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The Tosei Group's corporate philosophy is to "create new value and inspiration in all aspects of real estate." In this time ofserious environmental and social issues, we recognize that creating a sustainable society through our corporate activities isthe "creation of new value" demanded by the world. With climate change becoming a pressing issue globally, companies
have a greater responsibility to fulfill in order to realize a low carbon society and a circulating society, and the demand forsustainability management is further increasing.
In this business environment, we established the Tosei Group ESG Policy and ESG Action Guidelines in January 2019, andset up a system to promote them. Since 2020, we are promoting our business activities in recognition of our role inachieving SDGs (the Sustainable Development Goals) set forth by the United Nations.
We aim to grow through the portfolio management of six businesses. In particular, we position as growth drivers the
Revitalization Business, which contributes to the utilization of existing resources and the reduction of environmental
impact, and the Development Business, which promotes initiatives that contribute to environmental friendliness andcomfort, such as energy conservation and the introduction of IoT, and our stable businesses, such as the Leasing, Fund,Management, and Hotel Businesses, will also strive to approach environmental and social issues according to the ESG
Policy and the ESG Action Guidelines.
With the spread of COVID-19 since 2020, people's values and lifestyles have become even more diverse. The Tosei Groupwill continue to strive for ESG management in consideration of sustainability in order to continue to be a company withvalue to all stakeholders, while responding flexibly to changes in the social environment.
The President and CEO
Seiichiro Yamaguchi㻠Message from the Chairman of Sustainability Committee

The Tosei Group has formulated a medium-term management plan, "Infinite Potential 2023," which begins in 2021, andhas established basic policies for ESG promotion in both its business activities and management infrastructure.
In business activities, Tosei Group aims to expand existing businesses by planning products and providing services with anawareness of environmental issues such as climate change, and social issues such as diversity and disaster prevention. In
addition, in our management infrastructure, we will promote sustainability-conscious business management and further
enhancement of corporate governance.
In order to smoothly promote the initiatives set forth in these basic policies, the Sustainability Committee will play acentral role in monitoring the status of initiatives at relevant departments, including group companies, and will work inclose collaboration to steadily achieve the plans.
CFO and Senior Executive Officer
Chairman of Sustainability Committee
Noboru Hirano㻡z ԣԞԢԏԔӨԑՆՃՉՄӰՇӨԢՉՇՈԱԺՂԱԲԺՀԺՈՍOur Approach to Sustainability

ESG Promotion System

Mid-term Management Plan “Infinite Potential 2023”

Participation in Initiatives

Commitment to SDGs

Our Approach to Sustainability
In order to contribute to the realization of a sustainable society through our corporate activities, the Tosei Group has
established "The Tosei Group ESG Policy" and "The Tosei Group ESG Action Guidelines" and is striving to implement ESG
management that takes sustainability into consideration by establishing an ESG promotion system led by the
Sustainability Committee.

The Tosei Group ESG Policy and The Tosei Group ESG Action Guidelines

The Tosei Group ESG Policy
The Tosei Group has a mission of creating new value and inspiration in all aspects of real estate as a global-mindedgroup of seasoned professionals. It regards its commitment to the Environment, Social and Governance as a priority
management challenge. It will seriously address the social issues associated with real estate to contribute to society
and achieve its own continuous growth.

The Tosei Group ESG Action Guidelines
1. Carry out business activities that achieve sound growth
We will respond swiftly and appropriately to changes in business circumstances and continue business activities thatwill ensure sound growth to meet our social responsibility to all stakeholders. We will make concerted efforts tostrengthen our structure for enhancing corporate governance and building an internal control system.
2. Comply with laws and regulations
We will not only comply with laws and regulations relating to the environment, society and corporate governance, but
we will also provide internal training aimed at improving knowledge and promoting understanding, and we will carryout activities for increasing outsiders' awareness.
3. Take actions that increase the value of real estate
We will take actions toward resolving a range of issues involved in real estate and increasing its added value with aview to making effective use of real estate and energizing local communities in all our business activities.

㻢 &DUU\RXWEXVLQHVVDFWLYLWLHVZLWKHQYLURQPHQWDOFRQVLGHUDWLRQVWith the aspiration of building a low-carbon society, we will introduce measures that increase the energy efficiency ofreal estate owned. We will work to reduce water consumption and waste emissions and implement reduce, reuse andrecycle activities in a positive effort towards building a recycling-oriented society.
5. Contribute to tenants, locals and communities through real estate owned
In terms of our aim of practicing actions in accordance with these action guidelines, we will work to collaborate withcorporate tenants of real estate owned, business partners such as property management firms and occupants ofresidential real estate to establish harmony with the local people and communities.
6. Increase customer satisfaction
We will strive to offer products and services based on safety and reassurance and sincerely carry out businessactivities consistently from customers' standpoints in an effort to increase customer satisfaction.
7. Increase employee satisfaction
We will define personnel as an essential part of our business and continue developing seasoned professionals. We will
create a positive corporate culture in which diverse personnel with different backgrounds respect one another andwork with a focus on teamwork in an effort to boost employee satisfaction.
8. Disclose ESG information
We will disclose our ESG targets, monitor the state of actions on a regular basis and make their results known to
stakeholders on our website and by other means.
Developed: January 2019

ESG Promotion System
The Group has established a Sustainability Committee to deliberate and determine ESG-related policies and activities. The
committee is chaired by the director responsible for sustainability (Noboru Hirano, CFO and Senior Executive Officer)
appointed by the CEO, and consists of members appointed by the director responsible for sustainability. The contents ofthe deliberations are regularly reported to the Board of Directors and reflected in the Group’s business activities incooperation with each relevant department.

㻣Mid-term Management Plan “Infinite Potential 2023”
In our three-year medium-term management plan "Infinite Potential 2023" starting from the fiscal year ending November
30, 2021, we have established a basic policy for ESG promotion in both our business activities and management
infrastructure in order to strongly promote ESG management. In our business activities, we will strive to expand ourexisting businesses by planning products and providing services that are conscious of environmental issues such as
climate change and social issues such as diversity and disaster prevention, and in our management infrastructure, we will
promote sustainability-conscious business management and further enhancement of corporate governance to further
increase corporate value and contribute to the realization of a sustainable society.

Basic

Policies

Pursue the Group's infinite growth potential in all aspects of real estate and aim for a new stage as a comprehensive
real estate company.

Fundamental Policy

Growth Strategy
Expand existing businesses and increase operating profit with a focus onenvironmental/social issues
Enhance existing businesses and create new income-generating models through DX

Strengthen the Business Base
Implement a balance sheet strategy with a focus on increasing business scale, Groupheld assets and capital efficiency
Implement Group strategy and organizational strategy with a focus on achieving bothgovernance and efficiency
Improve operational and administrative efficiency through the promotion of utilizationof IT and enhance employee satisfaction conducive to improving productivity
Promote business, management and ESG with a focus on sustainability㻤Participation in Initiatives
To solve social issues such as climate change, we participate in the following initiatives that are consistent with theGroup's approach.

Supporting the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD)
We have expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)
and are a member of the TCFD Consortium, an organization of supporting companies in Japan. Based on the TCFD
recommendations, we will analyze the risks and opportunities posed by climate change to our business, and strive tofurther enhance information disclosure.

㻥Commitment to SDGs
We have created links between the UN Sustainable Development Goals (SDGs)
and the Tosei Group ESG Policy and ActionGuidelines.
In the future, we plan to select material issues for the Group to focus on.
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VisionOur Approach and Vision for the Environment

Environmental Promotion System

Our Approach and Vision for the Environment
The Tosei Group takes seriously its corporate responsibility as a real estate business company in light of recent changes in
the global environment and the urgent need to reduce greenhouse gas emissions. In order to strengthen ourenvironmental efforts, we established the "Tosei Group Eco Declaration" and "Eco-Mission" in April 2009, and in March
2022, the "Tosei Group Environmental Policy" was established by a resolution of the Board of Directors.

Tosei Group Environmental Policy
The Tosei Group has established the following five items as its environmental policy and endeavor to promote
environmental efforts in all of its corporate activities.

1. Promotion of efforts to create a low-carbon society
We will contribute to the formation of a low-carbon society by actively introducing measures that contribute to energy
conservation and reducing energy consumption and greenhouse gas emissions.

2. Promotion of efforts to create a circulating society
We will strive to reduce our environmental impact and contribute to the formation of a circulating society by
preventing environmental pollution, promoting resource conservation including reduce, reuse, and recycle, andreducing water consumption and waste emissions.

3. Promotion of efforts to coexist in harmony with the environment
We will contribute to the formation of a prosperous and sustainable society by creating urban environments that are
in harmony with nature, taking biodiversity into consideration.

4. Compliance with environmental laws and regulations and raising awareness of environmental
conservation
In addition to complying with environmental laws and regulations, we will conduct environmental education andawareness-raising activities to enhance the awareness of Group employees regarding environmental conservation.

5. Promotion of Environmental Communication
We will disclose the status of our environmental efforts to society and engage in dialogue with our various
stakeholders.

㻝㻞Environmental Promotion System
Sustainability Committee
The Group has established the Sustainability Committee to deliberate and decide on ESG-related policies and action plans.
The Committee is chaired by the Director responsible for sustainability (Noboru Hirano, CFO and Senior Executive Officer)
appointed by the President and CEO, and consists of members appointed by the Director. The contents of the deliberations
are regularly reported to the Board of Directors, and are reflected in business activities under the supervision and directionof the directors and in cooperation with the relevant departments. In the environmental area, the committee deliberates,
manages progress, and provides instructions on all measures based on our environmental policy, including compliancewith environmental laws and regulations, TCFD compliance, promotion of energy conservation at owned properties, andacquisition of third-party evaluations.

㻝㻟Environmental Management
We are working to reduce the negative impacts of our assets on the environment through our own PDCA cycle, under the
direction and supervision of our Sustainability Committee.

PLAN
Assessing energy consumption, GHG emissions, water consumption, etc., of owned assets and establishing reduction
targets.
Formulate a plan to promote energy conservation through the installation of LEDs throughout the building.
Formulate a plan for awareness-raising activities for energy conservation measures in cooperation with tenants.

DO
Installation of high-efficiency equipment such as LEDs throughout the building.
Introduction of renewable energy.
Energy conservation awareness activities through sustainability guides, tenant surveys, etc., and requests forcooperation.

CHECK
Energy monitoring, measurement of LED installation effectiveness.
Tenant survey tabulation, PM・BM sharing.

ACTION
Sustainability Committee discusses effectiveness measurement verification, tenant survey results, etc., and examines
improvement measures.
Reflected in next year's renovation work plan, awareness-raising activity plan, etc.
ဵ EMS such as ISO14001 is not currently in place㻝㻠Target and Progress
Various Targets

GHG(CO2) Emissions Results

Energy Use Results

Water Use Results

Waste Discharge Results

Environment-related Violations and Fines

Various Targets
Base year

FY2022

Subject

Tosei Group
Scope 1 and 2

TargetLong-term Target: Net-zero by FY2050
Mid-term Target :50% reduction from base year by FY2030

GHG(CO2)
EmissionsLong-term Target:
FY2018

Tosei Owned

Reduce GHG emissions intensity by 5% by FY2023

Fixed Assets

Mid-term Target :Reduce GHG emissions intensity by 1% per year
Long-term Target:

Energy Use

FY2018

Tosei Owned

Reduce energy use intensity by 5% by FY2023

Fixed Assets

Mid-term Target :Reduce energy use intensity by % by FY2023
Long-term Target:

Water Use

FY2018

Tosei Owned

Reduce water use intensity by 2.5% by FY2023

Fixed Assets

Mid-term Target :Reduce water use intensity by 0.5% by FY2023
Long-term Target:

Waste
Emissions

FY2018

Tosei Head Office

Reduce waste emissions intensity by 2.5% by FY2023

Building

Mid-term Target :Reduce waste emissions intensity by 0.5% by FY2023

㻝㻡GHG(CO2) Emissions Results【Subject】Tosei Group Scope 1 and 2【Target】Compared to FY2022, 50% reduction by FY2030, net zero by FY2050

GHG(CO2)
Emissions(t-CO2)

Results

targetFY2022

FY203

(Base\HDU))(target\HDU)

FY2020

FY2021

FY2022

Results

Results

Results

Scope1

480㾎

-

135

197

480㾎

Scope2

3,289㾎

-

1,318

1,696

3,289㾎3,769㾎

1,885

1,453

1,893

3,769㾎

-50%

-

-

Scope1+
Scope2 Total

Reduction ratecompared to base year--

(Scope1+Scope2 Total)
Subject

Tosei Group Scope 1 and 2

ဵThe indicators with 㾎 mark are guaranteed by an independent third party, Sustainability Accounting Co.,Ltd.
7KH3')OLQNRQWKHOHIWLVYDOLG ZKHQWKLVUHSRUWLVYLHZHGDV3')GDWD&OLFNKHUHIRUWKHZDUUDQW\UHSRUWဵ The figures for FY2020 include estimates in some cases.
ဵ For FY2021 calculation, the Princess Group, which became a consolidated subsidiary in October 2021, is not included.ဵ The Group excludes GHGs (Freon gas, etc.) other than CO2 due to their extremely small amounts, and calculates andreports only CO2.
ဵ The GHG emission factor is based on the "Emission Factor by Electric Power Company" published by Ministry of theEnvironment and Ministry of Economy, Trade and Industry, and uses the emission factor of the electric power company
used by the subject building.
ဵ As of November 30, 2022㻝㻢

【Subject】Tosei-owned Fixed Assets【Target】Compared to FY2018, 5% reduction GHG emissions intensity by FY2023

Total amount(t-CO2)FY2018FY2023Results(Base\HDU)target(target\HDU)

6,366

-

6,394

6,701

8,233

90

86

68

57



-

-5%

-24%

-37%

-3%

70,664-

93,957

117,9821,0

FY2020

FY2021

FY2022

Results

Results

Results

GHG(CO2)
Emissions

Emissions
intensity(t-CO2/㎡)

Reduction ratecompared to base year
(Emissions intensity)

Subject 7RVHLRZQHGIL[HGDVVHWV・・㎡

ဵ The subject property is Tosei-owned fixed assets. This excludes those with an energy monitoring period of less than
one year, condominium unit ownership properties, and real estate for sale.
ဵ The Group excludes GHGs (Freon gas, etc.) other than CO2 due to their extremely small amounts, and calculates and
reports only CO2.
ဵ The GHG emission factor is based on the "Emission Factor by Electric Power Company" published by Ministry of theEnvironment and Ministry of Economy, Trade and Industry, and uses the emission factor of the electric power company
used by the subject building.
ဵ As of November 30, 2022

㻝㻣

Energy Use Results【Subject】Tosei-owned Fixed Assets【Target】Compared to FY2018, 5% reduction energy use intensity by FY2023

Total amount(1,000GJ)
Energy use

FY2018FY2023Results(Base\HDU))

target(target\HDU)

126

-

132

146

175

1.78

1.69

1.41

1.23

1.2

-

-5%

-21%

-31%

-％

70,664-

93,957

117,9821,

FY2020

FY2021

FY2022

Results

Results

Results

Energy use
intensity(GJ/㎡)

Reduction ratecompared to base year
(Energy use intensity)

Subject (Tosei owned fixed assets・㎡)

ဵ The subject property is Tosei-owned fixed assets. This excludes those with an energy monitoring period of less than
one year, condominium unit ownership properties, and real estate for sale.
ဵ Occupancy rate is not taken into account in the calculation of floor area intensity.
ဵ $VRI1RYHPEHU

㻝㻤

Water Use Results【Subject】Tosei-owned Fixed Assets【Target】Compared to FY2018, 2.5% reduction water use intensity by FY2023

Total amount (㎥)Fresh surface
water (㎥)

FY2018FY2023Results

target(Base\HDU))(target\HDU)

87,889-70,436

83,161

144,712

0

-

0

0

0

0

-

0

0

0

0

-

0

0

0

87,889-70,436

83,161

144,712

1.35

1.32

0.79

0.74

1.0

-

-2.5%

-41%

-45%

-2%

-

-

67,67479,859141,218

-

-

0

0

0

-

-

0

0

0

-

-

0

0

0

-

-

67,67479,859141,218

-

-

0.76

0.71

1.0

65,304-88,597

112,62213,FY2020

FY2021

FY2022

Results

Results

Results

Brackish surface
water/
Water

sea water (㎥)withdrawal
Undergroundwater (㎥)
Tap water (㎥)Water withdrawal
intensity (㎥/㎡)

Reduction rate compared to base year
(Water withdrawal intensity)

Total amount ㎥

Fresh surface
water (㎥)

Brackish surface
water/
sea water (㎥)Wastewater
Undergroundwater (㎥)sewage (㎥)Wastewater
intensity ㎥㎡
Subject(Tosei owned fixed assets・㎡)㻝㻥ဵ Our group's main business activities are located in Tokyo and three prefectures (Kanagawa, Chiba, and Saitama) inJapan. According to the Aqueduct survey by the World Resource Institute (WRI), the water-related risk in this area falls
into the "Low to Low-Medium" category, and we have confirmed that we do not conduct business activities in areas
where water stress is a concern.
ဵ Wastewater discharge has been monitored since FY2021.
ဵ The subject property is Tosei-owned fixed assets. This excludes those with an energy monitoring period of less than
one year, condominium unit ownership properties, and real estate for sale.
ဵ Occupancy rate is not taken into account in the calculation of floor area intensity.
ဵ As of November 30, 2022

Waste Discharge Results【Subject】Tosei Head Office Building【Target】Compared to FY2018, 2.5% reduction waste discharge intensity by FY2023

Total amount(t)
Incineration/
Waste
Discharge

landfill (t)Recycle (t)FY2018FY2023Results(Base\HDU))

target(target\HDU)

60

-

71

100

126

22

-

33

49

87

38

-

38

51

39

13.27

11.13

15.70

8.37

8.2

-

-2.5%

18%

-37%

-%

4,515

-

4,515

11,98615,FY2020

FY2021

FY2022

Results

Results

Results

Waste Discharge
intensity(kg/㎡)
Reduction ratecompared to base year
(Waste Discharge intensity)
Subject(Tosei head office building・㎡)

ဵ Waste discharge are those of Tosei head office building (Tamachi Tosei Building).
ဵ Occupancy rate is not taken into account in the calculation of floor area intensity.
ဵ As of November 30, 2022

㻞㻜

Environment-related Violations and Fines
There were no penalties or fines for violations of environment-related laws and regulations (including water-related) or
accidents in FY2022.

