October 27, 2020
SB Power Corp.

Results of Trial of Demand Response Service for Households- Participated in by 54.3% on average and achieved a total saving of 29,365 kWh SB Power Corp. (Minato-ku, Tokyo; President and CEO: Akihiko Nakano; hereinafter "SB Power"), a subsidiaryof SoftBank Corp. and an electricity retailer, hereby announces the result of a trial of Demand Response Service(hereinafter "DR Service") for households. It was conducted from July 13, 2020, and utilized 30-minute electricpower data (C-route* data) obtained from each general power transmission/distribution business operator anddemand forecasting technology based on SB Power’s proprietary artificial intelligence (AI). DR Service is one inwhich SB Power requests the subscribers to cooperate in saving electricity. They can do this by using a smartphone
app dedicated for use with SB Power that was developed independently. The customers are offered a PayPay* bonus
for their cooperation in saving electricity, based on the electricity-saving effect of the service.
* C-route: One of the routes to send data measured by a smart meter. The data is sent from a power transmission/distribution business
operator to an electricity retailer.
* PayPay: A Japanese company that develops and provides services for electronic payments such as mobile payments.

■ Overview of DR Service Trial
Trial period: From July 13, 2020 to September 30, 2020
Trial scale: 4,002 households
Trial target: Customers subscribing to the Electricity Plan with SB Power[Mechanism of SB Power’s DR Service]

We provided 4,002 households with behavior-inducing DR Service not using control equipment. A total of 175 DR
Service programs were participated in by an average of 54.3% of customers. This brought the following benefits tocustomers and SB Power (electricity retailer).

Benefits to Customers
SB Power has developed a dedicated smartphone app that allows customers to easily participate in electricity-saving
and earn electricity saving points according to how much power they save. In addition, customers will be able tolower their electricity bills by reducing their electricity consumption and thus save money in a fun way. Participating
customers saved on their electricity bills by cutting their electricity consumption by a total of 29,365 kWh andearned electricity saving points worth 809,200 yen in total.
Benefits to SB PowerSB Power will schedule electricity-saving time in advance*1 and customers will be able to reduce their electricity
consumption in a specified time zone by saving electricity for the scheduled time. To respond to the wholesale
electricity market and a system reform, SB Power's DR Service is designed to change the notice time for anelectricity-saving request as well as the service application deadline. The following results were achieved by altering
conditions according to each purpose.
[Measurement results for participation rate and saving volume for the purpose of responding to the wholesale
electricity market and system reform]
ItemSpot market

Imbalance System

Purpose

Reduce procurement
volume when spot
market prices spike

Prevent an imbalanceoccurring due to ashortage of power

Notice time for anelectricity-saving
requestTwo days prior to anelectricity-saving day

At or after 10:30 on aday immediately
preceding anelectricity-saving day

Capacity market

Supply and demand
adjustment market

Reduce any capacity
contribution*2 burden

Verify the possibilityof power supply for
Replacement Reservefor FIT (RR-FIT)

Not specified

Forty-five minutes
prior to a target time
*4*3

Application deadline

No later than 9:00 on
the day immediately
preceding anelectricity-saving day*5

No later than twohours prior to anelectricity-saving
time *6

Not specified

Until electricity-saving
start time *7

Number of times ofelectricity-saving

82 times

83 times

175 times

10 times

Average participation
rate for electricitysaving

52.5%

59.1%

54.3%

29.3%

0.133 kW/householdfor 60 minutes *100.138 kW/householdfor 30 minutes *11

Average saving
volume perparticipant *80.058 kWh/household 0.058 kWh/householdfor 30 minutes *9for 30 minutes *9*1 Uses a patent technology (Japanese Patent Application No. 2018-138870, Demand Response Management System that Includes
Scheduling Function) of ENCORED JAPAN Inc., a subsidiary of SoftBank Corp.
*2 Capacity contributions are created from each electricity retailer in order to secure a sufficient supply capacity for the entire country(by newly installing/replacing power supplies). Each electricity retailer’s contribution is allocated according to their supplying
rate in area peak demand.
*3 It is assumed that electricity-saving is requested when the reserve rate of predicted electric power is likely to decline.
*4 It is assumed that electricity-saving is requested in the event of an activation order being issued in the supply and demand
adjustment market.
*5 It is assumed that the savable volume via DR Service is estimated no later than the bidding deadline on the spot market.
*6 It is assumed that the savable volume via DR Service is estimated no later than gate closing of the forward market (an-hour ahead)for bulletin board products at JPEX.
*7 It is assumed that, no later than the electricity-saving time, DR Service responds to an activation order issued 45 minutes before.

