20-D-0950

December 9, 2020
Sustainabilit y Bond Evaluation b y Japan Credit Rating Agenc y, Ltd.
Japan Credit Rating Agency, Ltd. (JCR) announces the following Sustainability Bond Evaluation Results.

JCR Assigned SU 1 to the Bonds of
Tokyu Fudosan Holdings Corporation
Subject:

Tokyu Fudosan Holdings Corporation Second Unsecured Bonds with Interest
Deferral Provision and Prepayment Provision (Subordinated Provision)(Sustainability Bonds)

Type

:

Unsecured bonds

Issue Amount:JPY 30 million

Interest Rate:

From December 18, 2020 to December 18, 2030 : 1.24%
From December 18, 2030 : 6 months Eoro Yen Libor + 2.20%

Issue Date:

December 17, 2020

Redemption Date:

December 17, 2060

Method of
Repayment:

Use of Proceeds:

Bullet* Early redemption clause after 10 years from the issuance
1. Tokyo Port City Takeshiba
2. Kudan-Minami 1-chome Project (tentative name)
3. Membership-based shared-office business "Business-Airport"
4. Startup support and co-creation business5. Senior housing business<Sustainability Bond Evaluation Results>
Overall evaluation

SU1

Greenness and Social Beneficial
Impacts Evaluation(Use of proceeds)
Management, Operation andTransparency Evaluation

gs1
m1

Chapter 1: Evaluation Overview
Tokyu Fudosan Holdings Co., Ltd. (Tokyu Fudosan HD) is a pure holding company established on October 1, 2013
through a joint stock transfer of 3 listed companies: Tokyu Fudosan Co., Ltd., Tokyu Community Co., Ltd., and Tokyu
Livable Corporation. As of the end of March 2020, Tokyu Corporation (Tokyu) is the largest shareholder (15.90% stake),
and Tokyu Fudosan HD is an equity-method affiliate of Tokyu.

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Its operating companies include Tokyu Fudosan, Tokyu Community, Tokyu Livable, and Tokyu Hands. The businessportfolio consists of 7 segments, including the city business, which includes the development, leasing, and operation of
office buildings and commercial facilities, and the sale of buildings, as well as the residential business, which includes
condominium sales and detached house sales, and the management and repair work of condominiums and buildings.
Tokyu Fudosan HD has established a sustainability vision: "We will solve social issues through our business activities
and work with our stakeholders to realize sustainable society and growth." As a social issue facing us through ourbusiness activities, Tokyu Fudosan HD defines SDGs to be addressed, identifies 7 items of materiality, and aims to solve
materiality by providing facilities and services as outputs by leveraging the strengths of the Group's broad businessportfolio, diverse assets, diverse customer bases, and human resources with expertise.
The subject of this evaluation is unsecured bonds (with a subordination rider) (the “Bonds”) that Tokyu Fudosan HD isscheduled to issue in December 2020. All of the proceeds of the Bonds will be used to fund construction and capital
expenditures on properties that meet Tokyu Fudosan HD's eligible criteria in the Sustainability Finance Framework andto refinance such funds.
The funds raised by the Bonds will be used for 5 projects: 1) Takeshiba, Tokyo Port, 2) (tentative name) Kudan-Minami
1-chome Project, 3) Membership-based shared-office business "Business-Airport," 4) Startup support and co-creation
business, and 5) Senior Housing Business. Through a series of businesses, the following contributions can beconsidered; 1) and 2) are for green buildings and access to essential services targeting local residents; 3) and 4) are forsocio-economic improvement and empowerment for startups; and 5) is for access to essential services for the elderly,
and thereby, environmental improvement effects and social benefits are clearly expected. Based on the above, JCR has
evaluated that the use of proceeds subject to this evaluation is a project with environmental improvement effects andsocial benefits.
The targets of the use of proceeds were selected through an appropriate process involving specialized departments; cash
management is planned to be appropriately conducted using an internal system; appropriate indicators are establishedfor reporting and necessary matters are scheduled to be disclosed; therefore, JCR confirmed that the management andoperation system for the Bonds has been established and is highly transparent, and that Tokyu Fudosan HD's
management has positioned environmental and social issues as high priority issues.
Based on the JCR Sustainability Finance Assessment Methodology, JCR assigned "gs1" for the "Greenness and Social
Beneficial Impacts Evaluation (Use of proceeds)" and "m1" for the "Management, Operation and Transparency
Evaluation." Consequently, JCR assigned "SU 1" for the "JCR Sustainability Bond Evaluation." Evaluation results are
discussed in detail in the next chapter. The Bonds are considered to meet the standards for items required by the Green
Bond Principles, the Social Bond Principles, the Sustainability Bond Guidelines, and the Green Bond Guidelines andthe Green Loan and Sustainability Linked Loan Guidelines issued by the Ministry of the Environment.1234

1

ICMA (International Capital Market Association) Green Bond Principles 2018 Version
https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Green-Bonds-Principles-June-2018-270520.pdf
2Social Bond Principles 2018 https://www.icmagroup.org/green-social-and-sustainability-bonds/social-bond-principles-sbp/
3
ICMA Sustainability Bond Guidelines 2018https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Sustainability-Bonds-Guidelines-June-2018-270520.pdf
4
Green Bond Guidelines 2020 https://www.env.go.jp/press/files/jp/113511.pdf
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Chapter 2: Current Status of the Project on Each Evaluation Factor and JCR's
Evaluation
Evaluation Phase 1: Greenness and Social Beneficial Impacts Evaluation
JCR assigned "gs1", the highest grade, to "Evaluation Phase 1: Greenness and Social Beneficial
Impacts Evaluation
Rationale: The proceeds under the Framework will be allocated 100% to a green or social project,considering the factors described below.

(1) JCR's Key Consideration in This Factor
In this section, JCR begins by checking whether proceeds are used for projects with clear environmental
improvement effects or projects with social benefits. Next, in cases where the use of proceeds is expected to have anegative impact on the environment and society, the impact is fully examined by an internal specialized department
or an external third-party organization to confirm whether necessary measures for avoidance and mitigation havebeen taken. Finally, JCR confirms consistency with the Sustainable Development Goals (SDGs).