㻞㻝Climate Change
Supporting the Recommendations of the Task ForceThe Company's Perceptions of Climate Change
Issueson Climate-related Financial Disclosures (TCFD)

Governance

Strategy

Risk Management

Metrics and Targets

Disclosure Based on TCFD Recommendations(PDF)

The Company's Perceptions of Climate Change Issues
Since the Paris Agreement of 2015, climate change has become an urgent global challenge, and the need to addressenvironmental issues has become a common understanding among countries around the world. The current climate
system and the scale of the changes observed in the climate are unprecedented in hundreds of thousands of years.
The IPCC Sixth Assessment Report, published in 2021, warns that anthropogenic climate change is already affecting
many weather and climate extremes in all regions of the world and that unless GHG emissions are significantly
reduced over the next few decades, it will cause more severe and frequent natural disasters. The world must hold theincrease in global average temperature to below 2°C or even to 1.5°C above the pre-industrial level by the end of the
21st century. Efforts to reduce GHG emissions are being made worldwide, and in Japan, the movement toward theachievement of a decarbonized society has been accelerating since the Japanese government’s declaration on Net
Zero GHG Emissions by 2050.
Under these circumstances, the Tosei Group recognizes that the climate change will cause dramatic changes in thenatural environment and social structure, and that it is an issue that will have a significant impact on our business.
We also are aware that natural disasters could reduce the value of real estate and stricter government environmental
regulations could significantly affect our business activities, strategies and financial plans. Tosei has established theTosei Group ESG Policy and Action Guidelines and has also included initiatives to address environmental and social
issues in its current medium-term management plan, Infinite Potential 2023. We will continue to strive to implement
ESG management that takes sustainability into consideration and contribute to the realization of a sustainable anddecarbonized society through our corporate activities.

The Tosei Group ESG Policy
The Tosei Group has a mission of creating new value and inspiration in all aspects of real estate as a globalminded group of seasoned professionals. It regards its commitment to the Environment, Social and Governanceas a priority management challenge. It will seriously address the social issues associated with real estate tocontribute to society and achieve its own continuous growth.

㻞㻞Supporting the Recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD)
We have expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosure(TCFD) and are a member of the TCFD Consortium, an organization of supporters in Japan. Based on the TCFD
recommendations, we will analyze the risks and opportunities posed by climate change to our business, and strive tofurther enhance climate-related information disclosure.

Governance
Organization Framework
Tosei Group has established the Sustainability Committee, which reports directly to the Board of Directors, to promote
ESG management practices that take sustainability into account. Based on the Tosei Group ESG Policy and ESG Action
Guidelines, the Sustainability Committee formulates policies to improve the Group's overall sustainability, including
addressing climate change, formulates annual activity plans for ESG promotion, monitors, provides advice andguidance the progress of each measures and departmental activities.
The Sustainability Committee is chaired by the director responsible for sustainability (Noboru Hirano, CFO and Senior
Executive Officer) appointed by the President and CEO, and consists of members appointed by the director. In
principle, the committee holds six meeting a year, and its deliberations, activity status, and reported matters arereported monthly to the Board of Directors.
The Sustainability Committee identifies, classifies, analyzes, and evaluates risks and opportunities, and formulatesorganizational measures and response plans for adaptation and mitigation for climate-related risks in accordance with
the Regulations for Risk Management Related to Climate Change. The measures approved by the Board of Directors
are linked to business strategies under the leadership of the Sustainability Committee and are directed to the Group
companies and their respective business units.

Role of the Board of Directors
The Board of Directors has the highest responsibility for climate change-related risk management, and shall establish
the necessary organizational structure, appropriately supervise it, and provide instructions as necessary. In addition,
based on reports from the Sustainability Committee, the Board of Directors appropriately monitors and supervises the
progress of each measure and program, reviewing the policies and directing improvements to the promotion system
as necessary. In addition, ESG promotion targets, including climate change, are set as items for evaluation andreward of full-time directors in charge of ESG.

㻞㻟

Strategy
To understand the possible impact of future climate change on our group's business and to reflect such impact into
our business strategy, we chose multiple future climate change scenarios defined by international institutions andidentified risks and opportunities of the hypothetical world under each scenario. The details of the scenario analysis
are as follows.

Determining Targets for the Analysis
In this scenario analysis, all our group's businesses are included as the target. Regarding the possible impact onreal estate holdings, the analysis covers office buildings, commercial facilities, detached houses, apartmentbuildings, hotels, and logistics facilities as asset classes that are expected to be strongly affected by climatechange, while pre-owned condominiums units, which have a small impact, were excluded from the analysis.

Determining Time Frames for the Analysis
In analyzing the scenarios, we used 2030 (medium-term) and 2050 (long-term) as time frames for the scenario
analysis, considering the effects of climate change assumed in each scenario parameter will materialize in themedium to long term.

㻞㻠Assumptions Underlying Each Scenario
The TCFD recommendations advise the use of several scenarios, including a 2°C or lower scenario, to examine theresilience of theorganization in an uncertain future.
Our group used the following two scenarios for our study and analysis.
(1)1.5°C–2°C increase scenario (high transition risks, low physical risks)
Under this scenario in which regulations and policies are strengthened for decarbonization, measures to address
climate change aretaken, and temperature rise is expected to be around 1.5 -2°C in 2100.
Companies are strongly required to respond to climate change, and if they do not, customer outflow andreputation risks will increase,resulting in higher transition risks, while physical risks will be relatively low, as theseverity and increase of disasters caused by climatechange will be suppressed into a certain extent.
(2)4°C increase scenario (low transition risks, high physical risks)
Under this scenario in which climate change measures are not adequately addressed and temperatures rise frompre-industrial levels toabout 4°C by 2100.
Physical risks are assumed to increase, including more severe natural disasters, sea level rise, and an increase in
extreme weatherevents.
This will increase the competitiveness of products and services with superior BCPs. On the other hand, transition
risks will be lower, asgovernment regulations will not be strengthened.
ٛMainly Referenced Scenario Parametersٜ
Institutions/
Organizations

1.5‫ع‬2°C Scenario

4°C Scenario

WEO2020;
Sustainable Development
Scenario (SDS) Net Zero
Transition Risks

IEA (International

Emissions by 2050 case

Energy Agency)(NZE2050)-

ETP2017;
Beyond 2٦Scenario (B2DS)
IPCC
Physical Risks(Intergovernmental
Panel on Climate
Change)

IPCC Sixth Assessment

IPCC Sixth Assessment

Report;Report;

IPCC SSP1-2.6

IPCC SSP5-8.5

㻞㻡Future World View of Each Scenario

Identification of Risks/Opportunities Based on Scenario Analysis and Evaluationof Financial Impact
Based on the two climate-related risks and opportunities (Transition risks/opportunities and Physical risks/
opportunities) categorized in the TCFD recommendations, we have identified the major risks and opportunities thatare expected to have a significant impact on our business for each scenario. For each of the identified risks andopportunities, we evaluated the financial impact using parameters published by international organizations. The
degree of impact on the Group was assessed on a four-point scale (major, medium, minor, and minimal) based on themateriality standards of the Tokyo Stock Exchange for timely disclosure, qualitative judgments take into account.
Details are as follows.

㻞㻢Transition Risks‫؞‬Opportunities

Resilience of the Group and the Results of the Analysis
Results of the scenario analysis indicate that the financial impact on the Group from transition risks, especially in the"medium to long term" time frame, will be emerge as a result of changes in the social transformation associated withthe transition to a decarbonized society (1.5 °C - 2°C Scenario), specifically through the strengthening of various
government regulations (adoption of carbon taxes, mandatory ZEH/ZEB levels, etc.), and changes in the behavior andpreferences of investors and financial institutions.
The Group intend to switch using electricity generated from renewable energy sources for its head office andcompany-operated hotels. We will also promote internal resource and energy conservation efforts to reduce theGroup's GHG emissions. moreover, we will aim to minimize risks and maximize opportunities by systematicallypromoting environmentally friendly product developments, renovating buildings to environmentally friendly realestate specifications, and acquiring environmental real estate certifications.

㻞㻣Physical Risks‫؞‬Opportunities

Resilience of the Group and the Results of the Analysis
Results of the scenario analysis indicate that financial impact from physical risks on the Group, especially in the"medium to long term" time frame, will emerge as a result of intensifying of extreme weather events in society
where climate change measures are not sufficiently implemented (4°C scenario). We make investment decisions only
after comprehensively considering various factors, including flood risks. Also, regularly checks the risk status of its
property portfolio using hazard maps, and takes appropriate business continuity planning (BCP) measures byreviewing the portfolio, purchasing insurance, and implementing countermeasure construction. Through these efforts,
we aim to minimize risks while maximizing opportunities.

Strategies and Measures Developed Based on the Results of Scenario Analysis
Considering the aforementioned scenario analysis results, the Group will promote and consider the following
measures in its management strategy and financial plan to minimize risks and maximize opportunities.

Utilize Renewable Energy
In December 2022, we switched the electricity used at our Tamachi Head Office Building to renewable energy
sources* in order to reduce GHG emissions (Scope 1 and 2). We will continue to switch the electricity used at ourhotels and other fixed assets to renewable energy sources*.
*Renewable energy includes the use of non-fossil certificates classified as renewable energy.

㻞㻤Reduce CO2 Emission through Revitalization BusinessTosei’s Revitalization Business is not only attractive as an investment product, but also leads to the utilization andextension of existing resources and is environmentally friendly. This means that, Tosei’s model as the utilization ofexisting used properties can reduce total amount of CO2 generated due to construction by 54% in comparison to the
Scrap and Build Model during 100-year term.‫ق‬According to our estimation‫ك‬

Assumptions
Assuming that a newly constructed office building (total floor area: 10,000m2 , steel-framed reinforced concrete structure) will bemaintained for 100 years*
TOSEI Value-Up Model
Repair and maintenance work to be carried out every 10 years (8 times in total), and life-extension work to be carried out once
every 30 to 40 years (2 times in total).
Lengthening of service life = large-scale repair work for air conditioning, water supply, elevators, water-saving toilets, etc.
Scrap and Build model
Repair work every 10 years (9 times in total), and once every 30-40 years, Demolish the existing building and build a new similarbuilding (2 times in total).
*In order to extend the life of the building frame up to 100 years, it is assumed that the neutralization diagnosis of the building
frame and its treatment have been taken. In addition, CO2 emissions from the work related to neutralization diagnosis andtreatment are not considered.

㻞㻥Promotion of LED Installation in Used Office Buildings
The Group is promoting the installation of LED lighting in the fixed assets it owns. To date, we have installed LED
lighting throughout 7existing office buildings and 1 existing logistic facility and reduced electricity consumption by anaverage of approximately 20% to 30%. Thisis expected to improve tenant satisfaction by reducing electricity
consumption and costs, increasing the brightness of the buildings, andeliminating the need for maintenance.

Shinden Logistics
Shinbashi Frontier BL

Yotsuya Tosei BL

Toranomon Tosei BL

Koishikawa Tosei BL

Narimasu Tosei BL

Promotion of Acquiring Environmental Real Estate Certification
We are promoting energy-saving renovations, including the installation of LED lighting in buildings. We are also
promoting the acquisition ofcertifications that evaluate the environmental performance and social aspects of realestate and use these certifications to enhance the valueof our assets and for leasing.

㻟㻜Energy Conservation Efforts in Development Properties
The Group is actively adopting equipment and materials that contribute to greenhouse gas reduction and energy
conservation in theproperties it develops. We are also working to build houses that meet the ZEH (Net Zero Energy
House) standard, and for FY2022, wesupplied 17 ZEH houses. We are developing products that incorporate themost advanced housing equipment and systems, including solarpower generators, energy- and water-saving
equipment, and IoT. We will continue with these efforts to provide houses that combine highenergy-saving
performance and comfort.

Major Environmentally-Conscious Equipment Installations
Double-layered glass

LED lighting, motion sensor lighting

Highly insulated sashes

Solar power generation system

Rainwater utilization equipment

Water-saving faucets, water-saving

Recycled materials(rainwater tank, water-retaining

toilets

Energy-saving water heater (Eco-Jozu,
ENE-FARM)
Highly insulated design (equivalent toheat insulation performance grade 4)

interlocking)Rooftop greenery, rooftop

Electric car charging facilities

Car sharing, bicycle rental

green/vegetable garden([DPSOHRI=(+FRQVWUXFWLRQ

6RODUSRZHU
JHQHUDWLRQV\VWHP+LJKSHUIRUPDQFH

(QHUJ\0HWHU

KHDWLQVXODWLQJPDWHULDO

Green Leasing
To promote energy conservation in the properties we own, we are working with tenants to conserve energy. We
conduct periodic surveys oftenants in our buildings regarding building management and operation systems, facilities,
etc., to understand their needs. In addition, weare implementing green leases for operational improvements, mainly
for tenants of buildings that have undergone whole-building LEDconstruction, to confirm their willingness to workwith owners on various energy-saving activities in terms of building operation. We are alsoworking on economical
green leases for some of our properties that return the energy-saving benefits of installing energy-efficient
equipment to the owners. Moreover, we are striving to raise energy conservation awareness among tenants and curb
energy use of thebuilding by distributing Sustainability Guides, which provide key points for energy conservation
activities, and show trends in the usage ofbuilding water, light, and heat consumption, and by displaying posters
calling for energy and resource conservation.

6XVWDLQDELOLW\JXLGHERRNV(QHUJ\&RQVHUYDWLRQ3URPRWLRQ3RVWHU㻟㻝Risk Management
Process for Identifying and Assessing Climate-related Risks and Opportunities
The Sustainability Committee, responsible for risk management related to climate change, conducts regular groupwide surveillance once ayear and identifies climate-related risks and opportunities based on the results. The
identified climate-related risks and opportunities areevaluated on two scales, “likelihood” and “impact” based on
multiple assumptions (scenarios) about future climate change defined byinternational organizations and others. The
results of the analysis are reported to the Board of Directors each time they are performed.Climate-related risks
and opportunities in this analysis are based on the following definitions.
1. Transition Risks
Risks associated with the transition to a low-carbon society, which are risks brought about by changes in policies
and legal regulations toaddress climate change, as well as changes in technological development, market trends,
market valuations, etc.
(ⓠ)Current Regulations(Policyand Legal)(ⓡ)New Regulations(Policy andLegal)(ⓢ)Technology(ⓣ)litigation

Risks related to policy actions that attempt to constrain actions that contribute to theadverse effects of climate change

Risks related to policy actions that seek to promote adaptation to climate change

Risks related to technology that may change or evolve with climate change among suppliersof materials and services related to each of the Group's businesses
Risks related to climate-related litigation claims being brought before courts.
Risks associated with changes in the markets relevant to the business of the Group(ⓤ)Market

companies as society transitions to a low-carbon and decarbonized society in relation toclimate change.

