Tokyo Tatemono GroupCSR Activities 2017 Digest

Tokyo Tatemono Group CSR Activities 20179Message from the President

Aiming to Become a Corporate Group
Necessary to Both Society and Customers

Hitoshi Nomura
President and Chief Executive Officer

Founded as the Yasuda financial conglomeratein 1896 by Zenjiro Yasuda, our Group now has
the fortune of celebrating its 120th anniversary
in October 2016.
The foundation of business for Yasuda was a
principle of “customer first” and a progressive
spirit. These philosophies have become theheart of our business activities even today.
Presently, we pride ourselves on the trust we
have cultivated for over a century, and we will
work to create value for our customers andsociety through our various businesses under
the corporate philosophy of “Trust beyond theera” so that we may continually contribute tobuilding a better society in the future.
However, Japan faces various changes, such as
intensifying competition between international
cities, an aging society with a dwindlingbirthrate, medium to long-term population
decline, and diversifying values. In thesechallenging times, we aim to provide “attractivevalue that brings surprise to customers” by

2Tokyo Tatemono Group CSR Activities 2017

sparking synergy and strengthening our software
services through organic cooperation between
various Group businesses in our medium-termbusiness plan. Pursuing both ease of handlingour hardware products and enhancement ofsoftware services are essential to respond tosocietal changes and overcome challenges suchas an aging society with a dwindling birthrateand diversifying value bring new value tosociety. We are also driving the capability ofeach employee by accepting diverse humanresources and building an environment to learn,
which we believe will be the strength to create
Group synergy.
The Tokyo Tatemono Group hopes to build trustwith its customers and society by embodying
its corporate philosophy of “Trust beyond
the era” through all Group employees while
growing as a “Corporate group that contributes
to the society and necessary to both society andcustomers.” We ask for your continued supportand guidance.

Philosophy

Trust beyond the era.
We will strive for the growth of the company andthe creation of an affluent society, taking pride in
our trust that extends over a century.
We support affluent and dream-filled living.
We aim to create comfortable urban environments.
We create worthwhile spaces offering peace of mind.

CSR Philosophy
CSR of Tokyo Tatemono Group is to realize city building that contributes to the future of the city based on
corporate philosophy and corporate stance. In doing so, we promote CSR activities with the four themes of"Safety and Security," "Environment," "Responding to Social Changes" and "Community Involvement."

Trust beyond the era.

Safety andSecurity

Environment

Responding toSocial Changes

Community
Involvement

Realizing a City Buildingthat Contributes to the Future of the City

Tokyo Tatemono Group CSR Activities 20173

Corporate GovernanceCorporate Governance Policy and System
To enhance the corporate value of Tokyo Tatemono, we strive to build optimal corporate governance while
securing soundness and transparency of management while increasing its effectiveness.
We implement corporate governance system of company with board of accounting auditors and establish
Board of Directors and Audit & Supervisory Board. Group Management Meeting and Executive Officer System
are also implemented for effective and sound management of the Group.

■ Board of Directors■ Executive Officers

There are 11 directors and three are external
directors. As a general rule, Tokyo Tatemono holds
regular Board of Directors Meeting once a monthand extraordinary meeting when a need arises todecide on important matters related to executionof operations and monitor the operations of thedirectors.
Auditors also participating in the Board of Directors
Meeting and share their opinion and make reports
when necessary.

Executive Officer System is implemented tostimulate the Board of Directors by separating
management and execution of operations and toaccelerate decision making process related tooperations.

■ Group Management MeetingGroup Management Meeting consisting fromexecutive officers assigned roles is implemented
to deliberate on important matters related to themanagement of the Group.
In addition, fill-time auditors participate in the GroupManagement Meeting to grasp the situation of thedeliberations and share opinion when necessary.
■ Audit & Supervisory Board
Audit & Supervisory Board consists from four
auditors (two full-time auditors) and two externalauditors.

■ Internal Control Committee
Internal Control Committee discuss and monitor
management of internal control (promotingcompliance management and internal managementrisks), etc. and report to Board of Directors, Audit &Supervisory Board, or other bodies when necessary.
■ Advisory Committee
An advisory committee was put in place on August 1,
2016 to deliberate matters such as the selection ofdirector candidates and the chief executive officer
as well as the compensation for directors (excludingoutside directors). This committee is composedof up to five directors with more than half of whom
are outside directors. We guarantee objectivity andtransparency of procedures while relying upon theknowledge and advice of our outside directors.

