Information Disclosure in accordance to the Corporate Governance Code

Policies and Procedures in Determining theRemuneration[Principle 3.1 Full Disclosure]
In addition to making information disclosure in compliance with relevant laws and regulations,companies should disclose and proactively provide the information listed below (along with thedisclosures specified by the principles of the Code) in order to enhance transparency and fairness indecision-making and ensure effective corporate governance:iii) Board policies and procedures in determining the remuneration of the senior management anddirectors――――――――――――――――――――――――――――――――――――――――[Remuneration policy]
The Company configures its executive remuneration such that it rewards those who share Daiwa
House Group’s Purpose and contribute to the creation of medium- to long-term business value andsocial value with a view to bringing about “a world where we live together in harmony embracing
the Joys of Life,” commensurate to the role they play and the scale of their contribution.
In the short term, in addition to achieving short-term financial targets to create business value, thesystem is designed to stimulate efforts to enhance the value of human capital and strengthen theorganization for which there is a pressing need to promote in order to realize sustainable growth.
In the medium to long term, in addition to the sustainable improvement of corporate value, thesystem is designed to motivate initiatives to create social value with a view to achieving “a world
where we live together in harmony embracing the Joys of Life.”[Remuneration determination procedure]
The Company strives to ensure independence and objectivity with respect to making decisions onspecifics of executive remuneration and amounts paid to executives, and with respect to proceduresfor handling resolutions in that regard. Accordingly, the Board of Directors makes such decisions
after matters have been discussed by the Remuneration Advisory Committee, a majority of whose
membership consists of independent Outside Directors and is chaired by an independent OutsideDirector.
In addition, annual bonus amounts to be provided to Directors in relation to operating performancein a particular fiscal year are to be introduced as proposals at annual General Meetings ofShareholders in order to elicit the preferences of shareholders.