(2) Current Status of Evaluation Targets and JCR's Evaluation
Overview of Use of Proceeds
Tokyu Fudosan HD has set the following uses of funds in its Sustainability Finance Framework.
to procure social finance.
Funds raised by us under this Sustainability Finance Framework are expected to be used to fundexpenditures or investments in new or existing assets that meet the following social projects and/or
green projects (eligible Criteria 1-3). In addition, all social projects and/or green projects satisfy our"Value Provided through Project," and are measures/initiatives to realize our sustainable growth.
When we procure funds through Green Bonds or Green Loans, we select the use of proceeds fromprojects that satisfy the Green Eligible Criteria, if we procure funds through Social Bonds or Social
Loans, projects that satisfy the Social Eligible Criteria, or, if we procure funds through Sustainability
Bonds or Sustainability Loans, projects that satisfy both the Green Eligible Criteria and the Social
Eligible Criteria.
- Value provided through business (output)- Comfortable urban life
- Safe and reliable housing- Physical and mental health- Enhanced leisure- Clean energy

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Social projects
Projects that contribute to the provision of either 1 or 2 below
1. Basic infrastructure development and access to essential services
2. Socioeconomic Improvement and Empowerment
Green Projects[Eligible Criteria 1: Green building]
The proceeds will be used to fund expenditures (such as land acquisition costs, planning anddevelopment costs, construction costs, and renovation costs) or investments in new or existing
assets that meet any of the following eligible criteria:
i. Objects for which any of the following certifications has been obtained or renewed within
the past 36 months from the payment date of the Green Bond concerned
ii. Properties for which any of the following third-party certifications is to be acquired or
renewed in the futureiii. Of the properties for which either of the following certifications is within the valid period,
those completed within the past 36 months from the payment date of the relevant GreenBond- S rank or A rank in CASBEE-building or CASBEE-real estate- Platinum or Gold in LEED-BD+C and LEED-O+M certification- 5 or 4 stars in BELS
- 5 or 4 stars in DBJ Green Building certification[Eligible Criteria 2: Renewable energy (solar, wind power generation)]Funds raised through sustainability finance will be used to create clean energy and to fund new orexisting investments in renewable energy businesses that contribute to regional job creation andeconomic revitalization through the development and management of power plants.
Specifically, this is the cost required for the purchase, design, and land development of facilities
related to solar and wind power generation projects (*) in which we or our group companies invest
in our funds to contribute to the de-carbonization※ The Act on the Promotion of the Utilization of Non-fossil energy Sources and the Effective
Use of Fossil Energy Resources by Energy Suppliers stipulated in the Act on the Promotion of
Renewable Energy Generation Projects that can be permanently used as energy
Eligible criteria for Investment
i. To be undertaken in Japanii. Equipment accreditation (METI) and authorization have been obtained for the Object
Equipment and the Case, and the Environmental Assessment (only applicable) has been
properly completed.
iii. Potentially negative environmental and social impacts should be considered. Specifically,

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risk mitigation measures described below should be implemented.
iv. Commencement of operations (commencement of business) within 36 months from the dateof issuance of the related green bonds or scheduled to commence operations (commencebusiness) after the date of issuance of the related green bonds[Eligible Criteria 3: Initiatives for forest conservation]
Funds procured through sustainability finance will be used for new or existing assets (construction
costs, renovation costs, etc.), equipment purchases and upgrades, etc. related to projects involving
the creation of a community-recycling-oriented environment through the construction of a landconsumption cycle for forest resources.
<List of Eligible Projects as of November 2020>
i. Tokyo Port City Takeshiba
ii. Kudan-Minami 1-chome Project (tentative name)iii. Membership-based shared-office business "Business-Airport"
iv. Startup support and co-creation businessv. Senior housing businessvi. Renewable Energy Business "ReENE"
vii. Logistics Facilities Business "LOGI'Q"
viii. Tokyu Resort Town Tateshina “Morigurashi”

The proceeds of the Bonds will be used in full for new funding and refinancing of the following five projects of 1)
Tokyo Port City Takeshiba, 2) (tentative name) the Kudan-Minami 1-chome Project, 3) membership-based sharedoffice business, "Business-Airport", 4) startup support and co-creation business, and 5) the senior housing business.
1) Tokyo Port City Takeshiba
Property name
Address

Tokyo Port City Takeshiba

Major use

7-1, Kaigan1-chome, Minato-ku, Tokyo
Offices, exhibition areas, meeting places, restaurants, merchandise stores, parking
lots, bicycle parking lots

Site Area

Approx. 12,156.65 ㎡

Total floor area

Approx. 182,052.01 ㎡

FloorsCompleted
Environmental
certification

40 aboveground floors and 1 basement floor
May 29, 2020
DBJ Green Building Certification 5 Stars
CASBEE S Ranking (Self-Assessment)This complex is located four minutes from JR Hamamatsucho Station, two minutes on foot from Yurikamome
Takeshiba Station, and five minutes on foot from Daimon Station on the Toei Subway Asakusa Line and OedoLine. This consists of office towers, residence towers and port decks.
The redevelopment plan for the Takeshiba area where this property is located was approved by the Prime
Minister in 2015 as a specific project of the National Strategy Special Zone Plan. In this plan, Alberoglande
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Co., Ltd. (an operating company established by Tokyu Fudosan and Kajima Corporation to develop thisproperty) leased the land owned by Tokyo Metropolitan Government located in the Takeshiba district under afixed-term lease for about 70 years, and develops a highly competitive international business base in harmony
with the rich greenery of the Hama Rikyu Onshi garden and the former Shiba Rikyu Onshi garden and thelandscape resources of Tokyo Bay. The main policies of the plan are to promote industry in collaboration with
the Tokyo Metropolitan Industrial Trade Center and other organizations, to build a network of walkers thatenhances the turnover of the Takeshiba district and creates bustling prosperity, to strengthen disaster
preparedness, to form bases for environmental education, and to tackle environmental burdens.
In addition to providing space to accommodate people who find it difficult to return home in the event of adisaster, this property is implementing disaster mitigation measures by establishing a disaster prevention
stockpiling warehouse, storing about 6,300 people worth of stockpiles for 3 days, and supplying power in an
emergency using a cogeneration system and emergency generators. The port deck developed by this project is
a 500-meter deck that seamlessly connects Hamamatsu-cho Station to Takeshiba Station and Takeshiba-Futo
Station to Takeshiba-Futo. In addition, Takeshiba Area Management, which was established in conjunction
with this redevelopment, collaborates with the Takeshiba Area Town Development Council, which is composedof local stakeholders and administrative stakeholders, to promote initiatives for the progress and improvementof attractiveness of the Takeshiba Area.5
Smart City Takeshiba Project, which is jointly promoted in the Takeshiba district by five organizations,
including Tokyu Fudosan, Kajima Corporation, and SoftBank Corp., has been adopted as a project publicly
solicited by the Tokyo Metropolitan Government to realize "Smart Tokyo." In the Takeshiba area, the CiPCouncil, a general incorporated association, aims to form an international business base through the integrationof digital and content industries in cooperation with a plurality of businesses. In addition, in the areas subject
to this redevelopment, Tokyu Fudosan and SoftBank have been working since July 2019 to build a model casefor smart cities that utilize cutting-edge technology across the entire town, and Smart City Takeshiba is
expected to be promoted as an extension of these initiatives.67
2) Kudan-Minami 1-chome Project (tentative name)
Development business in Kudan, Chiyoda-ku, Tokyo. Focusing mainly on a complex building with 17 floors
above ground and 3 floors below ground, whose main use is an office, it consists of the old Kudan Hall, asquare with nature, a terrace along the ditch, and a walkway. The use of proceeds raised by the Bonds issue isfor a complex building.
The former Kudan Hall has been designated as a registered tangible cultural property as a building withhistorical value that was completed in 1934. Through this project, the preserved portion of the Kudan Hall will
be preserved and restored when it was created, and the interior will be restored to the shape when it was created,
and it will be used for conference facilities and other facilities that can be used for general use.
The complex building has high-performance equivalent to 5 stars of DBJ Plan certification and S rank of
CASBEE certification (self-evaluation), which contributes to reducing environmental impact. In the event of adisaster, an agreement has been reached with Chiyoda Ward regarding the provision of drinking water and foodand the place for evacuation to those who find it difficult to return home, and the specifications are planned toprovide the functions that contribute to social benefits. Completion of the complex building is scheduled forJuly 2022.