*8 State the average saving volume achieved by electricity-saving participants, including those who have not achieved sufficientelectricity-saving (those who have failed to reach a target for electricity-saving volume)*9 State the average saving volume per 30 minutes in "kWh" as adjusted for market transaction units*10 State electricity consumption per hour in "kW" according to the calculation of capacity contribution amounts*11 State the providable volume per 30 minutes in "kW", which is an assessment unit in Assessment II for RR-FIT

Feasibility with use of DR Service●

It is potentially possible to save electricity consumption during specific hours by using behaviorinducing DR Service.

●

It is potentially possible to utilize DR Service to save on the procurement volume in times of spot
market spike and prevent an imbalance due to a shortage of power.

●

Forecasting peak demand hours could potentially lower demand during specific time periods andreduce capacity contribution burden.

●Average electricity consumption per household is reduced by 0.138 kW on average whenelectricity-saving was requested 45 minutes before. Requesting about 7,200 households to saveelectricity could potentially generate an adjustment volume of 1 MW, which is the minimum
trade volume of RR-FIT of the supply and demand adjustment market.

■ Challenges⚫ For people saving electricity insufficiently
There were people who, although having participated in electricity-saving, failed to save electricity sufficiently(failed to reach a target for electricity-saving volume) depending on the day and hour. In order to rein in electricity
consumption more stably during specific hours of the day, it is necessary to improve the success rate of electricitysaving by participating customers by making inventive efforts such as proposing a electricity-saving method optimalfor individual customers.
●Variations in electricity-saving volume

The amount of electricity-saving volume varied depending on the day and hour. In order to use DR Service to reduce
the procurement volume in times of a spot market spike and prevent an imbalance due to a shortage of power, it isnecessary to deal with often-occurring variations while reining in the variations in electricity-saving volume.
●Reduction in capacity contribution burden

It is necessary to forecast peak demand hours correctly and save electricity consumption during those hours.
●Possibility of entry to RR-FIT of the supply and demand adjustment market

As each area is required to generate 1 MW, the minimum trade volume, 7,200 households in the area are required
to participate in electricity-saving. In order to use electricity as a power source for RR-FIT in the supply and demand
adjustment market, it is necessary to keep a providable volume margin of error within 10% or less above or below
an order value changed 45 minutes before. However, since the electricity-saving volume per 30 minutes varies, it isnecessary to stably generate the providable volume by: i) analyzing the characteristics and tendencies of people
succeeding in saving electricity; and ii) making inventive efforts such as selecting candidates according to thepurpose of an electricity-saving request.
Future Initiatives
As a result of the trial this time, we discovered a possibility of using C-route data-based behavior-inducing DR
Service for the electricity retail business. Nevertheless, variations occurred in the electricity-saving volumedepending on the day and hour. SB Power will continue to examine ways of saving electricity consumption more
effectively during specific day and hour and work to deliver effective behavior-inducing DR Service. As futureinitiatives, we will verify the electricity-saving volume in the event of issuing a request immediately prior such as
10 minutes prior. Not only reducing electricity consumption through electricity-saving, we will take on the challengeof providing advanced DR Service with which we can increase electricity consumption by arranging for customers
to use electricity during periods of high solar power output.
SB Power is considering requesting electricity retailers to jointly verify behavior-inducing DR Service forhouseholds. If you are interested as an electricity retailer, please contact us at the following.
For inquiries from electricity retailers regarding DR Service
DR Service inquiry desk at SB Power Corp.
E-mail: sbp_support_energy_service@sbpower.co.jp
SB Power will continue to promote the development of the most familiar and affordable energy services by utilizing
the latest smartphone services and contents and AI-based big data analysis technology of SoftBank Corp. and its
group companies in the electric power retail business.
⚫ The names and logos of SoftBank are registered trademarks or trademarks of SoftBank Group Corp. in Japan and other countries.
⚫ Other company names and product and service names mentioned in this press release are registered trademarks or trademarks of their respective
companies.

