Takara Leben GroupCSR Report 2020

Group Philosophy

VisionContents

THINK HAPPINESSAND
MAKE THE HAPPINESS

President’s Message ̶̶̶̶ 03

We are most committed to giving thought to thewhich gives shape to each and every dream.
We think on the happiness of communities and society, and contributeto the development of towns where all people can live at ease.
We are most positive in a happy future, and propose theeco-friendly creation of a sustainable environment.
Think happiness and make the happiness.
This is what we, the Takara Leben Group, do.

Quality& Comfort Providing Comfortable Spacesof High Quality ̶̶̶̶̶̶̶̶̶ 19

MissionCreating Together
With a Rich Heart
Creating together new value for the market by cherishingour customers with a rich heart.

Creating Lifestyles with Value ̶̶ 09

Community Forming Communities ̶̶̶̶̶ 13

Innovating to Solve Social Issues
and Creating New Lifestyles

happiness of people and lifestyles, and to realize housing

LifestyleEnvironment& Culture Developing Environments
Company Profile ̶̶̶̶̶̶̶̶̶̶̶̶̶̶ 05
Facts and Figures of the Takara Leben Group̶̶̶ 06

Takara Leben Group’s CSR Strategies ̶̶̶̶̶̶ 07

and Cultures ̶̶̶̶̶̶̶̶̶ 25

Corporate Governance ̶̶̶̶̶̶̶̶̶̶̶̶ 31
Third-Party Opinion/Editor's Postscript̶̶̶̶̶̶ 36

With Sincerity
Creating together, safety and peace for people and society
with sincerity toward partners.
With Power to Act
Creating together perpetual growth into the future,with power to act demonstrated
by each and every employee.

Harmonic Circle
The Takara Leben Group’s symbol is the Harmonic Circle,
which is comprised of three rings, representing customers,
partners, and employees and expressing how they are linked
to one another and expanding organically to create harmony
while supporting each other.
The three rings convey our hope of carrying out our corporate
vision to “THINK HAPPINESS AND MAKE THE HAPPINESS”
while resonating with one another.
The gradation of striking blue to deep navy expresses

Editorial Policy

Disclaimer

ScopeThis report has been designed to provide stakeholders with a deeper understanding of the Takara Leben
Group’s responsibilities and initiatives for building asustainable society, and at the same time serve as aform of internal and external communication.
The Takara Leben Group has formulated four CSR
themes to be undertaken in the medium-to long-term,
to enhance our CSR initiatives with the purpose of offering increased, concrete value to society. Based onthese four themes, we are creating new value throughour businesses to solve various social issues. Moving
forward, we will continue to work on the transparent andtimely disclosure of information. We hope you can provide
us with your opinions and feedback.

This report was generated based on data
as of the end of March, 2020. Opinions
and forecasts stated in this report are ourassessments at the time this report was
generated, and thus their accuracy andcompleteness are not guaranteed.

Eleven companies under
the Takara Leben Group

Date Published
August 2020

For Inquiries
Target Period
While the report covers fiscal year 2019
(April 1, 2019 to March 31, 2020), certain
information stated in this report falls outside this time period.

Corporate Planning Department,
Takara Leben Co., Ltd.
TEKKO BUILDING 16F, 1-8-2
Marunouchi, Chiyoda-ku,
Tokyo, Japan 100-0005+81-3-6551-2130

the intelligence and sincerity pursued
by everyone in the Group.

01 Takara Leben Group CSR Report 2020

Takara Leben Group CSR Report 202002

President's Message

Solving Social Issues and Creating
New Lifestyles Through Innovation

Representative Director, CEO and President
Executive Officer
Takara Leben Co., Ltd.

Creating Happiness Through Housing
The Takara Leben Group is committed to thinking about
the happiness of people and their lifestyles. We want tocreate housing and communities where everyone canfeel at ease. Led by this philosophy, we have defined our
corporate vision, “THINK HAPPINESS AND MAKE THE
HAPPINESS,” which guides our business.
As we approach the 50th anniversary of the Group's
founding, in order to remain a business enterprise that
customers select and can thrive for the next 50 and 100
years, we consider the happiness of customers and all
stakeholders and aim to make that happiness a reality.
Since its foundation in 1972, we have consistently
provided homes that customers will treasure under the
principle of providing ideal, affordable housing that anyone can buy with confidence and peace of mind. With
the changing of the business environment, we have ex-

03 Takara Leben Group CSR Report 2020

panded our business scope to include stock and feebased businesses such as real estate management business and electric power generation business, establishedconnections with an even larger number of stakeholders,and increased our focus on corporate social responsibility (CSR). We are currently carrying out CSR activities led
by our four key CSR themes of “creating lifestyles with value,” “forming communities,” “providing comfortable spaces of high quality,” and “developing environments and cultures.”
We have created a corporate system that pursues thecreation of happiness through housing. Our current Medium-Term Management Plan, announced in May 2018,
includes responding to ESG*1 as one of its management
strategies, and links Sustainable Development Goals(SDGs)*2 with businesses. Based on this management
plan, we carry out corporate management that balances
social value with corporate value.

Each and Every Employee Playsan Active Role in Value Creation
We adopted “Innovation for a New Lifestyle.” as ourGroup slogan as we work toward the 50th anniversary of
the Group’s establishment in 2022, and have carried out
various projects under this slogan. The slogan incorporates our desire to not simply provide places for people
to live, but also propose optimal lifestyles to the people
who live in those homes, guiding society in a better andmore enriching direction.
When we try to predict our society’s future, we areconfronted with various social issues related to housing,such as the aging of society, the depletion of energy resources, the decline of rural populations, the hollowing
out of city centers in regional cities, and abandoned
homes. We are also called on to deal with natural disasters and other threats to safe, secure living. To overcome
these and create happy futures for all, we must innovate,

proposing creative and unprecedented lifestyles andcommunity designs. The Takara Leben Group is alreadydeveloping condominiums that promote regional development and revitalization, providing condominiums withsolar power generation systems that contribute to environmental conservation, and engaging in other businessfocused on ties with the community. Through this, we are
creating new lifestyles and developing communities. The
ideas from LEBEN LABO ETHICAL ACTION, our internal
proposal project led by employees, have been recognized with the Good Design Award, one example of theways we can truly feel that our Group vision and slogan
are being consistently put into practice.
Each and every employee will continue to innovate,
and we will strive to achieve sustainable growth as acompany that creates happiness for customers and all of
our stakeholders.
We look forward to your continued support in the future.

*1 ESG refers to environmental, social, and governance issues that should be emphasized when a business enterprise seeks sustainable growth. ESG is garnering attention,
primarily from shareholders and investors, as a non-financial measure for assessing businesses, leading to the expansion of ESG investment, which focuses on investment
in environmentally- and socially-conscious firms.
*2 The Sustainable Development Goals (SDGs) are goals adopted at the United Nations summit in 2015 with the aim of solving issues of international society and leading to
the development of sustainable societies. The SDGs are comprised of 17 goals and 169 targets. There are calls for business enterprises to take action for achieving theSDGs such as the Japan Business Federation (Keidanren) revising its Charter of Corporate Behavior, a statement of action guidelines for businesses, indicating that businessshould incorporate the principles of the SDGs in their business activities.

Takara Leben Group CSR Report 202004Company Profile

Company Profile

Facts and Figures of
the Takara Leben Group(as of the end of March 2020)

Company Name

Takara Leben Co., Ltd.

Representative

Kazuichi Shimada, Representative Director

Established

September 1972

Listed onFirst Section, Tokyo Stock Exchange (Code: 8897)

Capital Stock(as of April 2020)¥4,819 million¥168,493 million (FY2019 consolidated results)

Net Sales

Head Office

TEKKO BUILDING 16F, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo

Takara Leben
Group

Leben Community Co., Ltd.
Takara Leben Tohoku Co., Ltd.
Takara Leben West Japan Co., Ltd.
Nikko Takara Corporation Co., Ltd.
Takara Leben Realnet Co., Ltd.
Leben Zestock Co., Ltd.
Leben Trust Co., Ltd.
Takara Asset Management Co., Ltd.
Takara PAG Real Estate Advisory Ltd.
Sunwood Corporation

No. of Employees 334 (261 male, 73 female)
Average Age

35.6 years old (36.0 for male, 34.4 for female)

Organizational Chart

Number of units soldNew built-for-salecondominiums

New built-for-saledetached houses

1,955 154
(FY2019)

Board of Directors

Nomination Committee

Representative Director

Compensation Committee

Development
Division

Construction
Division

Rental revenues

President's Office

Sales Division

Sales
Management
Group

1st Sales
Department

1st Sales
Department

Web Solutions
Promotion
Department

2nd Sales
Department

2nd Sales
Department

Business
Promotion
Department

3rd Sales
Department

3rd Sales
Department

Sales
Solution
Department

Sales
Management
OfficeDevelopment
Group

Osaka
Branch1stDevelopment
Department

Development
Department

2nd
Development
Department

Sales
Department

Business Promotion Department
Urban Rejuvenation Department

Construction
Department

Eco-Energy Department
Overseas Business Promotion Office

Investment
Development
Division

GeneralPlanning
Division
Accounting
and FinanceGroup

Corporate
Planning
Group

Construction
Department

Investment
Development
Department

Accounting
Department

Human
Resources
Department

Quality
Control
Department

Asset
Management
Department

Finance
Department

Corporate
Planning
Department

Product
Planning
Department

Strategic
Investment
Business
Department

Number of managed housing units

59,747

Real Estate
Rental Business 3.5%

In this business segment, the Group manages and operates
properties. In addition to managing our own properties throughour unique and detailed services, the Group also manages
properties handled by other companies on a contract basis
and is steadily growing the number of properties it manages.

In this business segment, the Group leases Group-owned
condominiums, office buildings, hotels, and other real estate.
Leveraging the Group’s real estate information network to its
fullest, we are actively acquiring rental properties throughout
Japan. By bringing in rental revenue, this segment is a stable
stock business that contributes to both our real estate management business and Group net sales.

The Group generates a stable flow of earnings
by selling the electricity it generates to electric
power companies. The Group also works
diligently to contribute to society by producing
renewable energy. In addition to our electricity
sale revenue, the Group also sells power
generation facilities to Takara Leben Infrastructure Fund.

¥168.4billion(FY2019)

Other
Businesses 4.1%
The Group engages in other businesses as well, including work involving commissions derived from othersegments, construction contracting, and large-scale repair work. As the assets of infrastructure funds and REITs
grow, our management fees increase.

(FY2019)

GeneralAffairs
Department

Real EstateManagement Business 3.0%

Consolidated net sales¥5.9billion(as of the end of March 2020)

The Takara Leben Group’s Business Segments

Electric Power
Generation
Business 12.5%* New built-for-sale condominiums(as of the end of March 2020)

Compliance & Risk Management Committee

Internal Audit Office

2nd SalesGroup

32,743(as of April 2020)

Ordinary General Meeting of Shareholders

Audit & Supervisory Board

1st Sales
Group

Cumulative numberof units suppliedPower-generation
facilities nationwide

Power generation (current)

125

About

MW

48

* Including wholesale portion* Calculated based on thenumber of licenses(as of the end of March 2020)* Including wholesale portion(as of the end of March 2020)

Percentage of persons withdisabilities employed

Real Estate
Sales Business 76.9%
This business segment accounts for roughly 80% of the Group’s
net sales. Here, the Group’s activities largely revolve around theplanning, development, and sale of new built-for-sale condominiums while addressing the diverse needs of customers. Among ahost of other endeavors, we actively engage in the sale ofdetached houses, as well as the renovation and resale ofcondominiums and liquidation business of profit-generating realestate in this segment.