(ⓥ)Reputation

Risk of changes in the Group' s reputation with customers, investors, various suppliers,
communities, governments, and others related to the Group in relation to climate change.

2. Physical Risks
Risk of exposure to acute or chronic damage from climate change and other causes brought about
by climate change.
3. Opportunity(ⓠ)Resource Efficiency(ⓡ)Energy Source(ⓢ)Products and Services(ⓣ)Market(ⓤ)Resilience

Opportunities related to improving resource efficiency in the business activities of ourGroup.
opportunities from shifting to low-carbon energy sources to meet the energy needs of ourgroup companies' business activities.
opportunities arising from low-carbon and climate change adaptive products and services ofour group companies.
opportunities for our Group to enter new markets as we transition to a low-carbon
economy.
opportunities arising from enhancing various adaptive capacities of our group companies tocope with climate change.

㻟㻞Processes to Manage Climate-related Risks and Opportunities
Of the identified risks and opportunities, the Sustainability Committee creates a plan for each element that the Tosei
Group should address in an organized manner, and the Board of Directors approves the plan. The plan is formulated
based on the basic framework of risk management, namely "avoidance," "acceptance," "mitigation," and "transfer”.
Under the supervision of the Board of Directors and in accordance with the instructions of the Sustainability
Committee, the approved risk response plans are implemented by the respective business operation systems of Tosei
and its group companies. The Sustainability Committee also takes the lead in linking the risk management plan to thebusiness strategy by providing instructions to each Group company and their respective business organizations.

Status of Company-wide Risk Management Integration
The Risk and Compliance Committee, which is a committee directly under the Board of Directors, is responsible forcentralized and cross-sectional risk management of the Tosei Group. The committee is responsible for implementing
basic measures for the Group's risk management, responding to management crises that may occur as risks emerge,
and overseeing and managing the various risks surrounding the Group's businesses.
Climate Change Risks and Opportunities, which are of particular importance among the company-wide risks andshould manage following the framework recommended by the TCFD, are led by the Sustainability Committee under
the supervision of the Board of Directors. The Risk and Compliance Committee ensure the integrated Enterprise Risk
Management by assisting and supporting the Sustainability Committee in its implementation of various measures.

Metrics and Targets
Disclosure Elements of Greenhouse Gas (GHG) Reduction Target
The Tosei Group has set the goal of achieving net-zero greenhouse gas emissions in Scope 1 and 2 in FY2050 to keep
the global temperature increase below 1.5°C. In addition, the Company will pursue the following reduction targets
over the medium term, with FY2022 as the base year.

Base Year

Reduction Target**

FY2022‫ق‬From December 2021 to November 2022‫ك‬
Scope 1; direct emission of GHGs by business operators themselves, such as from combustion of fuelScope 2; indirect emission of GHGs associated with the use of electricity, heat, and steam

Target Year /Long-term Target: Net-zero by FY2050

Reduction Ratio

Mid-term Target: 50% reduction from base year by FY2030

The GHGs emitted by our group consist of GHGs emitted directly from our company through the usage of city gas used at our headquarter, sales
offices, and company-operated hotels and gasoline used in company vehicles (Scope1), and GHGs emitted indirectly through the usage ofelectricity at our headquarter, sales offices, and company-operated hotels and district heat and cooling used at our headquarter office (Scope2).

㻟㻟Greenhouse Gases (GHG) Emissions

unit

Scope1(Direct GHG emissions)

FY2020

FY2022

FY2021(Base Year)

t-Co2

135

197

480㾎

t-Co2

1,318

1,696

3,289㾎

t-Co2

1,453

1,893

3,769㾎

Scope2(Indirect emissions associated withenergy sources)
Total(Scope1+2)*The indicators with 㾎 mark are guaranteed by an independent third party, Sustainability Accounting Co.,Ltd. &OLFNKHUHIRUWKHZDUUDQW\UHSRUW
7KH3')OLQNRQWKHOHIWLVYDOLGZKHQWKLVUHSRUWLVYLHZHGDV3')GDWH
* The greenhouse gas emissions shown above are the total emissions from the business activities of all domestic consolidated subsidiaries of theTosei Group,based on the GHGs Protocol's control criteria.
* The figures for FY2020 include estimates in some cases.
* For FY2021 calculation, the Princess Group, which became a consolidated subsidiary in October 2021, is not included.
* The Group excludes GHGs (Freon gas, etc.) other than CO2 due to their extremely small amounts, and calculates and reports only CO2.
* 7KH*+*HPLVVLRQIDFWRULVEDVHGRQWKH(PLVVLRQ)DFWRUE\(OHFWULF3RZHU&RPSDQ\SXEOLVKHGE\0LQLVWU\RIWKH(QYLURQPHQWDQG0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\DQGXVHVWKHHPLVVLRQIDFWRURIWKHHOHFWULFSRZHUFRPSDQ\XVHGE\WKHVXEMHFWEXLOGLQJ

* As of November 30, 2022

'LVFORVXUH%DVHGRQ7&)'5HFRPPHQGDWLRQV $QQRXQFHGRQ6HSWHPEHU

Based on TCFD recommendations, we disclosed information about Governance, Strategy, Risk Management, Metrics
and Targets related toclimate change risks and opportunities. We will continue to promote our measures to climatechange issues and strive to further enhanceclimate-related information disclosure.

㻟㻠Biodiversity
Our Approach to Biodiversity

Efforts to Protect Urban Greenery

Efforts to Protect Ecosystems

Our Approach to Biodiversity
In accordance with the Group's environmental policy, we will strive to create urban environments that are in harmony withnature by taking biodiversity into consideration and working to conserve and green the natural environment. We will also
actively participate in local volunteer activities to raise employee awareness of biodiversity conservation.

Efforts to Protect Urban Greenery
Efforts through Business
Promotion of Greening
In order to improve the landscape and reduce the environmental impact, we are working on greening existing real estateand development properties. Specifically, we are planting trees on the rooftops and walls of office buildings, grounds ofcondominiums and detached houses to create green spaces. We are also focusing on rooftop greening, with a totalof 3,927 square meters of green space planted so far as of the end of November 2022. We are planning to introduce thissystem to commercial facilities and hotels under development.

THE PALMS Sagamihara Park Brightia

THE PALMS Chofu Manor Garden

TOSEI HOTEL COCONE Ueno Okachimachi
㻟㻡Symbiosis with Plants
T's garden Nishiterao, a rental condominium that we revitalized, has a variety ofplantings in the courtyard and other areas of the property, and QR codes are attached
to tall trees to know tree species. Residents can interact with the plants in their daily
lives and enjoy the seasonal changes.

QR code to know tree species

Efforts around the Head Office
Green Space around the Head Office
Tamachi Tosei Building is a 30-year-old existing building that has been renovated and occupied by the Tosei Group as its
headquarters building from 2021. Over 30% of the more than 1,300 m2 of open space is greened, with a diverse mix oftall trees, medium-sized trees, shrubs, and ground cover, allowing residents to enjoy the changes in the seasons. The
canal that runs in front of the building is visited by wild birds, creating an environment where one can enjoy the richnessof nature even in the heart of the city. The courtyards on the 5th and 13th floors of the head office building are designed
to replicate a Japanese garden, with a pond in which carp are kept, and trees in the garden provide perches for wild birds
so that one can hear them chirping.

On the rooftop of Toranomon Tosei Building, which was used as the head officebuilding until March 2021, we operated a rooftop vegetable garden in order tomitigate the heat island effect, raise employee awareness of the environment, andUHYLWDOL]HJURXSFRPPXQLFDWLRQ:HJUHZIORZHUVDQGYHJHWDEOHVDFFRUGLQJWRWKH
VHDVRQDQGKHOGDKDUYHVWIHVWLYDOWRUDLVHWKHHQYLURQPHQWDODZDUHQHVVRI
HPSOR\HHVWKURXJKHPSOR\HHSDUWLFLSDWRU\HYHQWVParticipation in the "Minato City Adopt-a-Program," a community cleanup
activity
Since October 2022, we have been participating in the "Minato City Adopt-a-Program" and engaging in community cleanup
activities. The "Minato City Adopt-a-Program" is an agreement between Minato City and organizations that live, work, or
study in Minato City to collaborate in the maintenance and management of roads, parks, and other facilities. In principle,
once a month, employees of our group pick up trash and remove weeds from the streets and parks around our head
office. Through these activities, the Group will contribute to environmental preservation and beautification of the Minato
City where the head office building is located.
▼3OHDVHVHHSDJHIRUDFWLYLW\UHVXOWV㻟㻢Social Contribution Activities
Tree-planting Activities
For seven consecutive years from 2009 to 2015, we participated as volunteers in the "Umi-no-Mori (Sea Forest)" treeplanting event organized by the Tokyo Metropolitan Government. "Umi-no-Mori" is an initiative to plant saplings on the
inner landfill of the central breakwater in Tokyo Bay, which was reclaimed with garbage and construction soil, andtransform it into a beautiful forest to create a venue for the 2021 Tokyo Olympic and Paralympic Games. Umi-no-Mori is
expected to serve as a starting point for winds blowing from the ocean to the city center, as well as to absorb CO2,
thereby reducing global warming and the heat-island effect. It actually was used as a venue for rowing and canoeing
competitions at the Tokyo Olympics and Paralympics.

FY2015 "Umi-no-Mori" tree-planting event

The Green Feather Fundraising Activity
The purpose of this fundraising campaign is to support Tokyo's forest maintenance, training of forest volunteers, andforest and environmental education for children. We have been making donations every year since 2007.

㻟㻣Efforts to Protect Ecosystems
Volunteer seaside cleanup activities
We have participated in volunteer cleanup activities since 2009. In 2022, 39 employees of our group and their families
participated in "Tokyo Satoumi Aid from Nishi-Nagisa," an event to clean up floating garbage in Kasai Marine Park.While
Kasai Marine Park is a valuable area in Tokyo where one can experience biodiversity close at hand and was registeredunder the Ramsar Convention in 2018, it has long been plagued by debris drifting from the Kyu-Edo River and Arakawa
River. The event also included a tally of the types and quantities of trash collected to help investigate the causes of thedrifted trash. Through this activity, we aim to raise employee awareness of environmental and social issues such as trash
reduction and ecosystem conservation.
*Cleanup events are conducted with adequate infection prevention measures in place.

Plastic garbage

Cleaning up

Participants and marine debris collected

Efforts in Development Properties
We are working to enhance the planting of trees in our urban development of condominiums and detached houses. In
selecting tree species, we have taken steps to ensure that residents can enjoy seasonal changes, and we have taken
biodiversity into consideration by including fruit trees. The company also emphasizes harmony with the surrounding
natural environment, and at THE Palms Court Hibarigaoka, a detached house, rich plantings form a green network with theadjacent Nishi-Tokyo Ikoi-no-Mori Park, contributing to the preservation of the local ecosystem. In addition, at "THE Palms
Yutenji Master Place," a condominium, existing trees have been transplanted to the plaza on the site to create astreetscape that blends in with the surrounding nature without spoiling the greenery of the land.

THE PALMS Yutenji Master Place㻟㻤Environmental Pollution and Resources
Approach to Environmental Pollution and Resource

Pollution Prevention Efforts

Conservation
Waste Reduction Efforts

Resource Conservation Efforts

Approach to Environmental Pollution and Resource Conservation
In addition to complying with all applicable laws and regulations regarding environmental pollution and taking appropriate
measures, the Tosei Group Environmental Policy stipulates that the Group will strive to prevent environmental pollution,
promote resource conservation such as reducing, reusing and recycling, and promote efforts to reduce environmental
impact and create a material-cycle society.

Pollution Prevention Efforts
Risk Management
When considering the acquisition of land or buildings, a "Real Estate Purchase Check Sheet" is completed and reviewed forall projects as part of the property purchase due diligence flow. We conduct a geo-historical survey of the property to beacquired and, if necessary, a soil contamination survey. In addition, depending on the age and structure of the property,
we conduct asbestos inspections and other hazardous material inspections to ensure risk management against
contamination.

Soil Contamination Countermeasures
As part of the property purchase due diligence, further contamination investigations are conducted according to the resultsof the geo-historical survey. If the results confirm contamination by hazardous substances, development activities are
conducted after appropriate soil improvement and spread prevention measures are taken by a designated contaminatedsoil treatment company in accordance with the Soil Contamination Countermeasures Act.

㻟㻥

Hazardous Materials Treatment
When acquiring an existing property and demolishing or renovating it, we conduct a thorough preliminary confirmation
with the demolition or renovation contractor in order to comply with relevant laws and regulations, including asbestos
surveys, and take appropriate measures to prevent the dispersal of harmful substances such as asbestos andchlorofluorocarbons. In the event that treatment or management of specially controlled industrial waste becomes
necessary at any of our buildings, we will dispose of them appropriately in accordance with laws and regulations. In thedevelopment of our buildings, we use building materials that meet JIS and JAS standards for low emission offormaldehyde, a substance that causes sick building syndrome, in an effort to provide safe and secure housing.

FY2020Specially Controlled

PCB Waste(t)Industrial Waste

0.76

FY2021

FY202200Waste Reduction Efforts
Waste Reduction Targets and Results
The following reduction targets have been set for waste reduction. The base year is set for 2018, and the long-term target
is set until 2023.

Waste Discharge Reduction Targets
Long-term target

Reduce waste discharge intensity by 2.5% in five years

Short-term target

Reduce waste discharge intensity by 0.5% in one year

Target Properties

Fixed assets owned by the Company (*)*Tosei's head office buildings▼3OHDVHVHHSDJHIRUSHUIRUPDQFHGDWD

Collection and donation of plastic bottle caps through the NPO Ecocap
Promotion Association
We collect plastic bottle caps and through a NPO,the Ecocap Promotion Association, convert them into recycled plastic
material and donate them to various social contribution activities such as medical assistance, support for people withdisabilities, and environmental education for children.

㻠㻜Waste Reduction and Separation
Efforts through Tenant Communication
We conduct periodic surveys of tenants in our properties regarding building management
and operation systems, facilities, etc. to understand their needs. In terms of waste
reduction, separation, and recycling, we have been taking various measures, such as
putting up posters encouraging cooperation in separation and recycling, installing trashcans for separation, and posting information on how to dispose of, separate, and recycle
Tenant education poster

trash at trash disposal sites.

Resource Conservation Efforts
Water Resource Conservation
In promoting efforts to conserve water resources, the following reduction targets have been set. The base year is set as2018, and the long-term target is set until 2023.

Water Use Reduction Targets
Long-term target

Reduce water use intensity by 2.5% in five years

Short-term target

Reduce water use intensity by 0.5% in one year

Target Properties

Fixed assets owned by the Company▼3OHDVHVHHSDJHIRUSHUIRUPDQFHGDWD

Business Activities in Water Stressed Areas
Our group's main business activities are located in Tokyo and three prefectures (Kanagawa, Chiba, and Saitama) in Japan.
According to the Aqueduct survey by the World Resource Institute (WRI), the water-related risk in this area falls into the"Low to Low-Medium" category, and we have confirmed that we do not conduct business activities in areas where water
stress is a concern.

Environment-related Violations and Fines
There were no penalties or fines for violations of environment-related laws and regulations (including water-related) or
accidents in FY2022.

Efforts through the Real Estate Revitalization BusinessIn our real estate revitalization business, existing buildings are utilized to enhance their value, which has less impact on
the environment and conserves resources compared to rebuilding. In order to make the most of the individuality of a wide
variety of existing properties and further enhance their attractiveness, we consider a revitalization menu with "Security,""Design" and "Ecofriendly" as important guidelines, providing optimal value for owners and tenants.

㻠㻝Utilization of Idle Company Housing
In recent years, company housing has been increasingly decommissioned and left vacant as companies reassess theirassets, contributing to the growing problem of vacant housing in cities. We are working to supply new rental housing to
the market while making effective use of the existing buildings by purchasing unused company housing and enhancing thevalue of the property.

Example 1: T-Rhythmic SOKA
This property was built as a company dormitory and had been vacant. In addition tosoundproofing all of the studio units, a lounge for concerts and a storage room were
newly built, and the property was revitalized as a rental apartment for music lovers.

Lounge where concerts can be held

Example 2: T's garden Kitakashiwa
This large property was once developed as a corporate housing for families, which wastransformed into a rental apartment with three new common facilities: a study room,
kids' room, and party room, which are as extensive as those in condominiums.

Spacious kids' room

Example 3: ARDEN Fujigaoka
A former company dormitory was extensively renovated and revitalized as a sharehouse. Existing space was effectively utilized by converting an unneeded sharedbathroom into a lounge and renovating the hot water supply room into a shower room.

