English TOP>About Chubu Electric Power>Press Releases and Other Company News>Press Releases>Back Number>Back Number(2013)>Establishing C Energy Co., Ltd. as a Wholly Owned Subsidiary, Transferring Chubu Electric Power’s Air-Conditioning Facility Subcontracting Business to C Energy and Reinforcing C Energy’s Capital Base through Increases in Capital

Press Release 2013

Establishing C Energy Co., Ltd. as a Wholly Owned Subsidiary, Transferring Chubu Electric Power’s Air-Conditioning Facility Subcontracting Business to C Energy and Reinforcing C Energy’s Capital Base through Increases in Capital

July 31, 2013

Chubu Electric Power Co.,Inc.

This is to announce that Chubu Electric Power Co, Inc. has decided to establish our Group company, C Energy Co., Ltd. (hereinafter referred to as C Energy) as a wholly owned subsidiary and then transfer our air-conditioning facility subcontracting business*1 to it, as well as reinforcing its capital base by increasing capital.

C Energy is in charge of the field of energy services for the Chubu Electric Power Group, and so far has been responding to a wide range of customer requirements, including saving energy, reducing costs and reducing CO2 emissions, etc. through its LNG sales business, on-site energy services,*2 and ESCO business,*3 etc.

Competition is expected to become even more severe in the field of energy services in the future, and it is necessary for the Chubu Electric Power Group to strengthen its competitiveness and sales capabilities in order to provide customers with services they will be satisfied with.

In order to achieve this, we will establish C Energy as a wholly owned subsidiary so that we can create a system in which the company’s business affairs can be swiftly and agilely administered.

Having completed this, we will transfer our air-conditioning facility subcontracting business to C Energy, which has already developed a similar business, and strengthen C Energy’s capital base through increased capital to enable more efficient management of the company and to provide investment for future large-scale businesses.

1 Overview of Establishing the Company as a Wholly Owned Subsidiary

Chubu Electric Power intends to purchase C Energy stock owned by other stockholders in order to establish C Energy as a wholly owned subsidiary under the agreement of other stockholders. We will hold meetings with the other shareholders from now on and move ahead swiftly with all necessary procedures once agreements have been reached.

(1)Purchase Completion Date

Late in August, 2013(scheduled)

(2)Amount of Purchased Stock

Toho Gas Co., Ltd. : 11,180 shares

Iwatani Corporation : 8,568 shares

Chubu Gas Co., Ltd. : 1,900 shares

Chubu Plant Service Co., Ltd. : 1,720 shares

C-Tech Corporation : 1,720 shares

Total : 25,088 shares

(3)Remarks

Amount of stock issued by C Energy as of July 31: 93,200 shares

Amount of stock owned by Chubu Electric Power : 68,112 shares (73%)

2 Overview of the Transfer of the Air-Conditioning Facility Subcontracting Business

Chubu Electric Power’s air-conditioning facility subcontracting business will be transferred to C Energy using a company split method (absorption-type split; Chubu Electric Power is the split company and C Energy is the succeeding company).

(1)Date of Conclusion of absorption-type split agreement

July 31, 2013

(2)Effective Date of absorption-type split

October 1, 2013(scheduled)

(3)Value of split business

26,000 C Energy common stock shares

(4)Outline of the Split Business

Net sales of split business (results for FY2012) : 570 million yen

Expected value of split assets (predicted for the end of September 2013) : 1,300 million yen

3 Overview of Increased Capital

C Energy will increase its capital, and Chubu Electric Power will underwrite all of the newly issued stock. Details of the capital increase will be officially decided at the C Energy General Stockholders’ Meeting.

(1)Sum of Capital Increase

8,000 million yen

(2)Date of C Energy’s General Stockholders Meeting

Mid-September, 2013(scheduled)

(3)Date of Payment

October 1, 2013(scheduled)

Remarks

Remarks1

Overview of the Companies Concerned

Firm name

Chubu Electric Power Co., Inc.

C Energy Co., Ltd.

Lines of business

Electric power and other businesses

Sale of LNG, on-site energy service business, others

Date of establishment

May 1, 1951

April 2, 2001

Location of headquarters

1 Higashi-shincho, Higashi-ku, Nagoya-shi, Japan

2-19-6 Shinsakae, Naka-ku, Nagoya City

Representative

President and CEO Akihisa Mizuno

President and CEO Tokihiko Yamada

Equity capital

430,700 million yen

3,600 million yen

*1 Installation and possession of air-conditioning facilities on customer property, and the operational surveillance, maintenance and repair of said facilities.

*2 Design, construction, possession, operation and maintenance of utilities such as electric power facilities, power receiving and transforming facilities and heating/cooling facilities

*3 Total services for business solutions related to energy, from selection, delivery, construction, operation, maintenance, measurement and testing of devices needed for customers to use energy, to financing