May 20, 2021

To whom it may concern
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)

Formulation of the "Carbon Neutrality Vision"
TOKAI Holdings Corporation today announced the formulation of "Carbon Neutrality Vision."
Under the corporate philosophy, “For customers’ livelihood along with the region, together with the earth, we willcontinue to grow and develop ,” the TOKAI Group has been working to expand the use of clean gas and topromote the use of high efficiency gas equipment. In response to the growing social demand for measures to copewith global warming, we will further promote the use of environmentally friendly energy equipment. We will alsoutilize renewable energy and electric vehicles in our business activities, and achieve carbon neutrality by 2050.
1.

By promoting carbon neutralization of gas with the introduction of innovative technologies
The TOKAI Group will achieve carbon neutrality by 2050

2.

By making efforts to reduce CO2 emissions even before the introduction of innovative technologies,In 2030,
the TOKAI Group will
(1) Reduce household gas CO2 emissions by 170,000 tons
(Equivalent to 50% of household gas CO2 emissions of 360,000 tons in FY2020)
i. Reduce CO2 emissions by 70,000 tons through the widespread use of high efficiency gas
equipment and others
ii. Reduce CO2 emissions by further 100,000 tons by facilitating the residential installation of solar
power systems(2) Reduce CO2 emissions generated from its operating activities by 13,000 tons
(Equivalent to 70% of CO2 emissions of 18,000 tons in FY2020)3.

Decarbonization is not a constraint or cost but an opportunity for future growth(1) The TOKAI Group will promote decarbonization of households that combine renewable energy withhigh efficiency gas equipment and storage batteries.
The Group will also propose new energy utilization compatible with carbon neutrality(2) Gas continues to play an important role for resilience such as disaster response

The TOKAI Group will continue to promote efforts to achieve carbon neutrality and contribute to resolving social
issues such as climate change as a company that supports the comfortable lives of local communities.

For details, please refer to the attached "TOKAI Group's Carbon Neutrality Vision."Contact: Koji Toyokuni
Managing Executive Officer, General Manager, Group Management Strategy
TEL: +81-(0)3-5404-2893
Email: overseas_IR@tokaigroup.co.jp

(Exhibit)

TOKAI GroupCarbon Neutrality Vision

TOKAI Holdings Corporation
May 20, 2021

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TOKAI HOLDINGS Corporation All Rights Reserved.

Policy for Carbon Neutrality Initiatives

1

May 20, 2021

1. By promoting carbon neutralization of gas with the introduction of innovative technologies,
The TOKAI Group will achieve carbon neutrality by 2050.
2. By making efforts to reduce CO2 emissions even before the introduction of innovative technologies,
In 2030, the TOKAI Group will
(1)Reduce household gas CO2 emissions by 170,000 tons.
(Equivalent to 50% of household gas CO2 emissions of 360,000 tons in FY2020)i) Reduce CO2 emissions by 70,000 tons through the widespread use of high efficiency gas
equipment.
ii) Reduce CO2 emissions by 100,000 tons by facilitating the residential installation of solar
power systems.
(2) Reduce CO2 emissions generated from its operating activities by 13,000 tons.
(Equivalent to 70% of CO2 emissions of 18,000 tons in FY2020)3. Decarbonization is not a constraint or cost but an opportunity for future growth.
(1)The TOKAI Group will promote decarbonization of households that combine renewable energy withhigh efficiency gas equipment and storage batteries.
The Group will also propose new energy utilization compatible with carbon neutrality.
(2)Gas continues to play an important role for resilience such as disaster response.
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Carbon Neutrality Vision (Framework)

May 20, 2021

2050 Carbon neutrality
2050• Achieve carbon neutrality with theintroduction of innovative technologies

2030

2030

● Expansion of the use of high efficiency gasequipment(1) Promote the reduction ofhousehold gas CO2emissions• Eco Jozu (High-efficiency water heater)• ENE FARM (Household fuel cell cogeneration system)● Expansion of the use of residential solar
power system• PPA (Power Purchase Agreement) Model● Expansion of the use of electric equipment
Development of electric powerbusiness
Start of retail electricity business• Sale by agent → T&T Energy↓
Promotion of combined sales ofelectricity and gas↓
Use of renewable energy powersources• Development of renewable energy
power sources• Sales of Eco Plan