Supporting System for External Directors and Auditors
Planning Department, which act as a Board of Directors Secretariat, supports the external directors and auditors
by providing explanations and information as necessary.
In addition, personnel are assigned as a staff of the auditors upon request from the Audit & Supervisory Board
to smoothly execute the auditing duties.
Full-time auditors participate in important meetings including Board of Directors Meeting and GroupManagement Meeting while receiving relevant reports from accounting auditor, directors, and each division, inaddition to having a system to enable exchanging opinion with individual bodies at any time.

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Safety and Security
Quality in Commercial Properties BusinessTokyo Tatemono Group is promoting Commercial Properties Business under our motto of Human Building—People are always in the middle to ensure customers to feel safe, secure, and comfort. Not only the pursuit forsafety and comfortability of building is important, but responding with software aspect is also important to offer
sense of security and comfort. Specifically, the following four activities are carried out as axes to improve qualityand customer satisfaction in Commercial Properties Business.
(1) 3CS (Thanks) Activities to solve troubles at an early stage(2) Improvement based on customer satisfaction survey(3) Active improvement through commendation system(4) Regular improvement through implementing PDCA

Quality in Residential Development Business
The brand identity of Brillia is refinement and comfort. Along with formulating a design guideline that enablerefinement, we have built a strict quality standard and management system to prove comfort.
(1) Acquisition of International Quality Standard
ISO 9001 Certification(2) Utilization of Housing Performance Indication
System(3) Quality checklist with approximately 1,000items(4) Double check until construction(5) Various inspections(6) Reporting to customers

Quality Management until Completion
Environmental measures for land /Ground survey / Noise measurement

Design(Product Planning Session / Quality Management
Session / Management Company)

Quality Discussion
Start■ After-sales ServiceWe provide service after the completion ofcondominiums including long-term inspection,correspondence phone service "Brillia Owner'sDial" to support customer's everyday life, andauthorization system of used condominiums thatprovide guaranteed quality at sales.

(Tokyo Tatemono / Design company /Construction company)

Structural inspection
Construction (On-site inspection with test pile,Bar arrangement inspection,
Building frame inspection)

Interiminspection

Building Report and Construction
Status Report on the Web

Framework Construction Site Tourinspection■ Security and Disaster Prevention Quality
Brillia designs and selects equipment following its
own security guidelines, implementing high-level ofsecurity measures. In addition, we have established
a comprehensive disaster prevention measurethrough "Brillia Disaster Prevention Guideline," whichis based on the three concepts of preparation,protection, and cooperation.

Prior Quality Discussion

Equipment inspection(Equipment Subcommittee,Function inspection, etc.)

Completion

Pamphlet collation inspection
Completion inspection

Tokyo Tatemono Group CSR Activities 20175

Environment
Group Environmental Policy

Established January 2011

Tokyo Tatemono Group has formulated the Group Environmental Policy to contribute in building a sustainable
society through business activities that consider the environment.

・Creating a pleasant city and living with greenery
・Climate change prevention that leads the community
・Resource-saving activity that is kind to the earth・Developing employees with high environmental awarenessAcquisition of DBJ Green Building Certification that Certify
Environmental and Social AwarenessCurrently six properties of office,commercial, and other buildings Tokyo
Tatemono own have acquired DBJ Green
Building Certification and received highpraise.
DBJ Green Building Certification is asystem established by the Development
Bank of Japan to evaluate initiatives forenvironmental and social awareness of realestates. The certification is ranked from One
Star to Five Stars based on comprehensivescore of five perspectives of environmental
performance of building, comfortability oftenants, risk management, consideration forsurrounding environment and community,and collaboration with stakeholders.
Tokyo Tatemono will continue to respond tosocial request related to real estate from thestakeholders, respond to the diversificationof tenant's needs, and develop real estate
considering the environmental and socialimpact.

Nakano Central Park (East/South)

Properties certified by DBJ Green Building Certification
Name (Location)

Rank"Nakano Central Park (East/South)" (Nakano, Nakano-ku, Tokyo)"Tokyo Square Garden" (Kyobashi, Chuo-ku, Tokyo)"Otemachi Tower" (Otemachi, Chiyoda-ku, Tokyo)"Tokyo Tatemono Nihonbashi Building" (Nihonbashi, Chuo-ku, Tokyo)"SMARK" (Isesaki, Gunma)"Apartments Tower Kachidoki" (Kachidoki, Chuo-ku, Tokyo)

DBJ Green Building Certification http://www.dbj.jp/en/service/finance/g_building/index.html

Highly Evaluated Two Consecutive Years by the World's
Benchmark in Real EstateTokyo Tatemono has been highly evaluated by the Global Real Estate Sustainability
Benchmark (GRESB)*, which is a benchmark to evaluate efforts in environmental,social, and governance (ESG) performance of real estate centers, with the highest
honor of the "Green Star" for two consecutive years. We also earned the high praise of"4 stars" (out of 5 stars) in the GRESB Real Estate Rating that provides a comparative
assessment based on a comprehensive score that was introduced in 2016.
GRESB http://gresb.com/*GRESB (Global Real Estate Sustainability Benchmark). This is an ESG benchmark that specializes in real estate established throughEuropean superannuation funds and other financing.

