MIRARTH HOLDINGS Group

Sustainability Report 2023

Contents
Sustainability Top Page

Top Message

2

5

Sustainability Strategies

SocialPersonnel Management

39

Promotion of Well-being Policies

43

Diversity

47

Health Management

49

Sustainability Management

7

Human Rights

54

Value Creation & Materiality

10

Customer Satisfaction

56

Stakeholder & Initiatives

15

Ethical Action

61

Sustainability Finance

19

Building Value

68

Safety Management73

Disaster Response

77

Environment
Environmental Policy

23

Diverse Lifestyles

82

Global Warming

24

Globalization

86

Energy & Resources

26

Aging Society

88

Ecology & Culture

31

City Development

89

Environmental Data

37

Social Contribution

95

Sponsorship

104

Shareholders

112

Social Data

114

GovernanceCorporate Governance

116

Compliance

123

Risk Management

127

Third-Party Opinion

132

Editorial Policy

134Sustainability
Sus t a i n a bilit y B a s ic Po l i cy
MIRARTH HOLDINGS Group was holds as its purpose: "To design sustainable environments for a happier future for bothpeople and our planet." and contribute to solving social issues and achieving the SDGs by engaging in sustainability
activities through our business, such as the supply of housing and the introduction of natural energy, in order to gain thetrust of different stakeholders and society and achieve lasting development.

Top Message

View more

Su s ta in a b ility
Str a te g ie s
Sustainability Management
Value Creation & Materiality
Stakeholder & Initiatives
Sustainability Finance2

Env iro n men t
Environmental Policy
Global Warming
Energy & Resources
Ecology & Culture
Environmental Data

S o c ia l
Personnel Management
Promotion of Well-being Policies
Diversity
Health Management
Human Rights
Customer Satisfaction
Ethical Action
Building Value
Safety Management
Disaster Response
Diverse Lifestyles
Globalization
Aging Society
City Development
Social Contribution
Sponsorship
Shareholders
Social Data

3

Gov ern an ce
Corporate GovernanceCompliance
Risk Management

Third-Party Opinion

Editorial Policy

Download

Integrated Report4To p M e s s a g e

To be a company thatmakes people and theearth happy in the
futureRepresentative Director/ MIRARTH HOLDINGS, Inc.

Kazuichi Shimada

From a comprehensive real estate developer to a "company thatdesigns environments of the future"
On October 1, 2022, Takara Leben, celebrating 50 years in business, transitioned to a holding company structure and began as
MIRARTH HOLDINGS, Inc.
The environment surrounding the real estate market is rapidly changing along with various changes, such as a declining
domestic population due to the falling birthrate and aging population, depopulation of rural areas due to the concentration of
population in urban areas, and outbreaks of pandemics. As new housing needs emerge, such as homes with ample workspace,homes incorporating advanced technology, and homes with low environmental impact, the responsibilities required of us as a
housing provider are more diverse than ever.
In the midst of these changes, our group has continued to consider what we should do to address the various issues thatsociety seeks to solve and what we should do to realize the happiness of all people. The conclusion we came to was that weshould go beyond being a general real estate developer and evolve into a new company that co-creates with local communities
and engages in future urban development, so that we can lead the future of housing and society in a better direction.
The new company name, MIRARTH, is a combination of the words "Mirai (future)" and "Earth." It expresses the Group's
determination to evolve into a company that makes people and the Earth happy in the future through contributions to local
communities and society. In addition, at the launch of the new organization, we have defined the Group's raison d'etre as it
moves toward the next stage of its existence, with a purpose of "To design sustainable environments for a happier future forboth people and our planet." We will promote new growth through sustainability management based on the purpose andinnovation in our business structure, aiming to become a "company that designs environments of the future" that brings
happiness to the future of people and the Earth.

5Promoting sustainability activities group-wide
The Group has set "proactive response to ESG" as one of the seven pillars of its medium-term management plan, and has
established four key sustainability themes of "Creating Lifestyles with Value," "Providing Comfortable Spaces of High Quality,""Forming Communities," and "Developing Environments and Cultures," and is promoting sustainability initiatives group-wide.
For example, on the environmental front, we are not only promoting our energy business, which we have been focusing on, butalso developing environmentally friendly properties, such as "L.Biz NIHOMBASHI," the first in our series of office buildings toreceive CASBEE certification A rank. In addition, to achieve carbon neutrality within the Group, we have endorsed the TCFD
(Task Force on Climate-related Financial Disclosure) recommendations and are expanding our information disclosure.
On the social front, we have made "human resource development and the creation of a rewarding work environment" a pillar of
our medium-term management plan, and we will strengthen our human capital management by promoting career development
programs, proactive responses to reforms in work styles, strengthening engagement through the promotion of inner branding,and diversity and inclusion.
We have also established a Regional Strategy Department to accelerate our efforts in regional development nationwide, and are
actively participating in redevelopment and reconstruction projects in the Urban Development Department. In the redevelopment
project at the site of the former Okajima Department Store (Kofu City, Yamanashi Prefecture), we plan to build the largest tower
residence in the prefecture as a catalyst for revitalization of the central city area, along with next-generation commercial
facilities, a plaza for events, and a large self-propelled parking facility. The project aims to increase the number of "citydwellers" and attract visitors to the central city area, to serve as a starting point for the circulation of residents and visitors, andto develop the central city area in a way that will lead to the revitalization of the bustling city center.
In terms of governance, MIRARTH HOLDINGS has increased the number of outside directors to at least a majority and actively
appointed female directors. We have established the Nominating Committee and the Compensation Committee as voluntary
advisory bodies, and aim to be a company that all stakeholders can trust.
Sustainability initiatives are a key strategy for our mid- to long-term growth. While recognizing the importance of disclosing nonfinancial data, we will engage in sustainability activities through our business and contribute to solving social issues andachieving the SDGs.

A universal determination to consider the happiness of all people
Over the 50 years since its establishment in 1972, our group has evolved while changing its business and structure to keep
pace with the changing times. However, at all times, what has remained at the heart of our group's business has been our
attitude and determination to conduct our business with the happiness of all people in mind. Under the new organizational
structure, we will build on the knowledge, technology, and trust we have accumulated over the past 50 years to move forward
toward the realization of a sustainable society in which people can live with peace of mind. We are going to show the future of
MIRARTH HOLDINGS Group, which aims for the future happiness of people and the Earth.

6Sustainability Management

Sustainability Basic Policy
MIRARTH HOLDINGS Group was holds as its purpose: "To design sustainable environments for a happier future for both people
and our planet." and contribute to solving social issues and achieving the SDGs by engaging in sustainability activities throughour business, such as the supply of housing and the introduction of natural energy, in order to gain the trust of different
stakeholders and society and achieve lasting development.

Customers
Shareholders
and investors

Competitors

Local communities,
NPOs, and NGOsMedia

Executives
and employees

Governments

Trading partners

7

Sustainability Promotion System
The Group has established a sustainability promotion system based on the recognition that "addressing issues surrounding
sustainability, including consideration of climate change and other global environmental issues, respect for human rights,
consideration of employee health and the working environment and fair and appropriate treatment of employees, fair andappropriate transactions with business partners, and risk management in the event of natural disasters are importantmanagement issues."
The Sustainability Committee, chaired by the Representative Director and composed of directors, presidents and division headsof group companies, is responsible for promoting ESG strategies, determining policies and measures concerning sustainability,
examining and promoting materiality issues, reviewing progress, and deliberating on improvement plans.

Board of Directors
Reporting

Supervision

Sustainability Committee
Matters related to the revision or abolition of sustainability-related policies and material issues (materiality)
Determination and promotion of measures, review of progress, and deliberation of improvement plans

Members
Chair: Representative Director and President (Chief Executive Officer)
Vice Chair: Director in charge of Sustainability (Executive Officer)
Permanent members: Directors
Other presidents and department heads of the company and Group companies appointed by the chairperson

Secretariat
Group Corporate Planning Department

Sustainability Promotion Section,
Group Corporate Planning Department

Coordination andimplementation

Each department and Group company

Direction formulation, policy formulation,
policy implementation and awareness-raising,promotion management

Communication

Policy implementation, awareness-raising,progress management

Information disclosure

Communication

Stakeholders
Customers

Local communities

Business partners

8

Employees

Shareholders
and investors

Message from the Director in Charge of Sustainability
Director,

Masashi Yamamoto

Group CFO and Managing Director/Executive Officer

In recent years, we are faced with major challenges that must be addressed by the entire world as we live on the
Earth, including environmental issues such as climate change, the impact of new coronavirus infections, and rising
conflicts and tensions in the international community. In addition, as the SDGs, a set of common global goals,
become more prevalent, and the role that companies should play and the expectations of their stakeholders rise,
we feel that the importance of sustainability initiatives in companies is increasing year by year.
Our Group has been promoting ESG initiatives not only by contributing to urban development and community
building through the supply and management of housing, but also by developing businesses in the clean energy
field, including the development and operation of mega solar power plants.
In April 2022, we established the Sustainability Committee with the aim of further strengthening our ESG strategy
and building a more cross-functional and agile sustainability promotion system. The Committee meeting was held
five times during the last fiscal year, and in addition to deciding on various sustainability-related policies andmeasures and setting targets for reducing greenhouse gas emissions, the participants discussed various social
issues surrounding the Group. In addition, upon transitioning to a holding company structure in October, we areestablishing and reorganizing organizations suitable for sustainability-related initiatives and working to unify
Group-wide awareness in each of these initiatives.
In addition to implementing various measures to reduce greenhouse gas emissions, we plan to re-identify key
issues (materialities) linked to management strategies and review KPIs in line with the Holdings structure. We will
accelerate our company-wide, cross-sectional efforts in our group's business activities. Your continued support will
be greatly appreciated.

9Va l u e C r e a t i o n &Materiality

Value Creation Process
MIRARTH HOLDINGS Group has achieved sustainable growth by providing products and services that meet diversifying
housing needs. With the transition to a holding company structure, we aim to provide new value by leveraging the strengths of
the Group that we have built up over the years and by creating group synergies.

Click here for a larger PDF.

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Sustainability Key Themes and Key Issue Identification Process
The Group has identified key sustainability themes and critical issues through the following steps.

Grasp and organize social issues
step

1

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

Evaluate the significance from the MIRARTH HOLDINGS Group’s perspectivestep

2

We set priorities by sorting out the results of questionnaires completed by all employees, including themanagement and officers, and each issue’s relation with our business and Group philosophy.

Evaluate the importance from our stakeholders’ perspectives
step

3

We set priorities by sorting out the results of questionnaires completed by customers, shareholders andinvestors, and business partners and the requirements based on international guidelines such as the GRI and
the SDGs.

Identify key issues
step

4

The key issues were identified after the priorities were reconsidered from the perspectives of the Takara Leben
Group and our stakeholders, and reviewed by the management.

step

5

Policy setting for key sustainability themes
Policies were set for the four key sustainability themes.

The 15 Issues Identified

Priorities for stakeholders

High

High

Priorities for the MIRARTH HOLDINGS Group11

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

Key Sustainability Themes

Creating Lifestyles
with Value
We contribute toimproving the richness ofpeople's lifestyles byreating new value.

Policies

Related SDGs

● Provide products and services that

respond to changing social issues andneeds.
● Provide lifestyles that harmonize

residents and surrounding
environments, such as the LEBEN or
NEBEL brands.

● Contributing to the revitalization ofregional areas through our regional
city revitalization business, whichconnects urban and regional areas.

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

● Improve our ability to respond to risk

through thorough risk assessment andmanagement.
● Provide opportunities andenvironments where a diverse range of
people can work energetically.

Key Issues● Support for diversifying

lifestyles and globalization● Responses to changes tobusiness models brought byan ageing society anddepopulation● Urban development andcreating towns● Construction and maintenanceof a corporate governancesystem● Promoting compliance● Employee health management● Corporate activities that can respondto social needs with an emphasis on
dialogues with our stakeholders.

● Improve customer satisfaction levels

Providing Comfortable
Spaces of High Quality
We support the comfortable andsafe living of our customers byproviding products bringing
great satisfaction to ourcustomers.

Developing
Environments andCultures
We contribute to a sustainable
society by actively working on
environmental issues, and at thesame time, contribute toimproving quality of life byproviding opportunities formental activities such as learningand practicing the arts.

through the use of our proprietary
Service Quality Management System(SQMS®).

● Encouraging employment ofdiverse human resources● Providing safe, secure

products and services● Create housing that combines bothdesign and habitability, pursuing theperformance of housing.

● Improving customer

satisfaction● Improve building value through regular

repairs and renovations to improvebuilding comfort, functionality, andsafety● Reduce greenhouse gas emissions

through supplying housing with highenvironmental performance and ourrenewable energy power generation
business.
● Provide seismic-resistant andfire-resistant housing that canwithstand natural disasters.

● Improving value of buildings● Providing buildings andspaces that consider theenvironment and culture● Responses to global warming● Initiatives for renewable energy● Effective use of resources● Provide opportunities for culturalactivities to our stakeholders.

12● Responses to disasters

Targets and Achievements
FY Mar. 2023
Sustainability Key Themes

Targets

Creating Lifestyles with ValueFY Mar. 2024

KPIs
Results

Targets

Propose new lifestyle services

5 projects

13 projects

5 projects

Supply of new condominiums for sale overseas

3 condos*1

3 condos

3 projects*1

Supply of NEBEL series condominiums

3 condos

3 condos

3 condos*2

Redevelopment projects undertaken

2 projects

2 projects

2 projects

Community sponsorships

10

16

10

Conduct the board effectiveness assessments〇*3

Enhancement and strengthening of corporate governance system〇*4

Consideration of introducing the clawback provisions△*5

Implement anti-corruption education and training△*6

Promote understanding of human rights issues among officers and employees〇*7

Number of cases of adverse treatment

0

0

0

Survey to confirm the recognition rate of the whistle-blowing system〇

Percentage of employees receiving healthcheckups

100%

99.1%

100%

Stress check examination rate

100%

87.9%

100%

Percentage of employees taking paid leave

70%

68.7%

70%

Percentage of employees with disabilities

2.30%

2.0%

2.30%

Percentage of female managers

9.5%*1

11.0%

9.5%*1

Percentage of employees returning to work aftermaternity or parental leave

100%

88.9%

100%

Training hours per employee

24 hours

28.3 hours

24 hours

Satisfaction rate of sales staff survey

90%

89.3%

90%

Number of nonconformities related to businessprocesses and quality standards

10 or less1 project

10 or less

Implementation of preventive action sharing
meetings

5 or more times

7 times

5 or more times

Training of SQMS® masters

2 or more persons

0*8

2 or more persons

Acquisition rate of housing performance evaluation
certificates

100%

100%

100%

Rate of accidents and lost time injuries (*covered:
employees)

0%

0%

0%

Number of lost workday injuries (*covered:
employees)

0

0

0

Safety meetings

once a year

once

once a year

Special patrols (safety checks)

4 times a year

3 times

4 times a year

Number of safety and health training sessions(*training targets: employees)

twice a year

once

twice a year

Results of supplier surveys

No plan to implement in
FY Mar. 2023－

A-rank acquisition rate
90%

Rate of accidents and lost time (*target: suppliers)

1.83% or less

0%

1.83% or lessForming Communities

Providing Comfortable Spacesof High Quality

13

FY Mar. 2023
Sustainability Key Themes

Targets

Developing Environments andCultures

FY Mar. 2024

KPIs
Results

Acquisition and disclosure of CO2emissions〇*9

Setting CO2emission reduction targets〇*9

Targets

Percentage of houses certified for energy efficiency
rating (Flat 35)

100% of detachedhouses100% of detachedhouses100% of detachedhousesSponsorship for culture fostering events

5

8

5

Acquisition of ZEH condominium certification

1

1

1

Acquisition of CASBEE certification with A rank orhigher1

1

1

New operating generation capacity of power
generation facilities from renewable energy sources

20MW

10MW

20MW

Total power generation

360MW*1360MW360MW*1

Obtaining quantitative data on resources and water and setting reduction
targets△*10

Formulation of manuals for BCP measures△*11*1 Set as a mid-term target for FY March 31, 2025.
*2 Number of new projects participated in. In addition, eight projects are under construction or being promoted.
(Including the Excellent Building Maintenance Project, etc.)*3 conducted anonymous survey assessments and interviews targeting all directors and auditors, including external directors, utilizing external consulting firms.
*4 In addition to establishing a separate Compliance Committee and Risk Management Committee, and appointing a Group Chief Risk Officer (CRO), the Group
implemented measures to strengthen governance within the holding company structure.
*5 Conducted and continued review of the executive compensation system by the Compensation Committee.
*6 Partially implemented through compliance training.
*7 Formulate a group human rights policy and strengthen internal and external dissemination of the policy.
*8 No new recruitment due to promotion of measures by existing members.
*9 Target scope: Scope 1 and Scope 2.
*10 An internal system is being developed to establish data collection and aggregation.
*11 It is being reformulated in line with the holding structure.

