Tokyo Century Concludes 'Partnership Agreement for Realizing Regional Decarbonization' with Higashihiroshima City and Higashihiroshima Smart Energy

Tokyo Century Corporation (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Koichi Fujiwara; hereinafter "Tokyo Century") is pleased to announce that it has concluded a "Partnership Agreement for Realizing Regional Decarbonization" (hereinafter "this Agreement") with Higashihiroshima City, Hiroshima Prefecture (Mayor: Hironori Takagaki) and Higashihiroshima Smart Energy Co., Ltd. (Headquarters: Higashihiroshima City, Hiroshima Prefecture; President: Kazunari Kawaguchi; hereinafter "HSE") to realize a decarbonized society in Higashihiroshima City.

Background and Purpose of the Agreement Located in the central part of Hiroshima Prefecture, Higashihiroshima City has developed as an international academic research city, home to numerous universities and research institutions, and was selected as a "Decarbonization Leading Area" by the Ministry of the Environment in 2024. While currently promoting city-wide decarbonization, the city faces unique and complex challenges inherent to urban decarbonization, such as "addressing high-density residential forms typical of a student town" and "the high energy demand of large-scale business establishments coupled with a decrease in suitable land for renewable energy installation."

HSE is a local power company established in February 2020 with the aim of local production and local consumption of renewable energy and the construction of a regional circular economy. It promotes the resolution of regional issues through the supply of low-carbon electricity to municipal facilities and energy-saving projects. Tokyo Century established the "Regional Co-creation Sales Department" in fiscal year 2025 and has been supporting regional decarbonization and economic development through collaboration with local partner companies, such as by introducing renewable energy and promoting energy-saving equipment.

By combining Higashihiroshima City's "policy decision-making and provision of fields," HSE's "community-based energy supply capacity," and Tokyo Century's "proposal capability and track record in decarbonization solutions," the three parties have concluded this Agreement to discuss the planning, examination, and feasibility of decarbonization projects in Higashihiroshima City, with the goal of building a regional decarbonization model.

Main Areas of Cooperation Based on this Agreement, the three parties will cooperate on the following matters: - Grasping and analyzing issues related to decarbonization in the city area, organizing the progress of measures based on relevant plans, and conducting necessary examinations. - Examining system design and consensus-building methods for expanding the introduction of renewable energy. - Examining support methods for promoting the spread of energy-saving and high-efficiency equipment. - Examining system design and demonstration of bulk power receiving systems and ESCO (Energy Service Company) projects. - Examining mechanisms that contribute to an inexpensive and stable power supply. - Examining methods for public awareness and promoting behavioral change among citizens and businesses.

### [Comment from Hironori Takagaki, Mayor of Higashihiroshima City] Today, we have concluded an important agreement with Tokyo Century Corporation and Higashihiroshima Smart Energy Co., Ltd. to open up the future of Higashihiroshima. This agreement is a major step toward realizing the "Higashihiroshima City Zero Carbon City Declaration," which aims for carbon neutrality by 2050. In a society where disaster risks and energy supply uncertainties are increasing, this initiative promotes the local production and consumption of renewable energy and enhances regional resilience. By collaborating across industry, academia, the private sector, and government, we will create a sustainable urban model from Higashihiroshima where energy and the economy circulate and citizens can live with peace of mind. Together with our citizens, we will take steady steps toward the future.

### [Comment from Kazunari Kawaguchi, President of Higashihiroshima Smart Energy Co., Ltd.] I am very honored to have concluded this partnership agreement for regional decarbonization with Higashihiroshima City and Tokyo Century Corporation. As a local power company responsible for selling electricity to municipal facilities, we will make the most of our on-site knowledge to contribute to the effectiveness of measures through various initiatives, such as expanding renewable energy introduction, promoting energy-saving and high-efficiency equipment, and designing systems for bulk power receiving and ESCO projects. As a community-based business, I am confident that by collaborating between the public and private sectors, we can build a more sustainable and resilient energy usage mechanism. We will continue to deepen our three-party cooperation as an energy partner that supports the lives of our citizens.

### [Comment from Koichi Fujiwara, President & CEO of Tokyo Century Corporation] I am very pleased and honored to take this first step toward realizing regional decarbonization with Higashihiroshima City and Higashihiroshima Smart Energy Co., Ltd. As a "node that leads to the resolution of global social issues," our company has been working with partner companies across the country to support decarbonization. In this agreement, we will provide comprehensive support for the various urban decarbonization challenges faced by Higashihiroshima City, such as designing bulk power receiving systems and promoting the spread of energy-saving equipment, to create a mechanism that balances inexpensive and stable energy supply with the reduction of environmental impact. We will contribute to the realization of a sustainable regional society by building an effective "regional decarbonization model."

About Higashihiroshima City A municipality located in the central part of Hiroshima Prefecture. Known as an "International Academic Research City" with multiple universities and research institutions, it actively promotes sustainable urban development through industry-academia-government-finance collaboration.

About Higashihiroshima Smart Energy Co., Ltd. (HSE) A regional energy company established in February 2020 with investment from Higashihiroshima City, Hiroshima University, and local companies, aiming to improve regional energy self-sufficiency and revitalize the economy. It leads regional decarbonization through power supply to public facilities and energy-saving projects.

About Tokyo Century Corporation An industry-leading financial and service company that has expanded its business areas in a multifaceted manner, centered on its founding leasing business of lending machinery and equipment over the long term. It is working to solve global social issues through co-creation with domestic and international partner companies.