5

Decks to Hamamatsu-cho will be completed in the future.
In addition to the above 3 companies, it includes Takeshiba Area Management and the CiP Council.
7
An effort by Tokyo to extract the potential of Tokyo using digital technology.
6

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3) Membership-based shared-office business "Business-Airport"
Tokyu Fudosan provides a shared office business. The company opened 13 offices including ones in Shibuya,
Ebisu, and Marunouchi, and airport Takeshiba in Tokyo Port City Takeshiba, which opened in September 2020.
Any of these is located within walking distance from the nearest stations that allows users to access to major
stations in Tokyo in a short period of time, so they are highly convenient for business.
It looks like of an international airport lounge, and its brand name embodies the desire of startup companies tostart business here and help them jump to higher levels. Rather than just a co-working space, it has establishedan "Address Member" that allows startups to use the lounge to register, use addresses, and receive mail so thatthey can use the service to facilitate their business. To enable startups to use this service to smoothly run theirbusinesses, the company has established an "Address Member" allowing the members to register and use theaddressee as the business address, and receive mail while using a lounge. Service offices offer several types ofservices depending on the space required and expected number of users. The members can register the address
under any of the services and flexibly switch the service type as the scale of the business expands. The provisionof these services allows startups to start their businesses in well-located urban locations with relatively low
initial costs and monthly office maintenance costs incurred as a result of starting a business. It also conducts
events, etc. for members within the business airport, which also contributes to the provision of business
opportunities.
4) Startup support and co-creation businessTokyu Fudosan developed facilities for startups include Plug and Play Shibuya powered by Tokyu Fudosan
and GUILD in a greater Shibuya area.
Plug and Play Shibuya powered by Tokyu Fudosan is a co-working space and event space operated by Tokyu
Fudosan with the purpose of supporting the creation of open innovation primarily through the provision ofprograms to startups by Plug and Play Japan Corporation (an accelerator with Silicon Valley in roots). 8
In addition to Plug and Play Shibuya powered by Tokyu Fudosan, GUILD was newly opened in 2018 as an
office to support startups. GUILD series is deployed at 5 locations in the greater Shibuya area including
Shibuya and Aoyama. GUILD mainly offers furnished small-lot offices spaces for startups. In addition, thefacility is mainly occupied by venture capitals, etc. related to Tokyu Fudosan HD, and it constantly provides
an environment that helps start-up to grow through providing a place for communication, know-hows,
consultation for fund procurement, etc.
Support for startups is one of the activities of the "Grater Shibuya Area Concept" being promoted by Tokyu
Fudosan HD, and has been promoted since 2017 as an indispensable element for Shibuya to become a matureinternational city. It aims to collaborate with partner companies that are powerful in supporting startups, gather
promising startups in Shibuya, and use them to improve the value of Shibuya's area.
In July 2019, Tokyu Corporation, Tokyu Fudosan, and Tokyu Agency Co., Ltd. were selected as representatives
and secretariats for the Shibuya area of the Accreditation Regional Councils, a project to support the formationof innovation and ecosystems in Tokyo.95) Senior housing business

89Organization to support fund investments and know-how focused on business expansion of start-up companies.
A business environment in which various players from industry, academia, and government, such as venture companies, large enterprises,
investors, and research institutes, gather and cooperate to coexist and prosper together and create a virtuous cycle such as the fostering of
cutting-edge technologies and economic growth, is adapted to the ecosystem of the natural environment.
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Tokyu Fudosan's senior housing business (for independent individuals) and nursing-care housing business (forpeople in need of nursing care), which are developed under the brand names “Grand Clare” and “Grand Care.”
Tokyu Fudosan mainly operates 15 senior housing buildings and 6 nursing care housing buildings along the
Tokyu line. Some facilities in senior housing provide programs to prevent locomotive syndrome, which
weakens the foot and waist and makes walking difficult, and dementia (co-development with Juntendo
University and Tokyu Sports Oasis) The business provides support to increase the healthy life expectancy ofresidents and the surrounding residents in senior housing. When nursing care is required for residents in thesenior housing, it is also possible to relocate to nursing care facilities.
Senior housing and nursing homes are operated by the Tokyu E-Life Design, Inc., which is a company of Tokyu
Reality. The Tokyu E-Life Design determines companies providing services in nursing homes such as medical
treatment and meals.

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a.

On the environmental improvement effects and social benefits of the projecti. The proceeds will be 100% allocated to projects that meet the eligible criteria of Tokyu Fudosan HD, andhigh environmental improvement effects and social benefits are expected.

Environmental Improvement Effects of the Use of Proceeds
Of the uses of proceeds raised through the Bonds, Tokyo Port City Takeshiba and the Kudan-Minami 1-chome
Project (tentative name) have each acquired 5 stars of DBJ Green Building certification and 5 stars of DBJ
Plan certification, and both meet Tokyu Fudosan HD’s green eligibility criteria set forth in the Sustainability
Finance Framework.
Accordingly, JCR evaluated the use of proceeds raised through the Bonds issue have a high environmental
improvement effect.