<Exhibit>■ Details of DR Service Trial results
To respond to market and system reforms through DR Service, we examined the customer participation rate andaverage saving volume in instances of changing the notice time for an electricity-saving request as well as theapplication deadline. In addition to the results announced this time, we examined changes in electricity-saving
participation rate and average saving volume as a result of changing the amount of compensation in the event of asuccess and changes in an average saving volume due to whether customers are given a reminder prior to electricitysaving time. We aim to deliver effective and behavior-inducing DR Service in consideration of these results.
i. Characteristics of customers participating in DR Serviceii. Customer participation rateiii. Average saving volume by customers
iv. Questionnaire survey results
i. Characteristics of customers participating in DR Service
The following shows the household member count and floor area of 4,002 households that participated in DR
Service. This table shows that customers having diverse characteristics participated.

Number of consumers[1. Number of participating consumers by household count (persons)]
1,067

998

1,000

828

741

500

368

0
1 person

2 people3 people4 people5 people or more

Number of consumers[2. Number of participating consumers by floor area (persons)]

1,000
737
620

603
441

500

433

383

290

248

247

70

80

90020304050

60

100㎡ or moreii. Customer participation rate
The following shows the historical participation rate from day one of the trial to the last day of it, in response toelectricity-saving requests. In addition, we have changed the notice time for an electricity-saving request and theapplication deadline in order to respond to the spot market, imbalance, and the supply and demand adjustment
market, and we will release those results.
In addition, we also examined changes in the participation rate due to changes in the amount of compensation forsuccessful electricity-saving in individual electricity-saving requests.

Participation rate

[1. Participation rate in electricity-saving requests totaling 175]

Average: 54.3%[2. Rate of participation intended to respond to market and system reforms]
Participation rateii. Imbalanceiii. Supply anddemand
adjustment
marketParticipation ratei. Spot market

Participation rate

Target system
Average: 52.5%

Average: 59.1%

Average: 29.3%

iii. Average saving volume by customers
Per-participant average saving volume in electricity-saving requests totaling 175 was 0.068 kWh/household for 30
minutes, but it was shown to vary greatly depending on the day and hour.
In addition, we verified changes in average saving volume due to changes in the amount of compensation forsuccessful electricity-saving in individual electricity-saving requests, as well as changes in average saving volume
due to whether a reminder was issued prior to electricity-saving time.

Average saving volume[1. Average saving volume in electricity-saving requests totaling 175: “kWh/household for 30 minutes"]

Average: 0.068 kWh[2. Average saving volume intended to respond to market and system reforms: “kWh/household for 30 minutes"]iii. Supply anddemand
adjustment
marketAverage saving
volumeii. Imbalance

Average: 0.0581

Average: 0.0577

Average saving
volumei. Spot market

Average saving
volumeTarget system

Average: 0.1377

iv. Questionnaire survey results
Using a dedicated smartphone application, we conducted a free-answer questionnaire survey on customers who
participated in electricity-saving, and received responses from 49% of them. Some of the findings from it are shown.
Question 1: How old are you?
Question 2: When did you become aware of electricity-saving?
Question 3: What did you do specifically to save electricity?
Question 4: Do you want to recommend this app to other people?
[Question 1: How old are you?]
Teens
0.4%
Twenties
6.8%

Thirties
19.6%
Fifties or older
41.7%

Forties
31.5%[Question 2: When did you become aware of electricity-saving?]
Never became aware ofelectricity saving
9%
Became aware when theamount of compensation
was high14%

Became aware time to timedepending on the mood26%

Became aware
every time51%

[Question 3: What did you do specifically to save electricity?]
Never became aware of electricity
saving9%

Shifted the time touse the washingmachine and dryer
4%

Went out
16%

Turned off theunnecessary
lights/unplugged thepower cord
46%

Turned down/turned off the
air conditioner.
25%[Question 4: Do you want to recommend this app to other people?]

No: 14%

Yes:86%