Taikisha : Establishes a New Plant Factory Business Jointly with Hokuriku Electric Power Company, etc.

Press Release

April 15, 2021 Taikisha Ltd.

Taikisha Establishes a New Plant Factory Business

Jointly with Hokuriku Electric Power Company, etc.

Taikisha Ltd. (Head Office: Shinjuku-ku, Tokyo; Representative Director, President: Koji Kato) has established a new company "FreDelish Co. Ltd.," which produces and sells vegetables in a plant factory, through a joint capital investment with Hokuriku Electric Power Company (Head Office: Toyama City, Toyama Prefecture; Executive President and Representative Director: Yutaka Kanai) and The Norinchukin Bank (Head Office: Chiyoda-ku, Tokyo; President and Chief Executive Officer: Kazuto Oku).

■ Sequence of events and aim

In recent years, the agricultural industry has faced problems such as difficulty in the stable supply of agricultural products due to unseasonable weather and a decrease in the agricultural workforce, and needs for vegetables produced in a plant factory, where vegetables can grow regardless of the season and weather, are attracting attention. In response to such needs, Taikisha, which has been engaged in promoting the plant factory business by taking advantage of its air conditioning control technology, established its wholly-owned subsidiary "Vege-Factory Co., Ltd." on February 5 of this year. This company is capable of offering customers total solutions, from plant construction to the production and sale of vegetables (see the News Release shown below).

In the course of considering further development, Taikisha identified "Resolving regional issues" and "New services combining resources in possession and new technologies" as fields we should pursue intensively for the development of new growing businesses, and decided to conduct business jointly with Hokuriku Electric Power Company, which has watched plant factories with interest due to their capability to provide new value by growing vegetables with electricity, and The Norinchukin Bank, which is promoting a new form of agriculture, toward the same objective.

Hokuriku Electric Power Company has know-howregarding the efficient use of energy and equipment maintenance and management, The Norinchukin Bank has a broad spectrum of knowledge cultivated through the food and agriculture business, and Taikisha has strong technological capabilities and a wealth of achievements in plant factory equipment. Taikisha believes that we can realize sustainable plant factory management and operation with reduced more environmental burdens by combining these strengths and collaborating with one another.

＜The images of the factory and produced lettuce＞

■ About the new company

1. Summary

Name	FreDelish Co. Ltd.
Address	Tsuruga City, Fukui Prefecture
Establishment	March 16, 2021
Capital	20 million yen
Investors/percentages of ownership	Hokuriku Electric Power Company:61%
	Taikisha Ltd.:34% *This will be transferred to
	Vege-Factory Co., Ltd. in the near future.
	The Norinchukin Bank:5%
Business area	Production and sale of agricultural products

2. Logomark and the origin of the company name

The company name "FreDelish" derives from the combination of two words, "fresh" and "delish (casual expression for "delicious"). The logomark expresses fresh and crisp leaves of a lettuce with the initial letters "F" and "D". FreDelish intends to provide abundant food and affluent living by cultivating fresh and delicious vegetables.

3. Puri-na

This is the brand name to be given to vegetables grown by the plant factory system "Vege- Factory" developed by Taikisha. Since the vegetables are grown in an environment in which the light, temperature, humidity, nutrient solution, carbon dioxide, etc. within the factory are completely controlled, the number of viable bacteria is reduced by an overwhelming extent and they have long-lasting freshness, thus contributing to the reduction of food loss. "Puri-na" is named after the meaning of clean and pure (= Puri) leafy vegetables (= Na) grown indoors by hydroponics, and high-quality vegetables can be harvested all year around, regardless of the weather.

■ Future prospects

The new company introduces Taikisha's plant factory system "Vege-Factory," which uses cutting- edge air conditioning equipment and high-efficiency LEDs, to ensure the stable production of "Puri-na" brand lettuce. FreDelish plans to supply this lettuce to consumers through convenience stores and the food service industry. Its shipment is expected to start around the winter of 2021, and FreDelish will consider producing a variety of vegetables in the future to meet demand.

Hokuriku Electric Power Company, Taikisha, and The Norinchukin Bank will endeavor to resolve social issues, including the stable supply of food, through the plant factory business.

＜SDGs related to this issue＞

【Contact for inquiries from the media】

Taikisha Ltd. Corporate Planning Headquarters Investor Relations Section

TEL:[phone]FAX:[phone]

E-mail：[e-mail]

【Contact for inquiries from the customer】

Vege-Factory Co., Ltd.

TEL:[phone]FAX:[phone]

E-mail:[e-mail]