14

Stakeholder & Initiatives

Dialogue with Stakeholders

Main Stakeholders
Expectations and Requests

Major Responses of the GroupDefinition

Customers(corporations and individuals)

Contracting parties and tenants ofcondominiums and detached houses
Users of tenant buildings
Users, etc. of various services

Introduction of online consultation system
Supply of valuable products and services

Introduction of online condominium show room

Improvement of customer satisfaction in all

systemareas, including quality and cost

Provision of "clean air and spaces"

Supply of environmentally friendly products

Provision of properties with ZEH-M Oriented

Provision of accurate and appropriate

certification

information concerning products and services

Administration of sales staff questionnaire
Publication of "Smilax" quarterly

Local communities

Local communities, residents, local
governments, etc. related to MIRARTHHOLDINGS Group businessParticipation in and sponsorship of local
Prevention of accidents and disasters

eventsCollaboration and coordination in solving

Holding of community events at managedsocial issues

properties

Securing of employment

Implementation of social contribution activities

Participation in social contribution activities

Regional revitalization through rebuilding andredevelopment businessTrading partners

Fair and evenhanded transactions
Information sharing and collaboration with the

Fair and evenhanded transactions

Construction contractors
Business operators etc. related to theprovision of various services

aim of ensuring customer satisfaction and

Collaboration and coordination in operations

Employees

Creation of prosperous lives for employees

CSR procurement

and their families
Human resource utilization and development
Appropriate evaluation and compensation
Respect for human rights, personality, andMIRARTH HOLDINGS Group
employees and their families

individuality
Creation of workplaces in which diverse
personnel can thrive
Attention to occupational health and safety

15

Implementation of training programs
Implementation of human resource andevaluation interviews
Operation of help line desks
Introduction of a Telework System
Promotion of staggered commuting times andreduced working hours
Establishment of a Health Committee

Shareholders and investors

Holding financial results briefings and general

Individual and institutional investors

Maintenance and improvement of corporate

meetings of shareholders

value

Holding meetings with domestic and overseas

Securing of stable profits and appropriate

institutional investors

return of profits

Conducting individual meetings with domestic

Enhancement of corporate governanceand overseas institutional investors

systemConducting shareholder surveys

Creation of risk management systems

Holding company-introductory sessions andAppropriate disclosure of corporate

participating in IR fairs

information at appropriate time

Disclosing IR information on the website
Obtaining external certification

Initiatives and Participation in Industry Groups
Signing the UN Global Compact
In 2020, Takara Leben (currently MIRARTH HOLDINGS) signed and registered as a participating company in the United Nations
Global Compact* proposed by the United Nations. We will continue our efforts to realize the ten principles of the United Nations
Global Compact, which comprise the four areas of human rights, labor, environment, and anti-corruption.
* The United Nations Global Compact was proposed by then UN Secretary-General Kofi Annan in 1999 at the World Economic Forum in Davos and was launched in
2000.

The Ten Principles of the UN Global Compact
1 Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2 make sure that they are not complicit in human rights abuses.
Principle

Human Rights

3 Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;
Principle 4 the elimination of all forms of forced and compulsory labour;
Principle 5 the effective abolition of child labour; andPrinciple 6 the elimination of discrimination in respect of employment and occupation.
Principle

Labour7 Businesses should support a precautionary approach to environmental challenges;
8 undertake initiatives to promote greater environmental responsibility; andPrinciple 9 encourage the development and diffusion of environmentally friendly technologies.
Principle

Environment

Anti-Corruption

Principle

Principle10

Businesses should work against corruption in all its forms, including extortion and bribery.

16

GRESB
Takara Leben (currently MIRARTH HOLDINGS) participated in the 2022 GRESB* Infrastructure Asset Evaluation for the fourthconsecutive year. Takara Leben Infrastructure Fund's solar power generation facilities and the Company's policies andperformance in addressing ESG issues were evaluated, and as a result, the Company received a higher overall score than lastyear and was awarded a 3-star rating in the GRESB Rating, a 5-level rating system based on global relative rankings.
Furthermore, Takara Leben Infrastructure Fund received a 4-star rating (the highest being 5-star) in the "GRESB Rating" andwas selected as an "Asia Sector Leader."In addition, Takara Leben Real Estate Investment Corporation received a "Green Star" rating in the 2022 GRESB Real Estate
Assessment for the fourth consecutive year, which indicates that the company received high marks for both management andperformance with respect to ESG.
* The name of the annual benchmark assessment that measures environmental, social, and governance (ESG) considerations in real estate and infrastructure
investments and the organization that administers it, created in 2009 primarily by a group of major European pension funds that led the Principles for Responsible
Investment (PRI).

Signing the Principles for Financial Action for the 21st Century
Takara PAG Real Estate Advisory endorses the concept of the Principles for Financial Action Toward a Sustainable Society (thePrinciples for Financial Action for the 21st Century) and signed on to them in March 2022.
The Principles for Financial Action for the 21st Century were formulated in October 2011 by the "Japanese Environmental
Financial Action Principles Drafting Committee," a broad range of financial institutions, based on the recommendations of theCentral Environmental Council of the Ministry of the Environment, as action guidelines for financial institutions to fulfill their
responsibilities and roles necessary for the creation of a sustainable society.
The company aims to implement initiatives based on the seven principles set forth by the Principles for Financial Action for the
21st Century to help create a sustainable society.

17Participation in the Japan Climate Initiative (JCI)In March 2022, Takara PAG Real Estate Advisory joined the Japan Climate Initiative (JCI) to endorse its declaration, "Japan's
participation at the forefront of the global effort to decarbonize."
The JCI was established in July 2018 as a network of Japanese companies, local governments, organizations, and NGOs thatare actively working to combat climate change in order to achieve the decarbonized society envisioned by the Paris Agreement.
The company is committed to working with JCI's stakeholders to strengthen the efforts to achieve a decarbonized society.

Participation in Industry Groups and Japan Business Federation,etc.
Member of the Real Estate Companies Association of Japan (a general incorporated association)
Member of National Housing Industry Association (a general incorporated association)
Member of Metropolitan Area Real Estate Fair Trade Council (a local public corporation)
Member of Japan Business Federation (a general incorporated association)

18

Sustainability Finance

Sustainability Finance Initiatives
MIRARTH HOLDINGS Group aims to further strengthen its power generation business and contribute to achieving the goals ofSDGs, including "Goal 7: Affordable and Clean Energy" by utilizing Green Loans, which limit the use of funds to projects thatconsider environmental factors, and Sustainability Finance, in which funds are raised based on the evaluation of ESG
initiatives, information disclosure, and contribution to SDGs achievement, etc.

Green Loan
MIRARTH HOLDINGS has conducted fundraising through the syndication-style "Green Loan" provided by Sumitomo Mitsui Trust
Bank. In addition, JCR Green Loan Evaluation by Japan Credit Rating Agency, Ltd. awarded us with the highest rating,"Green1," for this transaction.
The funds raised through this Green Loan have been allocated to the acquisition of a solar power generation facility, "Leben
Solar Iwate Hachimantai Power Generation Facility (Hachimantai City, Iwate Prefecture)."Contract Date

January 27, 2022

Arranger/Agent

Sumitomo Mitsui Trust Bank, Limited

Origination Amount

3.8 billion yen

Use of Fund

Acquisition of Leben Solar Iwate Hachimantai Power Generation Facility

Loaners

The Gunma Bank, Ltd., The San-in Godo Bank, Ltd., The Nanto Bank, Ltd., The Hiroshima Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited

Rating for theCompany

Green1 (Highest rating)News Release(Jan. 2022)

Fundraising through the Green Loan

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19

Outlines of Leben Solar Iwate Hachimantai Power Generation Facility
Location: 495-1, Daiichi Chiwari, Matsuoyoriki, Hachimantai City, Iwate Prefecture
Area: approx. 34ha
Power generation capacity: approx. 9.8MW
Estimated annual power generation: approx. 9.76 million kWh
Unit price of electricity sold: 36 yen/kWh

Sustainability Linked Loan
Sustainability Linked Loans are designed to promote environmentally and socially sustainable economic activities and economic
growth by setting Sustainability Performance Targets (SPTs)* based on sustainability strategies and linking loan terms to theachievement of SPTs, thereby motivating the achievement of the targets.
Leben Clean Energy, which is responsible for the Group's energy business division, obtained a second opinion from Rating andInvestment Information, Inc. (R&I) to express its endorsement to contribute to the achievement of its sustainability strategy
through its business activities, and concluded a "Sustainability Linked Loan" financing agreement with Towa Bank, and also
raised funds. The funds raised will be used to finance projects related to renewable energy development, etc.
*SPTs (Sustainable Performance Targets): Ambitious targets that allow businesses to measure their level of achievement with respect to the SDGs.

Date of contract signing

December 27, 2022

Company Name

Leben Clean Energy Co., Ltd.

Loan amount

1 billion yen

Financing period

10 years

Use of Funds

Project financing for the achievement of SDG targets (project financing for renewable energy development, etc.)

In the cumulative output (kW) of renewable energy power generation facilities developed in-house and through theacquisition of existing operating properties
SPTs(1) Increase by 15,000 kW annually(2) Increase the average annual output by 15,000 kW (exceeding the planned cumulative output)

Second Opinion

Rating and Investment Information, Inc.

20

ESG Management Support Loan
"ESG Management Support Loan" is an ESG evaluation-based financing product provided by Mitsubishi UFJ Bank to support
and assist companies in their ESG (Environmental, Social, and Governance) initiatives.
MIRARTH HOLDINGS has raised funds through the "ESG Management Support Loan" provided by Mitsubishi UFJ Bank andreceived an A rating in the MUFG ESG evaluation conducted for this transaction, indicating that we are "particularly advanced"
in our ESG efforts.
The funds raised through this ESG Management Support Loan will be utilized to develop our mega solar power generation
business.

News Release (Apr. 2022)

Fundraising through the ESG Management Support Loan

200KB

ESG/SDGs Evaluation Syndication
MIRARTH HOLDINGS has raised funds through a syndicated loan based on the "ESG/SDGs Assessment Syndication" provided
by Sumitomo Mitsui Banking Corporation under the "ESG/SDGs Assessment Syndication." The "ESG/SDGs Evaluation
Syndication" is a loan product that evaluates a company's initiatives and information disclosure on ESG aspects and its
contribution to the achievement of the SDGs based on original evaluation criteria developed by SMBC and the Japan ResearchInstitute, and provides a return on the current analysis of the adequacy of initiatives and information disclosure, future issues
and examples of initiatives to address the issues.
The results of this evaluation of our company were judged to be of a very high standard in "Corporate Philosophy andCommitment to Sustainability," "Provision of Environmentally Conscious Products and Services," and "Consideration for Local
and Global Communities." The evaluation showed that the company has implemented a certain level of ESG initiatives andinformation disclosure in its corporate management, and that it is highly motivated to contribute to the achievement of the SDGs
through its business.
The funds raised will be used for the business development of Leben Clean Energy, which is the energy business arm of ourgroup.

News Release (Oct. 2021)

Fundraising Based on the ESG/SDGs Evaluation Syndication

194KB

Business of Leben Clean Energy
Due to the increasing demand for renewable energy in Japan, Leben Clean Energy is developing a business model that is notdependent on the feed-in-tariff (FIT) system, with an eye to promoting on-site and off-site power purchase agreements (PPA)
and regional microgrid concepts.

PPA model in brief

21

Chiba Bank SDGs Friends Loan
Leben Clean Energy, our Group company, has signed a loan agreement for "Chiba Bank SDGs Friends Loan" offered by the
Chiba Bank.
The "Chiba Bank SDGs Friends Loan" is a loan program for businesses to apply the Sustainable Development Goals (SDGs)
advocated by the United Nations to their own management. The unique "SDGs Check Sheet" enables visualization of therelationship between business activities and management issues and the SDGs.
We aim to further promote SDGs management by utilizing "Chiba Bank SDGs Friends Loan."

Name

Chiba Bank SDGs Friends Loan

Issue Amount

100 million yen

Use of funds

Working capital

LenderChiba Bank

Use of funds

Project financing for the achievement of SDG targets (project financing for renewable energy development, etc.)

Positive Impact Finance
MIRARTH HOLDINGS has raised funds through "First Positive Impact Finance" provided by the First Bank of Toyama.
First Positive Impact Finance is a financing product designed to increase positive impact and mitigate negative impact in theeconomic, environmental, and social aspects of corporate activities. The status of achievement of KPIs (Key Performance
Indicators) set for these impacts and the status of initiatives will be monitored on a regular basis.
The impact assessment will be conducted on MIRARTH HOLDINGS through the entire group, and the funds raised will be used
to fund Takara Leben's core business, the new condominium business.
It has been confirmed by a second opinion of Rating and Investment Information, Inc. (R&I) that the business processes of theimplementation system are applied in accordance with the PIF Principles.

22

Environmental Policy

Environmental Policy

MIRARTH HOLDINGS Group environmental policy
MIRARTH HOLDINGS Group was holds as its purpose: "To design sustainable environments for a happier future for bothpeople and our planet." The Group think more positively about the future happiness of people and the earth than anyone
else, and propose the creation of a sustainable environment that is friendly to the earth.

