, please scan this QR code.

Aiming for a sustainable society through our business

ESG Initiatives
Basic Approach��We will take on the challenge of achieving our ���� Vision and contribute to the realization of ade-carbonized and sustainable society through co-creation with many stakeholders andpartners across industry and national borders.

As a member of the international and local communities, we will act in accordance withdomestic and international laws, regulations and social norms, and with high ethicalstandards, in order to fulﬁll our social responsibilities and become a company that is needed by
the society.

GovernanceIn order to clarify management responsibility and accountability to shareholders, customers, employees, andother stakeholders, and to provide beneﬁts by maximizing corporate value, our basic policy is to ensuretransparency and soundness in management and business execution, to promote thorough compliance, and topromote eﬃcient management at the same time.
In the course of these initiatives, we will continue to further promote the development of corporate governance.

Corporate Governance System Chart
General Meeting of Shareholders

EnvironmentBiomass power plant operation with emphasis on environmental measures
We thoroughly treat wastewater, exhaust,and dust from our power plants, andimplement environmental protection
measures that take into consideration thecharacteristics of the area where the plants
are located.
We are promoting the eﬀective use of wastematerials, such as recycling combustion ash
generated from power plants as roadbed
material and soil conditioner by granulating
and solidifying it through an industrial waste
contractor.

Appointment/
Dismissal
Accounting
audit

Accounting Auditor
Accounting
audit

Actively promoting community revitalization and educational support
activities based on the philosophy of co-creation and co-existence

Through our biomass power generation
business, we provide value such as
contribution to local economies.
We continue to contribute toenvironmental education by donating
learning materials and other activities.

We actively hold regular tours to our power
plants and participate in local events.

Direction

Departments

Audit

Appointment/
Dismissal

Audit &upervisory Board
Audit

ReportManagement Meeting

Society

Board of Directors

Selection/Dismissal

Representative
director

ReportAppointment/
Dismissal

Direction
AuditGuidance and Supervision
ReportCooperation

Cooperation

InternalAudit Department
AuditGroup companies

Dialogue with Shareholders and Investors

Based on the recognition that dialogue withshareholders and investors, both in Japan and overseas,
is essential for sustainable growth and enhancement ofcorporate value, erex Group is actively engaged inthorough and fair information disclosure and ongoing
communication as the foundation for such dialogue.
In FY����, we strengthened communication withinvestors, holding IR meetings with ��� companies.

For more information on ESG initiatives, please scan this QR code.