News Release

Spread’s Large-Scale Vertical Farming Partnership with ENEOS Group’s J Leaf
Starts Operations near Tokyo
July 14, 2021

Spread Co., Ltd. (HQ: Kyoto, Japan; CEO: Shinji Inada, hereinafter “Spread”)’s partner, anda member of ENEOS Group, J Leaf Corporation (HQ: Chiba, Japan; President: Jun Uehara,hereinafter “J Leaf”) started operating the automated vertical farm “Techno Farm Narita”(Chiba, Japan) on 30th of June.
Spread owns and operates two vertical farms in Western Japan (Kyoto), the Kameoka Plant
and Techno Farm Keihanna. Techno Farm Narita is Spread’s first partnership project, andthe first to be located in Eastern Japan. The most significant feature of Techno Farm Narita is
the increased efficiency in the use of land. This has been achieved by increasing the numberof cultivation racks levels to 28, double that of Techno Farm Keihanna.
Techno Farm Narita will produce 30,000 heads of lettuce daily, building on the know-how
accumulated through the operation of Techno Farm Keihanna to deliver increasingly
sustainable food production.

Unique Features of Techno Farm Narita
・Even more efficient land saving through 28-level cultivation rack system(roughly 2 times more efficient than Techno Farm Keihanna)・

Located in the Greater Tokyo Area, allowing for local production and consumption

・Transforming idle land to efficient and sustainable agriculture・The utilization of renewable energy generated from solar panels

Techno Farm Narita also retains other features of Spread’s next generation food production
system, Techno Farm™, including pesticide-free, stable cultivation, integrated automation,
specialized LED lighting, and Spread’s proprietary IoT-based cultivation management
system, Techno Farm Cloud.

News ReleaseAbout the Partners
ENEOS Group is one of Japan's leading corporate groups, with revenue in excess of
10 trillion yen. *1
The Group has the largest market share in oil refinery and petrochemicals distribution in
Japan, and is centered around ENEOS Holdings.

Spread’s vision is to create a sustainable society where future generations can live withpeace of mind. On the way to this objective, Spread plans to reach total production capacity of
100 tons per day domestically by 2030, through the expansion of its Techno Farm™. With thecollaboration at Techno Farm Narita as a foundation, both parties are considering furtherpartnership projects. The green business market is expected to continue growing,and Spread strives to become a leading vertical farming company globally.

Spread will continue to pursue further business opportunities through technologicalinnovation both in Japan and overseas. Spread aims to provide solutions for the global
problems of climate change and food security, and the delivery of a truly sustainable society.

Techno Farm Narita’s Cultivation RoomOpening Ceremony

News Release
Overview of Techno Farm Narita
Location

2700-72, Koike, Shibayama-machi, Sanbu-gun,Chiba, JapanFarm typeIndoor Vertical Farm using Artificial Lighting

Site area

Approx. 8,000 ㎡

Product

Leafy greens（Lettuce）

Production capability

30,000 heads of lettuce per day /Approx. 11 million heads of lettuce per year

Start of operations

June 30, 2021

Overview of J Leaf Corporation
President：Jun Uehara

Established：July, 2018

Capital：80 million yen

Location：2700-72, Koike, Shibayama-machi, Sanbu-gun, Chiba, Japan

Investment：ENEOS Techno Materials Corporation 68% *2
Nissin Shoji Co., Ltd. 32%

Business：Production and sale of indoor vertically farmed products

Overview of Spread Co., Ltd.
Chief Executive Officer：Shinji Inada

Established：January, 2006

Capital：87.4 million yen

Location：Kyoto Research Park #8, 90 Chudojiawata-cho,Shimogyo-ku, Kyoto, Japan

Business：Vertical farming operation, management andsales of the products*1 FY2019 results (announced on May 20, 2020)*2 ENEOS Techno Materials Corporation is a member of ENEOS GroupNews Release
ABOUT SPREAD

Kameoka Plant, the Profitability Pioneer of Vertical Farming
Capacity：21,000 heads/2.1t/day

Spread’s Kameoka Plant cracked one of the toughest
challenges in commercial vertical farming. Since starting
operations in 2007, Spread has developed sophisticatedenvironmental control technologies, and significantly improved
the overall operational efficiency at the Kameoka Plant.

GGN: 4063061345899

Together this has brought the operating rate to 97% and enabled Kameoka Plant become
profitable for the first time in 2013.

Techno Farm Keihanna. Stable Production via Innovative Technologies
Capacity：30,000heads/3t/day

Started operations in 2018. The first vertical farm to utilize
next generation food production system Techno FarmTM. At
the R&D facility attached to the farm, development of thenew cultivation techniques, as well as IoT and AI systems isGGN: 4063061345899

underway. As the mother plant of Techno FarmTM,
Techno Farm Keihanna will serve as the foundation for the never-ending evolution of newtechnologies.
Innovative technologies, allowing for simultaneous increase in productivity andenvironmental sustainability:・Automated cultivation

・

Saving over 16,000 liters of water per day via water recycling

・

Advanced environmental control

・Energy saving due to LED lighting, tailored for vertical farming usage

・Upgrade in operational efficiency due to IoT-based management systemNext Generation Food Production System Techno FarmTM

Developed by Spread with the help of partner companies,

Techno FarmTM builds on the know-how developed at theKameoka Plant in more than 10 years of its operation.
Automated cultivation, water recycling and environmental control
technologies, specialized LED lighting as well as IoT and AI make for simultaneous increasein productivity and environmental sustainability.
Spread will continue to promote this technology as an essential part of sustainable agriculture.
URL：www.technofarm.com/en

News ReleaseOver 70 Million Packs Sold in Total *1.
Vertically Farmed Vegetables Brand Vegetus

Under the concept of “Sustainable Vegetable”, Vegetus strives to behealthy for both Earth and people. Spread’s current lineup includes
3 unique varieties: crunchy Frilly Lettuce, smooth and sweet
Pleated Lettuce, soft yet crispy Fringe Lettuce. Each of these delivers
a clean and fresh taste and is rich in beta-carotene. *2 Vegetus is a favorite of children,
easy to prepare and fits into any meal, not only salads or sandwiches.
URL：www.vege-tus.com (Japanese only)

Contribution to the United Nations’ Sustainable Development Goals

Examples of Spread’s contribution
・ Goal 2:

Promotion of sustainable food production

・ Goal 3:

Preventing food poisoning risk via hygiene and cultivation management practices

・ Goal 8:

Labor saving through automation and digital transformation

・ Goal 9:

IoT-based management system for efficient cultivation

・ Goal 12:

Helping to reduce food loss due to most part of lettuce being edible

・ Goal 13: Promoting resilient agriculture
・ Goal 15: Efficient usage of land resources and pesticide-free cultivation
・ Goal 17: Techno FarmTM partnership business*1 Actual numbers of lettuce, produced and sold by Spread*2 Vegetus clears Japanese Ministry of Health, Labor and Welfare standards for the “beta-carotene rich” vegetables (equal or more than 600µg/100g)[Contact information]
Spread Co., Ltd. Corporate Communication Department
E-mail: info@spread.co.jp

URL: www.spread.co.jp/en