Social Benefits of the Use of Proceeds
Of the uses of proceeds raised through the Bonds, the following projects contribute to solving social issues
from the respective perspectives of each and meet the eligibility criterial for social projects set forth by Tokyu
Fudosan HD in the Sustainability Viewpoint Framework.
・ Tokyo Port City Takeshiba is (1) (i)(ii) and (2)・ (tentative name) the Kudan-Minami 1-chome Project is (1)(i) and ②(ii)・ Membership-based shared-office business "Business-Airport" and Startup support and co-creation businessare (2)(i)・ Senior housing business: (1)(iii)(1) Access to essential services(i) Provide of evacuation sites in the event of a disaster
According to estimates by the Cabinet Office, approximately 3.52 million people in Tokyo, approximately
670 thousand in Kanagawa, approximately 520 thousand in Chiba, approximately 330 thousand in Saitama,
approximately 100 thousand in Ibaraki Prefecture centered on the south, approximately 5.15 million people
in total in the Tokyo metropolitan area were unable to return home on the day of the Great East Japan
Earthquake on March 2011, 2011. Due to the suspension of public transport operations, there were a limited
number of spaces for accepting people who found it difficult to return home, so some of the evacuation
areas for local residents accepted not only local residents but also many people who found it difficult toreturn home. 10
In light of these circumstances, the Tokyo Metropolitan Government has established disaster prevention
and mitigation measures based on the Disaster Prevention Guidelines and the Tokyo Metropolitan
Government's Ordinance on People who have difficulty returning home.
Tokyu Fudosan, in collaboration with some of local governments and other entities where the real estate to
be developed in some properties is located, is implementing measures not only for hardware perspective
such as earthquake-resistance measures for buildings owned, but also software perspective such as securing
10

Survey results on measures for people who have difficulty returning home http://www.bousai.go.jp/jishin/syuto/kitaku/2/pdf/4.pdf
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stockpiles for disaster prevention, and is promoting initiatives to provide evacuation sites in the event ofdisasters.
Among the targets of use of proceeds this time, the Takeshiba Tokyo Port City and the Kudan-Minami 1chome Project (tentative name) are implementing disaster mitigation measures to provide facilities as
evacuation areas for those who have difficulty returning to their homes in the event of a disaster, and toprovide disaster prevention stockpiles to those who have difficulty returning to their homes. From this, JCR
evaluates that there is a social benefit as a provision of basic infrastructure facilities for victims in the eventof a disaster.
(ii) Childcare Support Facilities
The Japanese government formulated the "Accelerated Elimination Plan for Standing Children" in April
2013 to address the issue of children on waiting lists (a problem where children are unable to enter day carecenters despite the fact that applications have been made for entry into day care centers and the conditions
for entry have been met). The government has been supporting initiatives undertaken by local governments
to improve day care centers with the aim of increasing the number of child care centers accepted by about
500 thousand over the 5-year period from FY2013 to FY2017. Since FY2018, the "Child-rearing Reliability
Plan" has been announced as a measure of the "Nippon 100 million Total Active Participation Plan." Basedon the results of the "Plan to Accelerate Elimination of Standing Children," this plan is to prepare for
accepting about 320 thousand children in the 5-year period to the end of FY2022.
Among the targets for the use of proceeds, Takeshiba, Tokyo Port City has a child-rearing support facility
in its residential tower. This is an initiative designed to help local people balance work and parenting, and
it is thought to contribute to solving the problem of waiting-list children in Japan.
(iii) Senior housing businessJapan is now faced with the problem of a sharp decline in birthrate and an aging population. According to
the projected future population (estimated in April 2017) by the National Institute of Social Policies andPopulation Issues, the population aged 75 years or older in 2025 is approximately 21.8 million, andapproximately 1 in 5 people in the country will be aged 75 years or older. The number of people aged 65
or older, which was 26% of the total population as of 2015, is estimated to reach about 30% of the total
population, about 36.77 million

nationwide, and about 3,32 million in Tokyo as of 2025.

According to a future estimate of the number of households by the National Institute of Population andSocial Security Research (estimated in April 2017), the total number of general households with a head ofhousehold aged 65 or older will increase by 3.24million from 19.18 million in 2015 to 22.42 millionin2040. Households with a head age of 75 years or older will increase by 3.29 million households from 8.88
million households in 2015 to 12.17 million households in 2040.
As of 2015, 37.9% of households aged 75 or older were single-person households due to unmarried,
divorced, separate residence, or death. By 2040, however, almost half of the households will be singleperson households, at 42.1%. For the elderly's single-person households, even those who can live
independently without the need for nursing care, from the viewpoint of the support system in the event ofan emergency and the prevention of isolated death, it is important to develop residential facilities withancillary services such as a 24-hour management system and collaboration with external nursing care andmedical facilities as necessary for the future super-aged society.

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There are 2 considerations for housing for seniors, which Tokyu Fudosan HD is funded for, in addition toindividual facilities such as barrier-free facilities, which are indispensable for the elderly, and nursing andnursing care systems (nursing homes) for 24 hours a day, 365 days a year.
The first is that the elderly can continue to live without a major change in the environment by adjoining
healthy elderly housing and housing in a direction that requires nursing care. The other is that as arealization of "recycling-oriented urban development," housing for seniors is not only independently
developed, but is also installed in conjunction with general condominiums to create an environment thatenables elderly people and their families to visit frequently each other, and that it is an inclusive urban
development that provides lifestyle support services, childcare services, nursing care services, and otherservices in daily life areas.
The concept of generational recycling-oriented urban development is considered important for saving theelderly who fall out of the watch network due to the decrease in neighborhood affiliation and the dilutionof local communities, and is also consistent with the Ministry of Land, Infrastructure, Transport andTourism's Compact City initiative.
Based on the above, JCR has evaluated that the senior housing business provided by Tokyu Fudosan hassocial benefits from the viewpoint of providing essential basic services for the elderly.
(2) Socioeconomic Improvement and Empowerment(i) Support for startups
According to the 2019 White Paper on Small and Medium Enterprises, the entry rate in Japan was 5.6% in
2018, still low despite the fact that more than 10% were found in all other developed countries. In
comparison with venture investment by VCs, etc. (actual in 2017), Japan is only JPY197.6 billion,
compared to JPY9.5336 trillion in the U.S., JPY3.363 trillion in China, and JPY814 billion in Europe. It
can be said that the promotion of innovation by excellent startups is an important issue in the futuresustainable development of Japan in the medium to long term.
The Innovation (Venture) Ecosystem is the idea of aiming at the rearing of the excellent small and medium
enterprises by the following cycle.11
1) Angel investors and large corporations actively provide startups with funds, human resources, andvenues, as well as through information dissemination, to create a performance record of collaboration.
2) Rapid growth due to smooth financing and alliances with a dramatic increase in the corporate valueof startups thanks to the announcement of cooperative performances.
3) Startups that succeeded in achieving IPOs and M&A with large companies when corporate value was
maximized reentered as cereal entrepreneurs, or become angel investors to support the developmentof next-generation startups.
4) The creation of new business models accelerates with the creation of outstanding startups based onsuch successful examples.
Such ecosystem bases have progressed in Silicon Valley, New York, Beijing, Shanghai, etc., and unicorn
corporates are being created 1 after another. 80% of Unicorn in the U.S. and 83% of Unicorn in China arecreated from the urban startup ecosystem, and the implementation of this project is expected to form an
ecosystem base that will create more unicorn corporates in Tokyo.12
11