• Storage battery• Electric vehicle● Carbon neutralization in housing• ZEH, OTS

Reduction of CO2 emissions in operating
activities● Reduction of CO2 emissions at Groupoffices• Solar power and electric vehicle• Use of renewable energy for electricity(Equivalent to 50% ofhousehold CO2 emissions)2050 Achieve carbon neutrality• Make active efforts to reduce CO2emissions even before the introduction ofinnovative technologies• However, gas continues to play animportant role for resilience such as
disaster response

Reduction of household gas CO2
emissionsi) High efficiency gas
equipment and others
Reduce 70,000 tonsii) Residential solar
power system
Reduce 100,000 tons
(2) Reduce CO2 emissions
generated from its
operating activities by
13,000 tons
(Equivalent to 70% of CO2
emissions from its operatingactivities)● Utilization of ABCIR+S• Automatic meter reading and delivery route
optimization

Contribute to the reductionof CO2 emissions throughthe use of renewableenergy power sources
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Achievement of Carbon Neutrality

3May 20, 2021

• The Japan LP Gas Association promotes research and development of carbon neutral LP
gas in the "Green LP Gas Study Group." They aim to achieve carbon neutralization of LPgas by 2050 with the introduction of innovative technologies such as propanation*1 and bio
LP gas*2.

• In the city gas business, research and development of methanation and CCUS (Carbondioxide Capture, Utilization and Storage)*3 have been promoted to achieve carbon
neutralization of city gas in 2050.

• The TOKAI Group actively cooperates with the gas industry initiatives from the standpointof a retailer that sells gas to customers. We will decarbonize gas sold through theprocurement and sale of carbon neutral gas, and will achieve carbon neutrality by 2050.
*1 Technology to synthesize propane artificially from hydrogen and carbon dioxide*2 Technology to generate propane from livestock manure and others*3 Technology to separate, recover, use and store carbon dioxide

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May 20, 2021

Measures to Reduce Household Gas CO2 Emissions• By making active efforts for decarbonization and low carbonization even before the introduction of
innovative technologies, the TOKAI Group will intend to significantly reduce CO2 emissions by 2030.
•However, energy supply requires resilience at the time of a disaster such as earthquakes and typhoons. Gas energy continues to play
an important role in the stable energy supply.

• We will reduce household gas CO2 emissions by 70,000 tons by Eco Jozu and others. We will also
promote the use of residential solar power systems, storage batteries, electric vehicles, and other electricequipment.
Eco Jozu

 Improvement of energy
efficiency by utilizing wasteheat Promotion of hybrid waterheaters

Storagebattery

ENE FARM

Solar power Efficient use of electricity andheat Major tool for decarbonization

 Promotion of decarbonization
combined with solar power▲50,000 tons

 PPA Model Departure from FIT

Electricvehicle

 Storage for in-house
consumption

 Substitute for gasolinepowered vehicles

 Essential to expansion ofrenewable energy use

 Useful as storage battery

Contribution to the efficient use of electricity▲20,000 tons

▲100,000 tons

Proposal of plans combining storage battery and electric vehicle
Reduction of CO2 emissions by 70,000 tons
through the promotion of use of high efficiency
gas equipment (Equivalent to 20% reduction)

Household gas
CO2 emissions(360,000 tons)

Reduction of residential
CO2 emissions

Reduction of CO2 emissions by 100,000 tons
by facilitating the residential installation ofsolar power systems
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5May 20, 2021

PPA Model for Promotion of Solar Power Systems• We use PPA Model* to promote the use of solar power systems. In the PPA model, providers install solar power
generation equipment at houses free of charge to enable sale of excess electricity (FIT) and supply cheaper electricity for
private consumption.
• We will reduce CO2 emissions by 100,000 tons by 2030 by installing solar power systems at 48,000 households.
*Power Purchase Agreement

Revenue from electricity sales

2030
Households with solar power systems:

The shortage is purchasedfrom grid power

48,000 households
Reduction of CO2 emissions:

100,000 tons

Privateconsumption

Lower rates for private
consumption
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6May 20, 2021

Carbon Neutralization in Residences• We promote the installation of gas equipment and residential solar power systems that willlead to reduction of CO2 emissions, and advance initiatives to realize CN for the entire house.
• As a home seller, we have been working on Zero Energy House (ZEH) from early on, but lastyear we developed and launched OTS House, which is self-sufficient in water and electricity.

