Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

September 30, 2022
Company: TODA CORPORATION
Representative: Seisuke Otani, President and Representative Director(Securities Code: 1860 TSE Prime Market)
Contact: Kaname Miwa, Corporate Officer, General Manager, Financial & IR Div.
(Phone: 03-3535-1357)

Notice of Capital Increase of Subsidiary (Conversion into Specified Subsidiary) andEstablishment of Sub-subsidiary (Specified Subsidiary)
TODA CORPORATION (the “Company”) announces that it resolved at its Board of Directors
meeting held on September 30, 2022, to conduct a capital increase of a subsidiary in Brazil(conversion into a specified subsidiary) and establish a sub-subsidiary (specified subsidiary) inBrazil.

1. Reason for the Capital Increase and the Establishment of the Sub-subsidiary
The Toda Group is committed to the environment and energy business as a priority
management initiative, and accordingly, in 2020, established TODA Investimentos do Brasil
Ltda., a consolidated subsidiary, and commenced its onshore wind power generation business.
Recently, the Toda Group decided to establish a new operating company for its onshore windpower generation business to further expand its environment and energy business. This will
be in the form of an establishment of a new company by a local development company, which
has been engaged in this business by cooperating with the Toda Group, after which the newcompany holding the development rights will be acquired and converted into a sub-subsidiaryof the Company.
2. Outline of the Subsidiary Subject to the Capital Increase(1)Name
TODA Investimentos do Brasil Ltda.
(2)
Head officeSão Paulo, SP, Federative Republic of Brazil
location(3)
Representative
Isao Sakai, CEO(4)Main business
Investment business(5)
Date ofJanuary 9, 2020
establishment(6)
Capital prior to
70 million BRL (approx. 1.9 billion yen)
the increase(7)
Amount of240 million BRL (approx. 6.4 billion yen)increase(8)Capital after theincrease
Capital increase
schedule
Relationship withthe Company

(9)
(10)

310 million BRL (approx. 8.3 billion yen)
October 2022 (planned)

The Company has a 100% stake in the subsidiary anddispatches its employees to the subsidiary. There is nobusiness relationship between the Company and thesubsidiary.
(11)
Operating results and financial position for the last three years(Unit: BRL in million [Yen in million])
Fiscal year
Ended December Ended December Ended December
31, 2019
31, 2020
31, 2021
Net assets‒
65 [1,745]
74 [1,985]
Total assets‒68 [1,842]
74 [1,988]
Net assets per‒
0.93 [25]1.06 [28]share (BRL [Yen])
Net sales‒‒ [‒]‒ [‒]Operating income‒(4) [(129)]
8 [234]
Profit (loss)‒(4) [(127)]
8 [239]for the year
Profit (loss)
for the year per‒(0.07) [(2)]0.13 [3]share (BRL [Yen])
Dividends per‒‒ [‒]‒ [‒]share (BRL [Yen])
Note. There are no applicable items for the fiscal year ended December 31, 2019, as it was prior
to the establishment of the company.
3. Outline of the Sub-subsidiary to be established(1)
Name
TODA Energia 2 Ltda.
(2)
Head office
Pedro Avelino, Rio Grande do Norte, Federative Republic
locationof Brazil(3)
RepresentativeIsao Sakai, CEO(4)
Main businessOnshore wind power generation business
(5)
(6)
(7)

CapitalDate ofestablishment
Shareholder andequity ratio

220 million BRL (approx. 5.9 billion yen)
October 2022 (planned)
TODA Investimentos do Brasil Ltda.

100%

4. Impact on Financial Results
The impact of these changes on the Toda Group’s consolidated financial results will beminimal.

(Reference) Outline of the Onshore Wind Power Generation Business in Brazil
Phase I
Phase II (Current plan)
Operating
TODA Energia do Brasil Ltda.
TODA Energia 2 Ltda.
company(Sub-subsidiary of the Company)(Sub-subsidiary of the Company)
Location ofAreia Branca, Rio Grande do
Pedro Avelino, Rio Grande dohead office
NorteNorteOutput
27.72MW (3.465MW x 8 turbines) 94.40MW (5.9MW x 16 turbines,planned)
Annual output
118 million kWh
400 million kWh (Planned)
Commencement September 2021
August 2024 (Planned)of operations
Note: The amount of capital and other amounts are converted into yen at the rate of 26.77 yen per
1 BRL (as of August 31, 2022).
End