Lounge as a place for socializing

Adoption of New Eco-friendly Materials for Employees' Business Cards
The Group changed the material of business cards used by the Group's employees to LIMEX.
This material is eco-friendly because almost no water or trees are used. The Group aims to
reduce the amount of paper used and raise environmental awareness among employees by
replacing business cards, the use of which reaches 500 pieces per person every year, withthose made of eco-friendly materials.

㻠㻞Sustainability Finance
ESG Loans

Green Bonds

ESG Loans
When procuring funds from financial institutions for our real estate revitalization and development business, we takeadvantage of loan programs that banks evaluate "companies with ESG-conscious management." Under Hokuriku Bank's"Eco-Lead Master" environmental assessment loan program, we have received an "S-rank" rating a total of 10 times since2010, and have received preferential interest rates. In the environmental rank evaluation of the loan system, we were
evaluated for our "environmentally friendly business activities" and "ESG-conscious initiatives" being promoted throughout
the Group. In addition, in 2021, we received an "A-rank" for "good ESG/SDGs initiatives and information disclosure" under
SMBC's "ESG/SDGs evaluation-type loan.
We are also actively engaged in the use of green loans, which are evaluated for borrowing to finance green projects. In
2021, we obtained a "Green 1" in JCR Green Loan Rating from Japan Credit Rating Agency, Ltd. (JCR) for a loan from
Aozora Bank for the construction of a logistics facility.

Allocation

Lender

Property

Aozora Bank

T’s Logi

Use of Proceeds

OmeConstruction funds fordevelopment oflogistics facilities, etc.

Total amount ofProcurement

Redemption

Loan

Date

Date

July 30, 2021

June 30, 2025

5,800 million yen

External Evaluation

Status of Allocationof Proceeds

Environmental
Improvement
ImpactBELS 5 star rating

JCR

Fully allocatedGreen1ဵ

(Acquired in October2022)

ဵWe received "Green 1" rating, the highest JCR green loan rating, from Japan Credit Rating Agency, Ltd (JCR).
As of November 30, 2022

Green Bonds
Tosei Reit Investment Corporation, which has been actively working on green finance, established a "Green Finance
Framework" and issued green bonds in 2021, receiving the highest rating of "Green 1 (F)" from JCR. Through green
finance, the corporation aims to further enhance its ESG initiatives and strengthen its fund-raising base by expanding theinvestor base interested in ESG investment.
㻠㻟Environmental Real Estate Certifications
Acquisition of Environmental Real Estate

DBJ Green Building Certification

Certification for Fixed Assets
BELS (Building-Housing Energy-efficiency Labeling

CASBEE (Comprehensive Assessment System for

System)Built Environment Efficiency)

Acquisition of Environmental Real Estate Certification for Fixed Assets
We promote environmental and social considerations in our revitalization and development real estate, and actively
acquire environmental real estate certifications such as "BELS (Building Energy Efficiency and Leasing System)", "DBJGreen Building Certification", and "CASBEE (Comprehensive Assessment System for Built Environment Efficiency)" todemonstrate the performance of our real estate to our stakeholders.The progress rate of acquisition of environmental realestate certification for fixed assets is as follows.

FY2020

FY2021

FY2022

Newly certified
properties-

13,872

18,6291,546

15,41834,047

2%

16%

36%

total floor space(㎡)Certified properties
Cumulative total floor
space(㎡)Percentage ofcertification progressဵ The certification progress rate refers to the percentage of the total floor area of properties that have acquired "BELS(Building Energy Efficiency and Leasing System)" or "DBJ Green Building Certification".
ဵ The certification progress rate is calculated based on the total floor area excluding properties that cannot be certified
due to reasons such as planned sale, condominium ownership, or lack of management authority.
As of November 30, 2022

㻠㻠

DBJ Green Building Certification

Property Name

External Appearance

Rank

Toranomon Tosei
Building

Year of

Total floor

acquisition

area

May, 2020

4,515.24㎡

May, 2020

3,863.62㎡

May, 2022

15,722.40㎡★★（2 Star）

Koishikawa Tosei
Building★（1 Star）

Tamachi Tosei
Building★★（2 Star）

What is DBJ Green Building Certification?
DBJ Green Building Certification is a certification system established by the Development Bank of Japan (DBJ) in April
2011 to serve as a bridge between businesses, financial institutions, and investors through the evaluation ofenvironmentally and socially conscious real estate. In addition to the environmental performance of the building, theprogram supports ESG initiatives for existing buildings through a comprehensive evaluation that includes
consideration of the social demands of the various stakeholders surrounding the property.

㻠㻡BELS (Building-Housing Energy-efficiency Labeling System)

Property Name

External Appearance

Rank

Awajicho Tosei

Year of

Total floor

acquisition

area

May, 2021

Building

1,582.79㎡★★★（3 Star）

December,Shinden Logistics

2021

6,384.27㎡★★★★（4 Star）

Yotsuya Tosei
Building

April, 2022

3,417.27㎡

April, 2022

4,515.24㎡★★★（3 Star）

Toranomon Tosei
Building★★（2 Star）

㻠㻢T’s Logi Sano

August, 2022

26,937.68㎡

October, 2022

27,975.48㎡★★★★★（5 Star）

T’s Logi Ome★★★★★（5 Star）

What is BELS (Building-Housing Energy-efficiency Labeling System)?
BELS (Building-Housing Energy-efficiency Labeling System) is one of the third-party certification systems based onthe "Guidelines for Energy Efficiency Labeling of Buildings (Guidelines for Labeling Energy Consumption Performanceof Buildings)" established by the Ministry of Land, Infrastructure, Transport and Tourism.

㻠㻣CASBEE (Comprehensive Assessment System for Built Environment Efficiency)

Property Name

Heiwajima Tosei
Building

External

Type of

Appearance

Certification

Rank

CASBEE for New
Construction

Year of

Total floor

acquisition

area

May, 2009

14,449.47㎡

Rank A

Kamata Tosei
Building

CASBEE for New

December,

Construction

2009

8,354.58㎡

Rank A

Toranomon Tosei

CASBEE for Real

September,

Estate2015

Building

4,515.24㎡

Rank A

What is CASBEE (Comprehensive Assessment System for Built Environment
(IILFLHQF\
CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system for evaluating theenvironmental performance of buildings. In addition to aspects of environmental load reduction such as energy
saving, resource saving, and recycling performance, it also includes consideration of indoor comfort, landscape, andbiodiversity, and is a comprehensive check from a broad perspective.

*The above includes sold properties and properties for which certification has expired.

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Labor Environment
Basic Approach to the Labor Environment

Respect for Human Rights

Safety and HealthWork-life Balance and Diversity

Human Resource Management

Social Performance Data

Basic Approach to the Labor Environment
We recognize that the creation of a healthy, safe, and comfortable work environment for all employees is an
important factor for sustainablecorporate growth, and we promote occupational health and safety activities,
including the prevention of occupational accidents, and healthpromotion initiatives. We respect the human rights ofall people who work for our group, do not tolerate any discrimination or harassment,and strive to develop humanresources to become professionals with a good heart and build a favorable work environment.

Respect for Human Rights
Our Approach to Human Rights
The Tosei Group's approach to respect for human rights, employee ethics and norms, and occupational health andsafety is set forth inpolicies and internal regulations, including the "Tosei Group Human Rights Policy" and the "Tosei
Group Ethics Code." These policies, norms,and regulations were established through meetings of the Management
Committee and Board of Directors of Tosei Corporation, and areposted on the Company's website and intranet, as
well as distributed in the Risk Compliance Guidebook, to ensure that all employees arefully aware of them. In
addition, periodic education is provided to all employees to promote correct understanding of these policies.

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The Tosei Group respects the fundamental human rights set forth in the International Bill of Human Rights and the Guiding
Principleson Business and Human Rights. We support and respect the following items as basic labor rights.
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We prohibit all forms of discrimination based on race, religion, gender, age, sexual orientation, disability, or nationality.
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We prohibit all forms of harassment, including sexual harassment and power harassment.
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We prohibit all forms of child labor.
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We prohibit all forms of forced labor.
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We implement appropriate working hour management to reduce excessive work.

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We respect freedom of association and the right to collective bargaining.
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We comply with the Minimum Wage Law and other labor laws and regulations to pay wages to our employees above theminimumwage.
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We strive to prevent occupational accidents and create workplaces where employees can work in good health and safety.

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To fulfill our corporate social responsibility, we will always attach importance to a high standard of ethics and a law-abiding
spirit whileSXUVXLQJRXUFRUSRUDWHSKLORVRSK\DQGZLOOFRQGXFWRXUEXVLQHVVDFWLYLWLHVLQDFFRUGDQFHZLWKWKHIROORZLQJ&RGH
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We will strive for sustainable growth and the resolution of social issues by always putting ourselves in our customers' shoes and
positioning safety and security at the heart of the products and services we develop and provide, and by forever remaining
humble andconducting business activities in good faith.
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We will disclose the necessary corporate information in a fair, timely and appropriate manner in order to obtain proper ev
aluation andunderstanding from investors and wider society.
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We will make decisions based on appropriate and explainable reasoning, in accordance with laws, regulations and internal rules.
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We will understand both domestic and international laws and regulations and will never engage in any conduct that violatessuchlegislation, or in any fraudulent conduct. We will also engage in fair and free competition and appropriate transactions,and will avoidbecoming involved in bribery or other similar giving or receiving of unfair advantage in any way.
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We will not have any relationships with antisocial forces and will conduct thorough and organized crisis management to prepare
for aterrorism, cyber-attack, natural disaster or other crisis.
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We will protect and strictly manage the material information of the Tosei Group, the personal information of customers, theinformationof business partners, and other confidential information.
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We will respect human rights and will not tolerate any behavior which violates the dignity of individuals including discriminationandharassment. We will also strive to develop human resources and create working environment with mutual trust anddecency.
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We will contribute to the realization of a sustainable society by implementing initiatives to reduce our environmental impact,recycleresources and address the risk of climate change, based on a strong awareness of the importance of environmental
issues.
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We will seek harmony with local communities and the global community as a good corporate citizen and actively andcontinuouslypromote activities that contribute to society.
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The Tosei Group's Top Management recognizes that it falls to them to embody the spirit of this Code and, in the event of aviolation ofthis Code, top management will proactively take charge of resolving the issue, endeavor to identify the cause andprevent arecurrence, demonstrate accountability, including the disclosure of information to markets and society in a timely andappropriatemanner, and fairly and strictly punish those involved, including themselves.

㻡㻝Efforts to Respect Human Rights$GGUHVVLQJ/DERU,VVXHV
Prohibition of child labor
We require applicants to be at least 18 years of age to be considered for employment, and we are required toverify the age of applicantswhen we receive an application for employment.
Prohibition of forced labor,Q KLULQJ ZH DVVXPH WKDW WKH DSSOLFDQW KDV DSSOLHG IRU WKH SRVLWLRQ DQG DIWHU RQH RU PRUH HPSOR\PHQW
VFUHHQLQJV ZH QRWLI\ WKH DSSOLFDQW RI KLVKHU DFFHSWDQFH 8SRQ HQWHULQJ WKH FRPSDQ\ ZRUNLQJ FRQGLWLRQV DUH
SUHVHQWHGDQGHPSOR\PHQWLVLQLWLDWHGXSRQDJUHHPHQWZLWKWKHDSSOLFDQW
3UHYHQWLRQRIRYHUZRUN:HVWULYHWRSUHYHQWRYHUZRUNWKURXJKGDLO\DQGPRQWKO\PRQLWRULQJRIZRUNLQJKRXUVQRRYHUWLPHGD\VDQG
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We confirm the status of our suppliers' efforts to respect human rights in the supply chain. We have established a
Sustainable ProcurementManual and conduct an ESG questionnaire for suppliers whose annual transaction value
exceeds a certain level, to check their efforts toprohibit child labor, forced labor, and harassment, ensure
occupational health and safety, comply with laws and regulations, giveconsideration to the environment, andimplement risk management. The Sustainability Committee then reviews the results and discusseswhether or not tocontinue transactions with them.
In FY2022, 3 major clients in the real estate revitalization, development, and leasing businesses were surveyed andreviewed in theCommittee.

(IIRUWVWR3UHYHQW+DUDVVPHQW
In addition to distributing the "Harassment Handbook" to all Group officers and employees to provide specificdefinitions and examples ofharassment, we are working to promote understanding and prevent harassment by
distributing educational content to the Risk CompliancePortal on the intranet and providing online courses byoutside instructors. In addition, "Personnel, Labor and Management Training" isprovided to managers, which
includes training on how to respond to incidents of harassment, what they should pay attention to asmanagers, andhow to prepare themselves for harassment prevention.

㻡㻞

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The Group has established dedicated consultation desk (via e-mail or telephone) in the human resources sections ofeach Group company forthe purpose of preventing all forms of harassment and responding promptly andappropriately in the event that harassment does occur. Thisharassment consultation desk is available to all Group
employees regardless of their employment status. In resolving the problem, we willconfirm the facts through hearings
with the reporter, the subject of the report, as well as cooperating parties, etc., and take appropriatemeasures toprevent recurrence. If you wish to consult or report anonymously, you may do so through the dedicated anonymous
consultation desk. In addition, we ensure that the privacy of the informant is protected and that confidentiality isstrictly observed so thatthe informant will not be disadvantaged when using the harassment consultation desk. If an
investigation confirms that harassment hasoccurred, disciplinary action will be taken against the harasser inaccordance with the rules on rewards and punishments. In addition to theharassment consultation desk, theCompany also provides a consultation desk regarding working styles and personnel systems.
In addition to the harassment consultation desk, we have also established the "Tosei Hot Line," a whistle-blowing deskfor the entire Group,which accepts reports from employees and officers of the Group on any conduct that violates or
may violate laws and regulations, for theprevention and early detection of violations of laws and regulations andcorruption, including bribery.

Safety and HealthApproach to Safety and Health in the Workplace
We recognize that ensuring health and safety in the workplace is an important issue, and we strive to prevent
occupational accidents andpromote the creation of a healthy and safe work environment in which all employees canmaximize their abilities. We have established the"Health Committee" as a risk assessment and promotion system for
health and safety, and the committee meets monthly and reports to theBoard of Directors.

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Board of directors

Chairman of the Health Committee: Noboru Hirano, CFO and Senior
Executive Officer
Representatives from each department participate as committee
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members, and the meeting is held monthly in the presence of anindustrial physician. The Health Committee monitors the overall
working environment, including the status of the workplaceenvironment, health checkups received, and overtime hours
worked, evaluates risks related to employee health and safety, andprovides feedback to employees and takes other actions. Reports
are also made to the Board of Directors on a monthly basis.

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Personnel department

㻡㻟Health Management
Health Checkup
In addition to the legally mandated annual medical checkup, employees aged 35 and over are eligible for companysubsidized thoroughphysical examination to detect illnesses at an early stage and further promote their health.
For FY2022, the health checkup uptake rate was 100%.(Tosei Corporation)

Stress Check
The stress check system is implemented once a year for the purpose of primary prevention of mental healthproblems by helping employeesrecognize and cope with their own stress and improving the work environment.
For FY2022, the stress check examination rate was 100%.(Tosei Corporation)

Cooperation with Industrial Physician
For employees who work overtime above a certain level, including managers, an interview with an industrial
physician is mandatory, aPHDVXUHWKDWH[FHHGVWKHOHJDOVWDQGDUG

Health Promotion Programs
In addition to regular health checkups, we offer health promotion programs that employees caneasily participate inon a voluntary basis. In 2022, we held "health seminars" by public health
Relaxation Seminarnurses and "relaxation seminars" withyoga instructors.

Mental healthcare
Questionnaires and training on mental health care are conducted for all employees under the guidance of affiliatedindustrial physicians. Inaddition, in cooperation with affiliated hospitals, we have set up a dedicated desk where
employees can directly seek health consultation.

Measures to Prevent the COVID-19 Infection
In response to the spread of the COVID-19 infection, we implemented measures to ensure the health and safety of
employees, their families,business partners, and others, such as requiring the wearing of masks, installing
disinfectants, ventilating office and meeting rooms,encouraging hand sanitization, and installing acrylic panels. In
addition, working from home is encouraged, and a teleworking environmenthas been prepared by distributing mobile
terminals, utilizing the cloud, building PCs with external connectivity, and establishing various otherinfrastructure.

