January 16, 2017

Company name: Tamagawa Holdings Co., Ltd.
Representative: Toru Masuzawa, President(JASDAQ Code 6838)
Contact:Junya Tokumoto,Corporate Planning Department
Telephone:+81-3-6435-6933

Tamagawa Holdings Announces Lease Based Acquisition of Property, Plant, And Equipment(Large Scale Solar Energy Power Plant Facilities)
Tamagawa Holdings announces that is has resolved to enter into a lease agreement with its consolidated subsidiary
GP Energy 2 Co., Ltd., to acquire a large-scale solar energy power plant with an output of approximately 5.3
megawatt which has been planned for construction by GP Energy 2 Co., Ltd., in Goto city, Nagasaki prefecture.

1. Outline
Tamagawa Holdings Group has been promoting the expansion of its large scale solar energy power plantbusiness since the implementation of the renewable energy fixed-priced feed-in regulations. Large scale solar
energy power plants currently operating in Tateyama-shi, Chiba prefecture; Sodegaura city, Chiba prefecture;and Shimonoseki city, Yamaguchi prefecture, have been realizing steady power sales.
The large-scale solar energy power plant planned for construction at Goto city, Nagasaki prefecture (the"Power Plant") with an output of approximately 5.3 megawatt marks the first extra-high voltage power feed-inof Tamagawa Holdings to go on the grid. With electric power sales set at a price of 36 yen / 1kWh (net of tax)
over a 20-year period, the plant substantiates expectations for contributions to the earnings of Tamagawa
Holdings group.
Tamagawa Holdings Group will continue to build and operate power plants that use renewable energy,
specifically solar power, with the aims of raising sales and earning capabilities, promoting the proliferation ofenvironment-friendly renewable energy, and contributing to society by reducing the load on the environment.
2. Construction firms involved in the construction of the Power Plant
In the public release entitled "Tamagawa Holdings Announces Current Status of Progress at the Large-Scale
Solar Energy Power Plant in Goto City, Nagasaki Prefecture" dated January 12, 2016, initially Nangoku
Corporation ("Nangoku") was designated as the prospective construction firm to be contracted for the PowerPlant. However, following further in-depth reviews of the operating properties and profitability, etc., of thePower Plant, Tamagawa Holdings decided to commission Nangoku only with a part of the civil engineering
work and to contract with West Energy Solution Inc. ("West ES") as the main contractor. West ES is afully-owned subsidiary of West Holdings Corporation ("West Holdings"), the latter being listed on theJASDAQ market operated by Tokyo Stock Exchange, Inc. West ES has a track record as an engineering,procurement, and construction (EPC) firm for large-scale solar energy power plant construction in upwards of
200 locations all over Japan.

Tamagawa Holdings has selected and contracted with West ES as the main contractor based on thejudgment that the construction of the Power Plant by West ES will stand out for its high-quality execution
and will be carried out at speed.

West Holdings and West ES are profiled below.
(I) West Holdings(1) Company nameWest Holdings Corporation(2) Location

Tokyo Head Office
32F, Tokyo Opera City Tower, 3-20-2, Nishi-shinjuku, Shinjuku-ku, Tokyo
Hiroshima Head OfficeWest Head Office building, 1-15-24, Kusunoki-cho, Nishi-ku, Hiroshima
city, Hiroshima(3) EstablishedMarch 1, 2006 (founded October 1981)(4) Capital2,020.91 million yen(5) Net sales

36.9 billion yen (consolidated sales for the fiscal year to August 2016)(6) Number of employees

494 (Group employee total as of October 2016)(II) West ES(1) Company nameWest Energy Solution Inc.

(2) Location

Tokyo Head Office 31F, Tokyo Opera City Tower, 3-20-2, Nishi-shinjuku,Shinjuku-ku, Tokyo
Hiroshima Head Office West Head Office building, 1-15-24, Kusunoki-cho,Nishi-ku, Hiroshima city, Hiroshima(3) EstablishedOctober 1981

(4) Capital

100 million yen

3. Reason for the lease arrangement
A leasing scheme will be used to promote the efficient management of funds.
4. Content of the assets to be leased
Designation (provisional)
Goto city, Nagasaki
prefecture
Large scale solar energy
power plantPlace
3-660-1 Yoshikugicho,
Goto city, Nagasaki,
and other locations

Outline of the assets to be leased
and the total lease rate amountSet of solar energy power
generation system
Total lease rate 2,934,000
thousand yen

Total
acquisition price
2,070,000
thousand yen

5. Outline of the lessor under the lease agreement(1) Name

Ricoh Leasing Company, Ltd.

(2) Location

1-7-12 Shinonome, Koto-ku, Tokyo(3) Representative's position and name(4) Business lines

Daisuke Segawa, Representative Director, President
and CEOLeasing, installments, and financial services business(5) Capital

7,896.86 million yen(6) Established

December 1976

(7) Net assets

145.5 billion yen(8) Total assets(9) Main shareholders and shareholder percentages

878.5 billion yen(10) Relationships between exchange listed

No capital relations and personnel relations exist.
Transaction relationships exist such as leaseagreement, etc. Details are available in the releases
dated May 15, 2014, and December 12, 2014, entitled“Tamagawa Holdings Announces Lease Based
Acquisition of Property, Plant, And Equipment(Large Scale Solar Energy Power Plant Facilities).”
The subject company is not an interested party withrespect to Tamagawa Holdings.

companies and the subject company

Ricoh Co., Ltd. 52.8%

6. Lease schedule (prospective)
Resolution of the board of directors

January 15, 2017

Execution of the lease agreement

January 15, 2017

Lease start date

March - April 2018 (prospective)

7. Outline of the Power Plant(1) Location

3-660-1 Yoshikugicho, Goto city, Nagasaki, and otherlocations(2) Operator

GP Energy 2 Co., Ltd. (a fully-owned subsidiary of TamagawaHoldings)(3) Site area

10 ha (approx.)(4) Electric power generating capacity

Approximately 5.3 Megawatt(5) Electric power sales price (fixed for 20

36 yen/kWhyears)(6) Income from electric power sales

250 million yen / year (approx.)(prospective)(7) Estimated electric power generation in

Approximately 6,790,566 kWh

the first fiscal year (projected)(8) Prospective start of electric power sales

Around April 2019

Note: In order to enhance the operational properties of the project, Tamagawa Holdings has conducted further reviews of theconstruction costs, etc., and the selection of contractors, etc. As a result, the previously announced prospective start date ofelectric power sales stated in item (8) changed from April 2017 to April 2018. Tamagawa Holdings will work to accelerate
the development of this locally-based, large-scale solar energy power plant and contribute to the local community bycreating employment opportunities, etc. It is planned to open part of the plant to guided tours for visitors.

8. Further outlook
Since full-scale operations at the Power Plant are scheduled to commence in April 2018, any effects on theGroup's business results for the current fiscal year will be negligible. However, given that contributions to theGroup's business result will arise after the initiation of operations, disclosures will be made as soon as data
become available.