8.33 9.46
FY2019%2.06 2.19
FY2019Percentage of womenin management%%* Scope of calculation: Takara Leben(as of the end of March 2020)%* Scope of calculation: Takara Leben(as of the end of March 2020)

05 Takara Leben Group CSR Report 2020

Takara Leben Group CSR Report 202006

Takara Leben Group’s
CSR Strategies
CSR Basic Policy

Key CSR Themes

Customers
Shareholders
and investors

Competitors

The Takara Leben Group will achieve its corporate vision of “THINKHAPPINESS AND MAKE THE HAPPINESS” while working to earn the trustof various stakeholders and society. We will contribute to solutions to social
issues and achieving the Sustainable Development Goals (SDGs) by

Local communities,
NPOs, and NGOs

Media

undertaking CSR initiatives through our business including supplying
housing and introducing natural energy as we strive for continuous growth.
Executives
and employees

Governments

CSR Promotion Framework

Trading partners

To link CSR activities to the improvement of corporate value for all Group

Representative Director

companies, the Takara Leben Group is building a promotion framework
which spans across all companies. We are also building a vertical promotion
framework unifying management with business activities by making
decisions and reporting at our Executive Committee meetings as

Executive Committee
Frequency: Twice each month
Participants: Directors, auditors, and executive officers
Content: Decision on measures; confirmation of progressappropriate. In addition, we are organizing training for executives of all

Executive in charge of CSRGroup companies and staff in charge of CSR. We are also providing
opportunities for information sharing and discussion with ground staff.
Moving forward, we will further strengthen our activities and create newvalue by creating environments where employees can take ownership in
working on CSR activities, and by reaffirming awareness of critical issues.

CSR Promotion Team
Scope of work: Formulation of direction; proposal ofmeasures; implementation and awareness-raising of
measures; progress management

Takara Leben Group CSR staff

Process of Selecting Key CSR Themes
and Identifying Key Issues

Business activities: Execution of policies and progress management

At the Takara Leben Group, we have identified key CSR themes and key

STEP Grasp and organize social issues

1

We identified 31 issues relating to the business environment based on
GRI, SDGs, SASB and other international guidelines, as well as ourGroup philosophy and Medium-Term Management Plan and demands
from our customers, shareholders and investors, local communities,
employees and other stakeholders.

High

Takara Leben Group's perspective
We utilized questionnaires completed by all employees including
management and officers to identify relations between social issues
and our business and Group philosophy, and rank them in accordancewith priority.

STEP Evaluate importance from3

our stakeholders' perspectives
We utilized questionnaires completed by customers, shareholders andinvestors, and business partners and drew on international guidelines
such as the GRI and the SDGs to rank issues.

STEP Identify key issues

4

Priorities were revised from the perspectives of the Takara Leben Groupand our stakeholders, a review was conducted by management, andthen the key issues were identified.

STEP Set policies for key CSR themes

5

Policies were set for the four key CSR themes.

07 Takara Leben Group CSR Report 2020

We contribute to improving the richness ofpeople's lifestyles by creating new value.

2

Forming Communities

Providing Comfortable
Spaces of High Quality

We support the comfortable and safe
living of our customers by providing
products bringing great satisfaction to
our customers.

4

Policies

Provide products and services that respondto changing social issues and needs.
● Provide lifestyles that harmonize residents
and surrounding environments, such as the
LEBEN or NEBEL brands.
●

Contributing to the revitalization of regional
areas through our regional city revitalization
business, which connects urban andregional areas.
● Improve our ability to respond to risk throughthorough risk assessment and management.
● Provide opportunities and environments
where a diverse range of people can work
energetically.
● Corporate activities that can respondto social needs with an emphasis on
dialogues with our stakeholders.
●

We form communities withstakeholders—such as local
communities, trading partners, andemployees—and aim for growth
together.

3

Support for diversifying lifestyles
and globalization● Responses to changes tobusiness models brought by anageing society and depopulation●

Related SDGs

Developing Environments
and Cultures

Urban development and creating
towns● Construction and maintenance ofa corporate governance system● Promoting compliance● Employee health management● Encouraging employment ofdiverse human resources●

Improve customer satisfaction levels
through the use of our proprietary Service
Quality Management System (SQMS®).
● Create housing that combines both designand habitability, pursuing the performanceof housing.
● Improve building value through regular
repairs and renovations to improve building
comfort, functionality, and safety.
●

Providing safe, secure products
and services● Improving customer satisfaction● Improving value of buildings●

Providing buildings and spacesthat consider the environmentand culture● Responses to global warming● Initiatives for renewable energy● Effective use of resources● Responses to disasters●

Reduce greenhouse gas emissions throughsupplying housing with high environmental
performance and our renewable energy
power generation business.
● Provide seismic-resistant and fire-resistanthousing that can withstand natural
disasters.
● Provide opportunities for cultural activities
to our stakeholders.
●

GRESB
Takara Leben Infrastructure Fund took part in the FY2019 Global Real Estate
Sustainability Benchmark (GRESB)* infrastructure assessment, and was rated

STEP Evaluate significance from the2Creating Lifestyles
with Value

We contribute to a sustainable society
by actively working on environmental
issues, and at the same time, contributeto improving quality of life by providing
opportunities for mental activities suchas learning and practicing the arts.

Priorities for stakeholders

issues through the following steps.

1

Key Issues

High

Priorities for the Takara Leben Groupfour out of five stars for both asset and fund assessments. Furthermore, in thefund assessment, it was the first Japanese infrastructure fund to be selected as a
Sector Leader in Asia. In the FY2019 GRESB real estate assessment, Takara

The 15 Issues Identified
1 Support for diversifying
lifestyles and globalization
2 Responses to changes tobusiness models brought
by an ageing society anddepopulation
3 Urban development andcreating towns
4 Construction and maintenance of a corporate
governance system
5 Promoting compliance
6 Employee health management
7 Encouraging the strongroles of diverse humanresources

8 Providing safe, secure
products and services
9 Improving customer
satisfaction
10 Improving value ofbuildings
11 Providing buildings andspaces that consider
the environment andculture12 Responses to global
warming
13 Initiatives for renewableenergy14 Effective use ofresources
15 Responses to disasters

Leben Real Estate Investment Corporation received a Green Star, indicating highevaluations in both the “Management & Policy” and “Implementation &Measurement” ESG assessments.

* Global Real Estate Sustainability Benchmark (GRESB) is thename of the benchmarks used to measure the environmental,social, and governance (ESG) performance of real asset (realestate, infrastructure facility, etc.) portfolios, established by agroup of major European pension funds that led the Principles
for Responsible Investment (PRI), as well as the name of theorganization that manages this benchmarking.

Message from Executive in Charge of CSR
Through the SDGs, the importance of creating a sustainable society is being reaffirmed throughout the world. Faced byincreasingly severe environmental issues and economic inequality, the relationships between companies and society arechanging significantly. We also face various issues in the environment around our own business sector, housing, suchas the aging of the population and the handling of natural disasters. We are being called upon to work on solutions tothese problems.
The Takara Leben Group is working to realize its corporate vision of “THINK HAPPINESS AND MAKE THE
HAPPINESS” by engaging in dialogue with all of its stakeholders, maintaining its unique business model while promoting
CSR measures in order to sustain steady growth by evolving to meet the changes of our times and environment. As amember of sustainable society, we will continue to promote ESG-oriented business operation and value creation toachieve sustainable corporate growth. We appreciate your continued support.

Masashi Yamamoto
Director, CFO, and Managing
Executive Officer

Takara Leben Group CSR Report 202008

LifestyleCreating Lifestyles with Value

LifestyleCreating Lifestyles with ValueThe Takara Leben Group aims to create lifestyles with value throughproviding housing pursuing comfort and design under the concept ofrealizing the optimal form of harmony between occupants and thesurrounding environment. Our initiatives to achieve this aim havereceived recognition from many parties, and several initiatives havereceived the Good Design Award.

Regional Development by Linking Regional Communities with Urban Centers

Premium Markets
Takara Leben’s Leben Craft project links the Urban Centers with provincial communities, contributing to regional revitalization. One of the project’s activities is
the Premium Market. These markets allow the residents of our condominiums to

Searching forJapan’s treasuresdirectly see and feel the quality of superb products from outlying areas. These
events contribute to regional development and reflect our desire to share moving experiences with as many people as we can through the treasures (bothproducts and experiences) that we have discovered through our condominium
development activities across the country. In fiscal 2019, together with Leben
Community, we held Premium Markets at Leben Moriya THE BRIDGE and Leben Moriya THE SQUARE (Ibaraki Prefecture) in April and at Leben Takaoka MID
RISE TOWER (Toyama Prefecture) in September, promoting exchange between
the producers of agricultural products and crafts and the residents of our condominiums.

For Senior Health“My Reha” Day Care Service Specializing in Rehabilitation

Provision of Condominiums that Embody the Ideals of Diverse Lifestyles

My Reha, operated by Leben Community, is a day care service specializing inrehabilitation, helping support seniors’ independence through easy and fun physical training. This service has been offered in Saitama Prefecture and Chiba Pre-

Urban-Type Compact Condominiums “NEBEL”

fecture since 2011, through facilities rooted in the community to those certified as
requiring support or nursing. As Japan’s society continues to age and the num-

The Takara Leben Group offers services that meet diversifying lifestyle needs.

ber of people worried about their health in their senior years grows, My Reha fo-

As a result of increases in working couple households and single-person

cuses on what happiness means for its users, and what My Reha can do forhouseholds, demand is rising for properties that place greater emphasis on loca-

them. It uses unique programs, including Redcord exercises*, to help extend us-

tion in a city center or near a station and convenience rather than large size. In

ers’ healthy lifespans. In October 2019, the fifth My Reha location, My Reha Mis-

response to these changes in customer lifestyles, the Group began supplying theato Rehabilitation Center, was opened in Saitama Prefecture’s Misato City.

NEBEL series of compact, urban condominiums for single and DINKs households. The NEBEL series maintains in these small condominiums the design* Redcord exercises are training exercises developed in Norway, a rehabilitation pioneer, that uses red cordsuspended from the ceilingcharacteristics, specifications, and quality of equipment of conventional family
condominiums, and so far have been built in the prefectures of Tokyo, Saitama,
Osaka, and other areas.

Meeting Diverse Needs with Leasebacks

VOICE

ing only running costs such as property management fees and repair re-

My Reha is a day care service specializing in rehabilitation to enable seniors to do what they want to do. We now operate
five My Reha sites.
Each rehabilitation center asks its users about their dreams and objectives and provides exercise support led byfunctional training instructors and exercise instructors, so that using the day care service is not the ultimate goal, butinstead a means of achieving those dreams. Many users have said that the service allowed them to accomplish things thatthey had almost given up on. Feedback such as this further motivates My Reha staff.
Unique My Reha initiatives include the planning of rehabilitation day-trips where users can experience the results of theirrehabilitation efforts. From 2019, it has also taken on the challenges of new initiatives, such as introducing oral exercises.
We will continue to expand My Reha and contribute to longer healthy lifespans.

serve fund payments. Through various plans, we support the diverse needs

Hiroshi Hoshino, My Reha Department, Leben Community Co., Ltd.

Leben Zestock provides leaseback services that allow people to continue living intheir homes even after selling them. The Mimamori Leaseback service for people
aged 65 and older includes regular wellness checks. The Ultra-Short Term
Leaseback service allows customers to continue living in their homes while pay-of our customers.