Occupational Safety and Health
Employee Safety and Health
We recognize the importance of a healthy, safe, and comfortable work environment for all employees in order toachieve sustainablecorporate growth, and we are promoting occupational health and safety activities, including theprevention of occupational accidents, and thepromotion of employee health. In the event of an occupational accident,
the Human Resources Department, which is the main managementdepartment, will promptly confirm the situation
and, in cooperation with the department where the incident occurred, report to and consultwith various meetings andrelated organizations in an effort to contain the situation and take appropriate measures. In addition, we promptly
formulate and implement countermeasures, ensure that all employees of the Group are fully aware of thesemeasures, and continuouslyfollow up to prevent recurrence.
For FY2022, the number of violations of labor standards and the number of occupational accidents were 0.(Tosei
Corporation)
㻡㻠6DIHW\DQG+HDOWKLQWKH6XSSO\&KDLQ
4XHVWLRQQDLUH(6*We confirm the status of our suppliers' efforts to respect human rights in the supply chain. We have established a
Sustainable ProcurementManual and conduct an ESG questionnaire for suppliers whose annual transaction value
exceeds a certain level, to check their efforts toprohibit child labor, forced labor, and harassment, ensure
occupational health and safety, comply with laws and regulations, giveconsideration to the environment, andimplement risk management. The Sustainability Committee then reviews the results and discusseswhether or not tocontinue transactions with them.
In FY2022, 3 major clients in the real estate revitalization, development, and leasing businesses were surveyed andreviewed in theCommittee.

$SSURDFKWR5HDO(VWDWH3RUWIROLR0DQDJHPHQW
In managing our real estate portfolio, we focus not only on our Group's employees, but also on
selectedsubcontractors, with an emphasis on employee health and safety, compliance, and othersustainabilityconsiderations. Our group holds "Operations Quality Improvement Conventions," inwhich lectures are given ontopics such as safety management and compliance in operations toimprove the quality of operations, and to build astrong cooperative system with partnercompanies. The convention was organized by Tosei Community Co., Ltd., aproperty
management business, and was attended by the company's major clients, and is part of theTosei Group'ssupply chain engagement in its real estate portfolio.

3HUFHQWDJHRI2IILFHVZLWK2+6$6&HUWLILFDWLRQCurrently, we have no offices with OHSAS 18001 certification.

㻡㻡Convention

Work-Life Balance and Diversity
Working Hours Management&RPSOLDQFHZLWKODERUUHODWHGODZV
To reduce long working hours and comply with the 36 Agreements, we comply with the Labor Standards Law, theIndustrial Safety andHealth Law, and other domestic laws and regulations, and strive to properly manage working
hours and the working environment.

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We manage employee working hours on a daily basis through our attendance management system, and notify
employees and theirsupervisors whose overtime hours exceed a certain threshold.
We are promoting initiatives to reduce overtime and excessive work, such as the introduction of "No OvertimeDays.
We report the results of monthly monitoring of employee overtime and use of paid leave to the Health Committee,
and after sharinginformation, we are working to reduce overtime and promote the use of paid leave.
We provide an occupational physician consultation to employees whose overtime hours exceed a certain standard.
For FY2022, the average overtime hours was 24.5 hours per month.(Tosei Corporation)

Encouraging Employees to Take Paid Leave
To create an atmosphere that encourages employees to take paid leave, we have introduced "anniversary leave,"which allows employees totake a day of paid leave once a year on an anniversary date they voluntarily set, and"planned annual leave (1 day)," which allowsemployees to take a summer vacation for a longer period of time.
For FY2022, the paid leave utilization rate was 68.3%.(Tosei Corporation)

Various Leave Systems
To support changes in life due to life stages such as childbirth, childcare, and nursing care, we have establishedvarious systems includingmaternity leave, childcare leave, and nursing care leave.
For FY2022, the maternity leave utilization rate is 100%, the female childcare leave utilization rate is 100%, andthe male childcare leaveutilization rate is 40%.(Tosei Corporation)

Flexible Working Systems
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Employees who care for children in the third grade of elementary school or younger and those who care for family
members in need ofnursing care* may shorten their working hours by 30-minute increments up to a maximum of
two hours per day. In addition to this,employees who care for children in the third grade of elementary school or
younger are allowed to stagger their work hours by 30-minuteincrements, up to a maximum of one hour before orafter the start and end of the workday.
*The coverage is three years from the start date of use per family member in need of care for.
For FY2022, the number of employees using shortened working hours was 6.(Tosei Corporation)

㻡㻢:RUNLQJ)URP+RPH
As a measure to prevent the spread of the COVID-19, we are promoting the use of cloud services and web meetings
to encourage workingfrom home.

In-house Club Activities
We provide subsidies for in-house club activities to stimulate communication among employees. So far, a total of 11
cultural and athleticclubs have been established, providing valuable opportunities for communication with employees
in departments and group companies withwhich they have little contact in their daily work.

Family Days
We hold family days once a year to give children a better understanding of theirparents' job andworkplace. In 2019, a total of 20 families or 62 family members
attended the family day and enjoyedactivities such as swapping business cards, astamp rally around the offices, and making models ofhomes. The day also served as asocial occasion for employees and their family members to get to knoweach other.
*Canceled from 2020 to 2022 because of the pandemic of COVID-19.
Business card exchange experience
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Employee Satisfaction Survey
We implemet employee satisfaction surveys to gain an understanding of employees' attitudes toward their work andthe workplaceenvironment, which is reflected in various personnel policies.
In the survey for the fiscal year ended November 30, 2021, 59.6% of employees selected the top 2 items out of 5 in
the "Job Satisfaction"question.(Tosei Corporation)*Not implemented in FY2022.

LGBTs Initiatives
Tosei Group prohibits any discrimination related to sexual orientation in our human rights policy. In addition, we haveestablished a contactpoint (anonymous or otherwise) for consultation in the unlikely event of discrimination orharassment related to sexual orientation, etc., andhave built a system to deal with the situation promptly.
,QLWLDWLYHVIRU&RQGRPLQLXP6DOHV

Princess Square Co.,Ltd. is promoting various initiatives to support LGBTs people in finding and purchasing housing,including holdingseminars for employees with outside lecturers and sponsoring the "Tokyo Rainbow Pride" since
2018. In addition, the company has receivedthe highest "Gold" rating for three consecutive years since 2020 in the"PRIDE Index," which evaluates a company's commitment to LGBTspeople.

㻡㻣+XPDQ5HVRXUFH0DQDJHPHQWApproach to Human Resource Development+XPDQ5HVRXUFH'HYHORSPHQW%DVHGRQWKH*URXS V&RUSRUDWH3KLORVRSK\In order to realize the Tosei Group's goal of "becoming a group of seasoned professionals who create new value andinspiration in all aspectsof real estate," our human resource development goal is to create an organization in which
each and every employee can strive to improvetheir knowledge and skills, and maximize their motivation andabilities. We value diversity in the hiring, development, and promotion ofhuman resources, and provide equal
opportunities for growth and success to those who continue to pursue our corporate philosophy,regardless of gender,
nationality, or employment history.

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The Group positions human resource development as a total system that includes the creation of training
opportunities for employees, aswell as promotion, transfer, and evaluation, and focuses on "training from various
perspectives," "on-the-job training," "support for self-GHYHORSPHQWDQGFRRSHUDWLRQZLWKYDULRXVSHUVRQQHOV\VWHPV
Training from various perspectives
In the rank-based training, employees acquire the skills and abilities to perform their jobs in a systematic,
intensive, and experientialmanner. Job-specific training provides systematic, intensive, and experiential learning of
the value-added competencies defined for eachorganization and job category. Training common to all employees(training in essential knowledge and skills that all employees mustacquire) includes various compliance training
programs, English language training, and IT literacy training.
On-the-job training (OJT)
It is a systematic training program for employees to provide each other with necessary information, knowledge,
skills, and experience thatare closely related to their work. Through this process of mutual development, we aim to
improve the leadership and instructional skills ofnot only those who receive instruction but also those who promote
OJT.
Support for Self-Development
In order to support the self-development of each employee to develop his or her own abilities, we have establisheda system ofcongratulatory payments for the acquisition of various qualifications, and support for attendance atcourses sponsored by educational andtraining institutions designated by the company.
Cooperation with Various Personnel Systems
In order to promote the growth and vitalization of each employee and the organization, we make much account ofopportunities forcommunication with each individual, such as providing regular feedback on the results ofpersonnel evaluations, regular reports on OJT,and opportunities to meet with managers and the Human Resources
Department to discuss career development and job rotations.

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informationand insider trading.

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In order to support the self-development of employees and to promote the acquisition of qualifications necessary forthe licensing ofoperations related to the Company and the Group, and to contribute to the promotion of humanresource development of the Company, theCompany has a system to provide congratulatory money for theacquisition of such qualifications.
For FY2022, the number of newly qualified employees was 28.(Tosei Corporation)

Social Performance Data
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70/47

84/64

96/64

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86

117

148

160

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125/81

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139

157

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206

207

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119/61

152

142

161

190

180

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53/13

58/15

67/13

84/13

51

66

73

80

97

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8/2

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6

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101/6

104/5

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Coverage‫؟‬Tosei CorporationPercentage of women in average annual wages, with men as 100Target Periods‫؟‬FY2022 (from December 1, 2021 to November 30, 2022)

Wages‫؟‬Includes fixed salary, remuneration for overtime, bonuses, etc., and excludes retirement allowance, commuting allowance, etc.

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Coverage‫؟‬Tosei Corporation

Number of employees who acquired encouraged qualifications

Includes seminar-type 1-day internship㻢㻟Response to Social Needs
Approach to Responding to Social Needs

Management of Product Quality

Providing Value Through Products and Services

Approach to Responding to Social Needs
The Group's ESG policy states that it will contribute to tenants, regions, and communities through owned real estate, etc.,
and the Group strives to engage in dialogue and collaboration with all stakeholders, aiming to coexist in harmony with
regions and communities. We will strive to provide value that is supported by all stakeholders by responding to social
needs through our business, including product quality control, reduction of environmental impact, energy conservation,enhancement of disaster prevention and crime prevention functions, and revitalization of local communities.

Management of Product Quality
Approach to Quality Control
Our group provides products and services related to all types of real estate, including office buildings, condominiums,
detached houses, commercial facilities, logistics facilities, and hotels, and we are closely involved in the lives of ourcustomers. We are committed to enhancing customer satisfaction by providing products and services that are rooted insafety and security and ensuring quality, always from the customer's perspective.

ISO9001
Tosei's Architecture Planning Department has acquired ISO 9001 certification for the planning, design,
construction management, and after-sales service (regular inspections) of condominiums, officebuildings, commercial buildings, and detached houses, and conducts strict quality control in accordancewith ISO 9001. Tosei Community Co., Ltd., a subsidiary of Tosei Corporation, is also an ISO 9001certified entity that undertakes the planning and provision of general management operations forcondominiums, office buildings and rental condominiums.
(Updated May, 2022)

Meetings for examining quality improvements
In conjunction with the construction or renovation of new or existing office buildings and condominiums, among otherproperties, Tosei conducts detailed checks on specifications and indepth meetings with the attendance of three parties the Company, design and construction management companies, and construction companies. It seeks to strengthen
collaboration among concerned parties to provide better products while preventing the occurrence of issues.

㻢㻠TOSEI-QC-10
Tosei manages all processes related to the construction and maintenance of new or existing officebuildings or condominiums through three parties - the Company, design and construction
management companies, and construction companies - based on Tosei's unique quality control
standards, TOSEI-QC-10. Tosei strives to provide customers with safe and reliable products byconducting inspections and particularly rechecking those items that customers cannot oversee.

Providing Value Through Products and Services
Through Our Revitalization BusinessIn the revitalization business, we create new value by revitalizing various assets ranging from condominiums to officebuildings, hotels, and logistics.

ŶRenovation of company housing x Concept housing for music lovers"T-Rhythmic SOKA" was a vacant company housing, which we acquired andrenovated into a rental apartment with improved sound insulation performance.
Of the 52 apartments, 24 studio apartments were soundproofed, and the floor
used as a cafeteria was converted into a party room, creating a space whereresidents can gather to hold events and deepen exchanges while relaxing freely
Party room renovated from cafeteriawith each other.
ŶHotel Revitalization x Contribution to Local Communities"Tosei Hotel & Seminar Makuhari" was a 27-year-old, aging accommodation andtraining facility that was comprehensively revitalized in terms of both hardware
and software through our real estate M&A of the entire management company.
The number of accommodation rooms was increased from 79 to 137, and eachroom was newly equipped with toilet, washbasin, and other water facilities toenhance its superiority as an accommodation facility. In addition, based on therevitalization concept of "a hotel, a seminar house, and a space that contributes
to the local community," a lounge open to the local community was created byutilizing the existing space. The lounge invites seasonal events and also serves
as a venue for local traditional performing arts. Restaurants in the hotel offer"local production for local consumption" menus using local ingredients, so thehotel contributes to the creation of liveliness and local revitalization through theoperation of its facilities.

㻢㻡

Restaurant renovated from cafeteria

Through Our Development Business
Aiming to contribute to the SDGs by creating housing
In our housing development business, we are creating houses with the aim of contributing to the SDGs.

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Creation of comfortable residences
The project team, which was formed to respond to diversifying lifestyles, plans and proposes "comfortable houses for all
family members" with meticulous thinking from the perspective of real life. The floor plans proposed by the project havebeen adopted in some of the properties.

Ŷ7+(3DOPV&RXUW.DPDNXUD6KLURPHJXUL:HSODQQHGKRXVHVZKHUHDOOIDPLO\PHPEHUVFDQHDVLO\SDUWLFLSDWHLQKRXVHZRUNZLWKDQH\HRQWKHPRYLQJOLQHDQGKRXVHVWRHQMR\KREELHVZLWKDODUJHVKRHLQFORVHWZLWKDFRXQWHUIRU',<Ŷ7+(3DOPV&RXUW+LEDULJDRND:HSODQQHGKRXVHVZKHUHZRPHQFDQIHHOVSHFLDOHTXLSSLQJDZDONLQFORVHWZLWKDGUHVVHUGLUHFWO\FRQQHFWHGWRWKHPDVWHUEHGURRP
DQGDWPRVSKHULFLQGLUHFWOLJKWLQJLQWKHOLYLQJURRP㻢㻢Creation of Community Space in CondominiumsŶUrban Development that Fosters Community
The detached houses block "THE Palms Court Kashiwa Hatsuishi" has a "cul-desac," a turnaround plaza that cars cannot get through, not only to foster interaction
among residents but also to bring into safety. In the condominiums, we actively
adopt community spaces that can be freely used for any purpose, such as "study
room," "guest room," "party room," and "moms and kids lounge" to create acomfortable environment for residents with various lifestyles.

THE Palms Court Kashiwa HatsuishiŶUrban Development Open to the Local Community
In front of the entrance of the condominium "THE Palms Sagamihara Park
Brightia," a park has been set up to provide a place for residents and local
residents to get close to nature and relax. Three "kamado benches" that can beused as kamado in the event of a disaster and some solar-powered streetlights
have been installed as efforts to prevent disasters.

THE Palms Sagamihara Park Brightia

Barrier-Free Houses
THE Palms Court series of condominiums for sale includes barrier-free "Withstyle"homes for the elderly. These homes, Tosei applies a unique design code consisting of
10 items based on the concept of a permanent residence, to create house designs
suitable for any situation in a long life. Features include the installation of a closetthat can be converted into an elevator at low cost should an elevator become
necessary in the future and wheelchair-accessible designs.

THE Palms Court Hashimoto(sold in 2016)

Through Our Rental and Property Management Business
Efforts to Improve Convenience and Comfort
We are also promoting efforts to improve convenience and comfort in our residential andoffice rental and management EXVLQHVVHV,QRXUUHQWDOKRXVLQJZHDUHFUHDWLQJFRPPXQLW\VSDFHVDQGUHQRYDWLQJWKHGHVLJQRIDJLQJFRPPRQDUHDVZKLOHLQRXUUHQWDORIILFHVZHDUHZRUNLQJWRDWWUDFWVKDUHGELF\FOHVDQGIRRGWUXFNVFood truckŶT‫ދ‬s garden Kitakashiwa
We revitalized an idle company housing consisting of three buildings andupgraded it into a rental apartment for families. Targeting families raisingchildren, we created three community spaces: a "kids' room" whereparents and children can play together without worrying about theirsurroundings, a "party room" where friends and relatives can gather andenjoy cooking classes or birthday events, and a "study room" whereresidents can have time alone to study or read books. We provide
kids' room

comfortable living spaces for various occasions.