1. Providing environmentally friendly buildings and spaces
We will strive to improve environmental performance, reduce environmental impact, and actively incorporate environmentally friendly
technologies and ideas into our products and services to help address global warming and create a recycling-oriented city.
2. Addressing climate change
We will contribute to reducing greenhouse gas emissions and mitigating climate change issues through the efficient use of energy, thedevelopment and operation of renewable energy generation facilities, and the utilization of renewable energy.
3. Maintenance and conservation of biodiversity
In all of our business activities, we will strive to reduce the impact on, and conserve, biodiversity by taking into consideration the risks
that may affect the surrounding ecosystems and biodiversity, conducting appropriate risk management, and giving due consideration toenvironmental conservation in accordance with the natural and social conditions of the region.
4. Promotion of resource recycling
We will work to conserve the water environment and reduce waste, and, through the promotion of the 3Rs (reduce, reuse, recycle), we
will strive to reduce our environmental impact and contribute to the formation of a recycling-oriented society.
5. Compliance with environmental laws and regulations and environmental education
We will comply with environmental laws, regulations, and other relevant laws and regulations, and we will raise the environmental
awareness of our employees through education and awareness activities on the environment.
6. Establishment of environmental management
We will promote appropriate environmental management by setting and periodically reviewing environmental targets.

23

Global Warming

Climate Change Initiatives
Endorsement of TCFD Recommendations
Group companies Takara Leben, Takara Asset Management, and Takara PAG Real Estate Advisory have expressed theirendorsement of the TCFD (Task Force on Climate-related Financial Disclosure) *1 recommendations and joined the TCFD
Consortium*2.
MIRARTH HOLDINGS has positioned "proactive response to ESG" as one of the pillars of its medium-term management planannounced in May 2021, and has set KPIs for each of the key issues identified and is promoting group-wide initiatives toresolve these issues. In particular, climate change is a systemic risk in finance, and many stakeholders, including investors, aredemanding disclosure of information on climate-related risks and opportunities. Identifying, assessing, and managing the risks
and opportunities posed by climate change and enhancing the resilience of our business is essential to ensure our sustainable
and stable earnings over the long term.
Going forward, we will strive to foster a relationship of trust with our stakeholders, enhance our corporate value, and contributeto the realization of a sustainable society by expanding our disclosure of information on climate change in line with the TCFD
recommendations.

*1 TCFD (Task Force on Climate-related Financial Disclosures): An international initiative established by the Financial Stability Board (FSB) at the request of the G20 to
examine how climate-related disclosures and financial institutions should be addressed, recommendations for companies and others to disclose their "governance,""strategy," "risk management," and "indicators and targets" related to climate change-related risks and opportunities.
TCFD Website*2 TCFD Consortium: A private-sector initiative established in 2019 to discuss effective disclosure of corporate information and efforts to link disclosed information toappropriate investment decisions by financial institutions and others.
TCFD Consortium Website

Governance
The following governance structure has been established to address climate-related risks and opportunities.
The Chief Executive Officer for climate-related issues is the Representative Director, and the Executive Officer is the Director in
charge of sustainability.
The Chief Operating Officer reports regularly to the Chief Executive Officer on matters related to climate change response,
including identification and assessment of climate change impacts, management of risks and opportunities, progress ofadaptation and mitigation efforts, and establishment of indicators and targets, at the Sustainability Committee meetings. After
deliberation and consideration of each agenda item by the attendees of the Sustainability Committee, decisions are made by
the Chief Executive Officer.

24

Strategies
MIRARTH HOLDINGS establishes a process for identifying, evaluating, and managing the impact of climate-related risks andopportunities on its business activities, strategies, and financial plans and operates it appropriately.
In identifying and assessing climate-related risks and opportunities, we aim to do so systematically and objectively, utilizing
scientific and academic knowledge.
As part of our efforts to reduce CO 2 emissions, we entered the energy business in 2013 and have developed a number of mega
solar power plants across Japan, promoting solar power generation and other renewable energy projects.
Through the development and operation of solar power generation facilities, we will continue to contribute to regional
revitalization, including environmental improvement, energy self-sufficiency, and utilization of idle land, as well as further
renewable energy supply to achieve carbon neutrality through initiatives such as wind power and biomass power generation
projects.

Managing Risks and Opportunities
By managing identified climate-related risks/opportunities and promoting resilience initiatives, MIRARTH HOLDINGS aims to
reduce business risks and realize value creation opportunities to ensure sustainable and stable earnings over the long term.

Indicators and Targets
In order to achieve carbon neutrality by 2050, we have set a target to reduce greenhouse gas emissions (Scope-1 and 2) frombusiness activities of MIRARTH HOLDINGS Group by 50% (compared to FY2020) by FY2030 and to net zero by FY2050.
For Scope3, we are currently compiling energy data and plan to release our greenhouse gas emissions of this category in
FY2023.

Click here to read the full text

553KB

Repeal and Revision
The Sustainability Committee approves this policy and any amendments or revisions to its content.
At least once a year, the Sustainability Committee reviews the content of this policy to ensure that it is appropriate for ourapproach to climate-related issues.

25Energy & Resources

Energy Business
Renewable Energy Initiatives
MIRARTH HOLDINGS Group promotes energy projects that utilize renewable energy sources that contribute to the reduction of
CO 2 emissions. Since 2013, when we entered the energy business, we have been developing mega solar power plants andsmall- and medium-scale solar power plants on idle land and other sites across Japan, with a total generation capacity of
approximately 360 MW as of March 31, 2023.
In addition, we are also involved in other renewable energy projects other than solar power generation, such as wind power andbiomass.

TohokuAomori Prefecture●

LS Aomori Hiranai Power Generation Facility

Miyagi Prefecture
LS Miyagi Osato Power Generation Facility● LS Miyagi Sendai A & B Power Generation Facility● LS Miyagi Osato 2 Power Generation Facility● LS Miyagi Ohira Power Generation Facility● LS Miyagi Matsushima Power Generation Facility●

Fukushima Prefecture
LS Fukushima Yamatsur Power Generation Facility● LS Fukushima Kagamiishi 1 and 2 Power
Generation Facility● LS Fukushima Tamura Power Generation Facility●

Iwate Prefecture
LS Iwate Hirono Power Generation Facility● LS Iwate Hachimantai 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● LS Ibaraki Kasumigaura Power Generation Facility● LS Sakuragawa MakabePower Generation Facility●●

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●

Kinki
Wakayama Prefecture●

LS Shirahama Power Generation Facility

Chugoku
Hiroshima Prefecture●

LS Hiroshima Mihara Power Generation Facility

Tottori Prefecture●

LS Tottori Daisen Power Generation Facility

Okayama Prefecture●

LS Okayama Tsuyama 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● LS Chiba Katsuura Power Generation Facility
●
●

Chubu
Shizuoka Prefecture●

LS Shizuoka Omaezaki Power Generation
Facility

Kyushu and Okinawa
Nagasaki Prefecture
LS Nagasaki Isahaya Power Generation Facility
LS Nagasaki Sasebo Power Generation Facility● LWP LWP Nagasaki Tsushima Power
Generation Facility●●

Kagoshima Prefecture
LS Kirishima Kokubu Power Generation
Facility● LS Kagoshima Kanoya Power Generation
Facility● LS Kirishima Kokubu 2 Power Generation
Facility● LS Kagoshima Tanegashima Power
Generation Facility●

Miyazaki Prefecture●

Aichi Prefecture●

LS Aichi Toyohashi Power Generation Facility

Okinawa Prefecture

Mie Prefecture●

LS Miyazaki Miyakonojo Power Generation
Facility

LS Mie Yokkaichi Power Generation Facility●

LS Miyakojima Gusukube Power
Generation Facility
etc.

26

Total power generation:
Approx.

360MW

wholesale* Including
portion

Other Group Achievements

Leben Solar Tottori Daisen Power Plant
In August 2022, Takara Leben, which has been developing mega solar power plants by installing solar panels on sites
unsuitable for building construction or idle land, held a completion ceremony for the Leben Solar Tottori Daisen Power Plant,
which utilizes a former golf course site in Saihaku-gun, Tottori Prefecture.
The plant is the largest power plant developed by the our group in the Chugoku region, generating approximately 16.5 million
kWh of electricity per year, which is equivalent to the electricity supply for approximately 4,800 households. In addition to thelonger mounting piles to prevent snow damage, double-sided power generation modules are used to convert reflected light fromthe ground surface onto the back of the panels as well as the front of the panels, resulting in greater power generation even ina limited space.

Property Name

LS (Leben Solar) Tottori Daisen Power Plant

Location339-2, Fukukane, Hoki-cho, Saihaku-gun, Tottori, etc.

Area

Approx. 254,645 ㎡Generating capacity

Approx. 14MW

Estimated annual power
generation

Approx. 16.5 million kWh

Unit price of electricity sold

24 yen/kWh27

Efforts to promote PPAMIRARTH HOLDINGS and Leben Clean Energy have signed a memorandum of understanding (MOU) on solar power generation
business with Mitsui & Co. Plant Systems to jointly develop Offsite Corporate PPA* to realize a decarbonized society.
With a track record of developing more than 200 high-voltage solar power plants nationwide, Leben Clean Energy is the corecompany in the renewable energy business of MIRARTH HOLDINGS Group. We are developing renewable energy, particularly
solar power, to meet the growing decarbonization needs of our customers while building a business model that does not dependon feed-in tariffs (FITs). In recent years, the number of large-scale solar power generation sites has been on the decline, andwe have been speeding up the development of medium- and small-scale solar power plants across Japan. This collaboration
with Mitsui & Co. Plant Systems is part of our efforts to quickly build a development system and commercialization of suchplants.
In addition, MIRARTH HOLDINGS is also promoting activities with a view to supplying post-FIT renewable energy by conducting
a tender offer for units of Takara Leben Infrastructure Fund through a limited liability company it has established. By actively
and continuously developing projects through Leben Clean Energy, we will work to develop more non-FIT solar power plants,
etc.
Going forward, the company plans to continue to provide solutions to a large number of customers through the project
development capabilities of Leben Clean Energy, the project management capabilities of Mitsui & Co. Plant Systems, and theextensive network of the Mitsui & Co. group.
*Offsite Corporate PPA: A system in which solar power plants are installed on idle land, etc., in remote areas throughout Japan, outside customer demand areas, andelectricity or environmental value is supplied using the existing power grid owned by a general transmission and distribution utility.

PPA Scheme Image

Power generationequipment development
MaintenanceOperation
Power plant

Power producer

Usage fee

Power plant
Renewable energy power

Consumer

Renewable energy power
Existing power grid28

Biomass Power Generation
In 2021, MIRARTH HOLDINGS entered the biomass power generation business for the first time in the company’s history. The
Fuji Asagiri Biomass Power Plant (Fujinomiya City, Shizuoka Prefecture), which is currently in trial operation to start sellingelectricity in FY2022, generates biomass power using cattle manure collected from members of the Fuji Kaitaku Agricultural
Cooperative Association. The power plant generates electricity by burning biogas generated from the fermentation process of
cattle manure, which emits less CO₂ than the direct combustion of wood waste and combustible waste. The liquid fertilizer
produced with the biogas will be marketed as Fuji Asagiri Biomass Liquid Fertilizer.
This project follows our solar power initiative as the second renewable energy venture. It aims to create a regional, recyclingoriented symbiotic zone, supplying clean energy through effective waste material utilization and addressing the issue of cattle
manure disposal.

LS Chiba Sammu East & West Power Plants Sign Specified
Wholesale Supply Agreement with Minna Denryoku Co.
Green Energy, a limited liability company whose asset management is entrusted to Takara Asset Management, has concluded a
specified wholesale supply contract with Minna Denryoku (currently UPDATER Inc.) for the LS Chiba Sammu East and WestPower Plants. Minna Denryoku is developing a service that connects electricity producers and users with renewable energy.
Through Minna Denryoku, we aim to promote a decarbonized society and the spread of renewable energy by supplying energy
to households that choose energy with low environmental impact and to companies that practice environmentally friendly
management.

29

Measures to Reduce CO₂ Emissions
Takara Leben Infrastructure Fund and Green Energy, a limited liability company, aim to create a sustainable, earth-friendly
environment through investment in renewable energy generation facilities and other assets, contributing to the reduction of CO₂
emissions by approximately 76,302 tons per year*.
* Annual amount of reduction of CO₂ emissions compared to fossil fuel-fired thermal power plants based on the output of power generation facility panels.

Takara Leben Sustainability Fund
Takara Leben has begun operation of new means of financing with the aim of encouraging measures that contribute to theglobal environment. Leben Funding LLC. was established in January 2021, and in collaboration with Funds, Inc., it launched the
Takara Leben Sustainability Fund #1~3 and conducted crowdfunding to solicit loan investments from a wide range of investors.
The collected funds will be used as working capital for renewable energy projects and Sustainability (CSR) measures.

Individual
investors

Loan fundonline market

30

TakaraLeben

Ecology & Culture

ZEH Condominium
Takara Leben is committed to supplying environmentally friendly ZEH condominiums.
*1 ZEH (Net Zero Energy House): A house that simultaneously achieves a "comfortable indoor environment" and a "net annual residential energy consumption of
approximately zero or less."

ZEH Condominium "LEBEN TOYAMA JINZUHONMACHI ONE TOWER"LEBEN TOYAMA JINZUHONMACHI ONE TOWER (Toyama City, Toyama Prefecture) by Takara Leben is insulated not only on
the exterior walls and folded parts but also on the ceiling surface to ensure the high insulation performance required for a
ZEH*1 condominium, and metal sashes and double-layer double glazing Low-E glass are used for openings.
The condominium has obtained Grade 4 in the "heat insulation performance grade" of energy conservation measures*2(whereas ordinary condominiums are rated Grade 3), and Grade 5 in the "primary energy consumption grade."
In addition, the building has received the highest rating of 5 stars (out of 5 scale) under the BELS, an energy efficiency rating
system that calculates the primary energy consumption of a house.

Heating
CoolingHeating
ventilation
CoolingLighting

ventilation
Lighting

hot water
supplyhot water
supplyhigh insulation

reduction

createCool summer and warm winterhomes that require minimal energy

Use energy effectively withhigh-performance equipment

Create energy*2 Energy measure grade: Established by the Ministry of Land, Infrastructure, Transport and Tourism as a grade that expresses energy-saving performance.

31

ZEH Condominium "LEBEN TOYAMA NISHICHO RESONACIA"LEBEN TOYAMA NISHICHO RESONACIA is the first ZEH (Net Zero Energy House) condominium in Toyama Prefecture. It has
obtained the highest rating of 5 stars under the BELS, Energy Saving Performance Indication System, which calculates theprimary energy consumption of a house and assigns a 5-star rating.