09 Takara Leben Group CSR Report 2020

Takara Leben Group CSR Report 202010

Creating Lifestyles with Value

Lifestyle“SMART GARBAGE STORAGE” 6M Project

LEBEN LABO ETHICAL ACTION

This project reconceptualized garbage pickup areas in condominiums as common areas, like entrance halls, using environmental design to change their negative image and help reduce the amount of garbage disposed of. Condominium

LEBEN LABO ETHICAL ACTION is an organization within the Company that was launched to put into practice the various feedback fromgarbage areas, parts of peoples’ living environments, are seen as smelly, scary,

our customers based on the theme of contributing to society by doing good things. In recognition of our sincere efforts to increase theand dirty. We thought about what Takara Leben could do about this, and intro-

happiness of people and their lifestyles, led by our corporate vision of “THINK HAPPINESS AND MAKE THE HAPPINESS,” we have been

duced beautiful “Garbage Stations” in our new condominiums. We have madeawarded the Good Design Award for four consecutive years. Four of the organization’s projects were selected in fiscal 2019.

further advances in this effort, carrying out a “6M* Project” with the aims of promoting garbage volume reductions and spurring individual action to reduce gar-

● “LUIC” Project● “Solar Power” Project● “JIJO KYOJO (Self-Help Mutual Assistance)”● “Working Point” Project● “Good Working” Project● “SOCOTAKU” Projectbage disposal to as close to zero as possible.
* 6M: “Mottainai” (wasteful), “motto kurikaeshi tsukau” (use articles more times), “mo ichido tsukau” (usearticles again), “mo niowanai” (no longer smelly), “mo kowakunai” (no longer scary), “mo kitanakunai” (nolonger dirty)● “SMART TORISETSU (SMART MANUAL)” Project

Project● “KOJIN BOSAI KIT (Individual Disaster
Preparedness Kit)” Project● “MOTTO ATTARA IINA (We Wish to HaveMore)” Project● “USE OF MODEL ROOMS AND SALESCENTERS AS DISASTER RESPONSE
SITES” Project● “SMART GARBAGE STORAGE” 6M Project● “MODIFIABLE DESIGN CONDOMINIUMCOMMON AREA” Project

The usage rates of common areas such as lounges and children’s rooms have a● “MOTTO ATTARA IINA (We Wish to Have

● “Brillia Shonan Tsujido Kaihin Koen” Project

tendency to fall as residents’ lifestyles change over time. To address this, Takara

More)” Project● “SOCOPOS” Project● “LEBEN CRAFT” Project

See p. 14● “ART BIOTOPE ‘WATER GARDEN’” Project

See p. 27“MODIFIABLE DESIGN CONDOMINIUM COMMON AREA” Project

Leben has developed two-stage modifiable condominiums that adapt to growthstages, with future renovation plans built in from the very start. By renovating
condominium common areas and facilities based on customer requests after afixed period of time, we not only meet customer needs, but also help revitalize
communities and maintain condominium asset values.

“SMART TORISETSU (SMART MANUAL)” Project
When people buy built-for-sale condominiums, they receive various instruction
manuals for installed residential equipment. They are a tremendous amount ofmaterial in total, making them difficult to use—they can be difficult to find when

“10 for All” Safety Assurance Service and “KIT+” Personal Disaster Kits

needed, and it can be difficult to find contact information within them. This service digitizes these instruction manuals so they can be viewed on smartphones
and centrally managed. This idea helps reduce the number of inquiries to prop-

As one of our efforts to ensure that residences are not supplied

individual needs. They were the winner of a Good Design Awarderty management companies, saves resources by making the manuals paper-as mere “boxes,” and to progress from “material wealth” to “qual-

2016. Each consists of a compact, A4-sized folder file-like pack-less, and helps preserve the asset value on resale through appropriate docu-

itative wealth,” we have begun providing the “10 for All” safety

age which individuals supplement with what they specifically will

ment management.

assurance service and “KIT+” personal disaster kits. “10 for All”

need in the event of an emergency, to be kept close at hand atoffers customers support so they can live with peace of mind,

all times.

through extended warranties for residential facilities and equip-“USE OF MODEL ROOMS AND SALES CENTERS
AS DISASTER RESPONSE SITES” Project
The model rooms created when selling built-for-sale condominiums show customers what completed built-for-sale condominiums will be like and serve as
sales negotiation sites. However, they are frequently built for individual condominiums and torn down after all units are sold. In this project, we outfitted model
rooms with supplies and equipment needed in the event of a disaster; water, aliving essential; charging facilities for mobile phones, etc., using in-house generators, and the like, and opened them to the general public as disaster response
sites. As of the end of March 2020, we have begun operating two of these sites,

ment; 24 hour emergency response and maintenance support
for water leaks, key issues, and glass breakage; inspections ofprivate areas and repair services; and other services, for 10 years
after property handover. “KIT+” are not kits of disaster response
goods for entire households, but instead a concept focused on

Residential Facility and Equipment Extended Warranty (10 Years)

1

Malfunctions and breakage of articles included within the warranty scope are repaired free of charge every time for the entire duration of
the warranty

2

In addition to on-site dispatch and initial response for water leaks, trouble with keys, and glass breakage emergencies, service personnel arealso dispatched to handle problems with fixtures, entry doors, sashes, and the like3

Dedicated staff visit customer residences and perform interviews and inspections, repairing any issues that can be immediately addressed (for5 or 10 years after property handover)

24-Hour Emergency Response + Maintenance Support

and plan to increase that number to seven. We will actively use our expertise inefforts such as supplying condominium unit buyers with disaster kits, and willfurther expand these sites.

11 Takara Leben Group CSR Report 2020

Private Area Inspection + Repair Services (5 Years / 10 Years)

Takara Leben Group CSR Report 202012Community

Forming Communities

Community

Forming Communities
Together with Local Communities

The Takara Leben Group works on regional revitalization-such as
participation in redevelopment and local events-and the strengtheningof communications with customers, employees, and shareholders.
We build ties with stakeholders, and contribute to the formation andgrowth of communities.

Yokohama Model Regional Contribution Company Certification
The Takara Leben Group contributes to the revitalization of local communities. In 2018, Nikko Takara
Corporation was certified by Yokohama City, Kanagawa Prefecture, as a Yokohama Model Regional
Contribution Company. The company aims to further develop together with the community as a company that is managed with a focus on the community, as can be seen in its active hiring of Yokohama
residents and its emphasis on doing business with companies in Yokohama, and that contributes tothe local community through environmental conservation and volunteer efforts carried out through its
main business and other activities.

Winner of Kids Design Award for “Yajirushi” Emergency Shelter Guidance Signs
As a developer that sells new built-for-sale detached houses and takes part in community development, Nikko Takara Corporation realized the need for emergency shelter
guidance signs that were clear and easy to understand for everyone, including smallchildren, in residential areas with few landmarks. This is why it manufactured andinstalled “Yajirushi” evacuation shelter guidance signs. In order to contribute to thedisaster preparedness education of children throughout local areas, these signs were
installed in street-facing locations such as the garbage stations of Nikko Takara Corporation’s subdivisions. When the signs were installed, members of the surrounding were
informed of the objectives and significance of these signs, gaining their widespread
approval. In the future, if requested, we will also supply these signs to other compa-

Relationships with Stakeholders

nies’ subdivisions, government agencies, and other organizations, contributing to theoverall disaster preparedness of local communities. These “Yajirushi” signs contain only
essential information to make them easier to understand for children, and use highly

Main Stakeholders
Definition
Customers (corporations and individuals)
Contracting parties and tenants ofcondominiums and detached houses
Users of tenant buildings
Users, etc. of various services

Local communities
Local communities, residents,
local governments, etc. related to
Takara Leben Group businessTrading partners
Construction contractors
Businesses, etc. related to the provision ofvarious services

Employees

Expectations and Requests● Supply of valuable products and services● Improvement of customer satisfaction in all areas,

including quality and cost

● Supply of environmentally friendly products● Provision of accurate and appropriate information

concerning products and services● Prevention of accidents and disasters● Collaboration and coordination in solving social issues● Securing of employment● Participation in social contribution activities● Fair and evenhanded transactions● Information sharing and collaboration with the aim of

ensuring customer satisfaction and CSR procurement● Creation of prosperous lives for employees and theirfamilies

Takara Leben Group employees
and their families● Human resource utilization and development● Appropriate evaluation and compensation● Respect for human rights, personality, and individuality● Creation of workplaces in which diverse personnel can thrive● Attention to occupational health and safety

Shareholders and investors● Maintenance and improvement of corporate value● Securing of stable profits and appropriate return ofprofits

Individual and institutional investors● Enhancement of corporate governance system● Creation of risk management systems● Appropriate disclosure of corporate information at

appropriate time

Major Responses of the Group (FY2019)● Establishment of inquiry desks

creative expressive approaches. In recognition of this, they were awarded the Encouragement Prize in a Kids Design Award 2019.

● Implementation of customer satisfaction surveys● Operation of CLUB LEBEN, a member

organization for friends of Takara Leben● Use of websites and social media● Holding of seminars for customers“Brillia Shonan Tsujido Kaihin Koen” Project● Publication of “Smilax” quarterly● Participation in and sponsorship of local events

Brillia Shonan Tsujido Kaihin Koen, is a built-for-sale condominium developed in con-properties● Implementation of social contribution activities● Regional revitalization through rebuilding andredevelopment business

Prefecture. An administrative system was used to build a tsunami evacuation facility● Holding of community events at managed● Fair and evenhanded transactions● Collaboration and coordination in operations

junction with the Tokyo Tatemono Co., Ltd. and located in Fujisawa City, Kanagawa(roughly 400 m2, with a capacity of roughly 660 people) on the roof for use by bothresidents and members of the local community. The area around the condominium isa wonderful environment for enjoying seaside life, but causes the assumption of suffering tsunami damage in the event of a major earthquake, so expectations were high for● Holding of internal events for employees and theirfamilies● Implementation of training programs● Implementation of human resource and evaluationinterviews● Establishment of help line desks● Introduction of a Telework System● Establishment of a Health Committee● Holding of financial briefings and General Meetingsof Shareholders● Holding of individual meetings and overseas
investor relations events● Implementation of shareholder questionnaires● Participation in investor relations fairs● Disclosure of investor information on websites● Acquisition of external certification

the contributions the condominium could make to mutual assistance. The unveiling of
the facility was attended by roughly 200 members of the community, and afterwards
efforts aimed at ongoing community revitalization began, including discussions regarding the use of the facility for disaster preparedness drills involving the city of Fujisawa
and members of the community. This initiative
was the recipient of a Good Design Award
2019 in recognition of its groundbreaking nature as a new approach for the developmentof built-for-sale condominiums that contributeto disaster preparedness, as well as the higheffectiveness and versatility of the facility.
Entrance of emergency stairwell leading
to the roof (1F, north side)

13 Takara Leben Group CSR Report 2020

Takara Leben Group CSR Report 202014

Forming Communities

Together with Our Customers
Sales Staff Questionnaire

Community

Together with Our Shareholders
Policy and Past Performance Regarding Dividends■ Dividend Per Share(Yen)

Takara Leben administers questionnaires to model room visitors to gauge their

Our basic decisions on dividends are not biased toward dividend payout ratio,

impressions of sales staff and the company, with the aim of building stronger re-but are comprehensive and take into consideration factors such as dividend onlationships. This questionnaire seek to evaluate sales staff service from all per-equity (DOE) and dividend yield. We seek to be an appealing company so thatspectives, such as whether they discussed things that met customer needs,

our shares can be held stably not in the short term but in the long term, and can

10whether their explanations were clear and of appropriate length, and whether

be held for long without being affected by fluctuations in share prices.

5

they were considerate and polite. The tabulated results are provided back to ad-

Interim dividend

19.00

20
15

0

13.00

2016

15.00

16.00

16.00

2017

2018

2019

ministrative staff at each model room, used to improve customer service, andwill be reflected in sales department training.

Year-end dividend

2020
(FY)

Corporate Briefings for Individual Investors
We seek to actively communicate with individual investors. In fiscal 2019, Takara Leben conducted six corporate briefings for individual investors in various regions, including Tokyo, Osaka,

VOICE

Sapporo, Kagoshima, and Yamagata. In August 2019, we exhibited at the NIKKEI IR Fair, Japan’s largest event for individual investors. At the fair, we provided an overview of our businessactivities and explained our medium- and long-term strategy to a wide range of fair attendees.

Shareholder Privilege Program
Returning profits is positioned as one of the most important issues for Takara Leben. Our basic
policy is to stably and continuously give out appropriate dividends while securing internal reserves necessary for expanding our businesses and strengthening our management foundation. At the same time, we give out rice coupons to all shareholders possessing at least one
unit (100 shares) stated or registered in our shareholder registry or substantial shareholder list
as of March 31 each year.

Leben Community’s Community Activities
The Great East Japan Earthquake of 2011 prompted us to reassess the importance of community formation in condominiums. Leben Community believes
that building direct personal relationships with condominium residents as part ofeveryday life not only produces greater livability, but also helps prevent crimeand fosters greater assistance and support in times of need. This is why it provides support for the creation of communities of condominium residents.