㻢㻣Through the Fund BusinessResilience
We are working to strengthen resilience in asset management and property management in the real estate fund businessto ensure the safety and security of our tenants through prompt recovery in the event of a disaster. In addition to the"Earthquake Countermeasures Manual" established by Tosei, the REIT Division and Private Fund Division of Tosei Asset
Advisors have established their own BCP (Business Continuity Plan), information disclosure manual in the event of anearthquake, and reporting manual in the event of an emergency, to ensure an appropriate response system in an
emergency.

Through the Hotel Business
Environmental Efforts
Tosei Hotel COCONE and Tosei Hotel & Seminar Makuhari offer an eco-friendly cleaning plan for guests staying forconsecutive nights.

Contribution to Local CommunitiesŶRegional revitalization, community building
Some hotels are collaborating with local tourism operators to contribute to local revitalization. "COCONE Kamakura"offers a plan that includes "Noriorikun," a ticket for unlimited one-day rides on the Enoden train, and "COCONE
Asakusa Kuramae" offers a plan that includes kimono rental and dressing. "Tosei Hotel & Seminar Makuhari" is also
actively involved in activities that contribute to the local community. The restaurant uses local ingredients in its menu
for local production for local consumption, and the lobby on the first floor is open to the public and seasonal social
events are held for local residents to participate. In addition, the hotel provides opportunities for guests to casuallyparticipate in social contribution activities by introducing donation-type vending machines.

㻢㻤Social Contribution
Approach to Social Contribution

Contributions to Society

Donation Activities

Approach to Social Contribution
The Group's ESG policy states that it will contribute to tenants, regions, and communities through owned real estate, etc.,
and the Group strives to engage in dialogue and collaboration with all stakeholders, aiming to coexist in harmony with
regions and communities. Through our group's business activities, we will strive to solve social issues and add value
related to real estate, contribute to the creation of local employment, economic vitality, and sustainable development of
the area, as well as promote comprehensive and continuous social contribution activities in harmony with local andinternational communities as a good corporate citizen.
In our social contribution and donation activities, we will focus on the priority areas of "coexistence with local
communities," "natural environment conservation," and "social welfare." Based on our corporate philosophy of "creating
new value and inspiration in all aspects of real estate," we will engage in activities that contribute to the revitalization andcommunity building of the regions where our properties are located, the preservation of the natural environment, and theenhancement of welfare, mainly in our business area, the Tokyo metropolitan area. In the event of a natural disaster, we
aim to contribute broadly to society by providing assistance to people in difficult circumstances.

Contributions to Society
Environmental Preservation and Beautification
Participation in the "Tokyo Satoumi Aid from West Nagisa" event to clean up
floating garbage
We have participated in volunteer cleanup activities since 2009. In 2022, 39 employees of our group and their families
participated in "Tokyo Satoumi Aid from Nishi-Nagisa," an event to clean up floating garbage in Kasai Marine Park. The
type and amount of trash collected was counted to help in the investigation of the cause of the floating garbage. Throughthis activity, we aim to raise awareness of the social issues such as trash reduction and marine resource conservation.
*Cleanup events are conducted with adequate infection prevention measures in place.

Plastic waste

Cleaning in progress㻢㻥Participants and collected debris

FY2022 Activity Results
Date of Activity

Number of Participants

Garbage Collected

October 22 (Saturday)

39 persons

300ľ

Total

39 persons

300ľParticipation in the "Minato City Adopt-a-Program," a community cleanup
activity
Since October 2022, we have been participating in the "Minato City Adopt-a-Program" and engaging in community cleanup
activities. The "Minato City Adopt-a-Program" is an agreement between Minato City and organizations that live, work, or
study in Minato City to collaborate in the maintenance and management of roads, parks, and other facilities. In principle,
once a month, employees of our group pick up trash and remove weeds from the streets and parks around our head
office. Through these activities, the Group will contribute to environmental preservation and beautification of the Minato
City where the head office building is located.

FY2022 Activity Results
Date of Activity

Number of Participants

Garbage Collected

October 21 (Thursday)

9 persons30.0ľ

November 17 (Thursday)

9 persons

31.9ľ

Total

18 persons

61.9ľ

㻣㻜

Local Revitalization and Community Building
Tosei Hotel & Seminar Makuhari provides a place for families and local residents to communicate with each other throughlive performances by professional musicians to make music accessible to local residents in line with Narashino City's
concept of "a city of sports and music," as well as workshops by clay sculptors. In addition to the use of local ingredientsin restaurant menus for local production for local consumption, the hotel provides opportunities for local residents andhotel guests to casually participate in social contribution activities by introducing donation-type vending machines.

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FY2022 Event Track Record
Date of the Event"Art na Natsuyasumi" (Summer
Vacation of Art)
"Art na Haruyasumi" (Spring
Vacation of Art)
"Art na Christmas" (Christmas ofArt)

Number of Participants

August 14, 2022 (Sunday)

10 groups / 33 persons

March 19, 2022 (Saturday)

11 groups / 37 persons

December 12, 2021 (Sunday)

19 groups / 59 persons

Support for Children's Homes
Since 2021, we have been providing volunteer support to Ayumi Gakuen, a children's home in Hanyu City, Saitama
Prefecture. In 2022, we supported the school's summer vacation trip, helped organize the school festival and Mochi-tsuki
event. Although the scope of our activities is limited due to the COVID-19 disaster, we will continue to consider andimplement support activities.
*Events at the facility are carried out with adequate infection prevention measures in place.

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0HPRULDO3DUN&HQRWDSK.D\DNLQJ([SHULHQFH

㻣㻝Realization of a normalized society, regional revitalization
On October 22, 2022, we sponsored "Sports of Heart 2022," a sports and culture festival that everyone can enjoy, inTokyo. The "Sport of Heart" is a project launched in 2012 by Paralympians in cooperation with organizations, companies,
and ministries to realize a normalized society that transcends the boundaries of disability, health, nationality, and gender.
The event was connected to the concurrent Oita venue, where the Normalize Ekiden relay race was broadcast live in Oita,
DVZHOODVVSRUWVH[SHULHQFHVDUWZRUNVKRSVDQGD1RUPDOL]HIDVKLRQVKRZDisaster Support
In 2011, immediately after the earthquake, the Tosei Group began support activities by volunteers and inviting experts
and making donations. One year after the earthquake, we began support activities in cooperation with a NPO, the"Association for the Support of Children's Homes," based in Higashimatsushima City, Miyagi Prefecture, that conducts
volunteer activities.

Main Activities*URXQGPDLQWHQDQFH

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We collected donations from our group employees and other voluntary members anddonated 28 taiko drums to Naruse Mirai Junior High School, which had just opened in
Higashimatsushima City. In this city, taiko performances have long been popular atelementary and junior high schools, but many were lost due to tsunami damage. The
school and community members were very delighted that the donated taiko drums
enabled them to perform at the school festival.
Donated Japanese drums

㻣㻞Donation Activities
Donation through the NPO Japan Platform
In 2022, we donated 1 million yen through a NPO, Japan Platform, for the purpose of providing humanitarian assistance tothe people of Ukraine.

Donation to Children's HomeIn 2022, we donated two recorders and two refrigerators to the children's home Ayumi Gakuen. They said they were very
pleased to see that the children are now able to live more comfortably and enjoyably. We will continue to listen to theneeds of the home and consider supports that are really needed.

Donation through the NPO Association for Support of Children's Homes
Since the Great East Japan Earthquake in 2011, we have donated 1 million yen annually to the Association for the Supportof Children's Homes, an NPO that supports children living in children's homes. In addition to supporting children's homes,
the donation is also used to support the areas affected by the disaster.

Collection and donation of plastic bottle caps through the NPO Ecocap Promotion
Association
We collect plastic bottle caps and through a NPO,the Ecocap Promotion Association, convert them into recycled plastic
material and donate them to various social contribution activities such as medical assistance, support for people withdisabilities, and environmental education for children.

The Green Feather Fundraising Activity
The activity aims to provide support for a range of programs, such as the maintenance of forests, development of forestry
volunteers and provision of forestry and environmental education for children.

㻣㻟Donations and Contributions Data

FY2020

FY2021

FY2022

Total amount of
donations and

2,000,000 yen

1,448,000 yen

2,519,864 yencontributions

Recipient

Purposes

Association for the Support of Children's Homes

Support for disaster-affected areas and children's(NPO)homes(2011〜2022)
Support for victims of the Western Japan heavy rainfall

The Japanese Red Cross Society

disaster, Typhoons Faxai and Hagibis(2019)

Higashimatsushima City Naruse Mirai Junior HighDonation of Japanese drums(2018)

SchoolSupport for medical institutions in dealing with COVID-Tokyo Coronavirus Medical Support Fund

19(2020)
Donation of two TVs and an air conditioner(2021)

Ayumi Gakuen (children's home)
Donation of two recorders and two refrigerators(2022)
Japan Platform (NPO)

Humanitarian Assistance to Ukraine(2022)

㻣㻠

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Corporate GovernanceFundamental Approach toward Corporate

Corporate Governance Report

GovernanceCorporate Governance System

The Reasons for Election of Independent Officers

Independent Officers' Remuneration

Internal Control System

Fundamental Approach toward Corporate Governance

Our Group aspires to be a valuable contributor to all kinds of our stakeholders in the society, including the shareholders,the employees, the business partners and others, by promptly and appropriately responding to the changes in thebusiness environment and continuing operational activities which enable the Group to achieve a sound growth. For thispurpose, the Group has placed the greatest importance on enhancement of corporate governance, and in particular, “fully
cultivating compliance mind,” “enhancing risk management” and “conducting timely disclosure” as three key initiatives.
Furthermore, the Group is determined to make efforts in a unified manner, from the top management down to each
employee of the Group companies, led by the Board of Directors, to develop an internal control system as required by theCompanies Act and the Financial Instruments and Exchange Act, as well as to set up a system which is credible toinvestors, as a financial instruments business operator.

㻣㻢Three Important Items in Corporate GovernanceCompliance
We place compliance at the top of our agenda and raise awareness of it from top management to all employees of
the Group companies.

Risk Management
Assuming every possible risk, we prepare and practice emergency responses under normal conditions with a special
focus on eliminating relationships with anti-social forces.

Information Disclosure
We practice disclosure and communication appropriately and on a timely basis to all stakeholders including
shareholders.

Basic Policy on Corporate Governance
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Basic Policy on Corporate Governance（PDF：178KB）

Corporate Governance Report
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Corporate Governance Report（PDF:708KB）

Corporate Governance System
Corporate Governance System㻣㻣As of March 1, 2023

Reasons for Adopting the Current Corporate Governance System
The Company has set up the Board of Directors and the Audit & Supervisory Board. While appointing from outside its
outside directors and all of its Audit & Supervisory Board Members, it has also adopted an executive officer system, for the
purpose of operating its businesses with high transparency. All of the Audit & Supervisory Board Members of the Company
have been outside Audit & Supervisory Board Members since the time of listing. The Audit & Supervisory Board Members
have always performed audits of the business management of the Company from the viewpoints of ensuring andincreasing the Company’s corporate value and the common interests of its shareholders. The Company further enhances
its supervisory function over its management by inviting outside directors to the Board of Directors. On the management
side, the Company has employed the executive officer system so as to achieve optimal distribution of decision-making
functions and operational duties, as well as encouraging the delegation of authority in executing the businesses, in an
attempt to strengthen its corporate governance.

Board of Directors
The Board of Directors is constituted by nine directors, three of whom are outside directors. As the highest management
decision-making body, the Board of Directors makes resolutions on management policies and material issues and alsosupervises the execution of duties by the directors. In addition, the outside directors (the independent directors), bysharing their opinions from their objective standpoint, provide advices and suggestions to ensure the adequateness andappropriateness of the decisions made by the Board of Directors.

Nominating and Compensation Advisory Committee
The Company established the Nominating and Compensation Advisory Committee voluntarily as a consultative body to the%RDUGRI'LUHFWRUVWRHQVXUHDSSURSULDWHQHVVDQGWUDQVSDUHQF\LQVXFKPDWWHUVDVWKHSURFHVVRIVHOHFWLQJFDQGLGDWHVLQ
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Executive Officer System
The Company has adopted the executive officer system in order to more clearly segregate the monitoring/supervision of
the Company’s business management, which is the duty and responsibility of the directors, from the execution of thebusiness and currently ten executive officers hold this post. All of the Company’s executive officers are appointed by the
Board of Directors to adhere to its internal rules and regulations in executing and controlling the business operations of
the Company. In addition, the Management Committee, which comprises all executive officers, discusses matters to beresolved by the Board of Directors in advance and provides advice on important decisions to be made by the CEO inadvance.

㻣㻤Corporate Governance Meeting
With the aim of continuously strengthening its corporate governance, the Company holds the Corporate Governance
Meetings constituted by six full-time directors and two full-time Audit & Supervisory Board Members monthly. At themeetings, the directors and the Audit & Supervisory Board Members review and discuss the corporate governanceconcerns and the internal control matters in an effort to increase the corporate value of the Company, and where
necessary, they receive advices from the outside experts such as corporate attorneys and/or certified public accountants.

Audit & Supervisory Board
The Company has adopted the Audit & Supervisory Board Member system and has the Audit & Supervisory Board with two
full-time and two part-time Audit & Supervisory Board Members, all of whom are outside Audit & Supervisory Board
Members. They audit the operation of the Board of Directors and execution of duties of Directors from an independent andobjective standpoint, and provide constructive advice and recommendations for the increase of corporate value with theirknowledge.

Cooperation between Audit & Supervisory Board Members and Internal Audit
Department (The Threefold Auditing Structure)
The auditing activities by the Audit & Supervisory Board Members are performed inaccordance with an annual audit plan. By cooperating with the accounting auditors as
Audits by corporate
auditors

well as with the Internal Auditting Department, the Company has developed an efficientand viable auditing system. The full-time Audit & Supervisory Board Members regularly
meet with each of the directors and officers in charge of each department, so as to fully
understand the status of the business execution and regularly exchange opinions withthe outside directors.
The Internal Audit Department under the direct supervision of the President and CEO
performs audits for the entire Group in accordance with their annual auditing plan. In

Internal audits

the event any inadequacy is discovered, recommendations for corrective actions are
made to the audited departments. The audit has been quite effective as the Internal
Audit Department discusses with the audited departments as to the issues in need ofcorrective actions and follows up with specific guidance.
The audit of the Company’s accounts is performed based on the annual audit plan. In
addition to the full-year audit performed at the end of the fiscal years, Company’s Audit
Company (Shinsoh Audit Corporation) conducts reviews at each quarter end. The

Audits by theaccounting auditor(Shinsoh Audit
Corporation)

periodic replacement and re-engagement of the accounting auditor in accordance withthe rules and regulations of the audit corporation under the Certified Public Accountants
Act are operated as follows;
The Engagement Partner may not be involved in the company's auditing operations
for more than seven accounting periods.
The Engagement Partner may not be involved in the company's auditing operations
for two accounting periods after being replaced.

㻣㻥Attendance at Meetings of the Board of Directors, Nominating andCompensation Advisory Committee, and Audit & Supervisory Board (FY2022)
Nominating andName

Position

Board of Directors

Compensation

Meetings

Advisory(AttendanceCommittee/Number of(Attendance

meetings)/Number ofAudit &
Supervisory
Board(Attendance/Number of
meetings)

meetings)
Seiichiro
Yamaguchi

President and CEO

24／24

2/2

-

24／24

2/2

-

24／24

-

-

23／24

-

-

24／24

-

-

24／24

-

-

CFO and Senior Executive
NoboruOfficer of Administrative Division

Hirano(in charge of Human Resource
Department)
Director, COO and Senior
Executive Officer of Business

HidekiNakanishi

Division(in charge of Asset Solution
Department 4 and Asset
Solutions Business Promotion
Department)
Director, Managing Executive

MasaakiWatanabe

Officer, Deputy Chief of Business
Division(in charge of Asset Solution
Department 5)
Director, Executive Officer

Shunsuke(in charge of FinanceYamaguchi

Department and General Affairs
Department)
Director, Executive Officer

Hitoshi(in charge of Asset Solution

OshimaDepartment 1 and Crowd
Funding Department)㻤㻜KenichiShohtoku
Hiroyuki
Kobayashi
Masao
Yamanaka

Outside Director

23／24

2/2

-

Outside Director

23／24

2/2

-

Outside Director

23／24

2/2

-

24／24

2/2

16/16

24／24

-

16/16

21／24

-

13/16

24／24

-

16/16

Outside Audit & Supervisory
Hitoshi Yagi

Board Members(full-time)

Toshinori
KurodaOutside Audit & Supervisory
Board Members(full-time)

TatsukiOutside Audit & Supervisory

NaganoBoard Members

Osamu Doi

Outside Audit & Supervisory
Board Members

The Reasons for Election of Independent Officers
Basic Policy for Appointment of Directors
When nominating candidates for the Board of Directors, those who execute the business are nominated who have thenecessary knowledge as Directors and are familiar with the Group's finances, business, and other aspects of the Group.
For Outside Directors, are nominated persons who can be expected to supervise management from an independent andobjective standpoint and provide constructive advice and suggestions to Directors concurrently serving as Executive
Officers. At present, there is no female Director in office, but the Group considers that a diverse membership in terms ofgender, internationality, professional experience, and age will contribute to the medium- to long-term growth of theGroup, and if suitable candidates are found in the future, the Company will intend to appoint them.