From the Japan Startup Support Association website.
12 Unicorn companies are unlisted startups with a valuation of $1 billion or more and have 4 terms: "within 2010 years of startup,"
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Among the targets of the current use of proceeds, Business-Airport membership-based shared-officebusiness and the startup support and co-creation business all play key roles as basic infrastructures for theacquisition and growth of business opportunities for startups. They also include soft support in the form of
information exchange and collaboration between startups and the provision of opportunities for interactions
with large enterprises and investors. JCR evaluates these projects as contributing to socioeconomic
improvement and empowerment for SMEs and other enterprises.
(ii) Barrier-free facilities
With regard to the importance of providing universal services in public transportation, the significance offacilitation of mobility is stated as follows in the Basic Policy on Facilitation of Movement, etc. (Basic
Policy) established under the Law on Facilitation of Movement, etc. of Elderly Persons and Persons with
Disabilities.
"(excerpt from the basic policy) In Japan, there is a full-fledged aging society that no country in the world
has experienced, and further aging is expected in the future. Therefore, the realization of a healthy andvibrant society is required through the independence of the elderly and social participation. In addition,
today, the spread of the normalization philosophy to society, which aims for a society in which persons
with disabilities live and act on the same basis as persons with no disabilities, progresses, and under thephilosophy of independence and coexistence, the realization of a "coexistence society" is required in which
everyone respects and supports each other's personality and individuality regardless of whether they havedisabilities.
In order to realize such a society, it is important to build a society in which the elderly, the disabled, etc.
can operate their independent daily life and social life, and it is necessary to promote the development of
the environment for that purpose as soon as possible. Since the use of travel and facilities is an importantmeans for the elderly and the disabled to participate in society, facilitating movement, etc. is of greatsignificance for the realization of such a society.
In addition, the promotion of mobility, etc. not only promotes social participation by the elderly and thedisabled, but also contributes to the maintenance of a vibrant society in which the people can live withvitality and safety through the development of facilities and rolling stocks that are easy to use for all users,
based on the concept of universal design, which is "easy for anyone, anywhere, freely, and usable."(Excerpt End)
The port deck, which is a walker deck maintained at Tokyo Port City Takeshiba, is a barrier-free facility andit contributes to convenience not only for the relevant property but also for users in the surrounding area. In
addition, since the Kudan-Minami 1-chome Project (tentative name) provides barrier-free facilities, etc. thatconsider convenience of elderly, disabled people, etc. This can be said that essential services for elderly,
disabled people, etc. are provided. The project meets the above-mentioned basic concept and is a project witha high social benefit.
Based on the above, JCR evaluated the use of proceeds for the Bonds as having a high social benefit.
ii. Use of proceeds is applicable to “Green Building related Business” and “Energy Conservation Business”
among the use of proceeds exemplified under the "Green Bond Principles”, “green buildings, which met
the standards and obtained certification recognized by region, nation and worldwide” under the “Green
Loan Principles”, “Energy Conservation”, “Green Bond Guidelines”, and “Green Loan andSustainability Linked Loan Guidelines. Of the social benefits, (1) is applicable to "access to essential"valuation of $1 billion or more," "unlisted," and "technology companies."
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services (evacuation sites, child care, and senior facilities)" for the affected people, local residents, and theelderly people, and (2) is applicable to "socioeconomic improvement and empowerment" for startups, theelderly, and the disabled, respectively, among the projects defined in the "Social Bond Principles."b. Environmental and Social Risks
When acquiring or selecting a project, Tokyu Fudosan HD conducts a careful examination of the negative
impact that the project may have on the environment and society, and confirms that the likelihood is low.
Regarding renewable energy, in addition to the above, it is also subject to confirmation that necessary
procedures such as permits and environmental assessments are being carried out. From this, JCR confirmedthat Tokyu Fudosan HD is giving due consideration to the negative impacts on the environment and society of
projects subject to the use of proceeds.
c. Consistency with SDGs
i. Consistency with ICMA's SDGs mapping
Projects eligible for the use of proceeds were assessed to contribute to the following SDGs goals and targets
in light of ICMA's SDGs mapping.
Goal 5: Gender Equality
Target 5.4. Recognize and value unpaid care and domestic work through the provisionof public services, infrastructure and social protection policies and the promotion ofshared responsibility within the household and the family as nationally appropriate.
Goal 7: Affordable and Clean Energy
Target 7.3. By 2030, double the global rate of improvement in energy efficiency.

Goal 8: Decent Work and Economic GrowthTarget 8.2. Achieve higher levels of economic productivity through diversification,technological upgrading and innovation, including through a focus on high-value added
and labor-intensive sectors.
Goal 9: Industry, Innovation and Infrastructure
Target 9.1. Develop quality, reliable, sustainable and resilient infrastructure, including
regional and transborder infrastructure, to support economic development and humanwell-being, with a focus on affordable and equitable access for all.
Target 9.4. By 2030, upgrade infrastructure and retrofit industries to make themsustainable, with increased resource-use efficiency and greater adoption of clean andenvironmentally sound technologies and industrial processes, with all countries taking
action in accordance with their respective capabilities.
Target 11: Sustainable Cites and Communities
Target 11.3. By 2030, enhance inclusive and sustainable urbanization and capacity forparticipatory, integrated and sustainable human settlement planning and management
in all countries.
Goal 13: Climate Action

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Target 15: Life on Land
Target 15.4. By 2030, ensure the conservation of mountain ecosystems, including theirbiodiversity, in order to enhance their capacity to provide benefits that are essential forsustainable development.
ii. Consistency with measures to achieve Japan SDGs
JCR confirmed that the projects targeted for the use of proceeds are consistent with the following items in
the "Specific Measures for Achieving SDGs" set forth by the Government of Japan as SDGs goals.13
Implementation Guideline 1. Promoting the Active Participation of Everyone
SDGs and Japan's Priority Issues, which seem to be particularly closely related: 11 (Town Developmentthat can be Continued to Live)
Domestic measures
Strategy Overview
Accessibility of
PublicTransportation

TargetBased on the universal design concept of"freedom and ease of use for anyone,
anywhere," the Government will promotebarrier-free operations based on the Law on
Promotion of Smooth Transfer of the Elderly,
Persons with Disabilities, etc. (Barrier-freeAct).

Indicators
Status of follow-up based on
the
Basic
Policyfor
Facilitating Movements, etc.