Resident Get-Togethers
As part of our community building support efforts, we actively assist with theholding of “resident get-togethers” for individual condominiums.
We hold various types of events that bring adults, children, and whole families together while enjoying snacks and games, such as “resident mixers” whereresidents of new condominiums can get to know each other.

Summer Festivals
In condominiums made up of multiple buildings, we provide support for joint
summer festivals with games, food stalls and other stalls, and workshops forchildren that will be lifelong summer memories.

15 Takara Leben Group CSR Report 2020

Disclosure Policy
Takara Leben discloses information to the public in accordance with the following disclosure policy.
1 Disclosure Standards

4 Quiet Period

Takara Leben Co., Ltd. (JAT) discloses information in accordance with the Companies Act, the Financial Instruments and Exchange Act, and other laws and regulations, as well as the rules for timely disclosure and so on of corporate information included in the Securities Listing Regulations of the Tokyo Stock Exchange(TSE) (hereafter collectively referred to as the “Timely Disclosure Rules).” At thesame time, Takara Leben will proactively disclose information that is deemed to
be important or valuable for stakeholders to understand the company, even when
it is not subject to the Timely Disclosure Rules.

In order to ensure fairness to all stakeholders, Takara Leben has defined a quiet
period from the day after the end of each quarter until the day of our earnings announcement for that quarter. During this period, Takara Leben will refrain from responding to or making comments on questions related to our account settlement
and earnings forecast. However, if a large discrepancy from the earnings forecast
is found during the quiet period, information will be disclosed in an appropriate
and timely manner in accordance with the Timely Disclosure Rules. Note thatduring the quiet period, Takara Leben will continue to respond to questions andinquiries about information that has already been disclosed.

2 Method of Disclosure
Information subject to legal disclosure statutes is promptly disclosed in accordance with the Rules on Timely Disclosure of Corporate Information by Issuers of
Listed Securities via the Timely Disclosure Network (TDnet) operated by Tokyo
Stock Exchange. In addition, the information is also released to the media anddisclosed in accordance with procedures established by laws and regulations
without delay. Disclosed information is also promptly posted on our website.

3 Limitations on Disclosure
In principle, Takara Leben is not allowed to selectively disclose management-related information to specific third parties. In order that important information
which has not been announced is not disclosed to specific parties and ensure
fairness to everyone, including the media, investors, and securities analysts, private
meetings will only touch on past historical facts, facts which have already been announced, etc.

5 Prevention of Insider Trading
Takara Leben has established an internal regulation to suitably manage important
information and prevent insider trading from occurring. Takara Leben has been
striving to educate all employees in our Group on these issues and foster theirunderstanding.

6 Spread of Third-Party Information and Rumors
Takara Leben is not responsible for any forecasts or comments about the Takara
Leben Group made by third parties. In addition, Takara Leben does not in principle respond to inquiries regarding market rumors. However, if it is deemed that
not responding could have serious ramifications for the Company, Takara Leben
may respond to a rumor, etc. by taking swift action to determine the cause andtake appropriate actions as necessary.

Takara Leben Group CSR Report 202016

Forming Communities

Community

Together with Our Employees
Employee Health and Safety Management

Strengthening Communication with Employees

In accordance with its fundamental policy on health and safety, the Takara Leben Group strives to manage the health and safety of employees and takes measures to create work environments where all employees can work with peace of mind.

Exciting Family Day
Takara Leben holds various events for the families of employees to express our
gratitude for the support they offer our employees every day and to provide

Fundamental Policy on Health and Safety

them with a better understanding of the company. The “Exciting Family Day”

The Takara Leben Group provides proactive support to ensure the safety of employees and maintain and enhance their health. We strive
to create work environments where diverse human resources can work to demonstrate their full capabilities. We established the HealthCommittee to implement these measures and undertake comprehensive employee health and safety management.

Health Committee
The Group strives to create work environments where all employees

ations with the objective of resolving these issues. The commit-

event held in our head office in August 2019 was attended by 84 people from 24
families. At this fun summer event, they enjoyed a program including festival
stalls, a picture frame-building workshop, business card exchanges, and more.

Shimanto River Swimming Marathonand Matsuyama Ojoka Relay Marathon 2019can work with peace of mind, led by its Health Committee, estab-tee’s members are representatives of different workplaces, and

The Takara Leben Group collaborates in regional revitalization and creates op-

lished as stipulated in Article 18 of the Industrial Safety and Health Act.

they point out specific problems with workplace environments

portunities for interaction between employees by participating in regional sports

The Health Committee meets regularly, positioning traffic ac-

and customs that impede efforts to reduce overtime hours andevents. Employees of Takara Leben West Japan took part in the Shimanto Rivercidents, occupational accidents, and overtime work as major

encourage the taking of holidays. Measures for addressing these

Swimming Marathon, held on July 28, 2019. In this marathon, competitors swim

risks that threaten the health and safety of workplace employees,

problems are deliberated together with members of manage-

down the Shimanto River, Japan’s last clear stream, immersing themselves inreports on the conditions of these risks, and engages in deliber-

ment and successively implemented.

nature and considering the importance of nature conservation. In the Matsuyama Ojoka Relay Marathon 2019, held on October 12 and 13, 2019, compet-

Periodic Medical Examinationsitors ran a relay race with colleagues through a circuit in the central part of

We encourage employees to undergo periodic medical examinations as specified by laws and regulations, and the Human Resources Department
actively reaches out to employees to raise examination rates. We also take measures to establish work environments at each business location thatare conducive to undergoing medical examinations. In order to discover various medical conditions at an early stage, those age 30 and above areable to undergo medical examinations for prevention of lifestyle diseases, female employees are able to undergo gynecological examinations, andthose age 35 and above can go for a complete medical checkup.

Ehime Prefecture’s Matsuyama City. The team of executives and employees ran

Stress Checks
We conduct stress checks as a form of stress management to prevent mental health issues among employees, and the results are shared at Executive
Committee meetings. Also, employees can anytime receive free counseling from an independent, third-party organization without the Company’s knowledge.

42.195 km, the length of a full marathon.

Creating Workplace Environments that Facilitate Work
Cleaning Time

Safe Driving Courses
Takara Leben conducts safe driving courses at the time of entry-level employee training. The courses explain that making an effort to prevent
accidents is a part of our corporate social responsibility and an aspect of corporate activities. Information on accident trends is presented, group workin the form of risk prediction training is conducted, and various other measures are taken to prevent accidents.

The Takara Leben head office has “cleaning times” twice per month for personnel
to clean and organize their offices, improving their working environments and contributing to greater work efficiency. Spending just five minutes a day looking for
documents and materials in cabinets and desks represents a tremendous loss of

Various Training Systems

time of the course of a year. Also, the less cluttered desks are and the less that iswithin one’s range of vision, the greater one’s concentration becomes.

Expansion of Educational and Training Programs

When cleaning time starts, an announcement is played in the workplace,

Takara Leben conducts a variety of educational and training pro-training systems for all levels of employees,” “training systems

and all personnel stop working and spend 15 minutes cleaning and organizing

grams to develop our employees and improve our overall

linked to the evaluation system,” and “individual development

the key areas specified for the day.

strength as an organization. In fiscal 2019, system reforms were

motivation.” We expanded training programs for mid-level em-

implemented with the aim of developing an educational environ-ployees and management-level personnel, formulated skill andment that promotes employee growth and attracts talented per-competency training programs appropriate for the company,

sonnel. These reforms were based on the themes of “systematic

provided corporate vision training to all employees, and more.

Introduction of a Telework System
From April 2019, Takara Leben introduced a telework system, supporting more diverse employee work styles. Employees who meet specific conditions, such as

Job Rotation

conditions related to the contents of their work, or employees who have given

We are revitalizing our job rotation system, in which employees

cross-departmental reassignments when requested by mid-levelbirth, are parenting, or who provide nursing care, can work remotely, without

regularly change workplaces and duties. By having young em-

employees. This not only further supports their individual spirit ofcoming to the office, up to three times a week, after implementing informationployees experience job moves across division and department

challenge, but also helps cultivate generalists with broad-ranging

leakage countermeasures and other measures. We plan to further promote thislines, we are promoting greater overall understanding of theknowledge and skills, deepening bonds between departments

telework system with the aims of becoming an even more alluring company withcompany, the pursuit of employees’ full potential, and adaptabili-

and enhancing the power of the organization as a whole.

ty to different working environments. We are also supporting

17 Takara Leben Group CSR Report 2020

flexible work styles that are not fixated on specific locations or times and contrib-(Image)uting to our business continuity planning (BCP).

Takara Leben Group CSR Report 202018

Quality&Comfort

Providing Comfortable Spaces of High Quality

Providing Comfortable
Spaces of High Quality

For everyone to live with peace of mind. The Takara Leben Group pursues theneeded performance of housing to support the happiness of families.
We provide definite quality, combining both design and habitability,
and comfortable spaces where people can live with peace of mind all the time.

Quality & Comfort

Condominium Management Quality Improvement Measures
Service Quality Management System (SQMS®)
We ensure quality using our unique service quality management system(SQMS ) to continue managing our customers’ important assets over the long®

term. SQMS® applies ISO 9001, the international standard for quality management systems, to condominium management. It sees condominium management as consisting of four support services (site management, financial management, asset management, and operation management), and applies the
PDCA cycle to each of these to continuously improve quality.
Based on the SQMS ® concept and system, we conduct company-wide
quality improvement activities. We administer questionnaires to the officers ofcondominium management associations, collect and analyze opinions andpraise, and provide feedback to the corresponding departments. This contrib-

SQMS® Process Chart(Service Quality Management)
Management andplanning design basedon customer needs
Management outsourcing
agreements

Plan

Do

Quality plan proposal

Service provision activities

Quality standards

Provision of services inaccordance withquality standards

Service quality plan design(quality plan) based the
management planutes to improved quality for a wide range of services, from management associ-Condominium
management
outsourcing services

SQMS®
Cycle

ation operation support to measures for dealing with delinquent residents. We
also dedicate ourselves to the development of personnel that understandAct

SQMS® and put it into practice. We implement systematic training, led by our

Improvement Activities

SQMS® Fundamental Concepts Training for junior employees, making SQMS® a●Continuous improvement

part of our corporate culture. After they have accrued actual field experience,●Preventive action

employees deemed as having a sufficient level of understanding and knowledge●Corrective action

Check

Collection, analysis &evaluation activities
Collection
Analysis
Evaluation

regarding SQMS® are presented SQMS® badges and certified as SQMS® Masters, able to provide SQMS® leadership.
We launched the SQMS® Master system in fiscal 2018. In the first year, we certi-

Providing Comfortable Spaces of High Quality

fied three SQMS® Masters, and in the second year, we certified five more.

Quality-Related Education and Training
Initiative to Improve Quality Through Obtaining ISO 9001 Certification
For the purpose of improving the quality of our comprehensive support to customers inbuilding comfortable living environments, Leben Community and Nikko Takara Corporation
have constructed quality management systems in accordance with ISO 9001, the international standard for quality management systems formulated by the International Standards
Organization, and obtained this certification.

Details of Leben Community’s Initiative
Comprehensive
condominium management■ Administrative management■ Association accounting■ Management and repair of buildings and equipment■ Management staff operations

Condominium repair work

■ Repair of condominium common areas

Front man Training
Front men require extensive knowledge as professionals that support the operation of management associations. In order to improve the quality of service
they provide, we regularly administer training to all front men. The goal is to provide front men with the skills they require to carry out their duties, through training such as debt recovery operation training led by an attorney, SQMS®-based
operation mentality training, and building and equipment training.

Condominium Management Staff Training
Condominium management staff is responsible for reception, inspections,cleaning, consultation, and other duties. To maintain comfortable condominium
living environments, they must not only be able to execute their duties appropriately, but also to do so with a smile on their face, speak politely, and be careful

Details of Nikko Takara Corporation’s Initiative■ Make clear legal requirements, and validate conformance of processes which must be observed■ Give clarity to the risks and opportunities that have the chance of affecting capacity for customer
satisfaction improvement, and address them appropriately■ Encourage the conduct of PDCA on stakeholders’ requirements

19 Takara Leben Group CSR Report 2020

about their personal appearance. By providing them with feedback from residents about their day-to-day job performance, conducting regular management
staff training, and periodically testing their understanding of training contents,
we work to thoroughly improve the quality of service they provide.