㻤㻝Skill Matrix for the Board of Directors

Status of Outside Directors
The Company has three Outside Directors and four Outside Audit & Supervisory Board Members. With regard to thenomination of Outside Directors, the Company elects persons who can oversee the management from an independent andobjective standpoint and be expected to provide constructive advice and recommendations to Directors concurrently
serving as Executive Officers. In nominating Outside Audit & Supervisory Board Members, the Company elects persons
who can be deemed to audit the operation of the Board of Directors and execution of duties of Directors from an
independent standpoint, and who are expected to provide constructive advice and recommendations for the increase of
corporate value with their knowledge.

㻤㻞The Reasons for Election of Independent Officer
Outside Directors
Name

Reason for the election
Director Kenichi Shohtoku, a certified public accountant, he has an extensive
experience and knowledge including those relating to overseas business. He has
provided invaluable advice on various occasions such as the Board of Directors’
meetings of the Company, liaison meetings with the Audit & Supervisory Board

Kenichi Shohtoku

Members of the Company, etc. and has worked energetically to enhance thegovernance system of the Company and the Group as well as to ensure theappropriateness of financial reporting. Considering that he is indispensable for the
maintenance and improvement of corporate governance structure for further
expanding the Group and enhancing the checking functions in the future while
paying attention to ESG issues.
Director Hiroyuki Kobayashi, has extensive experience and expert knowledge,
accumulated mainly at major financial institutions. With his objective monitoringand proposals based on his abundant experience and expertise, he has been

Hiroyuki Kobayashi

contributing to more active discussion at Board of Directors meetings andimproves their effectiveness. Considering that he is indispensable for the
maintenance and improvement of corporate governance structure for further
expanding the Group and enhancing the checking functions in the future while
paying attention to ESG issues.
Director Masao Yamanaka has provided legal advice to a number of companies
and has extensive experience as a lawyer and a wealth of expertise in corporate
law. Furthermore, serving as outside auditor of multiple listed companies, hepossesses considerable expertise in governance of listed companies, and he is a

Masao Yamanaka

notably effective person for supervising governance of the Group, as we aim for
expansion of the Group. Considering that he is indispensable for the maintenanceand improvement of corporate governance structure for further expanding theGroup and enhancing the checking functions in the future while paying attention
to ESG issues.

㻤㻟Outside Audit & Supervisory Board Members
Name

Reason for the election
Full-time Outside Corporate Auditor Hitoshi Yagi has extensive experience in theauditing divisions of major financial institutions and professional insight based on

Hitoshi Yagi

his qualifications as a Certified Internal Auditor (CIA) and a Certified Information
Systems Auditor (CISA), and the Company believes that he can perform his roleto ensure the appropriateness and appropriateness of the Company's
management.
Full-time Outside Audit Supervisory Board Member Toshinori Kuroda hasabundant experience including overseas assignment primarily at a major financial

Toshinori Kuroda

institution as well as specialist knowledge and the Company believes that he canperform a role in ensuring the adequacy and appropriateness of the Company’s
management.
Outside Audit Supervisory Board Member Tatsuki Nagano has experience at major
financial institutions and continues to be involved in corporate management andTatsuki Nagano

the Company believes that he can utilize his extensive experience and a high levelof expert insight to perform a role in ensuring the adequacy and appropriatenessof the Company’s management.
The Company believes that Osamu Doi can perform a role in ensuring theOsamu Doiadequacy and appropriateness of the Company’s management based on his
abundant experience at major security companies and at companies that conduct
investment banking activities as well as his specialist knowledge.

Independent Officers' Remuneration
Outline of the Remuneration System for Directors and Policy for Determining
Remuneration
Remuneration for full-time Directors consists of monetary remuneration, comprising a “fixed salary” which is scaled
according to duties, “performance evaluation remuneration” which is based on the achievement of individual goals such as
the performance of each full-time Director, and “Directors’ bonuses” which are linked to consolidated profit before tax, and“stock options” which are aimed to increase the desire and motivation to contribute to the medium- to long-term
enhancement of corporate value.
Due to the emphasis on their supervisory function from a standpoint independent of the execution of business, Outside
Directors’ remuneration is composed of a “fixed salary” and “stock options” only. No “performance evaluation
remuneration” or “Directors’ bonuses” are paid to Outside Directors. The Representative Director drafts proposals for each
Director’s remuneration, which are discussed by the Nomination and Compensation Advisory Committee, before being
decided by resolution of the Board of Directors.

㻤㻠Fixed salary
On the basis of comparisons with the results of surveys of Directors’ remuneration at listed companies, conducted byexternal specialist agencies, and surveys of the levels of Directors’ remuneration at the Company’s competitors,
conducted by the Company, as well as comparison with the highest amounts of remuneration paid to employees of
the Company, the Company has established fixed salary scaling guidelines, based on Directors’ duties and posts held
by Directors concurrently serving as Executive Officers. Remuneration for each individual Director is discussed by the
Nomination and Compensation Advisory Committee, before being decided by the Board of Directors.

Performance-linked remuneration (performance evaluation remuneration and Bonus)
The “performance evaluation remuneration” for full-time Directors is based on their individual achievement of singleyear performance targets. A “standard evaluation remuneration amount” equal to 33% of the fixed salary is paid
monthly together with the fixed salary, and where there is an adjustment based on the achievement of performancetargets (of between +55% and -50% of the standard evaluation remuneration), this is added to and paid together
with Directors’ bonuses or deducted from Directors’ bonuses after the conclusion of the Ordinary General Meeting of
Shareholders held during the fiscal year. “Directors’ bonuses,” which are linked to single-year consolidated profit
before tax, are calculated by multiplying the fixed salary per annum by a factor, which is the sum of a predeterminedfactor based on the level of profit before tax, and an extra factor where the single-year target profit before tax has
been achieved. This is paid as a lump sum after the conclusion of the Ordinary General Meeting of Shareholders held
during the fiscal year.
*The performance targets for full-time Directors include governance practices, ESG promotion, contribution tobusiness performance, management of departments in charge, and individual missions as evaluation items.

Stock options
In order to practice corporate management with a focus on enhancing corporate value over the medium- to longterm, the President and Representative Director drafts proposals for the number of stock options to be granted toeach Director, based on the Director’s duties as well as posts held concurrently by the Director as Executive Officer,
for each medium-term management plan. These proposals are examined by the Nomination and Compensation
Advisory Committee, before being decided by the Board of Directors. A fixed number of stock options are granted to
Outside Directors, considering the importance of their management monitoring and supervisory function aimed atenhancing corporate value.

Auditor's Remuneration
Audit & Supervisory Board Members, considering their role, are remunerated with a fixed salary only. Remuneration foreach Audit & Supervisory Board Member is decided through discussion of the Audit & Supervisory Board, within the limitsof the maximum total amount.

㻤㻡Amount of Remuneration for Executive Officers (FY2022)
Total amount by type of remuneration, etc.
Total
Position(¥ thousand)remuneration,etc.
(¥ thousand)Directors(outside
directors)

Number ofamount of

remuneration

recipients

performanceBasicevaluation(Person)

Stock

Bonus

Optionremuneration

291,248

171,789

50,313

69,146ー

9(20,850)(20,850)

(ー)

(ー)

(ー)

(3)

33,06033,060ーーー

4(33,060)(33,060)

(ー)

(ー)

(ー)

(4)

Audit &
supervisoryboard
members(outside audit& supervisoryboard
members)

Internal Control System
The Company has established a Basic Policies of Internal Control Systems by resolution of the Board of Directors, andunder this basic policies, in a continuous effort to develop the internal control system, the Company establishes plans for
implementation and operation of the internal control system annually taking into consideration of revisions of relevantlaws and regulations, changes in the business environment of the Group, expansion of the businesses, etc. Also, in
ensuring the adequacy of financial reporting, an internal control system structure (so-called J-SOX with reference to the
COSO-ERM framework (COSO Enterprise Risk Management - integrated framework)) that complies with the Financial
Instruments and Exchange Act has been established and is in operation.

㻤㻢Compliance and Risk Management
Compliance and Risk Management Promotion

Risk Management

SystemCompliance

Education and Training

Compliance and Risk Management Promotion System
Compliance and Risk Management System
The Group has established the Risk and Compliance Committee to promote integrated and cross-sectional risk
management and compliance across the Group. The committee identifies, analyzes, and evaluates the risks of the entire
Group, gather information about specific risks and to discuss measures to address them, and facilitates compliancepromotion. The committee is chaired by CFO and Senior Executive Officer who oversees all administrative divisions except
the Internal Audit Department. As a subordinate body of the Committee, the Business Law Liaison Committee, attended
by all heads of the operational divisions, are held every month, during which participants are duly made familiar with
amendments to laws and regulations. In case of occurrence of a contingency, a natural disaster, etc., a crisis management
office directed by the President and CEO as the head will be established to collect information, confirm facts andcircumstance, develop and implement countermeasures, and properly disclose information in a timely manner. The Boardof Directors receives monthly reports on the results of deliberations and progress of the Risk Compliance Committee, andappropriately supervises the operation and compliance Risk Managment System of these committees.
Regarding each Group company, the Company’s full-time Directors, Executive Officers in the Administrative Division, etc.
are concurrently appointed as Director or Audit & Supervisory Board Member for each Group company with the remit ofmonitoring and supervising each Group company’s responses to risks. Every month, each Group company reports
management conditions and their responses to risks at the meeting of the Board of Directors or pre-Board meeting
discussions of the Company, and the Risk Management and Compliance Committee’s meeting. Moreover, the response of
these Group companies and the results thereof are continuously audited or monitored by the Company’s Internal Audit
Department, which may also conduct checks using external agencies as necessary, and then the Internal Audit
Department reports the results at the Board of Directors’ meeting.

㻤㻣Risk Management and Compliance Committee
Tosei has established the Risk and Compliance Committee, which consists of the Executive Officers, heads of eachdepartment, officers responsible for risk management and compliance at each Group company, and full-time Audit &Supervisory Board Members, as a body to examine risk and compliance in Tosei Group in a centralized and cross-sectionalmanner. The committee deliberates on the recognition, analysis and evaluation of risks of each Group company,
information gathering and discussion of countermeasures for individual events, and promotion of compliance. According to
the "Risk Management and Compliance Program" formulated each fiscal year, we are strengthening our complianceawareness, implementing the PDCA cycle for risk management, and strengthening monitoring.

Compliance and Risk Management Promotion System
Risk Management and Compliance Program
In order to promote compliance and accurately manage the various risks surrounding our business, the Group formulate
and implement a group-wide Risk Management and Compliance Program every fiscal year. This program is approved by
the Board of Directors after evaluating the effectiveness and functionality of the risk management process and throughdiscussions by the Risk Management and Compliance Committee. In addition to the Program, Tosei and its Group
companies formulate and implement individual programs that take into account the business environment andorganizational structure of each company, and regularly report their progress to the Risk and Compliance Committee.

Risk Management and Compliance Program(1) Identify, analyze and evaluate risks(2) Formulate and implement measures to address identified risks(3) Monitoring the effectiveness and functionality of countermeasures(4) Management cycle plan to inform the employees of measures to handle risks(5) Measures and training plans to enhance compliance awareness(6) Plans for education, training, seminars, and other activities for risk management and promotion of compliance

Risk Management and Compliance Guidebook
The Group Risk and Compliance Guidebook is distributed to all Tosei Group officers andemployees as a specific guide to ensure that they correctly understand risk and complianceand conduct business with awareness of compliance. The Guidebook explains the Tosei Group
Ethics Code, specific points to note regarding compliance with laws and regulations, and theinternal reporting system, and will be revised as necessary. In addition, the Company strives
to enhance employees' awareness of compliance by informing them through training and otherprograms conducted every year.

㻤㻤Risk Management
The Group aims to earn trust from stakeholders by drawing up plans and implementing measures even during normal
times to address risks that might prevent it from conducting business activities and maintaining and improving corporate
value, and by developing a system for minimizing losses.

Business Risks Management
In accordance with the Risk Management and Compliance Program formulated at the beginning of each fiscal year; 1.
implement a survey to identify about 30 significant risks that have material impacts on the Group’s business, 2. conduct
stress tests (twice a year), taking account of real estate market conditions, transaction conditions, and the financing
status of financial institutions. The results are reported at the Board of Directors’ meetings. In addition, at monthly Risk
Management and Compliance Committee’s meeting, the states of our responses to emerging risks are checked,
information gathering efforts on latent risks are continued, and the details are reported at the Board of Directors’ meeting
held each month, in addition to which the outcomes of the responses are monitored by the Internal Audit Department. We
have also instructed each Group company to formulate plans for managing risks and promoting compliance in light of eachcompany’s business operations, focusing on ensuring that the parent company organization appropriately supports theseplans.

＜Major business risks recognized by the Group and supervised by the Board of Directors>
Economic conditions
Calamity and natural disasters
Dependency on interest-bearing debt dependence and interest rates
COVID-19
ESG (environmental, social and governance risks, climate change risks, etc.)

Action in the Event of a Crisis or Disaster
The Company recognizes situations that are potentially damaging to its corporate value,such as large-scale natural disasters and incidents, accidents, and events that impact
generally on customers, residents, and wider society, as management crises and, if suchan event were to occur, it would set up a Crisis Management Office headed by the CEO,and would take action to control the situation in collaboration with the Risk Management
and Compliance Committee members and relevant departments. We have alsoestablished a Crisis PR Manual to speed up and facilitate corporate communication
activities in the event of a crisis and are working to raise awareness about dealing withcrises properly. In addition, we have established a Disaster Response Manual thatdetails the steps from gaining a basic understanding of the disaster to making an initial
response in the event of earthquake, fire, or other disaster, right down to conducting
evacuation and relief activities, and also conduct a range of drills including evacuation
drills, AED practice drills, and in-house fire-fighting team fire drills.

㻤㻥

AED practice drills

Action to Ensure Business Continuity
The Company has formulated a Business Continuity Plan (BCP) to ensure that, in the event of a natural disaster, incident,
accident or other event that forced the Company to suspend its core business operations or that made business activities
under the normal organizational/personnel structure difficult, the Group would be able to swiftly implement measures tocontinue business or resume business quickly.

Information Asset Management
Recognizing that information asset is one of our most important management resources, we have set out provisions fordeveloping and maintaining information management environments in order to properly protect and efficiently utilize
information in the Basic Policy on Information Asset Management, and we have established Information AssetManagement Regulations and Personal information Protection Rules. In addition, every fiscal year we implement training
for the information asset management, including personal information, and for the prevention of insider trading for all
employees of the Company, and by doing so, we have continued to educate and inculcate rules for the handling ofimportant information. In addition, to reduce the risk of information leakage and information isolation due to targeted
attack e-mails, etc., we conduct mock drills and network vulnerability assessments by external third-party organizations.
Regarding to the state of compliance with rules for the handling of information assets (printed and electronic information),in addition to self-inspections implemented at all departments and audits conducted by the Internal Audit Department, wehave strengthened the penalties for breaches and continued targeted guidance for those who infringe the rules.
In the FY2022, the Group appropriately complied with the amended Act on the Protection of Personal Information andimplemented training for employees, etc. to help improve IT literacy with the aim of strengthening information
management system (total 22 courses, 30 hours of training). In addition, we conducted mock drills related to targeted email attacks and vulnerability assessments of our internal network by an external third party to reduce the risk of
information leaks and information isolation triggered by fast-growing network crimes. Furthermore, we reviewed contracts
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Compliance
The Group considers compliance to be one of its most important management issues and has established The Tosei Group
Ethics Code and The Tosei Group ESG Action Guidelines to be followed by all directors and employees of the Group. We
are working to strengthen our compliance by ensuring that all employees are fully aware of the code and guidelines.

The Tosei Group Ethics CodeThe Group has established the Tosei Group Ethics Code, matters to be complied with when employees carry out
operational activities, and keeps them informed of and complied with the ethics code through distributing the Tosei Group
Risk and Compliance Guidebook and training, etc. In addition, we conduct a questionnaire survey to all directors andemployees of the Group annually to assess the degree of penetration of compliance and the Group Philosophy and to
regularly check its effectiveness, and revise the Code of Conduct and training programs.

