May 10, 2024

For immediate release
Company:
Representative:

Inquiries:

Kyudenko Corporation
Kazuyuki Ishibashi
Executive Officer Representative President
Security code: 1959
Tokyo Stock Exchange [Prime],Fukuoka Stock Exchange
Akira Yamasaki
Corporate Strategic Planning Department(Tel.: +81(0)- 92-523-1266)

Subscription to erex’s Third-party Allotment of New Shares
Kyudenko Corporation (“Kyudenko” or “the Company”) has decided to subscribe to a third-party
allocation of new shares (“the Third-party Allocation of New Shares") by erex Co.,Ltd. (“erex”, HeadOffice: Chuo-ku, Tokyo), which is engaged in power generation, fuel, and electricity retail businesses
related to renewable energy as its core, and promoting power generation and fuel development
business in overseas markets centered on Southeast Asian countries.
1. Reason for the subscription to the Third-party Allocation of New Shares
Kyudenko's overseas business focuses on the high-growth Southeast Asian market in the world.
Currently, we are expanding our operations in countries and regions such as Singapore, Malaysia,Vietnam, Thailand, Indonesia, and Taiwan, where we are engaged in various businesses including
electrical, air conditioning and sanitation, plant engineering, environmental analysis, energy
management (“EMS”), and renewable energy.
erex, as part of its midterm management plan, aims to promote global initiatives towards achievinga sustainable society by establishing new biomass power plants in Southeast Asian countries like
Vietnam and Cambodia, and converting existing coal-fired power plants into biomass ones.
In light of these circumstances, erex has determined that building a stronger and long-term
partnership with Kyudenko through the Third-party Allocation of New Shares will contribute to its
sustainable growth to develop the renewable energy business.
We believe that deepening our relationship with erex will create significant synergies to expand andenhance our group’s renewable energy business and will be one of our pillars of the overseas growthstrategy in our upcoming midterm management plan.
2. Outline of the Third-party Allocation of New Shares
The outline of the subscription is as follows. For further details, we encourage you to refer to theannouncement released by erex today regarding the issuance of new shares through third-partyallocation.
(1)

Number of Shares for the Purchase

3,568,700 common shares(2)

Price of the Shares

JPY798 per share(3)

Amount of Payment

JPY2,847,822,600(4)Scheduled Date of Payment

May 30, 2024

13. Outline of erex in relation to the Third-party Allocation of New Shares(1)

Company Nameerex Co.,Ltd.

(2)

Headquarter

2-2-1 Kyobashi, Chuo-ku, Tokyo, Japan(3)

Name and Title ofHitoshi Honna, President and Representative Director

Representative(4)

Principal Businesses

Businesses related to power generation, electricity retail, etc.

(5)

Capital

JPY11,362 million(6)Foundation

December 8, 1999

Major Shareholders(7)

and Shareholding
Ratio

DAIWA CM SINGAPORE LTD (TRUST A C)

8.99％

KISCO LTD.

6.72％

Ueda Yagi Tanshi Co., Ltd.

5.77％

The Master Trust Bank of Japan, Ltd. (Trust Account)

5.04％

UH Partners, Inc. 2

4.95％

CBC Co., Ltd.

4.91％

UH Partners, Inc. 3

4.53％

Total

40.94％
Kyudenko does not have an investment
relationship with erex but have provided

Capital Relationship(8)

partial investment to its subsidiary andRelationship between
Kyudenko and erex

affiliated companies.
Personnel Relationship

Not applicable.

Business Relationship

Not applicable.

Applicability to Related Parties

Not applicable.

Note: The above information is as of March 31, 2024.
4. Schedule(1)

Period of Application

May 27 – May 29, 2024

(2)

Payment Due Date

May 30, 2024

5. Future Outlook
As a result of the subscription to the Third-party Allocation of New Shares, Kyudenko does not expectthat erex will become a consolidated subsidiary of the Company. The impact, which will have on its
performance, is currently under examination and has not been factored into our disclosed earnings
forecasts. We will promptly announce any matters that we need to disclose.

Note: This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between this translated document and theJapanese original, the original shall prevail.

2