Takara Leben Group CSR Report 2020

20

Providing Comfortable Spaces of High Quality

Quality & Comfort

Pursuit of Safety and Peace of Mind
Thorough Process Inspections

Accident Prevention Measures

To provide housing where people can live for a long time with peace of mind, the Takara Leben
Group conducts stringent checks at the construction stage. We put efforts into ensuring thoroughquality management, with our staff regularly visiting construction sites to inspect building structuresand conduct checks within the construction process of hidden areas, foundations, and finishing.

The Takara Leben Group is working to prevent occupational accidents at workplaces and construction sites.

(Image)Obtaining Housing Performance Evaluation Reports
Takara Leben obtains housing performance evaluation reports
from third parties designated by the Minister of Land, Infrastructure and Transport and Tourism to provide customers with greater peace of mind regarding their residences. Through these evaluations, we obtain housing design performance evaluation
reports, which contain evaluations of earthquake- and fire-resis-

Structural Stability

Housing construction
performance evaluation(to be acquired upon completion)
Housing construction performance
evaluation report(to be acquired for all units)

Acquisition of housing
performance evaluation report

Inspection
completion certificate(5) Upon completion of
construction work

(4) Upon completion ofroofing work

(2) Upon completion of
second floor rebar work

(3) Upon completion ofwork performed immediately
before installation of interior
foundations(The number of inspections varies
depending on the number of floors.)

Issuing of housing construction
performance evaluation report

Five or more on-site inspections are performed.

(1) Upon completion offoundation rebar work
(before pouring concrete)

Design performance
evaluation report(acquired for all units)

Determination of
inspection personnel

Creation of construction
evaluation application(Copy of verification
completion certificate attached)

Application for housing
construction performance evaluation

Conclusion of agreement regarding
contracting of design performance
evaluation report reception, etc.

Issuing of housing design
performance evaluation report

Application diagram
screening

Application for housing design
performance evaluation

Designated housing performance
evaluation organization

Creation ofdesign evaluation
applicationtance, degradation resistance, energy consumption, ease ofmaintenance, and more, as of the time that the housing design
was completed. We also plan to obtain housing construction
performance evaluation reports when construction work is completed. These reports contain objective evaluations of housing
quality.

Degradation Reduction

Maintenance, Management, and Renovation

Thermal Environment / Energy Consumption

Evaluation of the building’s resistance toearthquakes, wind, snow accumulation on theroof, etc.

Evaluation of measures used to improve
durability, maintaining initial strength for as longas possible.

Evaluation of the ease with which maintenancecan be performed for plumbing, gas pipes, hotwater pipes (inspection, cleaning, repair, etc.).

Evaluation of degree of energy saving contributions
produced by materials and construction methods
used to improve insulation performance.

●Seismic grade (prevention of building structure
collapse, etc.)●Other (prevention of building structure collapse ordamage in the event of an earthquake)●Subsoil or pile load tolerance and installation
method●Foundation structure method and form, etc.

●Degradation measure grade(building structure, etc.)●Maintenance and management measure grade(dedicated pipework)● Maintenance and management measure grade(common pipework)●Renovation measures (common drainage pipes)●Insulation performance grade●Primary energy consumption grade

Safety Patrols
At Nikko Takara Corporation, which is responsible for building construction, top
management perform safety patrols and strive to create safer worksites. In addition to confirming the implementation of health and safety management, such asmonthly and daily inspections and the assignment of certified personnel, theyalso aim to foster a greater focus on safety through the use of safety briefings
and the like.

Safety Conferences
During National Safety Week, an initiative of the Ministry of Health, Labour andWelfare whose goal is to promote voluntary occupational accidents in the industrial world, foster more widespread safety awareness, and firmly establish safety
activities, Nikko Takara Corporation’s offices and worksites work closely together and enhances the company’s health and safety management activities suchas its measures to prevent the three main types of accidents (toppling and falling
accidents, crane and other construction machinery accidents, and collapse accidents).
Before National Safety Week, the company’s executives, employees, andpartners gather for a Safety Conference that promotes greater health and safety
management. The slogan of the FY2019 Nikko Takara Corporation Safety Conference was “Familiarity and Overconfidence Cause Accidents. Let’s Work Together to Urge Mutual Caution and Predict Dangers.” Participants issued a declaration of their resolve to combine their strengths to create workplaceenvironments with PDCA cycles aimed at eliminating all accidents.

Selection of Optimal Structures and Equipment
Earthquake- and Fire-Resistant Structures
Robust Earthquake-Resistant Structures
In the construction of condominiums, we improve earthquake resistance by adopting the most appropriate construction method
for the characteristics of the subsoil and its capacity to support
the foundation. This includes the use of pile foundations, wherestrong piles are directly driven into the ground to the supporting
layer, spread footing foundations, which provide support directly
using firm subsoil, and seismic isolators, which disperse earthquake energy and dampen extreme, long-period building swaying.
In the construction of detached housing, we adopt wood-frame

construction, which affords a high degree of design freedom andflexibility when adding to or renovating a structure in the future, together with a panel construction method that offers high durability
and safety as well as good earthquake and fire resistance. We also
employ as a standard feature a mat foundation method whereby
a steel-reinforced concrete slab is laid underneath the entire
wood floor to support the building, establishing a strong foundation using a high earthquake resistance and high durability construction method.

We change specifications for each property—not just the interior designs
such as floors, doors, and kitchen/bathroom, but also the internal structure of buildings such as double floors, double ceilings, and piping withinpipe spaces—according to the land and customers living there to givethe most fitting combination of structure and equipment.

Specification
ExamplesConcrete slab
Double ceiling

Support material

Plasterboard

Drain pipeSoundproofing
sheetInterior
space
Particle board
Flooring
Water supply
and drainage pipes

Flooring
material
Double floor

Concrete slab
Plasterboard
Piping within pipe spaces

Introducing the most fitting equipment for each property

Plasterboard
Double floor & double ceiling(Conceptual image)Exceptional Fire-Resistant Structures and Soundproofing Performance
We use highly fireproof materials when constructing condominiums. Fire-resistant and soundproofing performance standards are
stipulated by law, and the thickness of the concrete walls between
our condominium units, which require a high level of fire resistance

21 Takara Leben Group CSR Report 2020and soundproofing, is approximately 180 mm. Furthermore,
fire-resistant and soundproofing construction is used for the piping
within pipe spaces facing residents’ rooms.

Takara Leben Group CSR Report 2020

22

Providing Comfortable Spaces of High Quality

Pursuit of Safety and Peace of Mind

Pursuit of Habitability

Crisis Management Structures in Leben Community
Leben Community has established solid crisis management structures to protect the safe lives and peace of mind of condominium residents.

Quality & Comfort

Enhancement of Shared Condominium Facilities
By providing shared condominium facilities tailored to the lifestyles andneeds of residents, we support the creation of convenient lifestyles andSafety Management
Remote monitoring systems promptly send notice to a security company via
telephone lines in the event of any abnormality in condominium facilities. If necessary, security personnel respond immediately. Through its inspections andstaff training, Leben Community has established a system for responding appropriately in the event of an elevator, firefighting equipment, or other emergency.

enriching times for residents.
Leben Yamagata Tokamachi THE MID TOWER, located in Yamagata
City, Yamagata Prefecture, has shared facilities for use by all generations.
The party room is outfitted with tasteful tables made by reusing materials
from Shogetsu, a local restaurant that had been in business for over 120

Leben Yamagata Tokamachi THE MID TOWER(Left: Kids’ room; Right: Golf simulation room)

years. It has a bar counter and a kids’ room, so young and old alike canenjoy an escape from the everyday. There are also diverse other relaxation
and recreation spaces, such as a private garden and a golf simulation

Responses to a Large-Scale Disaster
Following the occurrence of the Great East Japan Earthquake in March 2011, an
emergency earthquake countermeasures headquarters was immediately established, and initial measures were promptly taken. During disaster recovery construction, we provided support from the perspectives of a management association, led
by our commitment to speed, dependability, and sincerity and based on the expertise and skills we have developed through our equipment and repair experience.

room.
Leben Yokote THE MID RESIDENCE, located in Yokote City, Akita Prefecture, is also enhancing its shared facilities to enrich the lives of residents. It supports the refined lifestyles of residents with its sophisticatedand stately entrance lounge; its party room, where families and friends canLeben Yamagata Tokamachi THE MID TOWER(Left: Party room; Right: Private garden)

enjoy birthdays, anniversaries, and other events; a fitness room that contributes to the health of residents; and hotel-like guest rooms for providing
hospitality to valued guests.

Disaster Response

Leben Yokote THE MID RESIDENCE(Left: Fitness room; Right; Party room)

Disaster Preparedness Drills
Leben Community supports the safety and peace of mind of all condominium resident communities. One representative example of that is the disaster preparedness
drills we conduct in conjunction with management associations, especially in large
condominiums. It is no easy matter for residents, including senior citizens and children, to properly use condominium firefighting equipment in the event of a fire, or to
rapidly evacuate the condominium via its evacuation routes. In the disaster preparedness drills, residents experience not only evacuation from upper level floors via
stairs, but also evacuation via ladder trucks, evacuation by breaking partition boards
on balconies, and initial firefighting using fire extinguishers. We will continue to conduct disaster preparedness drills tailored to the situations of specific condominiums
and enhance the disaster responsiveness of communities.

Moriya Disaster Preparedness Event

LUIC Project, A Proprietary Water System
The LUIC Project is a water system, originated by the Takara Leben Group,
which makes purified water available for use in all aspects of living. Since
the system was launched in 2008, it has been used in all series of our own
branded condominiums, changing the lives of many residents by changing
water, a fundamental necessity for life. The LUIC Project is constantly
adopting new technologies and evolving. Currently, the LUIC Project consists of Takara No Mizu, which provides clean purified water from taps; Takara No Microbubble Tornado O2, a bath system that removes grime anddirt simply by getting into the bath without irritating the skin; and Takara
No Mirable Ultrafine Mist, which provides water with ultrafine bubbles tokeep users’ skin and hair in excellent condition. In 2019, Active Micro Wa-

The Takara Leben Group collaborates with condominium residents and members of the community

ver, which uses a low temperature plasma generator to clean bath waterin promoting activities that heighten the disaster preparedness of community members. In Novem-

and bathtub walls, was added to Takara No Microbubble Tornado O2, andber 2019, we held an Escape Attraction® disaster preparedness event for the residents of Leben

the standard bath television was equipped with new functions, further im-

Moriya THE BRIDGE, Leben Moriya THE SQUARE, and the members of the Matsunami Nishi

proving convenience.

Takara No Mizu
(Takara Water)

Takara No
Microbubble
Tornado O2

Takara No Mirable
Ultrafine Mist

Neighborhood Association in Ibaraki Prefecture. This program, created as a new type of disaster
preparedness training at the third UN World Conference on Disaster Risk Reduction in March 2015,
differs from conventional evacuation drills. A large screen is used to create an immersive simulated
disaster experience for participants, who collaborate with each other to complete an evacuation
preparation mission and an evacuation mission, seeking to reach the safety gate by the time limit(escaping the disaster safely). On the day of the event, 120 participants enjoyed learning about disaster preparedness and the importance of working with each other.

23 Takara Leben Group CSR Report 2020

Beforeexperiment

After

5 min.

After

10 min.

After

15 min.

* In this decoloration experiment,
approximately 250 ml were
sampled from an aqueous solution
consisting of roughly 1,000 ml ofmineral water and roughly 0.2 g ofmethylene blue, and Active Micro
Waver waves were generated forapproximately 15 minutes.

Takara Leben Group CSR Report 202024

Environment &Culture

Developing Environments and Cultures

Developing
Environments
and Cultures

The Takara Leben Group not only improves the environment through adopting
renewable energy, but also contributes to improving energy self-sufficiency andregional revitalization including the use of idle land.
In addition, we work on improving the quality of life for people by providing
opportunities for cultural and social activities.

