Consolidation of ES-CON Japan Ltd.

Today, Chubu Electric Power Group decided to acquire additional shares in ES-CON Japan Ltd. ("ES-CON Japan") and convert the company into a consolidated subsidiary assuming that the annual shareholders meeting, which will be held in March 2021, authorizes a special resolution to amend the company's Articles of Incorporation allowing for an increase in the number of shares that may be issued as well as third-party allocation of newly issued shares.

In August 2018, Chubu Electric Power entered into a capital alliance with ES-CON and made the company an equity-method affiliate the following month (announced on August 28, 2018). Subsequently, Chubu Electric Power Group and ES-CON have generated synergies in the real estate business, including the commencement of multiple joint projects principally in the Chubu area.

Further strengthening this capital relationship now will accelerate the real estate business leading to realization of "new forms of community," which is one of the Chubu Electric Power Group's aims, and advance urban development that provides a safe and enjoyable lifestyle for community residents.

In addition, we believe that this consolidation will contribute to achieving our goal of "consolidated ordinary profit of 250 billion yen or more in the second half of the 2020s," which we cited in our Management Vision.

We will continue to respect ES-CON's autonomous and flexible management as a listed company and strive to increase the value of our group companies.

[Synopsis of Additional Share Acquisition]

[REF]Corporate Profile (as of January 31, 2021)

Chubu Electric Power Co., Inc.

ES-CON Japan Ltd.