Start of Joint Delivery of Construction Materials in the Boso Area of Chiba Prefecture

Tokyo Electric Power Grid Company, Incorporated (Headquarters: Chiyoda-ku, Tokyo, Representative Director and President: Yoshinori Kaneko, hereinafter "TEPCO PG") and NTT East Corporation (Headquarters: Shinjuku-ku, Tokyo, Representative Director and President: Naoki Shibuya, hereinafter "NTT East") will commence joint delivery of construction materials (such as transformers and routers) for both companies in the Boso area of Chiba Prefecture (Narita City, Mobara City, Kisarazu City) starting today. This initiative is a new endeavor where different utility providers, electricity and telecommunications, collaborate to jointly deliver construction materials.

1. Background In recent years, the logistics sector has faced challenges such as labor shortages and declining transportation capacity, leading to demands for initiatives to reduce driver burden and improve transportation efficiency. For infrastructure operators, optimizing and enhancing transportation efficiency is a critical task, not only to ensure a stable supply of materials but also to address environmental impact reduction. Furthermore, establishing an efficient transportation system during normal times can be applied during disasters, leading to improved response capabilities. TEPCO PG and NTT East, along with Tokyo Gas Network Co., Ltd., have signed a cooperation agreement as three companies supporting social infrastructure in gas, electricity, and telecommunications*1. They are promoting collaboration to improve operational efficiency and sophistication, create social value, and solve regional issues by mutually utilizing each company's management resources and data. Until now, they have collaborated in various fields to ensure the sustainable and stable operation of infrastructure businesses, such as strengthening disaster response capabilities and promoting joint inspections. This joint delivery of construction materials is a tangible result of their exploration into logistics collaboration, as part of the initiatives under the aforementioned agreement. *1 Press Release https://www.ntt-east.co.jp/release/detail/20221118_01.html

2. Overview of the Initiative TEPCO PG and NTT East will commence joint delivery of construction materials for both companies in the Boso area of Chiba Prefecture (Narita City, Mobara City, Kisarazu City) starting today. In this initiative, NTT East's construction materials will be transported from NTT East's logistics warehouse (Kazo City, Saitama Prefecture) to TEPCO PG's logistics warehouse (Chiba City, Chiba Prefecture). After transshipment at that warehouse, TEPCO PG will consolidate and deliver the construction materials for both companies. The Boso area of Chiba Prefecture was selected as the initial target because NTT East's delivery routes pass near TEPCO PG's logistics warehouse, and the delivery bases of both companies are geographically close, confirming a high affinity for joint delivery.

3. Overview and Results of the Demonstration Experiment Prior to the start of joint delivery, a demonstration experiment was conducted to confirm the effectiveness of the aforementioned scheme.

(1) Overview of the Demonstration Experiment The joint delivery using TEPCO PG's logistics warehouse as a relay point was verified under the following conditions: Target area: Chiba Boso area Frequency: A total of 3 times (April 17, April 24, May 15, 2025)

(2) Results of the Demonstration Experiment*2 As a result of the demonstration experiment, the following effects were confirmed for each evaluation item per day: Number of trucks: Reduced by 1 Total travel distance: 15% reduction Total travel time: 11% reduction Average loading rate: 14% increase Total cargo handling time: 40% reduction CO2 emissions: 13% reduction Since a certain level of effectiveness was confirmed for each evaluation item through the demonstration experiment, joint delivery will be officially launched in the target area. *2 These demonstration results are limited to the demonstrated routes and items for the Chiba Boso area, and are compared to conventional operations (each company's independent delivery...)