April 27, 2017
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)

To whom it may concern

Commencement of Construction of “OTS House”, Base for Achieving Complete
Self-sufficiency in Water/Electricity and Creating Near-Future Housing
Environment/Services
TOKAI Holdings Corporation (Headquarters: Shizuoka City, Shizuoka Prefecture; President & CEO:
Katsuhiko Tokita) and its four subsidiaries, namely, TOKAI CORPORATION, TOKAI Communications
Corporation, TOKAI GAS CORPORATION, and TOKAI Cable Network Corporation (hereinafter collectively
referred to as the “TOKAI Group”), will start construction of the “OTS House,” a base for the development,verification, demonstration, and presentation of near-future housing and life-related services, in Shimada City,
Shizuoka Prefecture.
1.

Outline
The TOKAI Group provides a wide range of life infrastructure services that are essential to people’s daily
lives such as gas, the Internet, cable television (“CATV”), Aqua (bottled water delivery), and electricity. In
the area of the living environment, the TOKAI Group engages in the housing and renovation businesses,
while expanding the Total Life Concierge (“TLC”) concept, which provides comprehensive support tocustomers’ lives.
In addition to expanding various services, the TOKAI Group has been focusing on considering a housewith functions required in the current and near-future social environment.
The TOKAI Group has been considering a near-future vision and advancement of various housing
equipment and services such as building structure, lifelines, including electricity, water for domestic use, andgas as well as broadcasting/communications. Going forward, the TOKAI Group will develop the OTS House
as a base for the concrete consideration, development, verification, and demonstration of such equipment andservices to create new businesses and products in the future.

2.

Background/purpose of development of the OTS House
The start of Feed-in Tariffs for renewable energy and the occurrence of major natural disasters, such as theGreat East Japan Earthquake and the Kumamoto Earthquake, have caused major changes in the energy
environment in Japan and people’s awareness of lifelines. In addition to the introduction of renewable energy
aimed at saving energy and reducing CO2 emissions, a series of efforts have been activated to increase
efficiency through local production for local consumption of energy and to improve infrastructure security.
Meanwhile, major infrastructure improvements require large-scale investments, as well as the creation andlong-term demonstration and verification of networks and communities including residential estate.
The main purpose of the OTS House is to create equipment and services that realize energy saving,1

effective use of distributed energy, and infrastructure security through self-sufficiency in a detached house
regardless of new construction or a pre-existing house.
3.

Basic concept of OTS HouseThe OTS House will achieve complete self-sufficiency in electricity and water, which are vital to humanlife, in order to realize a house that ensures a normal life even in the face of power and water outages.
In addition, the OTS House will offer all services under a one-stop, one-contract, and one-call centermodel by combining liquefied petroleum gas (LP gas), whose resilience against natural disasters as a form of
distributed energy has once again come under the spotlight after the Great East Japan Earthquake and theKumamoto Earthquake, with the Group’s life infrastructure services, including telecommunications,broadcasting, Aqua, and security, and leading-edge communication and broadcasting technologies. The OTS
House will protect people’s lives with full maintenance support.
With complete self-sufficiency in electricity and water for domestic use, residents can beneifit from zero
cost electricity and water supply services. A family of four can save approximately 140,000 yen*1/year. In
addition, using the TOKAI Group’s life infrastructure services, TLC members can earn up to 18,000 points*2.
The OTS House is also friendly to family budgets.
Going forward, the TOKAI Group aims to create products and services, in order to achieve houses wherepeople can live a safe, secure, and convenient life and those that protect residents by simply living in themwhile responding to various current and near-future social environmental factors.
*1: Calculation of electricity, water, and LP gas fees based on simulations by TOKAI Holdings Corporation*2: Calculated based on average fees for the use of LP gas, the Internet, CATV, “Tasty Water Delivered to your Door,” security, and “LIBMO”
low-cost mobile service4.

Areas to pursue commercialization through OTS House(1) Energy
The OTS House will ensure an environment to achieve complete self-sufficiency in electricity needed fordaily life by evolving an energy-saving house. In addition, the OTS House aims to create an environment
enabling people to live a perfectly normal life even in the face of blackouts and outages of city gas (pipednatural gas) supply by introducing LP gas, whose resilience against natural disasters as a form of
distributed energy has once again come under the spotlight.
(2) Water for domestic use
A family of four is said to require 800 to 900 liters of water a day for domestic use in normal
circumstances. The OTS House will achieve complete self-sufficiency in water for domestic use withleading-edge storage and filtration systems using rain as the source of water.
(3) Information communications/broadcasting
The importance of communication and spending time with one’s family is increasing further amid a shift
toward the nuclear family and among dual-earner and child-rearing households. The OTS House willdevelop and verify communication services using leading-edge information communication technologies
and broadcasting services for families to enjoy.
(4) Other life-related services
In addition to energy, communications, and broadcasting, the OTS House will endeavor to create andadvance infrastructure services supporting people’s lives along with added services. To provide seamless2

services, the TOKAI Group will install a group-wide call center aimed at providing services under aone-stop model and offering a safe, convenient, and economical life.
5.

Future plans for the OTS House
It is planned to complete building construction works of the OTS House by the end of July 2017. Aftercompleting construction and initial verification of equipment and services which are to be under
demonstration from the beginning, a public viewing and presentation of verification details will start inOctober 2017.
After the public viewing, various events will be organized including tours to introduce equipment enabling
complete self-sufficiency in energy and water for domestic use, as well as leading-edge functions aimed atcreating future services. In addition, guests will be invited to visit and stay overnight to experience life in theOTS House. Detailed information will be disclosed in a timely manner when details are decided.

6.

Overview of OTS House construction
Location: 1-2-6 Baranooka, Shimada-shi, Shizuoka
Site area: 228.91m2 (69.24 tsubo)
Total floor area: 137.88 m2 (41.70 tsubo) (wooden skeleton structure, two-story)

7.

Conceptual image of OTS House construction

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Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)54-273-4878
Email: overseas_IR@tokaigroup.co.jp

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