Decommissioning Part of In-house Power Generation Facilities and Submission of Electricity Generation Utility's Decommissioning Notice

Tokuyama Corporation

Tokuyama Corporation (hereinafter referred to as "Tokuyama" or "the Company") is pleased to announce that the following measures have been taken concerning the in-house power generation facilities owned and operated by the Tokuyama Factory. In either case, their impact on business results will be minimal.

1.Decommissioning Tokuyama Factory Central Power Generation Facility Plant No. 5 (hereinafter "Plant No. 5")
Having commenced operations in 1963 and used coal as its main fuel, Plant No. 5 operations have been suspended since 2014 due to aging and other reasons. Having now taken the decision to decommission the plant, the Company has submitted a decommissioning notice, dated June 30, 2020, to the relevant authorities. As a result, the number of in-house power generation plants at the Tokuyama Factory has fallen from five to four, and the maximum power output decreased from 552MW to 517MW. The schedule for dismantling Plant No. 5 has not yet been decided.

2.Electricity Generation Utility's Decommissioning Notice Submitted Based on Electricity Business Act
In addition to the electricity the Company generates in-house for use within the Tokuyama Factory, any surplus electricity is sold to neighboring facilities outside the Company, including that supplied to Shunan City Hall. However, the Company submitted an Electricity Generation Utility's decommissioning notice, based on the Electricity Business Act, dated July 31, 2020, to the relevant authorities. Due to the electricity business system reform that took place in accordance with the liberalization of retail electricity in April 2016, it has become mandatory for changes in Electricity Generation Utility companies, decommissioning and any other changes to be duly notified. The Company has determined that it does not meet the requirements of an Electricity Generation Utility (reverse flow rate accounted for in the power output generated per year exceeds 10%, synonymous with an outside power sales ratio of more than 10%) and has given notice of the decommissioning.

Corporate Communications & Investor Relations Dept.,
Tokuyama Corporation
Tokyo Head Office TEL: +81-3-5207-2552

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