Implementation Guidelines 2. Promotion of health and longevity
SDGs that seem to be particularly closely related: 3 (insurance and welfare for everyone), etc.
Domestic measures
Strategy Overview
Realization of aSociety with 100
million
Total
Activities: Social
Security
Connecting
toSecurity

13

TargetBy advancing reforms to a social security
system that ensures the "security" of theworking generation with a clear goal of "zeronursing care turnover," which allows people
to continue to work while caring for longterm care, we will create a society in whichpeople can use the desired nursing careservices, work without anxiety about nursing
care, balance nursing care and work, maintaintheir health for a long period of time, and soon, and live with peace of mind.

Indicators
Indicators of the "Japan 100
million Gross Activity Plan"① Until the early 2020s
Development of nursing careinfrastructure
Volumeexpansion:
0.5
million people or more(including
about
20000
serviced elderly housing)② Until the early 2020s
Eliminate resignations with areason of family care due tounavailability of long-termcare facilities and services.
Eliminate home waiters for
special nursing care home forthose rated 3 or higher forrequiring long-term care

Specific measures of the Sustainable Development Goals (SDGs) Implementation Guidelines established by the Sustainable Development
Goals (SDGs) Promotion Headquarters, which is composed of the national ministers.
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Implementation Guidelines 3. Creation of growth markets, regional revitalization, and scientific andtechnological innovation
SDGs and Japanese Priority Issues that appear to be particularly relevant:
8. (Work satisfaction, economic growth), 9. (Create the foundation for industrial and technologicalinnovation), 11. (building communities that can continue to live in)Domestic measures
Strategy Overview

TargetStrong economy 1) Support the demonstration of diversethat creates hope human resources (social loss, employment
support, education, etc.)

Indicators
Indicators listed in the
Nippon 100 million Active
Participation Plan

2) Establish an integrated system thatstrengthens the discovery of venturecompanies, including local ones, andconnects them to the global market.
3) The Government will promote thedevelopment of social infrastructure, create acountry resilient to disasters, transition to asustainable urban structure, and promote
PPP/PFI in the development and managementof public facilities.

(Reference) Certification System for Each Green Building
CASBEEAn acronym for the English-language name of the Comprehensive Architectural Environmental
Performance Assessment System (Comprehensive Assessment System for Built Environment Efficiency).
This is a method to evaluate and rate the environmental performance of buildings, and it established theComprehensive Environmental Evaluation Research Committee for buildings as a joint project between
industry, government, and academia with the support of the Housing Bureau of the Ministry of Land,
Infrastructure, Transport and Tourism in April 2001, and has been continuously developing and maintaining
it since then. In addition to CASBEE-buildings and CASBEE-districts, valuation tools include CASBEEreal estate developed with the purpose of showing environmental performance in an easy-to-understandmanner for the real estate market.
The assessment results are divided into 5 scales: S rank (excellent), A rank (excellent), B+ rank (good), Brank (slightly inferior), and C-rank (inferior). CASBEE-real estate is classified into 4 grades: S rank
(excellent), A rank (excellent), B+ rank (good), and B rank (satisfying essential items).
DBJ Green Building Certification
Certification system provided by DBJ (Development Bank of Japan) to evaluate real estate withenvironmental and social considerations. The evaluation results are expressed as the number of stars, andthe evaluation axis is "buildings with consideration for the environment and society". Each is represented
by 5 stars (1 of the highest domestic excellence), 4 stars (extremely excellent), 3 stars (very excellent), 2stars (excellent), and 1 star (satisfactory). Although this is not an evaluation specializing in environmental
performance, it is highly recognized in Japan, and it also has certain evaluation items in terms ofenvironmental performance. Therefore, JCR evaluates this certification as also equivalent to the "green
building" of the green project classification defined in the Green Bond Principles, which is recognized asa "standard or certified internationally recognized in the region, country, or country." However, since thecertification is not limited to the environmental performance, it is considered desirable to confirm theevaluation for the environmental performance individually.

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Evaluation Phase 2: Management, Operation and Transparency Evaluation
JCR assigns "m1", the highest rating on JCR evaluation Phase 2: Evaluation on Management andOperation and Transparency.
Rationale: These projects have allocated the funding and implemented the business as planner
through a firmly equipped management and operation system and high transparency as described
below.

1. Appropriateness and Transparency Concerning Selection Standard and Use ofProceeds(1) JCR's Key Consideration in This Factor
In this section JCR confirms the objectives to be achieved through sustainability finance, the appropriateness ofsustainability project selection standards and processes, and whether or not a series of processes are properly
disclosed to investors and others.

(2) Current Status of Evaluation Targets and JCR's Evaluation
a. Goals
The Tokyu Fudosan HD Group has set the following targets for the issuance of sustainability bonds.

We have established the following sustainability vision and policies.
Sustainability Vision
We resolve social issues through our business activities and work with our stakeholders to realize asustainable society and growth.
Sustainability Policy- We will strive to harmonize the environment and the economy through our business activities.
- We will strive to maintain and strengthen relationships with stakeholders in an appropriate manner.
- We will conduct our business in a sound and transparent manner and actively disclose information.

The purpose of fund raised through the Bonds is to contribute widely to the environment and society. JCR
evaluated that the issuance of the Bonds is consistent with the Sustainability Vision and Sustainability Policies.
b. Selection Standards
The standards for selecting the use of proceeds in Tokyu Fudosan HD's sustainability financing is alreadydescribed in Phase 1 of this evaluation, and JCR evaluated the selection criteria as being expected to have highenvironmental improvement effects and social benefits.
JCR confirmed that Tokyu Fudosan HD’s finance department and Sustainability Promotion Department, which
specializes in sustainability judged the projects whether they satisfy the eligible criteria.
c.

Processes

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The targets of the use of proceeds are selected by the persons in charge of the Finance Department and theSustainability Promotion Department of Tokyu Fudosan HD, and are approved by the officers in charge of the
Finance Department and the Sustainability Promotion Department. JCR evaluated that management is involvedin the selection process and that the institutional decision-making process is clear.

2. Appropriateness and Transparency of Fund Management(1) JCR's Key Consideration in This Factor
It is usually assumed that the management of the funds varies widely depending on the issuer, but JCR confirms
whether the funds procured by the framework are properly allocated to sustainability projects and whether amechanism and an internal system are in place to ensure that the funds are easily tracked and managed by the issuer.
JCR also emphasizes assessing whether the funds procured through the bonds are expected to be used forsustainability projects at an early stage, as well as how to manage and operate the funds that have not yet been
allocated to them.