Environment & Culture

Completion Ceremony Held for LS Hiroshima Mihara Power Generation Facility
A ceremony marking the completion of construction of the LS Hiro-with a generating capacity of 11,216.7 kW. It is expected to gener-

shima Mihara Power Generation Facility in Yamanakano, Kui-cho,ate 11,734,000 kWh of power per year. The site also has three di-

Mihara City, Hiroshima Prefecture was held on May 15, 2019. The

saster preparedness pools, and provides disaster preparedness

mega solar power generation facility has 40,788 solar cell modules

functions for the community, such as helping prevent flooding(rated output: 275 W per module) on the roughly 152,066 m2 site,

during the heavy rains experienced by western Japan in July 2018.

New Mega Solar Power Generation Facility Projects Launched

SOLAR POWER

In December 2019, we launched the LS Tottori Daisen Powerand using it as power generation facility lots. The Takara Leben

Generation Facility (tentative name) and LS Miyagi Matsushima

Group will continue to value the relationships of trust it has es-

power generation facility (tentative name) projects. In both proj-

tablished with local communities while actively investing in re-ects, we are contributing to the community by acquiring idle land

newable energy such as solar power generation.

Overview of the LS Tottori Daisen
Power Generation Facility (Tentative Name) Project

Electric Power Generation Business

Overview of the LS Miyagi Matsushima
Power Generation Facility (Tentative Name) ProjectThis project uses land that was formerly a golf course, located at

This project is using the former site of a gravel quarry, located on
the northern side of the Sanriku Expressway’s Matsushima North

The Takara Leben Group conducts electric power generation busi-

volved in developing mega-solar power facilities centered on thethe base of Mt. Daisen, the highest peak of the Chugoku region.

ness utilizing renewable energy that contributes to reductions in the

Kanto area, and currently operate 48 facilities (calculated based on

A forestland development permit was secured from Tottori Pre-

Interchange. A forest land development permit was secured from
Miyagi Prefecture in order to carry out construction, and weemissions of CO2, a greenhouse gas. We develop mega-solar pow-

the number of licenses) as of the end of March 2020. Total power

fecture in order to carry out construction, and we signed a devel-er facilities at places such as on idle land for large-scale solar power

generation is approximately 125 MW, and we aim to achieve 250 MW

opment agreement with the local town of Hoki.

by the end of March 2021.

generation. Since entering this business in 2013, we have been in-

List of Mega Solar Power Generation Facilities
TohokuAomori Prefecture●

LS Aomori Hiranai
Power Generation Facility

Iwate Prefecture●

LS Iwate Hirono
Power Generation Facility

Miyagi Prefecture●●

LS Miyagi Osato
Power Generation Facility
LS Miyagi Sendai A & B
Power Generation Facility

Fukushima Prefecture
LS Fukushima Yamatsuri
Power Generation Facility● LS Fukushima Kagamiishi
1 and 2 Power
Generation Facility●

Kanto-Koshinetsu
Tochigi Prefecture
LS Shioya
Power Generation Facility
LS Nasu Nakagawa
Power Generation Facility● LS Fujioka A Power
Generation Facility● LS Fujioka B Power
Generation Facility● LS Shioya 2 Power
Generation Facility●●

Kanto-Koshinetsu
Ibaraki Prefecture
LS Koga Onanuma Power Generation Facility● LS Tone A, B, and C Power Generation Facility● LS Chikusei Power Generation Facility● LS Tsukuba Bouchi Power Generation Facility● LS Miho Power Generation Facility● LS Mito Takada Power Generation Facility● LS Tone Fukawa Power Generation Facility● LS Sakuragawa 3 Power Generation Facility● LS Kamisu Hasaki Power Generation Facility● LS Hokota Power Generation Facility● LS Sakuragawa 2 Power Generation Facility● LS Inashiki Aranuma 1 Power Generation Facility● LS Sakuragawa Nakaizumi Power Generation Facility● LS Sakuragawa 4 Power Generation Facility● LS Sakuragawa Shimoizumi Power Generation Facility● LS Sakuragawa 1 Power Generation Facility● LS Inashiki Aranuma 2 Power Generation Facility● LS Takahagi Power Generation Facility●

Nagano Prefecture●

LS Nagano Shiojiri Power Generation Facility

Tokyo Metropolitan Area
Saitama Prefecture●

LS Hanno Misugidai Power Generation Facility

Chiba Prefecture
LS Chiba Wakaba-ku Power Generation Facility● LS Sosa Power Generation Facility● LS Chiba Sammu East and West Power Generation Facility● LS Chiba Narita Power Generation Facility●

25 Takara Leben Group CSR Report 2020

Chubu
Shizuoka Prefecture●

Facility
Overview

LS Shizuoka Omaezaki Power Generation Facility

Aichi Prefecture●

LS Aichi Toyohashi Power Generation Facility

Mie Prefecture●

LS Mie Yokkaichi Power Generation Facility

Kinki
Wakayama Prefecture●

LS Shirahama Power Generation Facility

Chugoku
Hiroshima Prefecture●

LS Hiroshima Mihara Power Generation Facility

Kyushu and Okinawa
Nagasaki Prefecture●

LS Nagasaki Isahaya Power Generation Facility

Kagoshima Prefecture●

LS Kirishima Kokubu Power Generation Facility

Okinawa Prefecture●

LS Miyakojima Gusukube
Power Generation Facility

signed development agreements with the local town of Matsushima and the Nemawari Water Usage Union.

Total power generation:
Approx.

125MW* Including wholesale portion(as of the end of March 2020)

VOICE

Location: 339-2 Fukukane, Hoki Town, Saihaku-gun,Tottori Prefecture, etc.
Area: Approx. 25 ha
Power generation capacity: Approx. 14 MW
Annual power generation forecast: Approx. 16,264 MWh(approx. ¥390 million)
Start of operation: Planned for April 2021

Facility
Overview

Location: 11-1 Nemawari Aza Maesawakami, Matsushima Town,
Miyagi-gun, Miyagi Prefecture, etc.
Area: Approx. 38 ha
Power generation capacity: Approx. 14 MW
Annual power generation forecast: Approx. 17,184 MWh(approx. ¥410 million)
Start of operation: Planned for September 2020

The Eco-Energy Department manages the development and operation of mega solar power generation facilities in the
Kanto region and throughout Japan. Power generation facilities that have been put into operation are transferred to Takara
Leben Infrastructure Fund, for which Takara Asset Management, a Group company, has been contracted to perform asset
operation, and Takara Leben continues to carry out electric power generation business. In this way, we use a Group-wide
integrated system to manage power generation facilities.
We promote development that includes disaster preparedness elements in everything from power generation facility
development to operation management, using the services of local businesses, and striving to conduct business
operations in a way that contributes to the environment and the local community.
We will continue to use environmentally friendly renewable energy to contribute to local communities through ourelectric power generation business, while at the same time meeting society’s need for a stable supply of electrical power.

Hiroki Tsuruoka, Eco-Energy Department, Development Division

Takara Leben Group CSR Report 202026

Developing Environments and Cultures

Botanical Garden “Art Biotop”
A New Form of Resort: Merging Nature and Art

Environment & Culture

Social Contribution and Recovery Activities
TABLE FOR TWO

We are collaborating with nikissimo Inc. on the “Art Biotop” botanical garden

Takara Leben continues to donate to TABLE FOR TWO International, a non-prof-

project as one of symbolic businesses to mark the 50th anniversary of Takara

it organization that seeks to solve the global problem of food inequality. Since

Leben’s founding.

November 2018, as part of our diversity promotion efforts, we have been distrib-

Located in the Yokozawa area at the foot of the Nasu mountains amid abun-uting vegetables cultivated at the Leben Village, a farm that employs those withdant nature, the Art Biotop botanical garden project is a new form of resort that

disabilities, to anyone within the company who desires. At the same time, we

proposes a new relationship between humans and nature. In addition to thecollect ¥20 for each bag of vegetables. In fiscal 2019, we donated ¥11,870 inenormous Water Garden, other facilities include a residence with a pottery studio

June 2019, ¥9,847 in September 2019, ¥18,257 in January 2020, and ¥23,023 inand glassmaking studio, restaurant μ (Mu), which serves artistic food that stimu-

March 2020.

lates the five senses, a premium villa that blends into the forest, and the café
Kantan, whose theme is “25-mile food.” It proposes a model for future resort
business that grows by merging nature and art. Besides harmonizing with nature,
it seeks to fulfill its role as a platform for cultural and social activities, such as the
support for nurturing artists through the Artist in Residence program. As a company that cares about the environment, the Takara Leben Group will continue topromote proposals leading to resorts and business models of the future.

Tour de Tohoku 2019Tour de Tohoku, organized by KAHOKU SHINPO PUBLISHING Co. and Yahoo Japan Corporation, isn’t a position- or time-focused race, but a bicycle fun-ride event.
Part of the proceeds from this event, together with donations collected throughYahoo! Net Donation, are accumulated in a fund and used to assist with the re-Overview

Name: Art Biotop
Development facilities: Water Garden landscape art (currently in operation)
Premium villa (planned to open in October 2020)
Residence (currently in operation)
Restaurant μ (planned to open in October 2020)
Café Kantan (currently in operation)

Water Garden Landscape Art Selected
for Good Design Award 2019 Best 100

covery from the 2011 Great East Japan Earthquake and to prevent memories ofthe event from fading. Since 2015, the Takara Leben Group has participated in
the event, and in the Tour de Tohoku 2019, which was held on September 14
and 15, 2019, three employees from Takara Leben and five from Takara Leben
Tohoku entered the event.

Jingu Gaien Fireworks Festival
For the first time, Takara Leben was one of the sponsors of the Jingu Gaien Fireworks Festival, held on August 10, 2019. Since 2011, the Jingu Gaien Fireworks

The Water Garden was created in 2018 based on a design by architect Junya

Festival has donated part of its proceeds to regions affected by the 2011 Great

Ishigami. It is a new and unique art space created through the carefully calcu-

East Japan Earthquake to assist with their recovery efforts, as well as engaging

lated arrangement of 318 trees and 160 biotopes (ponds) of varying sizes. In

in charity activities aimed at recovery from the Kumamoto Earthquake.

the judging, the Water Garden was evaluated highly for the beauty of the artistic

We conveyed Takara Leben’s heartfelt support for disaster-struck regions bybiotopes, which differ from natural biotopes. These artistic biotopes were rec-supplying 400 of the 10,000 fireworks launched at the festival, broadcastingognized as embodiments of the living spirit of Japanese gardens. The Water

commercials and displaying our corporate logo at the festival site, and distribut-

Garden has been introduced by countless media, both Japanese and interna-

ing commemorative fans.

tional, as a special meditation space in which visitors can clear their senses andfeel the ties between people and nature. It is already drawing attention fromaround the world.

TOPIC Project Press Presentation
Bewitching Night Event
On October 9, 2019, we held a press presentation for our Botanical Garden Art Biotop project. Many
members of the press toured the site and we introduced the facilities, whose grand opening was

Takara Leben Tohoku Cleanup Activities
The Takara Leben Group aims to be a company that contributes to the development of local communities through real estate. Each of the companies in theGroup engages in social contribution activities. Takara Leben Tohoku regularly
cleans the Aoba-Dori street in front of its head office and the areas around condominium construction sites in order to beautify the areas where people live.

scheduled for October 2020. The visitors were also able to experience a bewitching night event in the
Water Garden, a work of landscape art.