32

"L.Biz NIHOMBASHI" Acquired CASBEE Certification "A rank"
At L.Biz NIHOMBASHI (Chuo-ku, Tokyo), an office building developed by MIRARTH HOLDINGS and its Group company, Takara
Leben, we are working on heat load control of the building envelope to achieve environmental performance for the realization ofa decarbonized society, in line with the Group policy of "providing environmentally conscious buildings and spaces” and working
to improve the indoor environment by controlling room temperature and lighting. In addition, to encourage the use of naturalenergy such as sunlight, the building has a high floor height and curtain walls*1. Also, to conserve water resources, which are
non-renewable resources, we are working to reduce water consumption through water-saving devices.
These environmental performances were highly evaluated, and the property was the first in our series of office buildings toreceive the "A" rank in CASBEE*2 - Building (New Construction), a comprehensive assessment system for building
environmental performance.
*1 Curtain wall: A lightweight exterior wall that is installed to reduce the load on the building's structure by ensuring wind pressure from the outside and watertightness.
*2 CASBEE: A system for evaluating and rating the environmental performance of buildings. It comprehensively evaluates the quality of buildings, including
environmental considerations such as energy conservation and the use of materials and equipment with low environmental impact, as well as indoor comfort andconsideration for the landscape.

33

Noda City Nakasato Logistics Facility Receives 5-Star BELS
Certification
Noda City Nakasato Logistics Facility (Noda City, Chiba Prefecture), the first logistics facility built by Takara Leben in March
2022, has a policy of "developing environmentally friendly properties" and has a solar power generation system on the roof. Theenergy generated is used for a portion of the facility's electricity consumption. In recognition of these environmentally friendly
efforts, the facility has received the highest rating of 5 stars under the BELS (Building Energy Efficiency and Low Energy
Performance Labeling System).

Environmental Initiatives through ISO 14001 Certification
Recognizing the need to promote environmental friendliness in the general construction industry, Leben Home Build acquired
ISO 14001 certification, the international standard for environmental management systems, in 2008. We continue to operate ourenvironmental management system by setting and regularly evaluating targets for reducing industrial waste resulting from our
production activities at work sites.

Separate trash at construction sites and promote recycling
Separate and reduce waste at each business site.
Regular cleaning outside the company by employees
Propose plans and designs for energy conservation

34

Promotion of LEDs
For the purpose of effective use of resources and reduction of running costs, we are promoting the replacement of lighting
installed in managed properties with LED lighting, which has a longer life and consumes less power.

Initiatives of Leben TrustLeben Trust, a real estate leasing and management company, actively proposes environmentally friendly capital investments toowners, such as the use of LED lighting in common areas of managed properties, to promote energy conservation in buildings.

Takara PAG Real Estate Advisory Initiatives
Takara PAG Real Estate Advisory, which is entrusted with asset management of Takara Leben Real Estate Investment
Corporation, has implemented LED lighting in 41 of the properties it owns.

Number of properties(including some partially implemented)

Percentage of LEDs in portfolio

Common areas: 91.1%
LED conversion

41 properties

Total 73.1%
Exclusive areas: 62.1%(Based on floor space, as of the end of February 2023)

35

Environmental Initiatives in Office Buildings
Takara PAG Real Estate Advisory, which is entrusted with asset management of Takara Leben Real Estate Investment
Corporation, is promoting environmentally friendly initiatives to reduce environmental impact and improve the indoor
environment.
To reduce water consumption in office buildings, we use rainwater for toilet flushing water, conduct awareness raising activities
for tenants, and install "water-saving panels" to reduce the amount of water used in the water supply.
In addition, by displaying educational posters in common areas and tenants' private areas, we are promoting the reduction ofgreenhouse gas emissions and waste by fostering awareness of electricity conservation and the 3Rs.

Regular Cleaning Using Environmentally Friendly Detergents
As part of its commitment to environmental friendliness in condominium management services, Leben Community has officiallyintroduced biodegradable plant-derived surfactants since fiscal year 2022.
Although vegetable-based detergents had been introduced on a trial basis at some properties since FY21, the vegetable-based
detergents at that time had less cleaning power than conventional detergents and did not meet the quality required for theservices. After a number of trials and errors, we have officially introduced a detergent that does not fall under the PRTR
system* and that takes environmental recycling into consideration. Currently, the detergent is used at sites where cleaning andjanitorial staff belonging to Leben Community work.
*PRTR system: A system under which business operators are required to monitor and report to the government the amount of chemical substances released into theenvironment (air, water, and soil) from their business sites and the amount transferred out of their business sites in waste materials, which may be harmful to humanhealth or the ecosystem.

36

Environmental Data

Environmental Data
The Group's Scope 1 and Scope 2 greenhouse gas (CO₂) emissions and energy consumption are shown below:

Greenhouse gas (CO₂) emissions
Unit: t-CO₂
Category

FY2020

FY2021

FY2022

Scope1

374

380

610

Scope2

1,585

1,696

3,171

Total

1,959

2,076

3,781

Remarks

Combustion of city gas, LP gas, kerosene, gasoline

Use of electricity and cold water* The scope of environmental data calculation covers MIRARTH HOLDINGS Group (9 consolidated companies).
* The period covered is FY2020 and FY2022 (April 1, 2020 to March 31, 2023).
* The figures for FY2022 are provisional and subject to change.
In addition, from FY2022, with the expansion of the boundary of electricity use, etc., the scope of aggregation of business activities is additionally aggregated.
* The Group excludes greenhouse gases other than CO₂ (chlorofluorocarbons, etc.) because of their extremely small amounts, and it only calculates and reports CO₂
emissions.

37

Energy consumption
Unit: kL of crude oil equivalent
Energy TypeFY2020

FY2021

FY2022

Electricity

915.2

1,020.8

1,782.5

City gas

3.2

0.5

61.8

LP gas

0.0

0.4

56.1

Gasoline

140.8

145.2

136.7

Kerosene

0.7

0.3

0.1

Light oil

0.0

0.0

3.0

Cold water

1.2

0.4

0.5

1,061.1

1,167.6

2,040.5

Total* The scope and period covered by the energy data are the same as for CO₂.
* The values for FY2022 are provisional and subject to change.
* Crude oil conversion is a measure to compare the size of different energy sources, such as electricity and gas.

38Personnel Management

HR System
Based on the idea that each employee of the MIRARTH HOLDINGS Group is a co-creator of lasting growth for the future,
Takara Leben is promoting a new personnel system that will produce the stable human resources needed to achieve its
management plan.
Under the new system, evaluation items are set for each grade and job classification based on a "Promise": specific daily
actions that employees should take. In addition, in order to realize appropriate, fair, and transparent evaluation and treatment,
revisions have been made to the behavioral evaluation, such as aligning evaluation criteria by the evaluation committee.
Through these efforts, we aim to provide more convincing feedback to employees and improve evaluation skills by promoting
understanding of the significance of the evaluation system and evaluation criteria among managers.

Basic Policy for Personnel System

Personnel system which stably nurture talent required to achieve management plan
Clearly state the type of people required by the company to build a framework where employees can set out their career vision.
Review distribution of labor costs to secure and keep talented people as well as improve motivation.
Conduct training and selection to generate talented people for management positions.
Ensure evaluation and treatment are highly fair and transparent to nurture employees’ sense of acceptance and increase their desire togrow.

12 Actions for Our Promise

1. Fully engage in work

7. Pay attention to feelings

2. Enjoy work from the heart

8. Act swiftly

3. Speak truthfully from the heart

9. Take initiative to propose, and carry through actions

4. Be serious in each and every task

10. Treat teamwork with importance

5. Respect each other11. Remove existing barriers

6. Pursue the right things

12. Never give up

39

Effects of Personnel System Revision
Takara Leben is conducting a detailed analysis of the progress of the new personnel system, which is designed to ensure
appropriate, fair, and transparent evaluations and treatment and alignment of evaluation criteria, and will work to makecontinuous improvements.
As certain problems were pointed out, including an upside trend in evaluation, variations in evaluation criteria, and delays in theacquisition of qualifications, we have considered and implemented changes to resolve these issues including changes toevaluation methods and requirements for promotions.

Attracting treatment
to the talented people

Expansionof operations

Improvement toretention rate oftalented people

Productivity improvement
Creation of new businesses
Passing down knowledge
Development of unity within
the company

360 Degree Diagnosis
We conduct 360-degree diagnosis for the purpose of training managers and above and improving the organization. The 360degree diagnosis is an effective opportunity to learn how one's daily activities are perceived by those around them, to learn
about gaps in perception between oneself and others, and to gain an objective view of oneself. The purpose of the 360-degree
diagnosis is to understand strengths and weaknesses that you do not recognize by receiving multifaceted feedback from thosearound you, and to improve your ability to demonstrate your behavior by learning about your own behavioral tendencies.
In FY2022, a questionnaire was sent to 85 persons at the rank of deputy manager and above, surveying the individual, his/hersupervisor, co-workers, and subordinates. Based on the results of the responses, feedback was provided to the individual.

Implementation of Talent Management System
As the group size expanded, it became increasingly difficult to keep track of employees, and personnel information and data
were scattered and managed by each group company. Takara Leben implemented a talent management system to solve these
problems, manage personnel information effectively and from multiple perspectives, and make the best use of humanresources.
A talent management system is a tool that converts various information on each employee's skills, abilities, transfers, andevaluations into data and centrally manages it. The centralized management of disparate information enables multifaceted
analysis and visualization of human resource information, leading to strategic utilization of human resource information. Startingwith Takara Leben, we plan to gradually roll out the system to our group companies.

40

Various Training Systems
We offer a variety of training programs aimed at the growth of each employee and the improvement of our overall strength as anorganization.

Basic Policy on Education and Training

Develop human resources not only based on our vision, but also as members of society that we can be proud of to our stakeholders.
Implement programs that enable each employee to feel a sense of personal growth and design their career.
Enhance the organization and work management skills necessary for each job rank, including leadership and developmental capabilities
and organizational management capabilities, linked with the personnel evaluation systems.
Support the acquisition of specialized knowledge, skills, and the other business skills necessary for the execution of business.

Entry-Level Employee Training
New employees undergo periodic training for three years after joining the Company to foster awareness as members of society,members of an organization, and employees as well as self-awareness of their own work duties and responsibilities within the
Company and to acquire the skills required to produce results as professionals. In accordance with the New Employee ThreeYear Educational Program, new employees undergo training in their first, second, and third years of employment to clarify theirroles, targets, objectives, and so on and to foster employees who can exercise initiative.

Support for Acquisition of Real Estate Transaction Agent Qualifications
Takara Leben is promoting initiatives to encourage its employees to obtain the Real Estate Transaction Qualification (hereafterreferred to as Takken), requiring them to submit a study plan, providing guidance on study materials, and conducting mocktests.
Takara Leben Realnet also provides support for obtaining the Takken qualification by conducting in-house tests twice a week,
using exercise books.

DX Internship
Takara Leben conducted a long-term internship program for the purpose of verifying the requirements for recruiting new
graduates who will promote DX and to inform universities and technical colleges that train engineers and other external partiesof the Company's initiatives related to digital human resources.
In FY2022, two students from Vantan Techford Academy, an educational institution that trains engineers, were invited to theTokyo Head Office and Group DX & VX Strategy Department for approximately four months to improve operations using lowcode development tools and work with the Sustainability Promotion Division on sustainability-related work experience.

Expansion of Educational and Training Programs
Takara Leben is striving to enhance its education and training programs with the aim of improving the growth of each individual
employee and the overall strength of the organization. In FY2022, we systematically implemented a year-long program toacquire the knowledge and skills required of each individual, including training for new employees, training by job level, andtraining for selected personnel.

41

Training Structure Chart
Definition

Grade•Business stances•Business etiquette•Fundamental practical skills•Listening ability•Identifying problems•Setting and managing targets

and knowledge

Individual

e-learning•Performing one’s work duties under
the detailed direction of supervisors
G1 •Acquiring
business experienceand problem-solving

Other

Housebuilder qualification acquisition support•Logical thinking abilities•Followershipthe general direction of supervisors

Improving operations

G2 •Business execution, improvement,On-the-job training•Performing one’s work duties under•Leadership•Problem-solving

Practical knowledge training

improvement, and problem-solving•Fundamental management skills

Feedback interview on evaluation of results and Conduct•Directing and guiding subordinates

G3 •Central roles in business execution,

Compliance and Harassment

Team

Vision, Mission and Promise•Strategy implementation andmanagement in one’s organization
M1 •Achieving section targets•Effective organizational operation•Developing subordinates•Organizational management

Selectivee

Improving organizations

Organization

360-degree evaluation•Management strategies•Business development•Strategy implementation andmanagement in one’s organization
M2 •Achieving department targets•Effective organizational operation•Section manager development

WorkplaceRank-based•Management strategies•Company operation

Company

Evaluator training•Strategy implementation andmanagement in one’s organization
M3 •Achieving group targets•Effective organizational operation•Department manager development

Company-wide
education

Evaluation

Officers•Management strategy formulationand decision-making•Corporate management

Scope

Job Rotation
We are promoting the activation of job rotation, which involves regular transfers of workplaces and changes in duties. By having
young employees experience transfers across headquarters and divisions, we promote understanding of the company as awhole, the pursuit of their potential, and the strengthening of their ability to adapt to different environments. We will also
develop generalists with a wide range of knowledge and skills, and strengthen organizational capabilities by deepening ties
between departments.

42

Promotion of Well-being
Policies

Employee Happiness Survey
Takara Leben, whose vision is "THINK HAPPINESS AND MAKE THE HAPPINESS." believes that increasing employee
happiness is important for improving corporate value, and conducted a happiness survey of its employees in October 2022.
Well-being refers to a state in which one is physically, mentally, and socially all fulfilled, and the importance of well-being has
been highlighted in Goal 3 of the SDGs, as well as in terms of securing human resources and maintaining and improving
economic vitality.
The Happiness Survey measures and quantifies the current level of employee happiness. We set KPIs by understanding andanalyzing "the level of happiness" and "which items are sufficient or insufficient" of our employees, as well as examining future
measures.
We will continue to conduct happiness surveys, promote strategic personnel affairs and optimal allocation of human resources
to enhance employee happiness, and strengthen the system building associated with the change to a holding company.

Employee Personnel Interviews
In order to improve the working environment and workplace environment, and to create an environment where employees want
to work for the company forever, Takara Leben conducts personnel interviews with all employees.
We collect information to reduce overtime hours, and by understanding employees' career plans, we consider improvement
measures and aim to build a relationship in which employees feel comfortable discussing these issues with us.
Takara Leben Realnet is also working to improve the workplace environment by conducting personnel interviews with all
employees and starting to operate a training system based on employees' opinions and requests.

Return to Employees
Takara Leben implemented a base salary increase of 2.5% on average in FY2023 in order to cope with the historic priceincrease and to attract, demonstrate, and activate diverse and talented human resources, who are the source of ourcompetitiveness and lead to increased productivity. We will continue to create an environment in which employees can work andlive with peace of mind, thereby improving employee engagement and strengthening Takara Leben's corporate competitiveness.

43Strengthen Communication with Employees
We are promoting initiatives to listen to the voices of our employees in order to realize a better work environment.