Information Disclosure in accordance to the Corporate Governance Code<Matters to be deliberated on by the Remuneration Advisory Committee>• Policies regarding Director remuneration, etc.
• Plans for Director remuneration• Amounts of Directors remuneration to be paid on an individual[Purpose and summary of Remuneration]
The purpose and the summary of the elements making up the incentive scheme are as follows.
<Basic remuneration>
All Directors and Audit & Supervisory Board Members are eligible to receive a monetary sum of
fixed compensation (supervisory and executive compensation) corresponding to their roles andresponsibilities as consideration for “fulfilling responsibilities” of management supervision andbusiness execution. The Company does not provide a retirement benefit.
Per resolution of the General Meeting of Shareholders, remuneration paid to Directors is limited
to 70 million yen per month, and remuneration paid to Audit & Supervisory Board Members islimited to 18 million yen per month.
<Annual bonus>
Directors for operational execution are eligible to receive a monetary sum of performance-linked
remuneration based on the degree of achievement of short-term financial and non-financial targets
set by the Company as an incentive for achieving short-term financial targets (operating income andROIC) and short-term non-financial targets such as improving the value of human capital andstrengthening organizational capabilities.
<Share-based remuneration>
Directors (excluding Outside Directors) are eligible to receive the following two types ofshare-based remuneration to provide incentive to continuously improve the Company’s corporate
value and to further align their interests with those of shareholders.
(1) Service-based restricted share-based remuneration
This remuneration is awarded in order to encourage commitment to management with anawareness of the stock price.
This is a system under which shares of Company stock are awarded to Directors of the Company
contingent upon continuously holding the position of Director during each fiscal year of the termof the Medium-Term Management Plan.
(2) Performance-linked restricted share-based remuneration
This remuneration is awarded in order to encourage recipients’ commitment to ESG management.
This is a system in which shares of Company stock are awarded based on the degree ofInformation Disclosure in accordance to the Corporate Governance Codeachievement of environmental indicators set by the Company for each fiscal year during the termof the Medium-Term Management Plan (KPI: environmental indicators set in the Seventh
Medium-Term Management Plan).
[Determining amount of remuneration]
In conjunction with the policy detailed above, the Company strives to ensure that approximately
20% of the total remuneration awarded to Directors for operational execution is awarded in the formof share-based remuneration in order to provide incentive to enhance corporate value over themedium to long term.
The method by which amounts of performance-linked remuneration are determined is as follows.
<Annual bonus>The total amount to be paid shall not exceed 1.5 billion yen per year, and shall be paid upon
resolution of the Board of Directors after matters have been discussed by the Remuneration Advisory
Committee chaired by an Outside Director. The amount of individual payments is determined basedon overall considerations, using the achievement of short-term financial and non-financial targets set
by the Company as an indicator.
<Share-based remuneration>(1) Service-based restricted share-based remuneration
In order to provide incentive to continuously improve the Company’s corporate value and tofurther align their interests with those of shareholders, Directors (excluding Outside Directors.
Hereinafter referred to as “eligible Directors”) are eligible for the award of restricted share
remuneration in the form of stock at the end of the period in which the eligible Directors
performed their duties, namely, the period from the date of the Ordinary General Meeting ofShareholders to the date of the following year’s Ordinary General Meeting of Shareholders(hereinafter referred to as the “Period of Service”). This system has been introduced by resolutionof the 83rd Ordinary General Meeting of Shareholders on June 29, 2022, and will be added toexecutive remuneration from the following fiscal year onwards.
Under this system, monetary compensation claims are paid to eligible Directors on thecondition that they continuously hold the position of Director (hereinafter referred to as “Positionof Director”) throughout the Period of Service; Eligible Directors pay all such monetarycompensation claims in the form of in-kind contributions to receive the issuance or disposal ofCompany stock. In connection with the issuance or disposal of Company stock and the payment ofmonetary compensation claims in the form of in-kind contributions, the Company and the eligible
Director shall enter into a restricted share allocation agreement stipulating restrictions on thetransfer of Company stock until the time immediately following his or her retirement orInformation Disclosure in accordance to the Corporate Governance Coderesignation from the position of director, executive officer, executive officer not serving as adirector, corporate auditor, employee, consultant, or equivalent position (hereinafter referred to as
the Executive Position) of the Company or a subsidiary of the Company.
The number of shares to be allocated to each eligible Director under the system shall be thenumber of shares obtained by multiplying the base number of shares allocated (in the system,hereinafter referred to as the “Base Share Allocation”) by a coefficient determined based on theperiod of service (hereinafter referred to as the “Period of Service Coefficient”) and allocation
shall be made at the end of the Period of Service.
However, in the event that a Director retires from the Position of Director due to the expirationof his or her term of office or other justifiable reason (excluding due to death) before the date of
the first Ordinary General Meeting of Shareholders to be held after the end of the Company’ssingle fiscal year (hereinafter referred to as the “Performance Evaluation Period”) (hereinafterreferred to as the “Vesting Date”), or in the event that a Director retires from the Position ofDirector due to the expiration of his or her term of office or other justifiable reason (including dueto death) on or after the Vesting Date but prior to the date of issuance or disposal of Company
stock, the Company shall pay a monetary amount within a certain period after his or herretirement.
1) Method of calculating monetary compensation claims under the system
The amount of monetary compensation claims to be paid to each eligible Director shall be
the amount obtained by multiplying the final number of shares to be allocated to the eligible
Director under the system (in the system, hereinafter referred to as the “Final ShareAllocation”) by the per share payment amount.
2) Method of calculating Final Share Allocation and final payment amounts
The Final Share Allocation will be the number of shares obtained by multiplying the Base
Share Allocation by a Period of Service Coefficient.
However, in the event that a Director retires from the Position of Director due to theexpiration of his or her term of office or other justifiable reason (excluding due to death) before
the Vesting Date, or in the event that a Director retires from the Position of Director due to theexpiration of his or her term of office or other justifiable reason (including due to death) on orafter the Vesting Date but prior to the date of issuance or disposal of Company stock, amonetary sum (in the system, hereinafter referred to as the “Final Payment Amount”) equal tothe Final Share Allocation multiplied by the closing price for common shares of Company stockon the Tokyo Stock Exchange for said date of retirement (if no transactions were conducted onthat date, then the closing price for the most recent date of transactions prior to that (however,when said date of retirement falls on or after the date of the Board Stock Option Resolution,then the payment amount shall be based on the Board Stock Option Resolution)) shall be paid

Information Disclosure in accordance to the Corporate Governance Codewithin a certain period after his or her retirement.