27 Takara Leben Group CSR Report 2020

Takara Leben Group CSR Report 202028

Developing Environments and Cultures

Environment & Culture

Support for Sports and Culture
Moriya Half Marathon“Eiosen” Shogi Title Competition

The Takara Leben development group contributed to regional revitalization by

Takara Leben sponsored the third through fifth years of “Eiosen” (held bybecoming one of the sponsors of the 36th Moriya Half Marathon, held on Febru-

DWANGO Co., Ltd.), contributing to the spread and development of shogi asary 9, 2019, in Ibaraki Prefecture’s Moriya City, home to Leben Moriya THE

traditional culture. “Eiosen” are the newest type of title matches (tournaments in

BRIDGE and Leben Moriya THE SQUARE. The weather on the day of the mara-which winners are granted titles). Highly-anticipated matches and semi-final andthon was perfect for running, and a total of 4,919 runners, from elementary

later matches during the preliminary tournament as well as the main tournamentschool students to seniors, participated in the marathon, which was followed byand the championship seventh match will be broadcast live on the “niconico”

an award ceremony at Moriya City Hall.

Live Streaming video sharing service to be enjoyed by countless shogi fans.

Kishu Kuchikumano Marathon

Artist in Residence (AIR) Gentaro Yokoyama Exhibition

The Kishu Kuchikumano Marathon is a full and half marathon held on the first

Art Biotop, a joint project between Takara Leben and nikissimo Inc., operates

Sunday of February every year in Wakayama Prefecture’s Kamitonda Town, over

the AIR Program, which supports young artists by providing them with long-a course rich with nature. Takara Leben Infrastructure Fund, whose asset oper-

term residential environments to use while they create their artwork. During theation is performed by Takara Asset Management, is the owner of the LS Shira-one or two months of their residence, artists are inspired by their surroundinghama Power Generation Facility where the marathon is held. As part of its social

environments and the people around them, using that inspiration to create newcontribution and regional revitalization efforts, it has become an official sponsor

art. Takara Leben was a sponsor of the support program for ceramic artist Gen-of the marathon.

taro Yokoyama, and from May 7 to June 1, 2019, held the SOFT TOUCH exhibition to present the works created during the residency.

Takara Leben Tohoku Night Game
Takara Leben Tohoku respects the professional baseball spirit of contributing toand serving society through baseball, and, since 2014, has been a sponsor of
the Tohoku Rakuten Golden Eagles. In fiscal 2019, the Takara Leben Tohoku
Night Game, a game at Rakuten Seimei Park Miyagi on July 5 pitting the Tohoku
Rakuten Golden Eagles against the Hokkaido Nippon-Ham Fighters, was attended by 25,282 spectators.

grape Award 2019
Takara Leben has been a special sponsor of the grape Award, “Kokoro ni Hibiku” (resonate with the heart) essay contest, since 2018. Among the 567 entries
submitted in 2019 on the theme “resonate with the heart,” the creator of thework most suited to the Group’s corporate vision “THINK HAPPINESS AND
MAKE THE HAPPINESS,” Takara Leben Award was presented a trophy, a cash
prize, and a voucher for accommodation for two at a resort (Art Biotop) as acommemorative gift.

Hakkiyoi KITTE Grand Sumo Tournament
Since fiscal 2017, Takara Leben has been a sponsor of Hakkiyoi KITTE, a regular summer sumo wrestling event organized by JAPAN POST Co., Ltd. held at
the KITTE commercial facility, which is directly connected to Tokyo Station. Participants can enjoy watching the yokozuna enter the ring, ropetying, and power ful matches from up-close. There is also sumo-themed singing, shokkiri demonstrations, wrestler talk show
events, and more, enabling audiences from Japan and overseas to experience the appeal of Japan’s national sport, sumo wrestling.

VOICE

We adopted “Innovation for a New Lifestyle.” as our Group slogan as we work toward the 50th anniversary of the Group’s
establishment in 2022. We want to create innovation together with “grape”, so we are a special sponsor of the grapeAward “Kokoro ni Hibiku” (resonate with the heart) essay contest.
We held a vote within the Group to select the submitted entry that best conveyed a sense of happiness, and awarded
its creator the Takara Leben Award. This internal voting enabled all employees to read anecdotes about all different mannerof happiness, and provided them with an opportunity to reflect on happiness.
We will continue not only to participate in contests such as these, but, by sponsoring various sports and cultural
events, our all Group companies will engage in CSR activities. These activities will lead to the happiness of all stakeholders
including customers and will help create greater Group corporate value.

Satoko Wada, Corporate Planning Department, Corporate Planning Group, General Planning Division

29 Takara Leben Group CSR Report 2020

Takara Leben Group CSR Report 202030

Corporate GovernanceEvaluating the Effectiveness of the Board of Directors

Basic Approach
Rather than simply pursuing profit, Takara Leben strongly believes that it must comply with laws and corporate ethics andcarry out its duties as a responsible member of society.
While maintaining close relationships with customers, shareholders, and employees—our core stakeholders—we continuously consider how we can deliver further satisfaction. In addition, we believe that reflecting the feedback received fromvarious other stakeholders in our business while responding inways that keep in mind what our company should achieve andfor whom will lead to sound and efficient business management
as a going concern.
Furthermore, by not limiting ourselves to a systematic checkand balance function but rather by spreading the roots as indexes or systems, we will work so that the check and balanceacross the entire company will function in sync with each person’s awareness.

All Takara Leben directors including outside directors and corporate auditors complete self-evaluation questionnaires and theBoard of Directors analyzes and evaluates the effectiveness of
the Board of Directors. With regard to the evaluation of effectiveness in fiscal 2019, each director and corporate auditor suggested that even more vigorous debate be conducted within the

Board of Directors, but expressed the opinion that overall, theBoard operates appropriately and effectiveness is achieved. To
ensure that adequate deliberations take place within the Boardof Directors, we will continue to provide feedback to the Board
based on future analysis and evaluation results.

Executive Remuneration
Corporate Governance System
In addition to prudent and swift decision-making by the Board of
Directors, Takara Leben has built a system to ensure management proprieties, such as appropriate mutual supervision by directors over the state of business execution, and audit and su-

pervision by auditors over directors’ state of business execution.
We also introduced an executive officer system to clarify the
management supervisory roles of directors and the business execution responsibilities of executive officers.

Ordinary General Meeting of Shareholders
Election
Nomination Committee
Compensation Committee

AdviceAdviceElection

Election
Audit

Board of Directors(including outside directors)

Audit & Supervisory Board(outside auditors)

Collaboration

Audit

Election/ Supervise

Reports

Reports

Representative Director
Compliance &Risk Management
Committee

Executive
Officers

Reports
Reports
Collaboration

Direction

Business
Departments

Audit

Reports Administrative
Departments

Audit
Collaboration

Internal Audit Office
Audit

Reports

Accounting
Auditor

Audit
Audit

Directors’ remuneration is determined on the basis of the degreeof each director’s contribution to business expansion and improvement in corporate value towards sustainable growth. The
limit of the annual amount of remuneration is deemed to be ¥600
million (not including, however, the employee portion of the sala-ry), and the limitation of the special stock option remuneration to¥300 million annually, is decided by a resolution at the Ordinary
General Meeting of Shareholders. The remuneration of the Audit& Supervisory Board member is limited to an annual amount of¥60 million or less.

Audit & Supervisory Board
As a system for check and balance of decision making, all threeauditors of Takara Leben are outside corporate auditors. Each
auditor is equipped with adequate background, experience, andmettle to objectively carry out assessments and verifications.
Besides audits for Takara Leben, the auditors are also involved in audits for our Group companies, such as attending
their board meetings and interviewing their directors, maintaining
firm relationships with these companies. Furthermore, the auditors and the accounting auditor work to further improve the effectiveness and efficiency of audits by understanding and adjusting each other’s annual schedules; going together to events suchas ground inspections and checks on display homes, and exchanging information as appropriate.

Takara Leben also established guidelines on internal audits
and established an Internal Audit Office as an independent organization reporting directly to the representative director to enhance and strengthen internal audits. In the proposal and execution of the internal audit plan, the of fice coordinates theschedules of auditors and the Accounting Auditor and adjusts
the scopes of audits to seek efficient operation of various functions. Auditors accompany and witness operation audits conducted by the Internal Audit Office, and work on building an effective and efficient audit system by means such as verifying thescope of the audit and collecting opinions as appropriate.

Subsidiaries and Affiliates
Leben Community Co., Ltd.
Takara Leben Tohoku Co., Ltd.
Takara Leben West Japan Co., Ltd.
Nikko Takara Corporation Co., Ltd.

Takara Leben Realnet Co., Ltd.
Leben Zestock Co., Ltd.
Leben Trust Co., Ltd.
Takara Asset Management Co., Ltd.

Takara PAG Real Estate Advisory Ltd.
Sunwood Corporation

Board of Directors
Takara Leben has appointed 13 directors, four of whom are out-

the head of the Internal Audit Office, and the heads of other de-side directors. All four outside directors have been designated as

partments, who have received requests from the Board of Direc-

independent officers. In addition to carrying out prudent andtors based on internal regulations, and express their opinions on

swift decision making, directors mutually supervise the status ofeach issue or reporting matter.

business execution at Board of Directors’ meetings, which in

The Takara Leben Executive Committee meets twice a

principle are held once a month, and also at extraordinary board

month to discuss management issues and a Sales Conference ismeetings which are held on an as-required basis.

held once every month to discuss sales progress. In addition to

Auditors are always in attendance at the Board of Directors’

sharing the achievement status of management targets at thesemeetings and state their opinions as necessary. At the sameand other meetings, the Company gleans information on prob-

time, auditors work closely with outside directors and, as neces-lem areas and issues in the form of performance reports fromsary, audit and oversee the running of the Board of Directors’each department and deliberates important matters relating tomeetings and the status of business execution. Also in atten-

overall management. The content of those reports is raised atdance at the Board of Directors’ meetings are executive officers,

the Board of Directors’ meetings on an as-required basis.

31 Takara Leben Group CSR Report 2020

Nomination and Remuneration Committees
With the objectives of increasing objectivity and transparency indecision-making processes relating to personnel appointments
and compensation of directors and others and further enhancing
and reinforcing corporate governance structures by providing
appropriate opportunities for outside directors to participate andgive advice, Takara Leben established Nomination and Remuneration Committees as voluntary advisory bodies of the Boardof Directors.
Each committee comprises three or more directors selectedby resolution of the Board of Directors, of which a majority are
independent, outside directors. The chairman of each committee
is also selected by resolution of the Board of Directors. The committees deliberate and submit reports primarily on the matters
indicated to the rights based on advice from directors.

Nomination Committee(1) Matters relating to nomination of candidate directors, executive officers, and others;(2) Matters relating to nomination and succession of the representative director;(3) Matters relating to basic policies and criteria on nomination of directors and others; and(4) Other matters referred to the Nomination Committee by
the Board of Directors.

Remuneration Committee(1) Matters relating to remuneration of directors and executive
officers;(2) Matters relating to basic policies and criteria on remuneration of directors and others; and(3) Other matters referred to the Remuneration Committee by
the Board of Directors.

Takara Leben Group CSR Report 202032

Corporate GovernanceCompliance
Compliance Basic Policy

Employee Awareness-Raising

The basic policy provides that in order to carry out our corporate social responsibilities, all organizations, officers, and employees of the
Takara Leben Group shall comply with laws, regulations, and social norms as well as separately established ethics rules and shall strive
to serve as an example for society.

Takara Leben administers compliance education with a variety of themes to employees and strives to create a corporate culture of legal
and regulatory compliance and respect for human rights.