ZEH

OTS House(Net Zero Energy House)(ON THE SPOT)

A house whose annual energy consumption balance comesout even by improving the insulation and airtightness,
reducing "energy used" through a variety of eco
technologies, and "creating energy" by solar power

A house that is completely self-sufficient in water andelectricity, so that it is possible to live a normal life even in theevent of a power failure or water outage due to a natural
disaster
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7May 20, 2021

Reduction of Industrial and Business Gas CO2 Emissions• We will cut down customers’ expenses and reduce CO2 emissions (equivalent to 8,000 tons)by promoting the shift to gas fueling, cogeneration and installation of GHP.
• We will propose the reduction of CO2 emissions also to industries and business customers
that use gas.
Installation of energy-saving
equipment
Fuel shift

Gas

Heavy oil

Cogeneration

Steam boiler

Reduction of CO2 emissions and improvementof energy efficiency
Reduction ofCO2 emissions
Cost reduction

Equivalent to 8,000 tons
Customers
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8May 20, 2021

Use of Renewable Energy and Introduction of Electric Vehicles at Group Offices• For the CO2 emissions of 18,000 tons from our operating activities, we will reduce them by
10,000 tons in 2030 by installing solar power systems at Group offices and using electricity
from renewable energy sources. In addition, we will switch to electric vehicles given theadvancement of technological innovations and aim to reduce the CO2 emissions by 3,000
tons (70% reduction in total).
CO2 emissions in operating
activities (18,000 tons)
Charge electric vehicles by solar power
Electric vehicle

Solar power

Already installed at 30 offices(900 kW)
To be installed at more officesPrivateconsumption

In addition to streamlining of operations and energy
saving by ABCIR+S, we will start switching toelectric vehicles for delivery trucks in 2025, with theexpected full-scale market launch of such trucks.
▲3,000 tons

▲10,000 tons
Use electricity
from renewableenergy sources

We will reduce CO2 emissions by 13,000 tons by installing solar
power systems, using electricity from renewable energy sources,and switching to electric vehicles *Figures do not match due to fractions
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Reduction of CO2 Emissions by ABCIR+S

May 20, 2021

• By promoting automatic meter reading using LPWA* terminals and analyzing the obtained
meter reading data using AI, we can improve the efficiency of delivery operations, such as
optimizing delivery timing and routes, and thus reduce CO2 emissions by 1,000 tons.
*Low Power Wide Area: Technology that enables long distance and wide range communications with low power consumption

LPWA automatic meter reading

AI delivery forecast

Delivery timing
optimization

Delivery routeoptimization

Improvement of delivery efficiency bytracking remaining volume through hourlymeter reading

Optimization ofdelivery route with AI forecasting

New enterprisesystem

LPG My Page

My Page
Web Meter CheckSmartphone
No more mailing of meter reading slips withthe launch of My Page

High-precision
forecast andmeasurement

Paperlessoperation

Advancement of call centers
Automation

Reduction of CO2 emissions▲1,000 tons

Efficient operation
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May 20, 2021

Development of Renewable Energy Power Sources• We already have six mega solar plants and are engaged in solar power generation business.
(▲6,000 tons)• We will continue to identify solar power, wind power, and small hydro power projects tocontribute to the promotion of renewable energy power generation.

TOKAI mega solar plants (six locations):
Total electric-generating capacity 10,309kWi) Mt. Fuji Shizuoka
AirportExpansion of power source typesiv) Susono Chabatake(Electric-generating capacity
1,653 kW)

(Electric-generating capacity
1,525 kW)v) Hamamatsu Tenryu

Solar power(Electric-generating capacity
1,872 kW)ii) Toyokin Ishino(Electric-generating capacity
1,646 kW)vi) Susono Ichibadaira(Electric-generating capacity
1,624 kW)iii) Nasushiobara(Electric-generating capacity
1,989 kW)Wind power
Mt. Fuji Shizuoka Airport

Susono Ichibadaira

Reduction of CO2 emissions: 6,000 tons

Hydraulic power

Promote renewable energypower generation
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May 20, 2021

Proposal for Optimal Energy Use for Electricity and Gas• T&T Energy started retail electricity business in January 2020.
• We promote Eco Plan that uses renewable energy power sources and the introduction of distributed
renewable energy power generation (PPA), thereby contributing to the reduction of CO2 emissions. Inaddition, we propose total solutions for optimum energy use that combines gas and electricity.

Proposals
for electricity
Residential solar power system

Electricity fromrenewable energy
sources• Eco Plan utilizing renewable energy
sources• Distributed renewable energy power
generation (PPA)

Proposals
for gasGas

High efficiency
equipment and others

Contribute to the reduction of CO2 emissions• Proposal of energy use thatcombines a residential solar powersystem, storage battery, hybrid water
heater and others• Response to disasters and power
outages
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