(Final Share Allocation and Final Payment Amount calculation formulas)
Final Share Allocation = A) Base Share Allocation × B) Period of Service Coefficient
Final Payment Amount = Final Share Allocation × Closing price for Company stock on the dateof retirement from the Position of Director (if no transactions were conducted on that date, thenthe closing price on the most recent date of transactions prior to that (however, when the date ofretirement falls on or after the date of the Board Stock Option Resolution, then the payment
amount shall be based on the Board Stock Option Resolution)).
A) Base Share Allocation
The Company Board of Directors shall determine in advance the Base Share Allocation issued
to each eligible Director. However, in light of the maximum amount of share-based
remuneration permitted under the system, this amount shall be adjusted within a reasonable
range when necessary to reduce the Base Share Allocation issued to eligible Directors.
B) Period of Service Coefficient
Period of Service Coefficient = Months of service / Number of months in the Period of Service(12)(Notes) 1. Months of service shall be calculated as the number of months from the monthfollowing the month of the date of the Ordinary General Meeting of Shareholders on
which the Period of Service begins (hereinafter referred to as the “Period of Service
Start Date”), up to the month of the date on which the eligible Director retires fromthe Position of Director.
2. If the Period of Service Coefficient exceeds 1, then the coefficient shall be set as 1.
(2) Performance-linked restricted share-based remuneration
The Company awards restricted shares in the form of stock to eligible Directors based on thedegree of achievement of performance goal during the Performance Evaluation Period in order toprovide incentives to continuously improve the Company’s corporate value and to further aligninterests with those of shareholders. This system has been introduced by resolution of the 83rd
Ordinary General Meeting of Shareholders on June 29, 2022, and will be added to executive
remuneration from the following fiscal year onwards.
Under this system, monetary compensation claims are paid to eligible Directors in line with thedegree of achievement of performance goal during the Performance Evaluation Period. Eligible
Directors pay all such monetary compensation claims in the form of in-kind contributions toreceive the issuance or disposal of Company stock. In connection with the issuance or disposal of

Information Disclosure in accordance to the Corporate Governance CodeCompany stock and the payment of monetary compensation claims in the form of in-kind
contributions, the Company and the eligible Director shall enter into a restricted share allocationagreement stipulating restrictions on the transfer of Company stock until the time immediately
following his or her retirement or resignation from the Executive Position.
The number of shares to be allocated to each eligible Director under the system shall be thenumber of shares obtained by multiplying the base number of shares allocated (in the System,hereinafter referred to as the “Base Share Allocation”) by a coefficient determined according tothe degree of achievement of performance goal (hereinafter referred to as the “Performance GoalAchievement Coefficient”) and allocation shall be made after the Vesting Date following the endof the Performance Evaluation Period. However, in the event that a Director retires from thePosition of Director due to the expiration of his or her term of office or other justifiable reason(including due to death) on or after the Vesting Date but prior to the date of issuance or disposal ofCompany stock, the Company shall pay a monetary amount within a certain period after his or herretirement.
1) Method of calculating monetary compensation claims under the system
The amount of monetary compensation claims to be paid to each eligible Director shall be theamount obtained by multiplying the final number of shares to be allocated to the eligible Director
under the system (in the system, hereinafter referred to as the “Final Share Allocation”) by the pershare payment amount.
2) Method of calculating Final Share Allocation and final payment amounts
The Final Share Allocation will be the number of shares obtained by multiplying the Base Share
Allocation by the Performance Goal Achievement Coefficient. However, in the event that a
Director retires from the Position of Director due to the expiration of his or her term of office orother justifiable reason (including due to death) on or after the Vesting Date but prior to the date ofissuance or disposal of Company stock, a monetary sum (in the System, hereinafter referred to as
the “Final Payment Amount”) equal to the Final Share Allocation multiplied by the closing pricefor common shares of Company stock on the Tokyo Stock Exchange for said date of retirement (ifno transactions were conducted on that date, then the closing price for the most recent date oftransactions prior to that (however, when said date of retirement falls on or after the date of theBoard Stock Option Resolution, then the payment amount shall be based on the Board StockOption Resolution)) shall be paid.
(Final Share Allocation and Final Payment Amount calculation formulas)
Final Share Allocation = A) Base Share Allocation × B) Performance Goal Achievement Coefficient
Final Payment Amount = Final Share Allocation × Closing price for Company stock on the date ofretirement from the Position of Director (if no transactions were conducted on that date, then theclosing price on the most recent date of transactions prior to that (however, when the date ofretirement falls on or after the date of the Board Stock Option Resolution, then the payment amountInformation Disclosure in accordance to the Corporate Governance Codeshall be based on the Board Stock Option Resolution)).
A) Base Share Allocation
The Company Board of Directors shall determine in advance the Base Share Allocation issued toeach eligible Director. However, in light of the maximum amount of share-based remuneration
permitted under the system, this amount shall be adjusted within a reasonable range when necessary
to reduce the Base Share Allocation issued to eligible Directors.
B) Performance Goal Achievement Coefficient
The Performance Goal Achievement Coefficient is calculated based on the environmentalindicators (CO2 emissions reduction (business activities) and CO2 emissions reduction (building usephase) and CDP climate change score) specified in the Company’s Seventh Medium-Term
Management Plan as performance evaluation indicators, and based on the finalized figures for thePerformance Evaluation Period (initially the 84th fiscal year (FY2022)), the Performance GoalAchievement Coefficient is calculated according to the following formula. Refer to the tables below
for the items (1), (2) and (3).
(Formula for calculating Performance Goal Achievement Coefficient)
Performance Goal Achievement Coefficient = {(1) CO2 emissions reduction (business activities(*1)) + (2) CO2 emissions reduction (building use phase (*2))} × (3) CDP climate change score (*3)
*1 CO2 emissions from the Company Group’s offices, factories, construction sites, businessfacilities, etc.
*2 CO2 emissions arising from the use phase of homes and buildings sold and developed by theCompany Group*3 CDP, an international non-profit organization, surveys more than 14,000 companies around theworld and evaluates their responses and strategies to climate change on an 8-point scale.
(Note) If the Performance Goal Achievement Coefficient exceeds 1, then it is set at 1.