50th Anniversary Event
On September 21, 2022, the anniversary of its founding, Takara Leben held the Takara Leben Group 50th Anniversary Party as
its 50th anniversary event. Aiming to make the event "a day filled with much appreciation and excitement, a day to strengthen
the sense of unity that has been nurtured over the past 50 years since the company's founding, and a day to make a fresh start
toward the future," a variety of programs were implemented. A total of more than 1,200 employees and unofficial employees ofgroup companies participated in the event, deepening communication among employees in preparation for the holding company
structure.
In October, we held a "50th Anniversary Celebration - From Takara Leben to MIRARTH HOLDINGS" to which we invited
approximately 800 business partners who have shared and supported Takara Leben's growth over the past 50 years. We
expressed our gratitude for the past and introduced the new structure of MIRARTH HOLDINGS.

Introduction of 1 on 1 System
One of the seven pillars of Takara Leben's new medium-term management plan is to "develop human resources and create arewarding work environment." In order to build a better working environment by promoting communication between supervisorsand subordinates, we conduct "1 on 1" meetings where supervisors and subordinates meet on a regular basis to discuss open
topics. By providing opportunities for dialogue every other week, we aim to avoid miscommunication, promote mutual
understanding, and build trust.

Company-wide Morning Meeting and Survey
Since June 2022, Leben Clean Energy has held monthly company-wide morning meetings led by the president for the purposeof sharing the company's direction. In order to help identify and improve questions and concerns raised at that time, aquestionnaire is sent to all employees, and the president provides feedback on opinions and questions as appropriate.

44Expansion of MIRARTH NOTE
The MIRARTH Group operates an intra-group website, MIRARTH NOTE, to promote information sharing and communicationthat leads to "maximization of group synergy." MIRARTH NOTE has a function to share information on each company's
initiatives and releases among group companies, and to obtain up-to-date information useful for improving operational
efficiency, such as manuals and bulletin boards.
In FY2022, the company disseminated the progress of the 50th anniversary project and release the 50th anniversary history to
the public, and with the change of holding on October 1, the design was redesigned with a sophisticated MIRARTH-inspired
look.
In addition, with the aim of creating a website that contributes to strengthening cooperation among group companies, weregularly distribute video interviews and dialogues with management members as "Top Voice."Futsal "Kazushi Kimura Cup"In order to contribute to the community of Yokohama, Kanagawa Prefecture, where our head office is located, and to increase
corporate recognition, Leben Trust sponsored the "Kazushi Kimura Cup" futsal tournament held by Comprehensive Community
Sports Club in Yokohama City.
The Kazushi Kimura Cup is held at Sports Jungle 10, Comprehensive Community Sports Club produced in 2012 by Kazushi
Kimura, former Japanese national soccer team and former coach of Yokohama F Marinos, and is open to all ages and genders.
An exhibition match against the Dream Team led by Mr. Kazushi Kimura was also held, and a team of executives andemployees from Leben Trust participated in the match, adding to the excitement of the tournament.

45

Social Baseball Tournament
Leben Home Build held a baseball tournament jointly organized by sales and in-house departments to promote employee ties
and communication across departments. After the game, a BBQ was held for all participants. While nourishing their spirits, theparticipants deepened the friendship between internal and external employees and fostered a sense of unity throughout theorganization.

Cycling Shimanami
Takara Leben West Japan (currently Takara Leben) sponsored "Cycling Shimanami 2022" as a Silver Partner to strengthen
relationships with the community, support the area, and increase awareness of the company name. Cycling Shimanami is aninternational cycling event held every two years. All courses include riding on the highway, including the unique bridges
connecting the islands, and it is the only time in Japan that the main line of the highway, which is in service, can be ridden. Six
employees from Takara Leben West Japan participated in the event.

46

Diversity

Promoting Diversity
Women Empowerment in the Workforce
As one of the seven pillars of its medium-term management plan, MIRARTH HOLDINGS is committed to "developing humanresources and creating a rewarding workplace environment," and is working to create a workplace environment where women
can work comfortably and demonstrate their abilities by providing working conditions that are appropriate for their life stages.

Women's Activity Promotion ProjectAs part of its efforts to develop human resources and create a rewarding work environment, Takara Leben promotes the
Women's Activity Promotion Project.
In May 2022, we introduced the Babysitter Usage Discount System to enable employees who are raising children to balance
work and child rearing, subsidized by the Babysitter Dispatch Program implemented by the Cabinet Office. In October of thesame year, we introduced the Middle Career Track System, a new work style that allows women in sales positions to return towork after maternity or childcare leave while balancing work and childcare with peace of mind.
Leben Clean Energy has also established the Women's Activity Promotion Project Team to consider how changes can be madebased on the real voices of female employees, and is working to create a workplace environment where they can continue towork for a long time.

Introduction of Limited Area Employee System
In response to the urgent need to secure a workforce against the backdrop of a declining workforce due to the falling birthrate
and aging population, the urgent need to secure personnel in rural areas due to the expansion of business areas, and thegrowing needs of job seekers, Takara Leben introduced the limited area employee system in FY2022. We aim to facilitate
recruitment in local areas and to secure and retain human resources by diversifying work styles.

47

Employment of Persons with Disabilities
We are committed to the realization of diversity with the aim of becoming a corporate group where a diverse workforce,
regardless of gender, age, nationality, or disability, can play an active role. Leben Village, a farm in Chiba City, Chiba
Prefecture, employs three people with disabilities and a farm manager to grow a variety of vegetables. In addition to providing
an environment where employees can work with peace of mind on a long-term basis, vegetables grown and harvested at thefarm are regularly distributed within the company to those who wish to receive them.

Leben Village Vegetable Fair
In June 2022, a direct sale of Leben Village vegetables was held at the entrance of Takara Leben's headquarters. Members ofthe disabled who grew vegetables at Leben Village, a farm in Chiba City, Chiba Prefecture, visited our headquarters and soldsummer vegetables such as cucumbers, zucchini, and shiso leaves. The opportunity to directly purchase vegetables whileinteracting with members of the production team brought smiles to the faces of employees, and the direct sales event attracted
many employees. Many employees visited the direct sales event, and harvested vegetables were mailed to branches and sales
offices other than the head office. Proceeds from the vegetable sales were donated to the NPO TABLE FOR TWO.

48

Health Management

Comfortable Workplace Environment
Introduction of a Telework System
In April 2019, Takara Leben introduced a telework system, supporting more diverse employee work styles. Employees who meet
specific conditions, such as those related to the content of their work, or employees who have given birth, are parenting, or who
provide nursing care, can work remotely up to three times a week, without coming to the office, after implementing information
leakage countermeasures and other measures. We plan to further promote this telework system with the aims of becoming aneven more attractive company with flexible work styles that are not fixated on specific locations or times and contributing to our
BCP.

49

Yokohama Good Balance Award*
Leben Home Build has been certified as a "Yokohama Good Balance Award" company under the certification system of
Yokohama City, Kanagawa Prefecture.
This certification system supports small- and medium-sized enterprises in Yokohama City that actively promote the creation of aworkplace environment in which everyone can work comfortably.
The company has been continuously certified since FY 2017, and in FY 2021 was awarded the "Three-Time Continuous Award"
for companies that continuously work to improve their workplaces. The certification period is two years, and the company isjudged on six criteria, including "diverse and flexible work styles" and "promotion of women's activities."* The system was partially revised in FY2023 and changed from the "Yokohama Good Balance Award" to the "Yokohama Good Balance Company Certification."

Workplace Environment
Takara Leben has long held twice-monthly "clean times" to clean and organize offices in an effort to create environments where
employees can work comfortably.
At the head office, personnel in charge conduct regular internal patrols to clean conference rooms and other common spaces.
In addition, as a unique initiative, the Matsuyama Branch allocates a person in charge of cleaning office spaces and meetingrooms to each department, and all employees have time to clean these spaces four days a week. Each employee working on
how to organize and maintain the workplace environment and making efforts for beautification of the branch to keep their officeclean and hygienic on a daily basis.

50

Support for Diverse Work Styles
In light of the "Workplace Reform-Related Legislation" which has been sequentially enforced from April 2019, we are working to"correct long working hours," "realize diverse and flexible work styles," and "ensure fair treatment regardless of employment
status."With regard to long working hours, we are promoting the creation of workplaces where employees do not work long hours by, forexample, strictly enforcing "overtime work of 45 hours or less per month in principle and 60 hours or less only six times a year"
and considering visualization of actual working conditions to reflect them into personnel evaluations. Employees who work longhours are given "interview guidance by a doctor" and "monitoring of working hours," and information is shared with the HealthCommittee and industrial physicians to prevent health hazards and occupational accidents.
Regarding the use of paid leave that leads to a flexible work style suited to each employee, we strongly encourage employees
to take the annual paid leave granted to each of them, subject to compliance with the "five-day paid leave obligation."With regard to "equal pay for equal work," which came into effect in April 2020, we are "improving the treatment of contract
employees" and "considering the abolition of contract employees" with the aim of creating a workplace that is rewarding for all
employees.

Promoting Office Reforms
Leben Clean Energy moved its headquarters to Iidabashi, Tokyo, in November 2022. The new office incorporates a free-address
office layout that incorporates ABW (Activity Based Working), a work style strategy for autonomously optimizing the workplaceenvironment and work style. The new office is designed to activate communication among employees that transcends
departmental barriers and hierarchies, maximize productivity and efficiency, and conserve resources by eliminating paper.
In addition, a café space has been set up to create a space for communication and work while relaxing, and a library with books
recommended by employees has been established to promote the sharing of knowledge and entertainment.
In addition, smoke-free smoking booths are installed to prevent the diffusion of harmful substances and the smell of cigarette"
on clothing and bodies, providing an environment that is receptive to the diversity of employees and allows them to refreshthemselves efficiently in a short time.

51

Basic Policy on Health and Safety

The MIRARTH HOLDINGS Group provides proactive support to ensure the safety of employees and maintain and enhancetheir health. We strive to create work environments where diverse human resources can work to demonstrate their fullcapabilities. We have established a Health Committee to implement these measures and undertake comprehensive
employee health and safety management.

Health Committee
Takara Leben is working to create a workplace environment in which all employees can work with peace of mind, centered on
the Health Committee as stipulated by Article 18 of the Occupational Health and Safety Law.
The company's Health Committee considers "traffic accidents," "occupational accidents," and "overtime work" as important risks
that threaten the safety and health of employees in the workplace, and holds regular meetings to conduct investigations andreports on the actual situation and discusses ways to solve problems.
Committee members representing different workplaces raised specific issues of workplace environments and practices thathinder the reduction of overtime work and the promotion of leave-taking, and measures to improve them were discussed withmanagement and implemented in turn.

Periodic Medical Examinations
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 that are conducive to undergoing medical examinations. In order to discover various
medical conditions at an early stage, those aged 30 and above are able to undergo medical examinations for the prevention oflifestyle diseases, female employees are able to undergo gynecological examinations, and those aged 35 and above can go for
a complete medical checkup.

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. Moreover, employees can receive free counseling at any time from an
independent, third-party organization without the Company’s knowledge.

52

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

Health Care Management
Efforts to Reduce Working Hours
Takara Leben promotes a "time-conscious and efficient work style" with the aim of improving employee health, and in fiscal year
2021, we introduced an "application system for extended PC use" linked to the turning on and off of PCs. The system is
expected to reduce overtime hours because if an employee continues to use a PC without requesting extended PC use(overtime work) from the manager, a warning will appear on the screen and the PC will be shut down. On the other hand, it isexpected that managers will be able to visualize the details of their subordinates’ overtime work, thereby increasing theirawareness of the need to manage the organization in a well-balanced manner.
Each company in our group is working to create a workplace environment where employees can work in a relaxed and healthymanner.
Leben Trust is working to resolve issues identified based on an employee awareness survey regarding work-life balance byimplementing a no-overtime day twice a month in each section, encouraging staggered work hours and paid holidays, promoting
telework, supplementing personnel as needed, and promoting the introduction of DX.
In October 2022, Leben Community started operating a new attendance leaving system, which allows us to extract moreaccurate figures than before. We will continue to manage the health of our employees by checking the status of leaving work.

Mental Health
Takara Leben conducts stress checks (once a year) to encourage employees to become aware of their own stress, leading toearly detection of and response to mental health problems. Employees who have undergone stress checks are provided,
according to the results, with learning content that can be used to improve their mental health situation and self-care.
Furthermore, we support mental health care for employees and their families through the establishment of a consultation center
outside the company where employees can receive advice from professionals (clinical psychologists, mental health workers,
and industrial counselors) according to their wishes.

どんなお悩みも

秘密は厳守します

自分にあった相談方法

医療・公的機関も紹介可能

ご自身のことも周りの方のことでもお気軽にご相談ください

匿名でのご相談も可能です。
安心してご相談ください

対面のほか、電話、
WEB 面談、メールなどでも相談可能です

提携の医療機関やより適した相談機関のご紹介も承ります53

Human Rights

Human Rights Policy

MIRARTH HOLDINGS Group Human Rights Policy
The MIRARTH HOLDINGS Group (hereinafter referred to as "the Group") is committed to solving social issues through its
business activities and working with stakeholders to achieve a sustainable society and growth. This Group Human Rights
Policy (hereinafter referred to as the "Policy") clarifies the Group's approach to human rights in the course of its businessactivities, and as a member of society, the Group respects human rights and conducts its activities in accordance with the
Policy. The Group also expects all stakeholders involved in its business to understand and practice the respect for humanrights in line with the Policy, and to work together to promote the respect for human rights.
1. Respect for International Human Rights Standards
The Group supports and respects human rights as stated in the International Bill of Human Rights (Universal Declaration of Human
Rights and International Covenants on Human Rights) and the ILO Declaration on Fundamental Principles and Rights at Work, andpromotes responsible management based on the UN Guiding Principles on Business and Human Rights and the ten principles of the
UN Global Compact.
The Group understands and complies with all relevant laws in all countries and regions where it operates. In the event that there is a
conflict between the internationally recognized human rights and the laws of the country or region where the Group conducts businessactivities, the Group will seek ways to respect the principles of international human rights.
2. Scope of Application
The Policy applies to all officers, employees, temporary staff, and other personnel (hereinafter referred to as "officers and employees")
who engage in the Group's operations. As a member of society, the Group strongly recognizes the importance of respecting humanrights and provides appropriate education and training to its officers and employees to ensure that the Policy takes root throughout its
business activities.
In addition, the Group expects its customers and business partners to support the Policy and work with the Group to promote therespect for human rights.
3. Key Issues Related to Human Rights
As the challenges to be addressed may change due to social trends and the business environment, the Group will review the key
issues related to human rights as necessary through dialogues and discussions with stakeholders and external experts.
4. Human Rights Due Diligence and Remedy/Correction
The Group establishes a mechanism for human rights due diligence and understands potential or actual negative impacts on humanrights that may arise through its business activities in order to prevent or mitigate them proactively. If its business activities havecaused or contributed to negative impacts on human rights, the Group will take measures for remedy and correction.
5. Dialogue and Discussion with Stakeholders
The Group engages in dialogues and discussions with relevant stakeholders such as employees, local communities, business
partners, and customers to enhance its understanding of human rights issues and to improve and resolve them.
6. Information Disclosure
The Group will disclose its efforts to respect human rights based on the Policy on its website and other appropriate channels.

