1. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 13, November 2013 Toshiba Fuel Cell Power Systems Corporation Commercialization of Residential FC in Japan ～ Current status and driving force for the success ～ 1 ENE-FARM is a common brand name of a residential fuel cell system in Japan. Toshiba ENE-FARM

2. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 2 1. General Approach of Residential PEFC in Japan 2. Outline of Toshiba Activity to Residential PEFC 3. Summary Background of Successful Commercialization

3. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 3 History and Plan of ENE-FARM Commercialization in Japan  After technology verification and large scale monitoring program, Japan started initial commercialization of 1kW class residential PEMFC “ENE-FARM” in FY2009. Around 50,000units are now operated in Japanese household. Large Scale Monitoring

4. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. In advance of commercialization, over 3,300unit of residential PEFC were installed and verified in FY2005 through 2008 under governmental program. In the program, system showed enough performance and reliability as future commercial product. Large Scale Monitoring Program by Japanese Government 4 Thermal Load of each House [MJ/month] The Amount of CO2 Reduction [kg/month] Five system manufacturers joined to the program, and delivered 3,307units. Toshiba delivered 748 units among them. Residential PEFC showed the performance to reduce 100kg/month of CO2 as the average.

5. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. Status of ENEFARM Dissemination Sales started in 2009 with the declaration by government and energy companies on January, 28, 2009. Start commercialization The sales volume has been increased year by year. Accumulated volume is expected to be more than 40,000unit in FY2012 * the volume of 2012 is roughly estimated based on subsidy condition as of end of August ［ Fiscal year ］ ［ Annual volume] Trend of sales volume Another 53k for FY2013 by METI 2013 5

6. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 6 1. General Approach of Residential PEFC in Japan 2. Outline of Toshiba Activity to Residential PEFC 3. Summary Background of Successful Commercialization

7. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. Introductory support subsidy Toshiba FCP started PEFC development in FY2000 and is about to reach real commercial stage in FY2012. FY2005 NEF Large Scale Demo Prg. NEF ・ IBEC test FY2009 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Millennium PJ FY2007 NEF LSDP First model TEPCO 11MW Plant （ 23k hrs. ） Onsite 200kW PC25C 1980 1990 2000 28 years experiments of PAFC development in Toshiba 50kW Pilot plant NEDO １ MW Plant Onsite 1MW Plant(16khrs). History of Stationary Fuel Cell in Toshiba NEF LSDP Final model Initial Commercial model Real Commercial model 7

8. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 8 2 nd Generation Model of Toshiba ENE-FAEM (TM1-AD) The higher total efficiency “94% Total (39%E & 55&H) The highest energy saving “1.5ton/year” High value added “GI capability w/o battery” Fuel diversity and its tolerance “Already delivered commercial units in Japan” Cost competitiveness “Leading cost reduction among Japanese ENEFARMs” Easier installation “Lighter and smaller system” Higher maintenance capability “3.5yrs maintenance interval. Work w/o system shut down” The longest durability “80k hrs w/o CSA replacement”

9. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 9 “ REDUCE ” was one of core concept in accelerating the cost reduction. 30% of cost reduction was achieved with technology approach. Cost reduction approach FC unit CSA ・ Reduce cell number (15%) ・ Reduce catalyst (20%) ・ Apply low cost material System / Package ： ・ Simplify system ・ Apply multi module piping ・ Apply low cost BOP Reformer ・ Optimize catalyst ・ Minimize length of welding CSA Module pipe Ne w FY201 1 Inverter & Controller ・ High performance one integrated to single board

10. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. Successful shifting to commercialization in Toshiba PEFC Verification Delivered around 800units since 2005 until 08 The longest units recorded 30kh in real field Total fleet operation time to be 10million hrs CO2 reduction to be 1.2-1.4t/year Reliability potential for commercialization Commercialization readiness Preparing production process Maintenance and sales channel with energy companies Getting Japanese certification Development >35% Electric / >85% Total Efficiency System durability longer than 70kh Reliability better than 5% annual failure rate Significant CR (to 1/8 level through 5years) Tolerant system for raw fuel (NG & LPG) Light weight for installation (104kg) Low noise design (<40dB) 4,200 15,000 – 20,000 units in FY2013 2013 10

11. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 11 Business and Market Expanstion toward the future HEMS 、 Smart grid with PV and Battery -20degC ambient Various application offers the possibility to expand ENE-FARM market and business toward the future.  Continuous improvement of ENE-FARM as core product (cost, performance, reliability and durability and maintainability)  Offering and preparing wider application to expand the market (HEMS, expanded GI option, fuel diversity, option for colder area)

12. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 12 1. General Approach of Residential PEFC in Japan 2. Outline of Toshiba Activity to Residential PEFC 3. Summary Background of Successful Commercialization

13. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. 13 Key factors for the commercialization of residential PEM Residential PEM is on the commercialization phase since 2009 in Japan! Governmental leadership Collaborative development under NEDO Project Collaboration among Japanese companies FCCJ Partnership with Energy companies and manufacturers Technology potential of manufacturers w/ long history [Core competence in technologies] [Governmental efforts] [Company collaboration] 3 Aspects 5 Factors ( from IPHE Conference in 2011)

14. Copyright © 2013 Toshiba Fuel Cell Power Systems Corporation. All rights reserved. ～ Thank you ～ 14