6Tokyo Tatemono Group CSR Activities 2017

Responding to Social Changes
Supporting Women to Take Active Role
Trend of number of working women is on the raise and theirlifestyle and concept of happiness have diversified along withhousing needs. Tokyo Tatemono Group has carefully researched
the insights of working women and established the Brillia Bloomoi
Project. The project aim to consider and promote the realization ofhousing that responds to the diversified needs.

Declining Birthrate and Growing
Proportion of Elderly People
The birthrate is declining and portion of elderly people has been
growing in recent years in Japan. It is expected that more than 30%of the total population will be over 65 years of age in 2025. Amid thissituation, how final housing or nursing care and medical services
should are important social issues.
Tokyo Tatemono Group places Senior Business as the third pillar of
business next to Commercial Properties Business and ResidentialDevelopment Business. With the Tokyo Tatemono Senior Life SupportCo., Ltd. at the center, we aim to offer a rich life through integrating
housing and service by providing housing service for the elderly andnursing care.

Bloomoi is managed by female employees ofTokyo Tatemono

Exchange between the elderly and children in thenursery on the building's first floor

Aging Condominium and Community
Revitalization
Condominiums built all over Japan that supported the rapid growth
after the World War II have aged in are in need of reconstruction.
In addition to aging of the building, residents of condominiums
which were full of childrearing families has aging and declining innumber. Solitary death is raised a social issue and revitalization of acommunity that brings the resident together is a necessity.
Tokyo Tatemono Group places long-term reconstruction andfocus on redevelopment business as an important strategy of theResidential Development Business in the mid-term management
plan. We will contribute in revitalizing the local community throughrenewing existing stock of condominiums and building and creating
new values that match the coming generation at the same time.

Brillia Tama New Town
Preserving existing greenery

Establishing a Childcare Environment
In recent years, an issue of children on waiting lists for nurseryschool is occurring due to the lack of childcare facilities caused
by a concentrated population and an increasing number ofdouble-income families in urban areas. Tokyo Tatemono Group isworking to newly expand the childcare business and to establish achildcare environment for households raising children and for thechildren of our future. We opened three nursery schools in 2017.

Tokyo Tatemono Group CSR Activities 20177

Community Involvement
Policy on Community Contribution
There are two policies for area management of Tokyo Tatemono Group that has a policy of "Loving theCommunity, Becoming Part of the Community." One policy is community building in cooperation with local
community of Yaesu, Kyobashi, and Nihonbashi area around the Tokyo Station where our headquarters is
located in. Another policy is community building in areas where we operate. We hope to increase the number ofvisitors through vitalizing the community and increase the allure and value of the community and properties.
In doing so, Tokyo Tatemono Group encourages employees to take initiative in blend in with the community andpromoting community building.
Such activities include cleaning and other activities related to the environment, management of public andshared items, events that vitalize the community, development of software such as providing services andcommunity building, anti-crime, and disaster prevention.

Participating in Sanno Festival, One of the Three Major
Festivals of Japan

Holding Eco Town Seminar (environmental seminar) to Learn andThink about Building Ecological City at Tokyo Square Garden

Participation in Partner's System of Tanbo as Reconstruction
Support After the Great East Japan Earthquake

Supporting Disabled Sports: Shin-Toyosu Brillia Running
Stadium

This booklet is digest version of the Tokyo Tatemono CSR site. More information is available on the Tokyo Tatemono CSR site. Furthermore, Japaneseversion of the Tokyo Tatemono CSR site has PDF version CSR report (Japanese) in that has even more information.
CSR site (English) http://www.tatemono.com/csr/english/
CSR report (Japanese only) http://www.tatemono.com/csr/reports/

Tokyo Tatemono Co., Ltd.

1-9-9 Yaesu, Chuo-ku, Tokyo 103-8285, Japan
TEL: +81-3-3274-0111
http://www.tatemono.com/english/
Published in June 2017