54

Respect for Human Rights
The MIRARTH HOLDINGS Group acts with respect for the fundamental human rights of all stakeholders, including employees,
while observing laws and regulations, social ethical norms, and matters specified in ethical rules.

55

Customer Satisfaction

Customer Satisfaction Improvement Initiatives
Sales Staff Questionnaire
Takara Leben has been conducting a survey of model room visitors since fiscal year 2019 with the aim of understanding
customers' images of sales staff and the company, and to ensure greater customer satisfaction. In the survey, we received
evaluations on all aspects of the sales staff's response, including whether they were able to make proposals that met
customers' needs, whether their explanations were easy to understand and appropriately timed, and whether they treatedcustomers in a caring and courteous manner.
In FY2022, we introduced a survey response method using iPads and QR code readers, and received over 7,000 customer
comments. The tally results are fed back to each model room every month and shared within the department to be used forcustomer service and creating comfortable spaces. When we received a suggestion to incorporate a design that took into
account the landscape and history of the area, it was promptly communicated internally to the relevant departments and utilized
in the development of condominiums and product planning in the same area.

56Regarding response by sales staff
responsible for making proposals tocustomers
Time required for overall explanation
and allocation of time
Explanations and proposals basedon understanding of customer needs
Promptness of explanations andresponses to customer doubts (concerns)
Amount of information andunderstandability concerning details of
the property and nearby environment
Explanation of financing plans
and life plans
Explanation of management andafter-sales service
Consideration for the customer andthoroughness of responses

FY2021
Dissatisfied

Somewhatdissatisfied

Neithersatisfied nor
dissatisfied

SomewhatsatisfiedSatisfied

1%

3%

9%

25%

62%

0%

1%

6%

25%

68%

0%

1%

6%

22%

71%

0%

1%

6%

26%

67%

0%

1%

17%

25%

57%

0%

1%

17%

26%

56%

0%

1%

4%

17%

78%

FY2022Dissatisfied

Somewhatdissatisfied

Neithersatisfied nor
dissatisfied

SomewhatsatisfiedSatisfied

1%

3%

9%

24%

63%

0%

1%

6%

25%

68%

0%

1%

6%

23%

70%

0%

1%

5%

25%

69%

0%

1%

18%

25%

56%

0%

1%

17%

26%

56%

0%

1%

4%

17%

78%

57

Tenant Survey
Takara Leben Real Estate Investment Corporation conducts surveys of as many tenants as possible as part of its tenant-related
initiatives, and strives to consider and implement measures to improve satisfaction levels. We have received valuable opinionsfrom office and commercial properties (10 properties, 127 tenants), including satisfaction/full scores, desired renewal areas,
and measures against the new coronavirus, which is expected to lead to the maintenance of good communication in the future.
In FY2022, based on feedback from several tenants at the Kawagoe West Building, we held a dialogue with tenants andinstalled a "Pythagora device" in the common area on the first floor as a measure to reduce stress caused by elevator waitingtime. In addition to questions about commuting time and satisfaction with the management of residential properties, we also
received a number of valuable comments that would be helpful for future property management, such as the introduction ofrenewable energy.
We will continue to conduct surveys on a regular basis and share the results with property management companies in an effort
to continuously improve resident satisfaction.

Questionnaire on management operations
Leben Trust, a real estate leasing and management company, conducts surveys of owners of managed properties in order tounderstand their evaluations of and requests for management services and to provide better services. In the survey, we
received evaluations and opinions regarding the overall management services we are entrusted with, including tenant
recruitment, income and expense reports, building maintenance, and the responsiveness of our sales and property managers.
We will continue to provide more attentive services and improve our operations based on the evaluations and feedback we
receive, with the aim of enhancing the value of real estate, which is an important asset for owners.

58

Establishment of Takara Leben Owners Club "DLPS"
To support the realization of comfortable lifestyles, Takara Leben has established the Takara Leben Owner's Club "DLPS",
which provides housing and living services to subscribers of its original condominium brands "LEBEN," "THE LEBEN" and"NEBEL" series, and offers an application exclusively for subscribers.
DLPS is a membership organization that provides a variety of services related to housing and living, and is affiliated withservices for advanced credit card members, including "Owner's Elite," which offers a premium experience, and preferential
access to hotel facilities operated by DLPS, as well as a variety of other housing and living-related services provided by partnercompanies. Through the application, the company is working to increase customer loyalty to the Takara Leben brand byproviding services such as a repair request service for exclusive areas as part of the "10 for all” peace-of-mind service and an
exclusive area repair reserve system using electronic money.

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 of everyday life not
only produces greater livability, but also helps prevent crime and 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 its support for community building, Leben Community holds various events, such as "residents’ get-togethers," which
help residents meet each other for the first time in newly built condominiums, where adults and children can enjoy snacks andgames and make connections as a family. In addition, condominiums with multiple buildings support joint summer festival
events that provide children with summer vacation memories through games and food stalls as well as workshops. As in theprevious year, in fiscal year 2022, we did not hold a residents’ get-together in order to prevent the spread of the new COVID-19
infection.

59

COVID-19 Responses in Community Events
Leben Community, which provides condominium management services, believes that building "face-to-face" relationships
among condominium residents on a regular basis not only makes life easier but also leads to crime prevention on a daily basis
and mutual assistance in times of emergency, and it supports community building among residents through various events. In
fiscal year 2022, we did not hold any events that would attract a large number of residents to prevent the spread of the new
COVID-19, but we did hold seasonal and enjoyable events such as the installation of Tanabata and Christmas decorations thatwould not cause the 3Cs (closed spaces, crowded places, and close-contact settings).

Tenant health and comfort considerations
To improve tenant safety and comfort, Takara Leben Real Estate Investment Corporation is promoting the installation of AEDs,
disaster reserves, emergency supplies in elevators, and digital signage to inform tenants of evacuation routes. We also promotetenant communication by displaying posters promoting stairway use and educating tenants about health promotion.

Health Promotion Awareness Poster

Disseminating information on evacuation routes through digital signage

60

Ethical Action

LEBEN LABO ETHICAL ACTIONLEBEN LABO ETHICAL ACTION is an internal organization established to realize the various suggestions of our customers
under the theme of "Doing more good for society." Based on the corporate vision of "THINK HAPPINESS AND MAKE THE
HAPPINESS," the Group has received many Good Design Awards for its efforts to seriously consider the happiness of people
and their lives. Two projects born of this organization were selected for 2021.

"Solar Power" Project"LUIC" Project"KOJIN BOSAI KIT (Individual Disaster Preparedness Kit)" Project"MOTTO ATTARA IINA (We Wish to Have More)" Project"MOTTO ATTARA IINA (We Wish to Have More)" Project"SOCOPOS" Project"LEBEN CRAFT" Project"Working Point" Project"Good Working" Project"SOCOTAKU" Project"USE OF MODEL ROOMS AND SALES CENTERS AS DISASTER RESPONSE SITES" Project"MODIFIABLE DESIGN CONDOMINIUM COMMON AREA" Project
Art Biotope "Water Garden" Project

IoT home delivery box "THROUGH TAKU" project"LEBEN KEMIGAWAHAMA GRANVARDI" Project61

"USE OF MODEL ROOMS AND SALES CENTERS AS DISASTERRESPONSE SITES" Project
The model rooms created when selling built-for-sale condominiums show customers what completed built-for-salecondominiums 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 eventof a disaster water (essential for life), charging facilities for mobile phones, etc., using in-house generators, and the like andopened them to the general public as disaster response sites. Efforts began in fiscal year 2019, and installation was complete
at all model rooms of condominiums sold by Takara Leben. We will actively use our expertise in efforts such as supplying
condominium unit buyers with disaster kits and will expand these sites.

62

"10 for All" Safety Assurance Service and "KIT+" Personal DisasterKits
As part of our efforts to ensure that residences are not supplied as mere "boxes" and to progress from "material wealth" to"qualitative wealth," we have begun providing the "10 for All" safety assurance service and "KIT+" personal disaster kits. "10 for
All" offers customers support so they can live with peace of mind through extended warranties for residential facilities andequipment, 24-hour emergency response and maintenance support for water leaks, key issues, and glass breakage, inspectionsof private 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 individual needs. They were the winner of a Good
Design Award 2016. Each consists of a compact, A4-sized folder file-like package which individuals supplement with their
specific needs in the event of an emergency, to be kept close at hand at all times.

1
2
3

Residential Facility and Equipment Extended Warranty (10 Years)
Malfunctions and breakage of articles included within the warranty scope are repaired free of charge every time for the entire duration of thewarranty

24-Hour Emergency Response + Maintenance Support
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 likePrivate Area Inspection + Repair Services (5 Years / 10 Years)
Dedicated staff visit customer residences and perform interviews and inspections, repairing any issues that can be immediately addressed(for 5 or 10 years after property handover)63

IoT Delivery Box "THROUGH TAKU" ProjectWith the expansion of online sales and the use of delivery services, issues related to home delivery, including "redelivery due toabsence," have arisen. THROUGH TAKU, a delivery box built into the entrance of each condominium unit, offers convenience
which is not available in the conventional type of delivery boxes to both residents and delivery persons. Residents can use theirsmartphones to unlock the digital locks and receive the parcels when they are out of the house, eliminating the need for redelivery by the courier company. Furthermore, it is possible to ensure the "non-face-to-face communication" required due to the
COVID-19 pandemic. In addition, the inconvenience of having to carry heavy delivery items to one's residential unit, or nonavailability when all boxes are occupied, as is the case with delivery boxes located in common areas, is eliminated.

Art Biotope "Water Garden" Project
Designed by architect Junya Ishigami, the "Water Garden," created in 2018, is an unprecedented art space with 318 trees and160 biotopes (ponds) of various sizes, arranged according to precise calculations. It received the Good Design Award Best 100
for 2019, and the judges highly praised the unique beauty of the art biotope, which is not a natural biotope, with expressions
such as "the very soul that has been passed down from generation to generation in Japanese gardens."
The "Water Garden" has been introduced in numerous domestic and international media as a special meditation space where
people can sharpen their senses and feel the relationship between humans and nature and has become a spot that attracts
attention from all over the world.

64

LUIC Project, a unique water system
The LUIC project is Takara Leben's original water system that provides access to purified water for all aspects of life. Since its
launch in 2008, it has been used in all of our own-brand condominium series and has changed the lives of many people bychanging the water that is the basis of our daily lives. The LUIC project has continued to evolve while constantly incorporating
new technologies. Currently, the project consists of Takara's Water, which provides access to purified and activated water fromfaucets throughout the house, Takara's Mirabath Vision, which provides cleaning and warming effects of ultra-fine bubbles justby soaking in the bathtub, and Takara's Mirabubble Shower, which conditions skin and hair quality with water containing ultrafine bubbles. The Takara's Mirabath Vision offers a variety of functions such as fluctuating bath and spot care, and is newly
equipped with a micro-ionic function that removes dirt in the bathtub with activated oxygen atoms.

Takara No Mizu
(Takara Water)

Takara No
Mirabath Vision*

Takara No
Mirable Shower* Formerly known as Takara No Microbubble Tornado O2

Cleaning power
Hair
Sebum
Seb
um
impurities
impurities

Hot bath

Microbubbles
MicrobubblesMicrobubbles
wash away dirt
from inside pores

Normal hot water

Hot water
with microbubbles
Representation

Representation

Microbubbles generated
by low-temperatureplasma are used
to break down, sterilize,
and deodorize dirt
and grime in the bathtub* Do not use while in the bath.

The circulation bathuses special nozzles tocreate a pleasantconvection water
current that flows
throughout the bath.

Beforeexperiment

After 15 min.

Representation* In this decoloration experiment, approximately 250 ml was

sampled from an aqueous solution consisting of roughly
1,000 ml of mineral water and roughly 0.2 g of methylene
blue, and microbubbles were generated using Micro Iony for
approximately 15 minutes.

Spot care allows
tornado jets created by
special hose nozzles tobe applied to specificpinpoint areas.

Representation

Representation

Representation* Oxygen ceramics are sold separately.
* Eﬀects and beneﬁts vary among individuals.

65

“LEBEN CRAFT” Project
LEBEN CRAFT is a program that enables urban condominium residents to purchase specialty products from regions where theour group has developed condominiums using a website available only to these residents. Linking residents of city centers with
regional communities contributes to regional revitalization. This initiative by the our group, which not only develops urban areas
but also works on businesses to revitalize regional cities, is unique even among developers. The project has a framework
beneficial for both regional producers and residents of our condominiums all over Japan and received a Good Design Award
2017 in recognition of its merit of improving the added value of condominiums.

Specialty Foods
Seasonal, limited quantities. That is why they are not sold in supermarkets. We search for such ingredients. Our basic idea isthat we want everyone to have a healthy life. We carefully select foods that are safe and can be enjoyed by both adults andchildren.

Information
By sharing with you information on production sites, producers, and products that LEBEN CRAFT has uncovered, and by
rediscovering new strengths and attractions in Japan, we hope to help you create a rich lifestyle.

Experience
Visit producers you have met at events to meet them in person. Experience harvesting and try eating freshly picked food.
Breathe in the country air and discover a second hometown. We envision a trip like never before.

Markets
LEBEN CRAFT Premium Marché is held to sell excellent products from all over Japan. In addition to creating opportunities forcommunication with participating producers, more features will also be held.

66

LEBEN CRAFT Structure67

B u i l d i n g Va l u e

Quality & Comfort
Initiative to Improve Quality Through Obtaining ISO 9001
Certification
With the aim of improving quality to comprehensively support the creation of comfortable living environments for customers,
Leben Home Build and Leben Community have established a quality management system in accordance with ISO 9001, theinternational standard for quality management systems established by the International Organization for Standardization, andhave obtained certification.
We regularly monitor and improve our management processes and revise our policies and goals as necessary to continue toprovide even higher quality services.

Details of Leben Home Build's Initiatives
On-site constructionin progress

Quality and process control
Regular construction safety patrols

Conduct periodic building inspections
After delivery of theproperty

Establishment of after-sales service system
Proposals for large-scale repairs, etc.

Details of Leben Community’s Initiative
Administrative management
Comprehensive
condominium
management

Association accounting
Management and repair of buildings and equipment
Management staff operations

Condominium repair
work

Repair of condominium common areas

68Service Quality
Service Quality Management System (SQMS®)
Leben Community ensures quality using our unique service quality management system (SQMS®) to continue managing ourcustomers’ important assets over the long term. SQMS® applies ISO 9001, an international standard for quality management
systems, to condominium management. It sees condominium management as consisting of four support services (sitemanagement, financial management, asset management, and operations management) and applies the PDCA cycle to each tocontinuously improve quality.
Specific actions include providing feedback to the relevant departments on the opinions of condominium management
association members, collected through questionnaires, which leads to improvements in the quality of a wide range of services.