(2) Current Status of Evaluation Targets and JCR's Evaluation
The proceeds by the issuance of the Notes will be used to fund new or refinance of the projects described in Phase 1
and are not expected to be used for any other purposes.
The proceeds are expected to be appropriated within 24 months. The tracking of the proceeds of the Bonds is
conducted by Tokyu Fudosan HD's Treasury Department by using an internal treasury system. As the documents
related to the issuance of the Bonds are also stored appropriately, the internal control system is also properly
established.
From the above, JCR evaluated that the appropriateness and transparency of the fund management by Tokyu Fudosan
HD is high.

3. Reporting(1) JCR's Key Consideration in This Factor
In this section, JCR evaluates whether the disclosure system for investors before and after the issuance ofsustainability finance, is planned in detail and in an effective manner at the time of execution of the sustainability
finance.

(2) Current Status of Evaluation Targets and JCR's Evaluation
a. Reporting on the Status of Appropriation of Funds
Tokyu Fudosan HD will disclose on its website the status of fund allocation. In the event that the project subject
to the use of proceeds no longer meets the eligible criteria due to sale or other reasons before the redemption of
the Bonds, Tokyu Fudosan HD intends to use the funds to acquire alternative projects that satisfy the eligible
criteria or to refinance the acquisition funds.

b. Reporting on Environmental Improvement Effects and Social Benefits
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In its Sustainability Finance Framework, Tokyu Fudosan HD plans to disclose the following items on its website
once a year as reporting items related to environmental improvement effects and social benefits.
Green Project- Property or project name for which sustainability financing was appropriated- Type and level of certification obtained by the appropriated project- Energy Consumption (GJ)
- CO2 savings (t-CO2)- Reduced CO2 per Floor Area (kg-CO2/m2)- Water usage quantities (m3)Social projectsa) Output
No.
1

Target project
Tokyo Port City Takeshiba

2(tentative name) KudanMinami 1-chome Project3

Membership Shared OfficeBusiness“Business-Airport”

4Startup support and cocreation business
Senior housing business5

Output- Overview of initiatives for smart cities and smart buildings- Business support in the digital and content areas, and thestatus of various events- Overview of Space Accepted for Difficult to Return Homes- Overview of the warehouse for stockpiling of emergency
supplies- Overview of Barrier-Free Walker Network- Overview of child-rearing support facilities capable ofhandling foreigners' infants- Establishment of all-gender toilets- Installation of pray rooms- Overview of Space Accepted for Difficult to Return Homes- Overview of the warehouse for stockpiling of emergency
supplies- Overview of emergency power supply in case of power
failure- Establishment of all-gender toilets- Installation of worship rooms- Preservation of historical buildings- Overview of the walker network- Facility Overview- Overview of ancillary services (welfare services, healthprograms, startup subsidy services, etc.)- Overview of Exchange Events among Tenants- Facility Overview- Overview of Exchange Events among Tenants- Overview of buildings and facilities- Overview of tenants- Operational Overviewb) Outcome indicators- Number of accreditation incubation facilities in Tokyo*No.3- Trends in the number of events held *No.4- Trends in the number of rooms provided *No.5
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- Trends in the number of properties provided *Total of No. 3 to No. 5c) Impact
Creating New Lifestyles through Solving Social Issues- Contributing to the creation of vibrant towns by enhancing the value of real estate and building stablesocial infrastructures- Promotion lifestyle propose-based urban development, area management, and community formation
with housing as the starting point- Contributing to the local economy through the creation of local employment and tourism demand- Elimination of densely wooden areas and expansion of urban functions resilient to disasters- Promotion Health Management and Realizing a Healthy Society- Realization of digital society through smart cities, smart offices, etc. utilizing IoT- Conservation of the natural environment and reduction of environmental impact- Promotion of people-friendly town development through universal design (social inclusion)
JCR evaluates that the disclosure items and frequency of disclosure related to the Bonds specified by Tokyu
Fudosan HD are appropriate.

4. Organization’s Sustainability Initiatives(1) JCR's Key Consideration in This Factor
In this section, JCR evaluates whether the management of the issuer regards sustainability issues as a high priority
issue for management, and whether the sustainability finance policy, process, and selection criteria for the projects
are clearly positioned through the establishment of a department specializing in environmental and social issues orcollaboration with external organizations.

(2) Current Status of Evaluation Targets and JCR's Evaluation
Tokyu Fudosan HD strives to create and propose lifestyles that go beyond the framework of hako (buildings) andgoods, with the aim of "becoming a corporate group that continues to create value." Tokyu Fudosan Holdings' origins,
Tokyu Fudosan, and its predecessor, Den-en Toshi (garden city) Co., Ltd., have since their founding in 1918, facedsocial issues through their business activities and can be said to be evolving in a manner that is in line with themodern era while inheriting the stance of "Challenging DNA," which has been the company's approach to tacklingand resolve social issues through its business activities.
Tokyu Fudosan HD has established a sustainability vision: "We will solve social issues through our businessactivities and work with our stakeholders to realize sustainable society and growth."
Tokyu Fudosan HD has established SDGs to tackle as a social issue to be faced through its business activities, andhas identified seven items of materiality. Materiality has been selected based on the management plan and SDGs of
Tokyu Fudosan Holdings and issues recognized by the Japanese government and economic organizations, taking
into account the views of external experts and considering its importance to society and the Tokyu Fudosan HoldingsGroup. In addition to the properties provided by Tokyu Fudosan HD, a wide range of issues have been identified not

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only for the properties provided by Tokyu Fudosan HD, but also for the software and services provided by theproperty, as well as for users and local communities.
Tokyu Fudosan HD aims to resolve materiality by providing facilities and services as outputs by leveraging theGroup's broad business portfolio, its diverse assets and diverse customer base, and its human resources with expertise.
The outcomes realized by the services provided by Tokyu Fudosan HD, etc. are defined as social value, and areconsidered to contribute to the resolution of one of the seven materiality factors. Tokyu Fudosan HD aims to achievesustainable growth for society as a whole, including not only corporates but also stakeholders, through social value
through the provision of diverse values.
In its sustainability initiatives, Tokyu Fudosan HD utilizes experts from inside and outside the company. External
experts are invited to formulate materiality, and third-party opinions are incorporated to ensure fairness. Projects
eligible for use of proceeds are selected based on confirmation of environmental improvement effects and social
benefits, center by the Sustainability Promotion Department, which is a department with expert knowledge.
Decisions on policies and information sharing for the entire Group are made by the Sustainability Committee, whichis composed of the presidents of major Group companies and key management teams of Tokyu Fudosan HD.
Based on the above, JCR evaluated that Tokyu Fudosan HD regards sustainability as a management priority and isvigorously working to resolve issues through the business activities of itself and Group companies.

