ORIX, NEC and EPCO Announce Consideration of Joint Energy Service Business Renting Residential Storage Batteries

*** For immediate use October 3, 2012


TOKYO, Japan - October 3, 2012 - ORIX Corporation (hereinafter "ORIX"), NEC Corporation (hereinafter "NEC") and EPCO Incorporated (hereinafter "EPCO") announced today the conclusion of a basic agreement to consider joint investment in newly establishing a company that will be the center of a cooperative effort in an energy service business that will contribute to energy reductions for households and sole proprietorships.

This business aims to provide energy services through the rental of storage batteries based on the Ministry of Economy, Trade and Industry's storage battery strategy that was announced in July 2012 with the aim to popularize the use of storage batteries in Japan.

1. Background

The desire to popularize storage batteries increased following the Great East Japan Earthquake, arising from the need for stable energy supply and diversified energy sources, responding to the shift toward large-scale renewable energy production, and to secure emergency power. Faced with increasing energy reduction needs, residential households are also quickly adopting solar power systems and means to decrease electricity use and to reduce electricity use during peak afternoon hours. At the same time, these systems also provide power during emergencies and power outages, fulfilling a critical need for maintaining connections to power.

With this changing environment, a lithium ion battery will provide a new option for residential users who seek "good storage, smart use" in addition to becoming an important device as a source of emergency power. However, customers are still hesitant due to the high initial cost, which is delaying the early adoption of storage batteries.

Sharing this view, ORIX, NEC and EPCO decided to combine their respective expertise to create a "new energy service blending finance, IT and services" to consider a business responding to the needs of customers and society.

2. Business Description

The aim of this business is to maximize energy efficiency through the use of storage batteries either on a standalone basis or in conjunction with renewable energy such as a solar power system. This business also aims to consider and implement optimal electricity services in response to future energy policy, environmental changes and the future deregulation of the small contract electricity market.


Specifically, this newly established company with investment by ORIX, NEC and EPCO aims to provide an "optimal electricity reduction management and comprehensive energy use service" through the long-term rental of NEC manufactured grid connected lithium ion storage batteries (5.53kwh capacity), battery design, construction, repair and maintenance, in addition to a service that supports electricity reductions "visually."

Customer Benefits

• No initial cost
• Rental fees are generally within the amount saved through energy reductions (store cheaper nighttime electricity to use during the daytime)
• Reduction of basic electricity fees with daytime/nighttime rates and reduction of peak use
• Storage system operating conditions are remotely monitored, with the energy service company performing repair or replacement in the event of damage or significant battery wear
• A call center responds to customers' day-to-day and emergency inquiries
• Provision of an electricity reduction app (easy to monitor electricity reduction and control using a smart phone or similar device)
• Provision of an energy reduction forecast service (electricity reduction advice for the following day based on the weather forecast)
• Consideration of future electricity sharing between users, block management of users, and compensation through "negawatt" trading

3. Roles for Each Company

ORIX
In the energy and environment fields, ORIX is expanding its business through retail electricity sales, bulk electricity purchasing for condominiums, ESCO business in addition to solar and biomass electricity generation.
ORIX is participating in this new joint venture as an entrance into the retail energy business using storage batteries. Capitalizing on its leasing and rental know-how accumulated over the years, ORIX will create a rental plan that eliminates initial investment and provides long-term use of storage batteries with peace of mind. Additionally, ORIX will take the role of rapidly popularizing this business by capitalizing on its nationwide sales network.

NEC
NEC is expanding its storage battery business and smart energy business centered on batteries leveraging its track record for automobile batteries, electrode business, dependability, and cost competitiveness.
NEC will provide storage battery systems in addition to creating a cloud system to manage and control the battery system, in addition to electricity demand analysis and other services through the cloud system. Through its participation in this new joint venture, NEC will develop a model for a sustainable service business using storage batteries and contribute to the creation of a new market in the energy field.

EPCO
ECPO mainly provides facility design services for plumbing, electricity and solar power systems for detached housing, in addition to a call center service for residential design information.
EPCO will promote the popularization of the hardware, in addition to playing a valuable role making a fulfilling "soft" side of the service that helps each residence to control energy to comfortably reduce electricity. EPCO will be in charge of consulting each residence about electricity reductions, and providing "soft" services such as electricity (storage battery) design, calculation of estimated electricity demand for each residence based on the design, estimation of solar power generation for the following day based on weather data, shaving peak electricity usage based on battery discharge simulations, providing electricity reduction forecasts to handheld devices, in addition to electricity demand information, repair history and analysis through a call center.

ORIX, NEC and EPCO will develop a new business model that can expand the fusion of storage batteries and IT on a global scale through the provision of a new energy service, while realizing efficient energy use. Through this, the companies will strive to create a new industry based on lithium ion storage batteries for which Japan is renowned for its high level of technological sophistication.


[ Attachment ] Lithium Ion Storage Battery Rental Model Concept Energy Business

About ORIX Corporation
ORIX Corporation (TSE: 8591; NYSE: IX) is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 28 countries and regions worldwide, ORIX's activities include corporate financial services, such as leases and loans, as well as automobile operations, rental operations, real estate, life insurance, banking and loan servicing. For more details, please visit our website at:  http://www.orix.co.jp/grp/en/

About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company's experience and global resources, NEC's advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society.  For more information, visit NEC at http://www.nec.com.

NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. (R)2012 NEC Corporation.

About EPCO Corporation（JASDAQ2311, website at: http://www.epco.co.jp）
We function as the equipment planning division for housing companies, providing comprehensive support from equipment design-work, arrangement of components delivery to individual construction sites, and moreover ongoing maintenance.
EPCO systems were introduced to 70,000 households in Japan during 2011.

Contact Information

ORIX Corporation
Corporate Planning Department
Tel: +81-3-5419-5042
Fax: +81-3-5419-5901
URL: http://www.orix.co.jp/grp/en/

NEC Corporation
Seiichiro Toda
+81-3-3798-6511
E-Mail:s-toda@cj.jp.nec.com

EPCO Corporation
Yoshihara or Harasawa
E-Mail:yoshihara@epco.jp
E-Mail:harasawa@epco.jp