Internal Whistle-Blowing System (Help Line)
Personal Information Protection

The Takara Leben Group established an internal whistle-blowing system (help line) as a means of

We consider the protection of personal information to be part of our corporate social responsibility, and we have established a management system
for appropriately protecting personal information. To ensure that all employees handle valuable personal information appropriately while carrying out
their business duties, we have created a personal information protection manual, distribute a personal information usage and protection handbook,and make all employees thoroughly aware of basic knowledge and rules. We also provide internal training led by instructors that are legal experts.

reporting or consulting on issues such as harassment and compliance violations. The earlier whistle-blowing system was reviewed in August 2018, and we outsourced responses to inquiries to alaw firm with which the Group has not conducted business in the past to serve as an outside consultation desk and also established an independent internal consultation desk that directs inquiries

Preventing Unfair Business Dealings

to the corporate auditors. We reinforced the protection of reporting individuals, the subjects of re-

We actively carry out specialized training to ensure that all transactions with customers are fair. The training, which addresses conflicts of interest,
aims to ensure that basic principles are thoroughly implemented, and introduces numerous case examples to expand the knowledge of attendees.
Furthermore, we strive to foster greater understanding of laws such as the Real Estate Brokerage Act, the Consumer Contract Act, and the Act
against Unjustifiable Premiums and Misleading Representations.

ports, persons who cooperate with investigations and others by establishing a mechanism to pre-Pocket-size card

vention access to information concerning consultations and reports by involved directors and took
other measures. We are working to strengthen compliance management through the early detec-

Harassment Prevention

tion and rectification of improper conduct and other issues.
Outside consultation desk

Whistle-blower

Law firm

We promote the creation of a harassment-free corporate culture in which the rights of each and every employee are respected. In 2019, we
conducted three training programs for employees at management level and above regarding harassment, with content such as workplaceharassment case examples and communication methods that help combat harassment. Furthermore, for members of sales departments, we
provided training with the theme of harassment issues that involve subordinates or customers.

Investigationof the facts andconsideration Takara Leben Board of Directorsof disciplinary
Subject of report is an officer
measures● Outside consultation desk
Report ofResults
independent from the Company
Persons with whom the
TakaraLeben
Disciplinary
Committee
company has entered into ● Female attorneys are also
ReportSubject of report is not an officer
available for consultation
Consultation Whistle-blower
employment agreements;
desk thatnamely, officers,
Takara Leben
Takara Leben
received
employees,
CR Committee*
CR Committee*Groupcompany
president
or
consultations
the reportseconded
Reportcorporate auditor
and reports
Members● Response in accordance with
employees, temp
Report ofReport ofReport of
the rules of the relevant
ReportDirectors
employees, and others
Internal consultation desk
Results
Results
Results
Group company
Corporate auditors
including those of● Timely reports to the Takara Leben
Takara Leben
Group companies
corporate auditors
CR Committee* concerning the status● Former employeesof monitoring of the whistle-blower
In the case of● Trading partners
consultations andTarget●reports relating
to Group
companies■ Whistle-blowers can select the meansof reporting and to whom to report■ Anonymous consultations are accepted■ A report is not made to theindividual(s) relating to thereported matter

Monitoring

Dealing with Anti-Social Forces
The Takara Leben Group’s basic policy against anti-social forces

With regard to our trading partners, we are also thorough in

is to adopt a firm stance in dealing with them. In addition to ac-

implementing measures for the elimination of anti-social forces

tively participating in activities to eliminate organized crime underthrough steps such as exchanging memorandums on severing

the guidance from our legal advisor, we also collaborate with ex-

ties with anti-social forces, and including clauses on the elimina-

ternal specialized agencies, such as local police stations and le-tion of anti-social forces in our various contracts and agreements.

gal advisors, establish a system to deal with anti-social forces.

■ Confirmation that the whistle-blower

is not subjected todisadvantageous treatment* Compliance and Risk Management Committee

Social Media Policy
The Takara Leben Group sees social media as an effective

Corporate Governance System Trends
Takara Leben has 13 directors, four of whom are independent

outside auditors. Our structure ensures that outside manage-

outside directors with diverse backgrounds. The terms of office ofment supervision functions can be fully leveraged. The Audit &directors end at the conclusion of the final Ordinary General Meet-

Supervisory Board meets so that auditors can share issues anding of Shareholders held by the end of the fiscal year that ends

information with each other, request information from directors

within one calendar year of the date of the director’s appointment.

and departments when necessary, and improve the overall au-

In fiscal 2019, 23 Board of Directors meetings were held.

diting level of the company. In fiscal 2019, 14 Audit & Supervisory

There are three auditors, all three of whom are independentFY
FY2016FY2017FY2018FY2019FY2020Form of
Organization
Company with Audit &Supervisory Board
Company with Audit &Supervisory Board
Company with Audit &Supervisory Board
Company with Audit &Supervisory Board
Company with Audit &Supervisory Board

33 Takara Leben Group CSR Report 2020

sures with awareness and an understanding of our responsibili-means of strengthening relationships with various stakeholders

ties regarding the dissemination of information and responses onand formulated a Social Media Policy as a guideline on propersocial media.

use. We comply with laws, regulations, the Takara Leben CodeWith regard to business-related and personal use of socialof Conduct, and rules established by individual Group compa-

media by employees, we also established a Privacy Policy andnies, and as a member of society with good judgment, we use

Guidelines on the Protection of Personal Information.

social media with responsibility for our conduct and strive to engage in communications through effective information disclo-

Board meetings were held.

Total Number of
Directors

Number of
Outside Directors

Total Number ofAuditors

Number of
Outside Auditors

10

2

3

3

10

3

3

3

11

3

3

3

13

3

3

3

13

4

3

3

Privacy Mark System Contributor
Leben Community received Privacy Mark certification in January
2008, and has repeatedly updated its personal information management and operation measures. In January 2020, in recognition of the company’s long years of efforts to maintain and improve its personal information protection management system,
and its contributions to the promotion of the Privacy Mark system,JIPDEC presented the company with a certificate of appreciation.

Takara Leben Group CSR Report 202034

Corporate Governance

Third-Party Opinion

Risk Management
Policies
The fundamental risk management policies of the Takara Leben Group are to ensure to safety of customers, business partners, officers,
employees, and their family members, fulfill our social responsibilities, protect the global environment, maintain ongoing business activities,
and raise corporate value. To this end, we identify and manage individual risks. We established the Compliance & Risk Management
Committee as a body to carry out these measures, and we implement comprehensive risk management throughout the Group.

Management Structures
The Takara Leben Group established a Compliance & Risk Man-

active proposals appropriate to management of individual risks.

agement Committee chaired by the president. The Committee

Furthermore, the scope of deliberations within each subcommit-

verifies and reports on all business-related risks, deliberates andtee is reported to and verified by the Compliance & Risk Man-

makes decisions on measures and management to avoid or miti-

agement Committee as appropriate in accordance with thegate risks, and takes comprehensive measures to strengthen in-Compliance & Risk Management Committee Rules. These mat-ternal controls and prevent misconduct, non-compliance, andters are also reported to the Board of Directors as necessary,other similar incidents. In addition, subcommittees—such as forforming a structure for timely decision-making in preparation forbusiness strategy, finance, IT & administration, and compliance—

the occurrence of risks.

are established as necessary to establish systems that make proCompliance & Risk Management Committee
Risk management in a broad sense
Risk management in a narrow sense(Risk Prevention Measures)

Risk Control

Crisis Management

BCP

CrisisManagement
Rules

CompliancePreventive Approach to Risk
In order to respond promptly to the occurrence of emergency situations such as corporate scandals, accidents, natural disasters, administrative action, serious criminal
conduct by employees, and so on, the Takara Leben Group has established crisis
management structures and adopted Crisis Management Rules and a Crisis Management Manual. The Crisis Management Rules define crises and specify proceduresfrom initial responses to formation and disbanding of response organizations. There
are also two sets of detailed crisis control rules regarding crisis responses and disaster countermeasures.
With regard to crisis responses, rules specify crisis management levels, responsibilities and authority, and information sharing lines, as well as responsive measures tobe implemented as disaster countermeasures during a disaster.
In addition, each division works with the division responsible for crisis management to formulate risk recovery and prevention plans and makes reports to the Compliance & Risk Management Committee at its monthly meetings. As a part of our business continuity planning (BCP), we adopt a preventive approach to risk management

Business Risks
Natural disaster such as earthquake
Legal restrictions
Overreliance on borrowed funds
Effects from purchaser attitudes

This is the third CSR report issued by the Takara Leben Group.
Over the past three years, the Group has solidified its basic framework, including its CSR
promotion system, key themes, and key issues, and the Group is now at a point at which it
should greatly accelerate its CSR efforts. The message from President Shimada at the startof this report encapsulates the Group’s devout dedication to contributing to society. As an
outside auditor, I have been very impressed by the way in which the Group’s passion forbringing happiness to its customers and all of its stakeholders, based on the Group’s corporate vision of “THINK HAPPINESS AND MAKE THE HAPPINESS,” has become firmly established as part of its corporate DNA over its five decade long history.
Through the Group’s CSR Basic Policy, based on this vision, it promises to contributeto solutions to social issues and achieving the Sustainable Development Goals(SDGs) by undertaking CSR initiatives through its business including supplying housing
and introducing natural energy, and to earn the trust of various stakeholders and sociAsami Honma
ety as the Group strives for continuous growth. By linking four key CSR themes and 15
Outside Auditor
key issues with SDGs, the Group has clarified the direction to be taken by all business departments. In the future, the Group must enhance its system in order to define KPIs forobjectively evaluating progress and results for each theme and key issue, enrich and disclose the quantitative data and qualitative information linked to those KPIs, and manage the CSR activities of each department,
including those of Group companies.
Below is a summary of topics related to fiscal 2019 activities, arranged by theme. “Creating lifestyles with value”: Customer
lifestyles and needs change over the course of their lives. The Takara Leben Group contributes to the creation of happiness for all
every year by supplying products and services developed based on employee proposals. “Forming communities”: The Takara
Leben Group contributes to the creation of happiness of entire communities by dedicating ourselves to disaster countermeasures.
Brillia Shonan Tsujido Kaihin Koen, a condominium whose rooftop was designed to serve as a tsunami evacuation facility open tomembers of the community, is significant as a model for helping in whatever way possible to assist with the disaster preparedness ofJapan, which is still healing from the 2011 Great East Japan Earthquake. “Providing comfortable spaces of high quality”: The
Takara Leben Group’s architectural departments acquire housing performance evaluation reports and create exceptionally earthquake- and fire-resistant structural designs, and the Group’s management operation departments further enrich its service quality
and consulting functions. Through this, the Group provides people with living environments where they can enjoy peace of mind,
contributing to the creation of lifelong happiness for its customers. “Developing environments and cultures”: As of the end of
March 2020, the solar power generation capacity of the Takara Leben Group’s operating solar power generation facilities had
reached 125 MW (equivalent to the electrical power consumed by roughly 40,000 households). By using solar power in place ofthermal power, which emits CO2, the Group is contributing to the creation of peoples’ happiness. The Group’s asset departments,
which manage REITs and infrastructure funds, take part in the GRESB assessment, and the Group’s ESG measures have achieved
a level of recognition.
Unfortunately, the COVID-19 pandemic has placed major constraints on societal activity, and there is rising uncertainty about the
future of the global economy. As each company explores new sustainability approaches, CSR initiatives will also need to be redesigned. As President Shimada said at the start of this report, the Takara Leben Group slogan as the Group works toward the 50th
anniversary of its establishment is “Innovation for a New Lifestyle,” and “we will strive to achieve sustainable growth as acompany that creates happiness for customers and all of our stakeholders.” The Group has begun formulating its next Medium-Term Management Plan (starting from fiscal 2021) in order to achieve this.
I have high hopes for the Takara Leben Group, which will leverage its true value through the creation of innovation that befits the“new normal” that society will converge on in the post-COVID-19 world.

Effects from housing loans
Effects from supply trends
Effects from competition, etc.
Subcontractors
Opposition by neighboring residents
when constructing condominiums
Possibility of litigation, etc.
Personal information

Editor’s Postscript

This is the third CSR report issued by the Takara Leben Group. The editing process of this report differed from that of previous years, involving, for example, working from home due to the COVID-19 situation. We feel that it is important to rapidly respond to various environmental changes such as these,building a sustainable company.
We will continue to listen to the opinions of all our stakeholders as we actively carry out our CSR
activities and aim to achieve continuous growth. We hope you can give us your unreserved opinions
and thoughts to serve as future reference.

including the preparation of manuals for the continuation and recovery of business operations in the event an emergency situation occurs.

35 Takara Leben Group CSR Report 2020

Kensuke Suzuki
Leader, CSR Promotion Team

Takara Leben Group CSR Report 2020

36

TEKKO BUILDING 16F, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo, Japan 100-0005
TEL.: +81-3-6551-2100

FAX: +81-3-6551-2109

https://www.leben.co.jp/en/

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