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 with quality
standards

Service quality plan design(quality plan) based the
management plan

Condominium
management
outsourcing services

SQMS ®
Cycle
Act

Check

Improvement Activities

Collection, analysis &evaluation activities● Continuous improvement

Collection● Corrective action● Preventive action

Analysis
Evaluation69

Quality Philosophy and Policy

Quality philosophy
We hereby declare and state our quality management philosophy to be "Creating a safe and comfortable living
environment" in the spirit of "walk the talk."
We will adopt the quality management system advocated by ISO9001 and pursue customer satisfaction and social
contribution in our condominium management business under the motto of "speed, dependability, and sincerity" for all our
employees.

Quality policy
We have established the following quality policy so that we can continue to provide "speed, dependability, and sincerity"
services to our customers
1. We will pursue our own existence value to become an indispensable presence for our customers.
2. We will provide high-quality and reliable services based on our quality standards.
3. We will continuously pursue quality improvement for perennial customer satisfaction.
4. We will clarify objectives and targets, and embody the spirit of "walk the talk."
5. We will comply with all applicable laws, regulations, norms, rules, etc. and aim to be a corporate citizen trusted by society.

Management StructureManagement Policy Maker

Quality Management Officer

Internal Audit Manager

SQMS
Secretariat

Financial
Management
Underwriting
Operation

UnderwritingOperation
Contract Management
Operations Management

Site
Management

SQMS Master

Asset
Management(Various
inspections)

Asset
Asset
Purchasing
Management
Management
Operation(Supervision of (Supervision ofmaintenancemaintenance Subcontracting
Management
work design)
work)

Asset
Management
Division
Asset

Maintenance
Planning
Division

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)In-house
Facility
Management

BM Contract
Management

Construction
Management
Division

Purchasing
General Affairs
andandSubcontracting Administration
Management
Division
Division

Building
Management
Division

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)

Operations Management Division

Quality Management Officer (Deputy)

Financial
Management
Division

Site
Management
Division

Headquarters
Operations
Management
Division
Business
Management
SectionQuality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)

Yokohama
Branch Office
Operations
Management
Division
Business
Management
SectionOmiya
Branch Office
Operations
Management
Division
Business
Management
SectionLarge-Scale
Project
Promotion
Division

Consignment
Promotion
Sales
Division

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)

Quality
Management
Officer(Deputy)70

Quality
Management
Officer(Deputy)Quality-Related Education and Training
Leben Community is committed to developing human resources who understand and practice SQMS®. We conduct SQMS®
Basic Concepts Training for younger personnel to help them understand the basic concepts and features of SQMS®. In
addition, in order to promote SQMS® internally and externally, employees who have gained extensive practical experience andare familiar with the SQMS® concept, quality standards, process control, etc. are given the SQMS® emblem and certified as
SQMS® Masters. This program was launched in FY 2018 and 13 people have been certified so far.
In FY2022, the scope of SQMS® training was expanded to include employees of branch offices and sales offices, such as the
Shikoku Branch Office, to further promote SQMS® in the company.

Front Man Training
Front men require extensive knowledge as professionals that support the operation of management associations. In order toimprove 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.

71Condominium Management Staff Training
Condominium management staff are responsible for reception, inspections, cleaning, consultation, and other duties. To maintaincomfortable condominium living environments, they must not only be able to execute their duties appropriately, but also to do sowith a smile on their face, speak politely, and take care of their personal appearance. By providing them with feedback fromresidents about their day-to-day job performance, conducting regular management staff training, and periodically testing theirunderstanding of training content, we work to thoroughly improve the quality of service they provide.
In fiscal year 2022, given the spread of Covid-19, training sessions were held in small groups in regional cities, although faceto-face education, which is difficult to convey through written communication alone, was resumed, albeit gradually.

Information Shared on Near-miss Incidents
One measure we employ to maintain and enhance service quality is sharing information on near-miss incidents relating tocondominium management. We use the Management Staff News, which is distributed periodically, to inform all staff members
about incidents that almost led to quality-related accidents.
In addition, during company-wide service quality training, we present information on incidents which did not comply withstandards occurring in the previous fiscal year and details of the responses, and this has been useful in reducing quality-related
incidents.
In fiscal year 2022, we worked to protect our customers’ information through focused information dissemination regarding thehandling of personal and confidential information.

SUUMO Award
In the "SUUMO AWARD 2022*" selected by buyers, Leben Community received an "Award of
Excellence" in the category of condominium management companies (with less than 100 units
in the Tokyo metropolitan area) in the category of repair services, as a company that received
high evaluation for its daily repair proposals and its convincing long-term repair plans and costestimates. The company received the "Award of Excellence" in the category of repair handlingin the category of condominium management companies (in the Tokyo metropolitan area, withfewer than 100 units).
* SUUMO AWARD 2022:
Ranking based on satisfaction with condominium developers, condominium sales companies and managementcompanies from various perspectives, including quality, price and initiatives, made through a survey of people whopurchased new condominiums in the Tokyo metropolitan area (Tokyo, Kanagawa, Saitama, Chiba, and Ibaraki
prefectures).

72

Safety Management

Pursuit of Safety and Security
Thorough Process Inspections
To provide housing where people can live for a long time with peace of mind, the
MIRARTH HOLDINGS Group conducts stringent checks at the construction stage.
We put great effort into ensuring thorough quality management, with our staff
regularly visiting construction sites to inspect building structures and conduct
checks within the construction process of hidden areas, foundations, and finishing.

(Image)Obtaining Housing Performance Evaluation Reports
Takara Leben obtains housing performance evaluation reports from third parties designated by the Minister of Land,
Infrastructure, Transport, and Tourism to provide customers with greater peace of mind regarding their residences. To obtainthese reports, we acquire performance evaluations at each stage of design on topics including earthquake- and fire-resistance,
degradation resistance, energy consumption, and ease of maintenance. Five or more on-site inspections are carried out during
construction, and a rigorous performance evaluation must be passed at the time of completion.

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

Acquisition of housing
performance evaluation report

Issuing of housing construction
performance evaluation report

Inspection
completion certificate(5) Upon completion of
construction work

(4) Upon completion ofroofing work

(3) Upon completion ofwork performed immediately
before installation of interior
foundations(2) Upon completion of
second floor rebar work

Five or more on-site inspections are performed.
(The number of inspections varies
depending on the number of floors.)(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

Application diagram
screening

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

Issuing of housing design
performance evaluation report

Application for housing design
performance evaluation

Designated housing performance
evaluation organization

Creation ofdesignevaluation
application

Structural Stability

Degradation Reduction

Maintenance, Management,
and Renovation

Thermal Environment /Energy Consumption

Evaluation of the building’s resistanceto earthquakes, wind, snow
accumulation on the roof, etc.

Evaluation of measures used to
improve durability, maintaining initialstrength for as long as possible.

Evaluation of the ease with which
maintenance can be performed forplumbing, gas pipes, hot water 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 ofbuilding structure collapse, etc.)
Other (prevention of building
structure collapse or damage in theevent of an earthquake)
Subsoil or pile load tolerance andinstallation method
Foundation structure method andform, 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)

73

Insulation performance grade
Primary energy consumption gradeEarthquake- and Fire-Resistant Structures
Earthquake-resistant construction
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 buildingswaying.
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 highdurability 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 astrong foundation using a high-earthquake-resistance and high-durability construction method.

Exceptional Fire-Resistant Structures and Soundproofing Performance
We use highly disaster-resistant materials in the construction of condominiums. Standards for fire resistance and soundinsulation performance are set by law, and the concrete thickness of the unit boundary walls (walls separating dwelling units
from each other), for which fire resistance and sound insulation performance are strongly required, is secured at approximately
180mm. In addition, fire and sound insulation measures are adopted for the piping in the pipe space facing the living room.

Selection of optimal structure and equipment
Not only the interior design, such as floors, doors, and plumbing, but also the interior structure of the building, such as ceilingsand piping sections in pipe spaces, is customized for each property to suit the land and the customers who live there,combining the most suitable structure and equipment.

Optimal equipment for each property

Specification
ExamplesConcrete slab
Double ceiling

Supportmaterial

Plasterboard
Drain pipeSoundproofing
sheetInterior
space
Particle board
Flooring
Flooring
material

Water supply anddrainage pipes

Double floor
Concrete slab
Plasterboard

Plasterboard

Piping within pipe spaces

Double floor & double ceiling(Conceptual diagram)

74

Accident Prevention Measures
The MIRARTH HOLDINGS Group is working to prevent occupational accidents at workplaces and construction sites.

Health and Safety Patrols
Leben Home Build, which is responsible for condominium construction and other work, is working to achieve safer construction
sites through safety and health patrols at least once a month. We check the implementation status of safety and healthmanagement, such as monthly and daily inspections and the assignment of qualified personnel, as well as raise safety
awareness through safety instructions and other measures.
In addition, once a quarter, a joint special patrol is conducted by top management and partner companies. In July 2022, in
conjunction with National Safety Week*, we visited four construction sites with representatives from eight partner companies tocheck actual construction sites and work conditions from the perspectives of daily management, on-site maintenance, accident
prevention, fall prevention, and machine accident prevention, and to encourage the implementation of measures.
* National Safety Week
An initiative of the Ministry of Health, Labor, and Welfare and the Japan Industrial Safety and Health Association to promote voluntary industrial accident prevention
activities, raise safety awareness, and establish safety activities in the industrial sector.

Safety Conferences
The Group holds safety conventions to further promote safety and health management and to increase the knowledge andawareness of safety and health among construction site workers.
Leben Home Build held a safety convention in July 2022, bringing together all directors, employees, and subcontractors inconjunction with National Safety Week. Furthermore, during National Safety Week, the company's offices and worksites work
closely together to strengthen safety and health management activities, including measures to prevent the three major types ofaccidents (crashes and falls, construction machinery and crane accidents, and collapse and collapse accidents).
In addition, Leben Community held a safety convention in October 2022 with the participation of 42 partner companies andpresented awards to five partner companies that were particularly outstanding in their daily safety measures and six employees
who worked with a high level of safety awareness.

Leben Home Build Safety Convention

Leben Community Safety Convention75

Safety Instruction for Subcontractors
Leben Community, which handles repair work on condominiums, works with partner contractors to carry out work safely andwith minimal impact on residents’ lives. When a large-scale repair project is approved at a condominium management
association meeting, the company’s repair planning staff, construction supervisors, and members of a managers’ committee
consisting of key construction workers gather at the site to check and review in detail the scaffolding, placement of temporary
facilities (offices, restrooms, security doors, etc.), and safety measures before work begins.

76Disaster Response

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

Safety Management
Remote monitoring systems promptly alert a security company via telephone lines in the event of any abnormality incondominium facilities. If necessary, security personnel respond immediately. Through its inspections and staff training, Leben
Community has established a system for responding appropriately in the event of an elevator, firefighting equipment, or otheremergency.

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, andsincerity and based on the expertise and skills we have developed through our equipment and repair experience.

77

Crisis Responses in Large Buildings
Leben Community implements Covid-19 infection prevention measures at large condominiums in each region based on its many
years of experience.
In fiscal year 2020, at the Park City Mizonokuchi condominium in Kawasaki City, Kanagawa Prefecture, which has about 1,100
households, Leben Community cooperated with the management association, community association, and a disaster control
center to implement systematic crisis response measures to conduct comprehensive infection prevention measures and prepare
for the occurrence of infections. Specific measures included morning and afternoon disinfection of items that are frequently
touched by residents, such as elevator buttons, handrails, intercom panels, and doorknobs, and other rigorous infection
countermeasures. Leben Community also urged residents to take preventive measures within their individual residences (suchas ensuring adequate ventilation and limiting going out for non-essential purposes) and to exercise caution while on thecondominium grounds (such as wearing a mask, refraining from speaking while in elevators, and adopting trash disposal
methods that reduce the risk of infection).
Leben Community encouraged residents to take appropriate action by providing easy access to information needed if theysuspected they were infected or became infected. It also produced the Infection Prevention News, a newsletter compilinginformation on these infection prevention measures, and distributed it to residents. In addition to infection countermeasures, thenewsletter contained contact information for public agencies, information about on-site specialized infectious disease clinics
and nearby restaurants that provide takeout and delivery services, warnings about tax refund fraud, and more, providing wideranging support for life during the Covid-19 pandemic.

78

Disaster Response
Disaster Preparedness Drills
Leben Community supports the safety and security of the community of residents in condominiums. It is not easy for residents,
including the elderly and children, to properly use fire-fighting equipment in their condominiums or to evacuate quickly throughthe correct evacuation route in case of emergency. The company conducts disaster drills in cooperation with the management
association as part of its safety measures.
In the disaster drill held in November 2022, the number of participants was limited from the viewpoint of preventing newcoronavirus infection. The drill included evacuation drills along actual evacuation routes, practical guidance by an AED rental
company and an automatic fire alarm system maintenance and inspection company, and fire extinguishing drills using fire
extinguishers by all participants.

Hands-on instruction on AED equipment

Firefighting training using fire extinguishers

HOTEL THE LEBEN OSAKA "Disaster Prevention Experience Mission Plan"
Since the Great Hanshin-Awaji Earthquake, the Great East Japan Earthquake, and other major disasters, awareness of disasterprevention has continued to increase each time. At HOTEL THE LEBEN OSAKA (opening in March 2022), the Group's first hotel
brand, Takara Leben is developing the "Disaster Prevention Experience Mission Plan" to provide an opportunity for families tolearn about and discuss disaster prevention together. The plan provides guests with a simulated experience of a disaster byhaving them spend a day in an inconvenient guest room with no lighting, use disaster prevention goods, and eat preserved
food. In the guest rooms, a booklet entitled "Disaster Prevention Mission 7: Let's Make Disaster Prevention Rules for Our
Home" is available, and by completing the seven missions, such as "Decide on an evacuation site to meet" and "Think about
disaster prevention goods for the family,” their own disaster prevention rule book will be completed, which can be taken homeand put to use. We plan to actively contribute to local disaster prevention and disaster education for children by distributing thebooklet and inviting students to participate in the Disaster Prevention Experience Mission Plan at public institutions and schools
in the neighborhood.

HOTEL THE LEBEN OSAKA

79

Electric Power Supply in Times of Disaster
Conclusion of an Agreement on the Supply of Electric Power in the
Event of a Disaster
Leben Clean Energy is developing renewable energy power sources, mainly small- and medium-scale solar power plants, and isalso working with each community to ensure safety in the event of a disaster and strengthen disaster preparedness. In order tofurther strengthen cooperation with the local community and further enhance our disaster response capabilities, we concluded
agreements with Mori-machi, Kayabe-gun, Hokkaido in October 2021 and with Atsugishi-cho, Atsugishi-gun, Hokkaido in April
2022 regarding the supply of electricity in the event of a disaster.
By further improving our disaster response capabilities, we will continue our efforts to quickly stabilize people's lives in theevent of a disaster, as well as to ensure a stable supply of electric power and improve resilience.