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■Evaluation Result
Based on JCR Sustainability Finance Evaluation Methodology, JCR assigned “gs1” for the "Greenness and Social
Beneficial Impacts Evaluation (Uses of proceeds)" and “m1” for the "Management, Operation and Transparency
Evaluation." As a result, JCR assigned “SU 1” on the overall "JCR Sustainability Bond Evaluation." In addition, theBonds are considered to meet the standards for the items required in the Green Bond Principles, the Social Bond
Principles, the Sustainability Bond Guidelines, and the Ministry of the Environment's Green Bond Guidelines.

[JCR Sustainability Finance Evaluation Matrix]
Management, Operation and Transparency

Greenness and Social Beneficial
Impacts Evaluation

m1

m2

m3

m4

m5

gs1

SU 1

SU 2

SU 3

SU 4

SU 5

gs2

SU 2

SU 2

SU 3

SU 4

SU 5

gs3

SU 3

SU 3

SU 4

SU 5

gs4
gs5

SU 4
SU 5

SU 4

SU 5

SU 5

Not
qualified

Not

Not

qualifiedqualified

Not

Not

Not

qualifiedqualifiedqualified■ Scope of Subject
Issuer: Tokyu Fudosan Holdings Corporation (Security Code: 3289)
Assignment
Subject

Issue amount

Date of issuance

Redemption date

Second Unsecured
Bonds with Interest
Deferral Provision andPrepayment Provision(Subordinated
Provision)(Sustainability Bonds)

JPY 30
millionDecember 17,
2020

December 17,
2060

Interest rate

Evaluation*

JCR Sustainability Bond Evaluation: SU1
Greenness and Social Beneficial Impacts
Evaluation : gs1
Management, Operation and Transparency
Evaluation : m1*: From December 18, 2020 to December 18, 2030 : 1.24%. From December 18, 2030 : 6 months Eoro Yen Libor + 2.20%(Responsible analysts for this evaluation) Rieko Kikuchi and Hiroya Kakiuchi

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Important explanation of sustainability bond Evaluation
1. Assumptions, Significance, and Limitations of JCR Sustainability bond Evaluation
JCR Sustainability Bond Evaluation, which is granted and provided by Japan Credit Rating Agency, Ltd. (JCR), is a comprehensive
opinion of JCR's current status on the extent to which the proceeds procured through the issuance of the Sustainability Bond to beevaluated will be appropriated for Green Projects and Social Projects as defined by JCR, as well as the extent to which management,
operation and transparency initiatives related to the use of the proceeds of the Sustainability Bond are undertaken. JCR
Sustainability Bond Evaluation does not fully represent the appropriation of the proceeds procured through the Sustainability Bondand the extent to which management, operation and transparency efforts are undertaken in relation to the use of the proceeds.
JCR Sustainability Bond Evaluation evaluates plans and conditions, such as the appropriation of proceeds at the time of issuanceor at the time of issuance of the Sustainability Bond, and does not guarantee the appropriation of proceeds in the future. In addition,
JCR Sustainability Bond Evaluation does not prove the effectiveness of the Sustainability Bond on environmental and social issues,and does not assume responsibility for its effects on environmental and social issues. In principle, JCR does not directly measure
the impact of proceeds procured through the issuance of sustainability bonds on environmental and social issues, although JCR
confirms that they are quantitatively and qualitatively measured by the issuer or a third party requested by the issuer.
2. Methods used in the conduct of this evaluation
The methods used in this evaluation are listed on JCR website (Sustainability finance and ESG in https://www.jcr.co.jp/en)) as JCR
Sustainable Finance Evaluation Method.
3. Relationship with Acts Related to Credit Rating Business
JCR Sustainability bond Evaluation is determined and provided by JCR as a related business, which is different from the activities
related to the credit rating business.
4. Relationship with Credit Ratings
The Evaluation differs from the Credit Rating and does not promise to provide or make available for inspection a predetermined
Credit Rating.
5. Third-Party Evaluation of JCR Sustainability bond
There is no capital or personnel relationship between the subject of this evaluation and JCR that may give rise to conflicts of interest.
■Disclaimers

The information contained in this document has been obtained by JCR from the Issuer and from accurate and reliable sources. Provided, however, that such information
may be erroneous due to human, mechanical or other reasons. Accordingly, JCR makes no representation or warranty, express or implied, as to the accuracy, results,
accuracy, timeliness, completeness, marketability, or fitness for a particular purpose of such information, and JCR assumes no responsibility for any error, omission, or
result of using such information. Inn no event shall JCR be liable for any special, indirect, incidental or consequential damages of any kind, including opportunity loss,
monetary loss, which may arise from any use of such information, whether contractual, tort, negligence or other cause of liability, and whether or not such damages areforeseeable or unforeseeable. JCR Sustainability Bond Evaluation does not express any opinion on the various risks (credit risk, price volatility risk, market liquidity
risk, price volatility risk, etc.) involved in the Sustainability Bond subject to assessment. JCR Sustainability Bond Evaluation is a comprehensive statement of opinion
at the present time of JCR and is not a statement of fact and does not make any recommendations regarding risk judgment or the decision to purchase, sell or holdindividual bonds, commercial paper, etc. JCR Sustainability Bond Evaluations may be changed, suspended, or withdrawn due to changes in information, lack of
information, or other reasons. All rights to this document, including data from the JCR Sustainability Bond Evaluation, are held by JCR. Reproduction, adaptation,
modification or alteration of this document, in whole or in part, including data from the JCR Sustainability Bond Evaluation, without the permission of JCR is prohibited.

■Glossary

JCR Sustainability Bond Evaluation evaluates the extent to which the proceeds procured from the issuance of the Sustainability Bond are appropriated for Green Projects
or Social Projects as defined by JCR, as well as the level of management, operation, and transparency initiatives related to the use of proceeds for the relevant
Sustainability Bond. Evaluations are performed on a five-point scale, from the top to the top, using SU1, SU2, SU3, SU4, and SU5 valuation symbols.

■Sustainable finance of registration as an external assessor of sustainable finance・ Ministry of the Environment's external green bond reviewer registration
・ ICMA (registered as an observer with the International Capital Markets Association)■Status of registration as a credit rating agency, etc.

・ Credit Rating Agency: the Commissioner of the Financial Services Agency (Rating) No.1
・ EU Certified Credit Rating Agency
・ NRSRO: JCR has registered with the following four of the five credit rating classes of the Securities and Exchange Commission's NRSRO(Nationally RecognizedStatistical Rating Organization. (1)Financial institutions, broker dealers, (2) insurance companies, (3) general business corporations, and (4) government and local
governments. If the disclosure is subject to Section 17g-7(a) of the Securities and Exchange Commission Rule, such disclosure is attached to the news releases posted
on JCR website (https://www.jcr.co.jp/en/).

■ For further information, contact

Information Service Dept. TEL: 03-3544-7013 FAX: 03-3544-7026

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

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