Notice of Investment in Biomass Power Generation Business in Vietnam

Dear All;

erex Co., Ltd.

Notice of Investment in Biomass Power Generation Business in Vietnam

— The First Overseas Biomass Power Generation Business of erex Co., Ltd. —

erex Co., Ltd. (hereinafter referred to as “the Company”) is pleased to announce that it has decided to invest in Hau Giang Bio Energy, a business company established by Power Engineering Consulting Joint Stock Company2 under the umbrella of the State-owned Vietnam Electricity Group (EVN), Son My Renewable Energy Joint Stock Company and local fuel supply companies to construct and operate biomass power plants in the Socialist Republic of Vietnam (hereinafter referred to as “Vietnam”), as follows.

This will be the Company’s first overseas investment in biomass power generation business.

Note

１. The Purpose of the Business

In line with its 2030 vision “To Become a Pioneer in the New Era of Electric Power with Renewable Energy at its Core,” the Company is promoting the growth of its business with renewable energy in Japan as its foundation. Currently, the Company owns five biomass power plants in Japan, and is the largest biomass power generation entity with a total capacity of approximately 650,000 kW in operation and under construction planning.

In Vietnam, electric power demand is increasing at a rate of 10% per year due to economic growth and urbanization, and there are concerns about electric power shortages. Therefore, the import of electric power from China and Laos is being increased, while the development of renewable energy is being promoted. As of September 2021, Ministry of Industry and Trade of the Socialist Republic of Vietnam plans to increase the share of renewable energy to approximately 40% or more by 2045 in the “National Power Development Plan for the period 2021-2030, with vision to 2045 (Power Plan VIII)”.

In Vietnam, the Company is promoting large-scale development and cultivation of biomass fuel (new sorghum) with the support of the government of Vietnam, and will be participating in the market of Vietnam in earnest by starting biomass power generation business in addition to fuel business.

The Company believes that this business will increase the share of renewable energy in Vietnam and will also contribute to the creation of employment.

In addition, the Company is considering plans to construct more biomass power plants in Vietnam, where growth is expected in the future, with the aim of expanding its power generation business.

The Company will work to develop power generation business, by taking advantage of its strengths, in Asia where demand for renewable energy power is expected to increase, to enhance its corporate value.

２. Outline of the Business

*1 Electric power sales in accordance with Vietnam’s FIT scheme

*2 Estimated based on 215W per household in Vietnam.

３. Outline of Other Investors

【Contact for Inquiries】