Progress in Initiatives for New Business Creation

Toko Takaoka Co., Ltd. (Representative Director and President: Takashi Ichinose, hereinafter "Toko Takaoka") has been progressively advancing measures for new business creation, aiming to realize its management philosophy's vision: "A 'SERA Company' that designs future energy networks." Based on the progress of these initiatives, we are pleased to announce that the following two measures will be concretely implemented starting June 2026. - The "Future Co-creation Promotion Department," established in June 2025, will be strengthened into a system that promotes new business creation across the entire group, building on the progress of its initiatives. - Regarding the grid business utilizing digital technology, we will establish a new "Digital Grid Business Project" to accelerate studies toward commercialization, further developing previous considerations. 1. Management Environment Surrounding New Business Creation The business environment surrounding our company is undergoing significant changes, especially in the energy sector. With the advancement of decarbonization, shifts in energy supply and demand structures, and the evolution of digital technology, the environment surrounding energy infrastructure is at a major turning point, and the roles required and value provided are diversifying and becoming more sophisticated. Against the backdrop of these environmental changes, we are simultaneously working on establishing a foundation for continuously generating new businesses and deepening business considerations in key areas. 2. Strengthening the Future Co-creation Promotion Department (1) Establishment and Main Initiatives of the Future Co-creation Promotion Department The Future Co-creation Promotion Department was established in June 2025 within the GX (Green Transformation) Solution Business Division, which handles GX-related businesses aimed at addressing social issues such as carbon neutrality, as an organization leading new business creation. *1 *1: June 30, 2025 Press Release "Establishment of the 'Future Co-creation Promotion Department' to lead new business creation —Activating a 'Co-creation Drive' for the Carbon-Neutral Era—" https://www.tktk.co.jp/news/entry/000527.html Key initiatives since its establishment include the "SERA Biz+" business contest for all employees. This contest goes beyond merely soliciting ideas; it incorporates a multi-stage screening process to progressively verify the feasibility of commercialization (stage-gate method). Furthermore, explanation sessions and idea creation workshops have been held at various company locations, with a total of 164 employees participating. In the first "SERA Biz+," 35 new business ideas were submitted, and the Future Co-creation Promotion Department is currently leading the consideration and verification of selected themes with a view to commercialization. Through these efforts, cross-departmental and cross-organizational initiatives are expanding, and a foundation is being laid for each employee to consider, propose, and promote new businesses. (2) Aim of Strengthening the Organization Building on the foundation formed through these initiatives, as the next step, the Future Co-creation Promotion Department will be clearly positioned as an organization promoting business creation across the entire Toko Takaoka Group. This will accelerate the consideration of new businesses across various fields and departments, support employees' proactive challenges, and further strengthen verification and support for commercialization. The Future Co-creation Promotion Department will also leverage its accumulated knowledge and internal/external networks to combine strengths with partners, create new value, and envision, nurture, and develop businesses that become pillars of growth. 3. Establishment of the Digital Grid Business Project Previously, to explore the potential of grid business utilizing digital technology, our Power Plant Business Division established the "Managed Service Promotion Department" to promote the development of grid business utilizing digital technology, and has been advancing considerations for optimizing power adjustment and equipment operation in distribution systems. *2 *2: June 30, 2025 Press Release "Establishment of the Managed Service Promotion Department to promote the development of grid business utilizing digital technology" https://www.tktk.co.jp/news/entry/000529.html Based on the knowledge gained and issues identified through these efforts, from June 2026, we will establish the "Digital Grid Business Project," a project organization responsible for creating new businesses utilizing digital technology in the power infrastructure field. This project's mission is to pioneer business in the digital grid area, a crucial element in the "SERA Company" concept, and will involve: - Exploring new business areas in the digital grid sector. - Market related to new business areas.