㻥㻜The Tosei Group Ethics CodeTo fulfill our corporate social responsibility, we will always attach importance to a high standard of ethics and a lawabiding spirit while pursuing our corporate philosophy, and will conduct our business activities in accordance with thefollowing Code.
1. Sustainable economic growth and resolution of social issues
We will strive for sustainable growth and the resolution of social issues by always putting ourselves in ourcustomers' shoes and positioning safety and security at the heart of the products and services we develop andprovide, and by forever remaining humble and conducting business activities in good faith.
2. Fair Information Disclosure
We will disclose the necessary corporate information in a fair, timely and appropriate manner in order to obtainproper evaluation and understanding from investors and wider society.
3. Fair and transparent decision-making
We will make decisions based on appropriate and explainable reasoning, in accordance with laws, regulations andinternal rules.
4. Thorough compliance with laws and regulations and fair dealings
We will understand both domestic and international laws and regulations and will never engage in any conductthat violates such legislation, or in any fraudulent conduct. We will also engage in fair and free competition andappropriate transactions, and will avoid becoming involved in bribery or other similar giving or receiving of unfair
advantage in any way.
5. Comprehensive crisis management
We will not have any relationships with antisocial forces and will conduct thorough and organized crisis
management to prepare for a terrorism, cyber-attack, natural disaster or other crisis.
6. Protection of confidential information
We will protect and strictly manage the material information of the Tosei Group, the personal information ofcustomers, the information of business partners, and other confidential information.
7. Respect for human rights and creation of positive work environments
We will respect human rights and will not tolerate any behavior which violates the dignity of individuals including
discrimination and harassment. We will also strive to develop human resources and create working environment
with mutual trust and decency.
8. Initiatives to address environmental issues
We will contribute to the realization of a sustainable society by implementing initiatives to reduce ourenvironmental impact, recycle resources and address the risk of climate change, based on a strong awareness of
the importance of environmental issues.
9. Social Contribution
We will seek harmony with local communities and the global community as a good corporate citizen and actively
and continuously promote activities that contribute to society.
10. Commitment of Top Management
The Tosei Group's Top Management recognizes that it falls to them to embody the spirit of this Code and, in theevent of a violation of this Code, top management will proactively take charge of resolving the issue, endeavor to
identify the cause and prevent a recurrence, demonstrate accountability, including the disclosure of information
to markets and society in a timely and appropriate manner, and fairly and strictly punish those involved,
including themselves.

㻥㻝Enhanced ComplianceTo ensure awareness regarding compliance with laws and regulations, at the beginning of each fiscal year the Risk
Management and Compliance Program is drawn up, and training in the relevant laws and regulations, measures tocultivate awareness of legal issues have been implemented. In addition, Risk Management and Compliance Committee’s
Meeting and Business Law Liaison Meeting are held every month, during which participants are duly made familiar with
amendments to laws and regulations, etc., and notices from ministries with jurisdiction, etc. Furthermore, a complianceand corporate philosophy questionnaire is circulated every fiscal year to all officers and employees of the Group in order
to identify issues and consider responses to such issues, and reflect them to each measure for the next fiscal year’s
Program.
In order to strengthen the screening function for violations of laws and regulations, the Company confirms signs andoccurrences of violations of laws and regulations, gives instructions on how to respond to such violations, and reports
the status of such violations at the Board of Directors meetings and other important meetings and committees attended
by full-time directors. In addition to monitoring and supervision by three outside directors and four corporate auditors(all of whom are outside corporate auditors) at meetings of the Board of Directors, meetings are held regularly to
exchange opinions between corporate auditors and outside directors and between corporate auditors and legal counsel
to confirm signs of legal violations by directors who execute operations. Moreover, full-time Audit & Supervisory Board
Members conduct business audits on the Company’s businesses and investigation of subsidiaries, while the Internal
Audit Department conducts internal audits on the Company and the Group companies and self-inspections at the
departmental level are implemented. Meanwhile, the Company continues to operate the whistle-blowing systemproviding three points of contact, internal, external and through Audit & Supervisory Board Members, and to conduct
training sessions to promote an understanding of the system including protection of whistle-blowers.

Fair Business Practices
The Tosei Group promotes sound business activities under the Tosei Code of Ethics, which states ensures compliance withlaws and regulations and fair business practices.

(Excerpt from the Tosei Group Ethics Code)
4. Thorough compliance with laws and regulations and fair dealings
We will understand both domestic and international laws and regulations and will never engage in any conduct
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DQGDSSURSULDWHWUDQVDFWLRQVDQGZLOODYRLGEHFRPLQJLQYROYHGLQEULEHU\RURWKHUVLPLODUJLYLQJRUUHFHLYLQJ
RIXQIDLUDGYDQWDJHLQDQ\ZD\The Tosei Group Risk Compliance Guidebook clearly outlines our commitment to fair business practices and compliancewith laws and regulations from a global perspective. In addition to compliance with the Anti-Monopoly Act, the Subcontract
Act, the Building Lots and Buildings Transaction Business Act, the Financial Instruments and Exchange Act, and other laws,
the guidebook specifically outlines actions that impede fair, transparent, and free competition, and strives to foster
compliance awareness.

㻥㻞Response to Anti-social Forces
The Company always treats any association with anti-social forces as a criticalmatter and takes countermeasures to refuse any transaction with such. In the eventany dispute arises between the Company and anti-social forces,we will stand firmly
against them. We formulated a manual for acting against anti-social forces, and theTosei Group Risk Compliance Guidebook is distributed to employees and isthoroughly communicated through training programs. In addition, we are striving toeliminate any relationship with antisocial forces by conducting thoroughinvestigations of business partners in our daily operations.

Training for response to anti-social forces

Prevent Bribery and Corruption
The Group Ethics Code prohibits bribery or other similar giving or receiving of unfair advantage in any way. All types ofactivities which lead to corruption such as money laundering and illegal political contributions and donations areprohibited, such as entertaining, gift-giving, and the giving and receiving of cash or a cash equivalent to customers orbusiness partners for the purpose of offering undue or improper advantage or enjoying preferential treatment.

Anti-Corruption Initiatives
The Group endeavors to raise awareness about all the types of activities that lead to corruption, such as bribery andmoney laundering, by detailing in the Tosei Group Risk Management and Compliance Guidebook examples of illegal
activities and specific action to be taken as part of business activities, including procedures for verifying compliance of
beginning of the transaction with laws and regulations and for reporting detected breaches, and by distributing thisguidebook to officers and all employees and providing training.
For business affairs judged to involve high potential risks of corruption (specified business affairs/specified transaction inbuilding lots and buildings transaction business, financial instruments business and real estate specified joint enterprisepursuant to the Act on Prevention of Transfer of Criminal Proceeds), the Group has developed a management system forverification at the time of transaction and suspicious transaction reports. For transactions that are considered particularly
high-risk, we regularly review risk assessments based on the contents of the Risk Assessment Report on Transfer of
Criminal Proceeds published annually by the National Public Safety Commission and our past reports of suspicioustransactions, and the general manager approves the execution of transactions after conducting rigorous confirmation at
the time of transaction. Further, whilst the Group has little involvement in public projects, its internal regulations prohibit
entertaining and gift-giving in relation to public officials in light of the risk of bribery. Additionally, UHFHLYLQJH[FHVVLYHJLIWVRUHQWHUWDLQPHQWIURPEXVLQHVVSDUWQHUVDQGFRQWUDFWRUVLVSURKLELWHGDQGDQ\RIILFHURUHPSOR\HHIRXQGWRKDYHHQJDJHGLQVXFKFRUUXSWSUDFWLFHVVKDOOEHVXEMHFWWRGLVFLSOLQDU\DFWLRQRURWKHUSXQLVKPHQWLQDFFRUGDQFHZLWKLQWHUQDOUHJXODWLRQVThe Group asks business partners (contractors) with which annual transactions exceed a certain amount to complete aquestionnaire to verify compliance with laws and regulations including bribery and corruption, and determines whether
or not to continue transactions based on verification results.
The Risk and Compliance Committee monitors any signs of breaches of laws and regulations or misconduct including
anti-corruption, and promptly takes corrective measures and recurrence prevention measures when fact-finding
investigations reveal a breach or potential breach.The Board of Directors receives monthly reports from the Risk
Compliance Committee and appropriately supervises these implementation and operation of the system.

㻥㻟Penalty charges, surcharges and settlements related to corruption
The Group has not been in violation of any laws or regulations or incurred any fines or penalties related to corruption orbribery. In addition, no employees have been punished or dismissed by the rules and regulations or codes related tocorrupt prevention.
(FY2022: 0 violations of laws and regulations, 0 fines, etc., 0 punishments or dismissals)

Political Donation
The Company does not provide illegal donations or political contribution. When providing support for the activities ofpolitical organizations, we conducted appropriately in accordance with the Political Funds Control Law, laws andregulations. The amount of political donations for FY2022 was 760,000 yen.

Provisions for Fines and Settlements Related to ESG (Environmental, Social andGovernance) Issues
As of November 30, 2022, there were no material provisions for fines or settlements related to ESG issues that arose frommatters prior to FY2021 and are likely to arise in the future.

Whistleblowing System（Tosei Hot Line）

㻥㻠Outline of Whistleblowing System
The Group established the "Tosei Hot Line" as a whistleblowing hot line, which Group officers and employees (including
those who have been retired for less than one year, advisors, temporary staff) can use to report any identified breaches of
the Ethics Code or identified breaches or potential breaches of laws and regulations including corrupt practices.
Whistleblowing reports are treated in confidence. There is also the option of using an external hot line to make reports
anonymously. Whistleblowers are protected under the Whistleblower Protection Act and the Risk and Compliance
Regulations, to ensure that they do not suffer any detriment as a result of making a whistleblowing report. Wheninvestigating the facts, the Group uses external experts, such as legal advisors and certified public accountants, where
necessary, and promptly takes corrective measures and recurrence prevention measures in the event of discovery of abreach or potential breach. The Group follows up by verifying whether the corrective measures and recurrence prevention
measures worked effectively and by making sure that whistleblowers did not suffer any detriment. The Board of Directors
appropriately supervises the maintenance and operation of the whistle-blowing system by receiving regular reports fromthe Risk and Compliance Committee on the operation of the whistle-blowing system.
In FY2022, the Company revised relevant internal regulations, etc., to appropriately comply with the amended
Whistleblower Protection Act (enforced in June 2022), and further ensured that officers and employees are well aware of
the importance of protecting whistle-blowers.
Moreover, separate from the whistleblowing hot line, the Group has established a Harassment and Work-Style
Consultation Hotline in the personnel organizations of each Group company for the purpose of preventing harassment andspeeding up its detection, and dealing with inquiries about work-style reform and personnel systems.

Response to Compliance Violations
In case an investigation of the facts reveals a violation or potential violation of laws and regulations, we will takedisciplinary action against the violator, other appropriate measures, corrective actions, and measures to prevent
recurrence, as well as reporting the matter to relevant administrative agencies and taking legal action as necessary.
【Number of violations】
In FY2022, 4 whistleblowing cases were reported and 0 cases were found to be noncompliance.

㻥㻡Education and Training
Education and Training
In FY2022, the Group conducted various types of training based on the Risk Management and Compliance Programapproved by the Board of Directors. More specifically, harnessing the merits of group training and online training
respectively, the Group provided Antisocial Forces Response Training aimed at eliminating ties with antisocial forces,
Financial Instruments and Exchange Act Training for employees engaged in financial instruments business, ESG Training toincrease knowledge about ESG, and Harassment Training aimed at eliminating harassment. In addition, we had legal
advisors offer a training course regarding relevant laws and regulations amended during the current fiscal year, including
the Whistleblower Protection Act and the Act on the Protection of Personal Information. We have been promoting
legitimate and appropriate business activity and raising awareness of compliance with laws and regulations by distributing
videos of lectures by full-time directors on the Group's philosophy.
The Group also continuously sought to increase understanding of the Ethics Code and the Whistleblowing Hot Line and topromote understanding of relevant business acts and insider trading rules and prohibited activities that directly lead tobreaches such as harassment and bribery through activities to further foster employees' compliance awareness, such as
morning meeting addresses by officers, the display of compliance slogans in offices, and the posting of simple videos on
the internal website.

Risk management and compliance portal website

㻥㻢Disclosure
Initiatives for Shareholders and Investors
Timely and Appropriate Disclosure
In addition to information disclosed under the Companies Act, the Financial Instruments and Exchange Act, among otherlaws and regulations, and rules of stock exchanges, the Tosei Group provides corporate information in a timely andappropriate manner to stakeholders, such as shareholders, investors, and business partners, through IR activities and thewebsite.

External Evaluation of Disclosure
As a result of the listing of our shares on the Singapore Exchange, we now
simultaneously disclose information in English and Chinese. We endeavor toconvey how our earning results briefing went to those who were unable to attend
by posting the video of our earning results briefing and the corresponding
presentation materials on our website and we try to enhance the information wedisclose. We also release corporate information for a wide range of stakeholders,
including ESG information, and share and shareholder information. In evaluations
by third-party organizations that award listed companies for their IR activities, wewere rated highly for the availability and ease-of-use of our IR information. In
2022, we was selected for the first time as a company of excellence in the"Gomez ESG Site Ranking," which evaluates ESG sites in particular.

2022 IR・ESG Site Ranking Awards

㻥㻣Holding of Financial Results Presentations and Briefings for Individual Investors
We hold earning results briefings by top management twice a year (in the second
quarter and at the end of the fiscal year), mainly for institutional investors andanalysts.
We also hold individual meetings with institutional investors and briefings for individual
investors to ensure two-way communication, and actively conduct IR activities byvisiting overseas institutional investors in Europe and Singapore. Through these efforts,
we are striving to gain a better understanding of our company from our stakeholders.

㻥㻤

Briefings for individual investors(Online)㻥㻥z ԏՌՈԵՆՂԱՀӨԏՊԱՀՉԱՈԺՃՂՇESG Assessment

Environmental Real Estate Certification

Health and Safety

Management Infrastructure

Disclosure and Website

ESG Assessment
GRESB Real Estate Assessment
This global real estate company benchmarking system, which was established in 2009 by a group of major
European pension funds that led the Principles for Responsible Investment (PRI), evaluates the ESG
considerations of companies and funds that own and manage real estate. We have participated in theassessment since 2019, and in 2022, we obtained a "2 Star" and "Green Star" rating under the GRESB
Ratings.

Environmental Real Estate Certification▼3OHDVHVHHSDJHIRUDOLVWRIHQYLURQPHQWDOUHDOHVWDWHFHUWLILFDWLRQVREWDLQHG

BELS (Building-Housing Energy-efficiency Labeling System)
BELS is a certification system in which a third-party evaluation organization assesses the energysaving performance of buildings and evaluates them at five levels based on guidelines established by
the Ministry of Land, Infrastructure, Transport and Tourism. BELS is an abbreviation for Buildinghousing Energy-efficiency Labeling System. We have acquired certification for six of our properties,
including Awajicho Tosei Building.

㻝㻜㻜DBJ Green Building Certification
DBJ Green Building Certification is a comprehensive evaluation by DBJ that includes not only theenvironmental performance of a building, but also consideration of social demands from various
stakeholders, such as crime prevention, disaster prevention, convenience, and comfortability.
We have acquired certification for three of our properties, including Toranomon Tosei Building,our former headquarters.

Health and Safety
Outstanding Health and Productivity Management Organization 2023
This system recognizes small, medium and large enterprises and other organizations thatpractice health management with particular excellence, based on efforts to respond to local
health issues, and to improve health promoted by Nippon Kenko Kaigi.
In recognition of our commitment to health management, we have been certified"Outstanding Health and Productivity Management Organization 2023 in the large enterprise
category.

Management Infrastructure
DX Certification
Based on the DX Certification System established by the Ministry of Economy,
Trade and Industry, we obtained certification as a "DX Certified Operator" as of
October 1, 2021.

㻝㻜㻝Disclosure and Website
IR Site Ranking
In an external evaluation that commends investor information of listed companies, we received a high evaluation in
FY2022 for the quality of information and usability of our website. In 2022, we was selected for the first time as acompany of excellence in the "Gomez ESG Site Ranking," which evaluates ESG sites in particular.

2022 IR・ESG Site Ranking Awards

GRESB Public Disclosure Assessment
In the GRESB disclosure evaluation, which measures the level of ESG information disclosure, we received a "Level A"
rating, the highest level in 2022, for our ESG information disclosure efforts.

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