June 1, 2020

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

Establishment of "OTS Consortium for Home Co-existing with Rain and Sun"
for Nationwide Development of OTS House
Tokai Corporation ("TOKAI" hereinafter), a wholly owned subsidiary of the Company, today announced thatit establishes the "On The Spot (OTS) Consortium for Home Co-existing with Rain and Sun" on June 1, witha view to developing the "OTS House," a near-future home that will be completely self-sufficient in water andelectricity and that will enable people to live as they would in normal times, even in the event of power outages
or water cuts caused by natural disasters and other events.

1. About OTS House
With the basic concept of “On The Spot”, a house that can be protected just by being there, TOKAI's "OTS
House" offers home that is self-sufficient in water by purifying rainwater to create domestic water as well as
in electricity by combining solar power generation with large storage batteries.
In recent years, due to frequent events of large-scale natural disasters that threaten daily life, awareness onlifelines such as water and electricity has drastically changed. The OTS House, where a normal life is ensured
even in the event of disasters, prepares for such times to come.

Image of OTS House

2. Overview of “On The Spot Consortium for Home Co-existing with Rain and Sun”
Since the launch of “OTS House”, TOKAI has been promoting sales in Shizuoka Prefecture, including theOTS Anniversary Campaign, and has now established the "On The Spot Consortium for Home Co-existingwith Rain and Sun" to raise nationwide awareness and promote sales. The Consortium will be established incollaboration with Hideo Shimizu Office Company Limited (Headquarters: Kita-ku, Tokyo; Representative:Hideo Shimizu), which has a proven track record as a housing consultant, to recruit Business Partners (agents)
and Sales Partners (members) throughout the country. For the start of Consortium, it has also been decided toinvite HIRAI HOLDINGS Co.,Ltd. (Headquarters: Ichihara City, Chiba Prefecture; CEO: Koichiro Natsui), abuilding materials distributor as our Business Partner.
Participating Business and Sales Partners will be able to handle standardized housing products such as "OTSHouse" and equipment necessary for water and electricity self-sufficiency, as well as new products to beannounced every year.
In addition, regular housing seminars and workshops will be held by Hideo Shimizu Office Company Limited
exclusively for Partners, as well as the support for interior coordination.
■ Roles of each company
Company
TOKAI CORPORATION
Hideo Shimizu Office
Company Limited
HIRAI HOLDINGS Co.,Ltd.
Business Partners (agents)

Sales Partners (members)

Role
Providing OTS products and technical support as a development
manufacturer
Consortium secretariat: Recruitment and sales support for Business andSales Partners
Sales promotion of OTS products as a Business Partner, acquisition ofSales Partners, and Consortium promotion activities
Sales promotion activities such as sales and marketing of OTS housingand packaged products; Responsible for proposing housing andequipment products handled by Consortium to the Sales Partners(members) managed by the company, working with Secretariat to promote
activities aimed at acquiring Sales Partners, and holding events for
consumers in each region.
Sales and promotional activities for OTS housing and packaged products
to consumers with the support of Business Partners

3. Basic concept of Consortium
Upholding the Code of Conduct to "Making Japanese life safer and more wonderful”, unlike franchises andvoluntary chains, the Consortium does not set quotas on the number of houses, and aim to spread self-sufficientand environmentally friendly housing centering on "OTS House".
Direct sales from trading companies and manufacturers have led to price competition, and there is also asuccession of competition from mass retailers of home appliances and other industries. Under thecircumstances, we will differentiate from competitors, expand new sales channels and strengthen support forexisting customers by introducing the "OTS House" and "OTS Self-Sufficiency Package" products, whichenable people to live safely in the event of a disaster. The aim is to expand sales of "OTS House" and to growand expand the business of our Business Partners and Sales Partners.
4. Business plan
A dedicated website (https://ots.amehiconso.jp/) will be launched in June 2020 to provide more information
about the Consortium and to recruit Business Partners and Sales Partners. Business briefings will also be held
throughout the country.
In the first year, with the aim of securing seven to eight Business Partners and 70 to 80 Sales Partners asmembers, we will promote full-scale business development and hold training sessions, workshops andconsumer events to respond to changes in the environment and consumer awareness.

Under the vision of Total Life Concierge (TLC), our Group will provide a wide range of lifestyle infrastructureservices such as gas, the Internet, CATV, Aqua (bottled water delivery), and electric power that are closely tied
to the lives of our customers. In the housing environment area, we will also develop and propose housing andremodeling businesses, and continue to further improve customer satisfaction by proactively providing
products and services that contribute to solving community and social issues.

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