Information Disclosure in accordance to the Corporate Governance Code

(1) CO2 emissions reduction (business activities) and (2) CO2 emissions reduction (building usephase)
Degree of Achievement of Performance

Performance Goal Achievement

Goal

Coefficient

100% or more

0.580% to less than 100%0.4

60% to less than 80%

0.3

40% to less than 60%

0.2

20% to less than 40%

0.1

Less than 20%0(3) CDP climate change score
CDP Score

Performance Goal Achievement
Coefficient

A

1.20

A-

1.10

B

1.00

B-

0.95

C

0.90

C-

0.85

D0.80

D-

0.75

Information Disclosure in accordance to the Corporate Governance Code
[Stockholding guidelines]
The Company encourages its executives and employees to maintain holdings of its shares throughshareholder associations and other such entities with the aims of cultivating the notion that theirinterests are in alignment with those of shareholders and giving rise to actions that exhibit respect forinterests of shareholders.
In particular, the Company has established the stockholding guidelines described below with respect
to its managers and managerial candidates who play important roles in ensuring the Companies
sustainable growth and increasing its medium- to long-term corporate value. These guidelines
generally specify that such parties are to maintain holdings amounting to a certain number of theCompany’s shares.
<Stockholding guidelines>
Directors of the Company:

In principle, Directors of the Company should have at least 6,000
Company’s shares within three years of their appointment

Executive officers:

In principle, Executive officers should have at least 3,000
Company’s shares within three years of their appointment

Directors of Group companies: In principle, Directors of Group companies should have at least
2,000 Company’s shares within three years of their appointment

Information Disclosure in accordance to the Corporate Governance CodeReference: Executive remuneration system
Basic remuneration

Directors forBonus

Share-based remuneration
Service-based

Performance-linked

restricted

restricted

share-based

share-based

remuneration

remuneration○○○○○－－－○－－－

operational
execution
OutsideDirectors
Audit &Supervisory
Board Members(Resolution of a(Directors)

85th Ordinary

83th Ordinary

83th Ordinary

General57th Ordinary

GeneralGeneral Meeting ofGeneral Meeting of

Meeting ofGeneral Meeting of

Meeting of

Shareholders held on

Shareholders held on

Shareholders)Shareholders held

Shareholders

June 29, 2022

June 29, 2022

on June 27, 1996

held on June

(Audit &27, 2024

Supervisory BoardMembers)
80th Ordinary
General Meeting of
Shareholders heldon June 25, 2019(Note)

Retirement benefits were discontinued as of the 66th Ordinary General Meeting ofShareholders held on June 29, 2005