August 13, 2018

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

Capital and Business Alliance with Minna-Denryoku, Inc.
Establishment of a New Company in Renewable Energy Business Using Blockchain and Customer Base of 3Million Customers
TOKAI Holdings Corporation (President & CEO: Katsuhiko Tokita, Head office: Aoi-ku Shizuoka City;
hereinafter the “Company”) announces that it has recently accepted allocation of new shares to third parties
conducted by Minna-Denryoku, Inc. (President & CEO: Eiji Oishi, Head office: Setagaya-ku, Tokyo; hereinafterthe “Minna-Denryoku”) to further expand its business operations. The Company has also agreed to form capitaland business alliance in regard to its launch into the field of renewable energy business where management
resources of both companies are utilized.
Taking this opportunity, the Company plans to begin selling renewable energy power and offering related services
such as sales and maintenance of storage batteries in the field of renewable energy business where further growthis expected in the future through a newly-established Group company from April 2019. The Company has started
a full-scale review for commercialization with Minna-Denryoku as follows:

1. Background and Purpose of Capital and Business AlliancePower supply is shifting from a large-scale supply model to a distributed supply model where entities, individuals,
and local governments and others act as energy power producers, further sharing and utilizing the power theyproduce. Backed by the reduction of renewable energy power generation cost and digitalization of electric powersystem, this trend of dispersion is viewed to further accelerate in the future.
In particular, photovoltaic power generation will increase from 2019 and beyond when its purchase period under
the Feed-in-Tariff (FIT) scheme for renewable energy will expire. Individuals and others who have such FITenergy sources with purchase periods expiring, companies selecting renewable electricity as a response to social
responsibility from a perspective of RE100*1, ESG*2 and CSR, and local governments aiming to locally produce
and locally consume electricity are expected to back up the diversifying trend of renewable energy source.
Blockchain from a technological aspect has drawn attention as a basic technology which support to increase
independence of distributed renewable energy source, and is expected as a technology that will allow holders of
distributed renewable energy source (energy power producers) to perform sales transactions of environmental
values (energy source value without CO2 emission) of electric power and renewable energy directly to consumers
not-via third parties (electric power company.)
Minna-Denryoku is an energy innovation venture company which sells renewable energy power procured
nationwide on its original electric power transaction platform, based on a concept, held since its establishment, ofproviding power retailing service which “producers can be identified.” Its level of shares of renewable energy toits total power supply is the largest in the industry. Minna-Denryoku has abundant experience in implementing amodel utilized for regional revitalization, branding energy sources held by local governments as “identifiableenergy sources.” Taking hold of the increasing needs of renewable energy power in companies including membersof RE100 in Japan, and actively promoting sales on renewable energy power to corporates among others, its
business operations are expanding. In particular, Minna-Denryoku has taken advanced initiatives in regard toenergy source derivation certificates (certificate of from which energy source-derived power was purchased) from
historical reasons. It is working toward provision of new services including the issuance of energy source
derivation certificates, direct electric power transactions and sales purchase of energy source value between
individuals and entities, all which could not be implemented under the conventional price menu-type electric
power sales, by implementing blockchain technology to the in-house electric power transaction platform.
Under the TLC (Total Life Concierge) vision, the Company offers various lifestyle infrastructure services toapproximately 3,000,000 individual customers nationwide, including energy (LP gas, city gas), information andcommunication (internet), CATV, and bottled water delivery. The Company also offers services including energy,
information and communication to approximately 5,000 corporate customers in Japan. With the shift of energy
source structure toward renewable energy continuing to progress in Japan without doubt, significant changes inthe surrounding business environment is expected and new business opportunities anticipated. Meanwhile, such
renewable energy business is considered to be extremely compatible with TOKAI Group’s business portfolio interms of energy, lifestyle infrastructure, community-based services, and monthly billing model. Given thesituation, the Company is determined to start a full-scale review to launch into the field of renewable energy
business.
The Company plans to enhance its brand value by utilizing Minna-Denryoku’s electric power which has thehighest level of shares of renewable energy in the industry, supplying electric power with high renewable energy
ratio to Group’s existing individual customers and corporate customers active toward CSR.
The Company also plans to actively expand this initiative model to gas and CATV operators nationwide as analliance measure with other operators who are advancing Innovation Plan 2020 “JUMP”, the Company’s present
medium-term management plan.
2. Directions for Study on Commercialization(1) Utilization of photovoltaic power generation where Feed-in-Tariff scheme will expire in 2019
With the expiry of the Feed-in-Tariff scheme applied to photovoltaic power generation facilities which
TOKAI Group has been selling, the Company will proceed studying a new service utilizing blockchain
technology which Minna-Denryoku has been developing.
(2) Establishment of a “local production for local consumption” model for renewable energy (New Japanese
Version of Private-Sector-Led Stadtwerke*3 Model)
The Company will establish a model where the above-described photovoltaic power generation which
Feed-in Tariff scheme has been expired and renewable energy power generated by local governments andprivate companies are purchased and provided to public schools, government buildings, local corporations
and individuals with derivation of energy source secured by blockchain technology. While new local electric
power companies are each having difficulties in only selling electric power, the Company will aim toestablish a new Japanese version Stadtwerke model led by private operators by utilizing knowhows on local
energy infrastructures which it has been taking on the role for years, combining businesses such as gas,
CATV, and local renewable energy power.
(3) Corporate service “Nationwide Development of Local Version RE100”
The Company will offer electric power with high renewable energy ratio to corporate companies (RE100member companies, etc.), local governments and organizations with high level of environmental awareness.
Adding a premium plan of 100% renewable energy ratio to the service menu will also be considered.
3. Schedule
August 2018
Set up of preparatory office for the establishment of a new company
November 2018 Announcement of business planApril 2019
Establishment of new company
4. Endorsement
Minna-Denryoku, Ltd.

President & CEO Eiji Oishi“TOKAI Group has been taking a role in infrastructure services mainly in the energy business throughface-to-face sales to customers throughout Japan for years. The Group’s “knowhow” and “trust” is something aventure company can never obtain. We are extremely honored to be able to offer new customer experience on
renewable energy service developed by us to customers with “trust” through this collaboration. At the same time,
we would like to make this an occasion to study and establish knowhows to sustainably carry out the energybusiness.”
5. Future Outlook
The subject is expected to have no material impact on the Company’s consolidated performance for fiscal
year ending March 2019.

*1

RE100: an international consortium in which member companies are committed to use electricity generated from 100% renewable energy*2

ESG: initials of indicators used to determine whether or not a company will be able to realize sustainable growth: Environment, Social, andGovernment*3

Stadtwerke: a small-scale community-based operator who is responsible for developing and operating local energy and lifestyle infrastructurebusinesses throughout Germany

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)3-5404-2891
Email: overseas_IR@TOKAIgroup.co.jp