80

Contribution to Disaster Areas
Dispatch of Registered Non-Life Insurance Appraisers to DisasterAreas
In cooperation with major insurance companies, Leben Community dispatched two appraisers from the Company to conduct a
total of 289 damage appraisals over a five-month period from April to August 2022 in the Fukushima and Miyagi prefectureareas damaged by the 2022 Fukushima Prefecture earthquake.
No other condominium management company has an appraiser on staff to perform damage appraisal and damage restoration
work at the request of insurance companies, making this the first such initiative in the industry. A letter of appreciation waspresented by a major insurance company on March 6, 2023, in recognition of the company's significant contribution to theprompt payment of insurance claims to disaster victims.
The company will continue to expand its business domain beyond condominium management by providing damage appraisaland damage restoration work at the request of insurance companies.

Number of Appraisals Conducted
April 2022

79 appraisals conducted

May 2022

52 appraisals conducted

June 2022

56 appraisals conducted

July 2022

56 appraisals conducted

August 2022

46 appraisals conductedTotal

289 appraisals conductedAppraisal Implementation Statistics (2022)

81Diverse Lifestyles

Proposals for Diverse Lifestyle Needs
Idea Competition "Personal Innovation Challenge Pic"
Personal Innovation Challenge Pic is a new business proposal system aimed at fostering entrepreneurship and building a
corporate structure that creates new common sense under the slogan "A New Common Sense Begins." The number of entries
for FY2022 was more than 350. Ideas that passed the preliminary screening improved their ideas while participating in
mentoring and various training programs, and then went on to the second and final round of presentations in front of the board
members. If the profitability and marketability of the idea are recognized and commercialization is decided, the originator canchoose to "go independent as a business company," "be appointed as the head of a new department," or "transfer the idea to acompany."82

Urban-type Compact Condominiums "NEBEL"MIRARTH HOLDINGS Group proposes services that meet diversifying lifestyle needs.
In recent years, the demand for housing has changed with the increase in the number of dual-earner households and singleperson households, and there is a growing need for properties that are more convenient, such as those in the city center orclose to train stations, rather than larger in size. In response to these lifestyle changes, Takara Leben offers the "NEBEL" seriesof compact urban condominiums for singles and DINKs (double income no kids).
This series is an urban compact condominium brand that captures the diversified lifestyles of people by maximizing the
manufacturing know-how we have cultivated in our new condominium business to date. The quality of design, specifications,and facilities of the family condominiums that we currently supply is retained in these compact condominiums, and the "NEBEL"
series is being developed in various locations in Tokyo, Saitama, Kanagawa, Sendai, and other areas. We will continue toprovide properties that meet the needs of society, such as modern lifestyles, to further support our customers' fulfilling
lifestyles.

NEBEL SOKA ART PHILOSNEBEL AKABANENEBEL SENDAI Plaisir

NEBEL YOKOHAMA

83

Adapting to New Lifestyles
Non-Touch Keys and Non-Contact Elevators
At LEBEN YOKOHAMA YAMATE ONE WARD COURT (Kanagawa Prefecture), a property completed in February 2023 tocommemorate the 50th anniversary of the founding of the Takara Leben Group*, facilities that take into consideration thelifestyle of the New Normal, provide security and safety for residents. When residents enter the building from the outside, they
can unlock the auto-locking door without touching it by simply passing the dimple key (with built-in IC chip) of their unit
entrance over the sensor at the common entrance. Elevators are also equipped with a function that allows users to operate floor
buttons simply by holding their hands over them.
* Developed to commemorate the 50th anniversary of the company's founding (September 21, 2022), the property is positioned to "contribute to the infrastructure of thelocal community with a location that could become a new landmark, such as a historical or historic site or a rare location."

Renovation in Accordance with the Times and the Region
Leben Zestock offers quality pre-owned condominiums that meet the needs of diversifying lifestyles. We buy usedcondominiums that are being leased, and after the tenants move out, we renovate them to specifications that match the times
and the local area, transforming them into attractive condominiums. We have succeeded the "LEBEN" brand of newly built
condominiums, which combine high design quality and comfort of living, and have achieved an unprecedented level of renewal
condominiums.

84

Choice of Leaseback Plans
Leben Zestock offers a "leaseback" service that allows people to continue living in their current home after the sale. We alsooffer three options to meet diversifying needs: "Omakase Leaseback," which disposes of unneeded furniture and bulky trash;"Mimamori Leaseback," which periodically checks the safety of elderly persons aged 65 or older; and "Ultra Short-term
Leaseback," which allows tenants to live in the property while only paying running costs such as property management fees andrepair reserve fund.

85

Globalization

Overseas Development
MIRARTH HOLDINGS Group will continue to contribute to the creation of a better living environment overseas, focusing on the
new condominium business, without limiting its business development to Vietnam and Thailand.

THE MINATO RESIDENCE Project
Takara Leben is committed to contributing to regional revitalization and urban development through housing not only in Japanbut also overseas. THE MINATO RESIDENCE is the first large-scale condominium development project (site area: 12,760㎡, 26
floors above ground, 924 units) in Haiphong, Vietnam's third largest city by population, to be developed, constructed andmanaged entirely by a Japanese company. In December 2021, the first building, the south wing, was completed as acondominium complex with commercial facilities in Water Front City, a new urban area that is expected to see further economic
growth and commercial development in the future. In March 2023, we commenced sales of the second building, the North
Building.

THE MINATO RESIDENCE

86

Renovation Business in Vietnam
In December 2021, Takara Leben and Leben Community partnered with Halato Joint Stock Company (Halato), a company withextensive experience in Ho Chi Minh City, Vietnam, to participate in renovation projects. Although Ho Chi Minh City has seen
many large-scale mixed-use developments and the central area has been locally modernized, aging buildings are scatteredthroughout the city, including those one step away from the main streets and outside the central area, causing a mismatch inreal estate uses and hindering the development of the area as a whole. By combining the real estate development technologythat our Group has cultivated in Japan with Halato’s expertise and experience, we will contribute to urban development in Ho
Chi Minh City by renovating aging buildings into more valuable real estate.

"ATMOZ MINBURI" Condominium Project
From January 2022, Takara Leben, together with ASSETWISE PUBLIC COMPANY LIMITED (ASSETWISE), has participated inthe "Atmoz Flow Minburi" condominium project, the third such project in Bangkok, Thailand. ASSETWISE is a developer withnumerous development projects in the area, offering high quality and sophisticated design products.
This project is a newly built condominium for sale in Mimburi District, located approximately 20 km northeast of central Bangkok(site area: 9,652 ㎡, total 739 units in three 8-story reinforced concrete buildings), and is the third new condominium
development project in Bangkok, Thailand, following "Atmoz Bangna" and "Kave Seed Kaset", which are joint projects withASSETWISE.
The area where this project is located is convenient for transportation, being about a 4-minute walk from the Mimburi Market
Station on the new Pink Line, which is scheduled to open in 2023, and is surrounded by several industrial parks, hospitals,
shopping malls, and other facilities.
In addition, ASSETWISE is currently developing "Wise Park," a mixed-use commercial and residential development project thataims to create a community where all generations, young and old, can build a comfortable lifestyle based on the concepts of"health promotion" and "sustainability."In the future, "Wise Park" will be developed with the "Atmoz" series of this project, new condominiums for sale in four phases,
and a new shopping mall scheduled for completion in December 2023.

ATMOZ BANGNA

87

Aging Society

For Senior Health"My Reha" Day Care Service Specializing in Rehabilitation
My Reha, operated by Leben Community, is a daycare service specializing in rehabilitation, helping support seniors’
independence through easy and fun physical training. This service has been offered in Saitama Prefecture and Chiba
Prefecture since 2011, through facilities rooted in the community, to those certified as requiring support or nursing care. As
Japan’s society continues to age and the number of people worried about their health in their senior years grows, My Reha
focuses on what happiness means for its users and what My Reha can do for them. It uses unique programs, including Redcord
exercises*, to help extend users’ healthy lifespans. In October 2019, the fifth My Reha location, My Reha Misato Rehabilitation
Center, was opened in Saitama Prefecture’s Misato City. At present, we operate five rehabilitation centres in the prefectures of
Saitama and Chiba.
* Redcord exercises are training exercises developed in Norway, a rehabilitation pioneer, that uses a red cord suspended from the ceiling.

88City Development

Community Revitalization
Urban Redevelopment of Machikatamachi and Toriyokocho District
1, Numazu City, Shizuoka Prefecture
On November 16, Takara Leben, together with Fujita, formed a joint venture with the Urban Redevelopment Association of
Machikatamachi and Toriyokocho District 1, Numazu City, Shizuoka Prefecture, and signed a basic agreement with theassociation as a specified business agent.
This project aims to redevelop a part of the arcade of famous stores, which was established in 1954 as Japan's first shopping
arcade with fireproof and communal architectural style, and to redevelop the central city area through the redevelopment.
Demolition and site preparation work is scheduled to begin in 2024, with completion of 100 residential units with 10 floors above
ground and one below by August 2027, as well as retail space.
The MIRARTH HOLDINGS Group is committed to solving various urban issues, improving functionality and livability, realizing
safe, secure, and attractive urban development, and working in partnership with land and building owners, rights holders, andthe government, utilizing various urban development methods, etc., in a three-party approach to urban renewal.

89Redevelopment Plan for Former Department Store Site
Takara Leben has acquired land centered on the Okajima Department Store, which has been operating in the downtown area ofKofu City, Yamanashi Prefecture, since 1843, and will develop a complex consisting of tower residences, commercial facilities
and a self-propelled parking lot, the third development in the city.
The facility is planned to include a tower residence, the largest of its kind in the prefecture, as well as next-generationcommercial facilities that inherit the DNA of Okajima, a plaza capable of hosting events, and a self-propelled parking lot. The
project aims to increase the number of downtown area residents, including those moving from the city center, and to attract
visitors to the central city area, and to serve as a starting point for the circulation of residents and visitors, as well as to develop
the central city area in a way that leads to the revitalization of its liveliness.

Aqua Ignis Awaji Island
Takara Leben and Takara Asset Management are participating in the Aqua Ignis Awaji Island (Awaji City, Hyogo Prefecture)project, a natural hot spring resort complex. This facility is the first national park Park-PFI* project approved in Japan.
We believe that this project will contribute to regional revitalization and increase the value of the region as a new business
scheme in cooperation with not only local governments but also other industries. Takara Leben and Takara Asset Management
decided to invest in the project because it is located at the northern end of Awaji Island, with excellent access from the Kansai
region; it is a destination on Awaji Island, which had been a transit point; and it has the same potential as Aqua Ignis and
VISON in Mie Prefecture, where Aqua Ignis already operates.
We will continue to work hand in hand with national parks, as we did in this project, to find better ways of public-private
partnerships, as we strive to develop the tourism industry on Awaji Island and revitalize the region.
*Park-PFI: Park-Private Finance Initiative. A new method of developing and managing urban parks that utilizes the funds and expertise of private companies throughpublic solicitation.

90

Community-Based Shopping Center "tonarie"
MIRARTH HOLDINGS has jointly developed the community-based shopping center "tonarie Hoshida" (Katano City, Osaka
Prefecture) with ES-CON JAPAN.
The neighborhood is within the area of the Hoshida Station North Land Readjustment Project (total area: approx. 26.4 ha),where new developments such as condominiums, detached houses, medical facilities, and parks are underway, and further
development is expected in the future. The said commercial facility is conveniently located in front of Hoshida station in thisarea. As a community-based commercial facility with tenants such as supermarkets, drugstores, 100 yen stores, and a medicalmall, we aim to contribute to the development of the area and be loved by the community.
We will contribute to community building and local revitalization by leveraging the commercial facility development andmanagement know-how that we and the ES-CON JAPAN Group have cultivated over the years.

Minamikoiwa 6-chome District Type 1 Urban Redevelopment Project
Several large-scale redevelopment projects are currently underway in the area surrounding Koiwa Station on the JR Sobu Line,
which has been in operation for more than 100 years.
Koiwa Station Area Management Organization (KOITTO*) was established as an organization for landowners, developers,
residents, users, and others to work together to enliven the new Koiwa area to be reborn through redevelopment. MIRARTHHOLDINGS, which is participating in the Minami Koiwa 6-chome Area Type 1 Urban Area Redevelopment Project, is a special
supporting member of KOITTO.
KOITTO is engaged in (1) promotion of projects and events that promote regional cooperation and collaboration, (2) operation
and utilization of the KOITTO TERRACE area management base, (3) area branding activities in the Koiwa Station area, and (4)consideration of public space utilization in line with the progress of redevelopment.
The area management base KOITTO TERRACE has been established in FIRSTA I in Block I of the redevelopment project,which was completed prior to the project, to promote area management around Koiwa Station.
*KOITTO: A general incorporated association established in November 2020 to engage in area management in the Koiwa Station area; designated as an Urban
Revitalization Corporation* on March 29, 2022.
* Urban Revitalization Corporation: Designated by the municipality under the Act on Special Measures for Urban Revitalization as a core organization for community
development in the land area where public utility facilities necessary for urban revitalization should be intensively developed, etc.

Area management base KOITTO TERRACE

Marche at the FIRSTA II plaza space91

Participation in the THREE Excellent Building Development Projectin the Shinmachi 1-Chome District of Aomori City
Takara Leben has participated in THREE, a project for the development of superior buildings in the Shinmachi 1-chome districtof Aomori City (former site of the Aomori head office of the Nakasan Department Store) promoted by Shinmachi Machidukuri
Corporation and Mik Corporation.
Opened in April 2023, THREE is a 14-story facility that integrates "clothing and medicine," "food," and "housing," and is a tower
residence consisting of commercial facilities on the first through fourth floors and a total of 85 residential units on the fifth floor
and above. The company contributes to the revitalization of the central city area of Aomori City by acquiring the reserved
residential floors of THREE and taking on the residential subdivision business. The lower level has a clinic mall and restaurant
area, and the first floor of the parking building (Annex building), which is connected by a corridor, houses a grocery
supermarket (Marche), making it possible to live with less burden of snow even in an area with heavy snowfall. This is a newproposal for the revitalization of department stores in regional cities.

Excellent Building Development Project of East Area in Front of
Takaoka Station
Takaoka City, the second largest city in Toyama Prefecture, is actively engaged in redevelopment projects around Takaoka
Station with the aim of creating a vibrant and bustling city.
In 2015, Takara Leben participated in an integrated commercial, public utility, and residential development project in the"Suehiro West Area Living and Nigiwai Revitalization Project" in the city center and developed the "LEBEN TAKAOKA MID RISE
TOWER" (16 stories above ground), a high-rise residence that will become a new symbol of the city and bring people back tolive in the center.
In addition, the "Excellent Building Development Project* of East Area in Front of Takaoka Station," which is currently attracting
much anticipation and attention among citizens, aims to create a lively atmosphere in front of the station and high-quality towncenter living. As the executor of this project, Takara Leben is working together with related rights holders to promote it.
* Excellent Building Development Project: A program of the Ministry of Land, Infrastructure, Transport, and Tourism to improve the environment of urban areas andsupply good urban housing, etc. with the aim of developing quality buildings, etc. that contribute to the joint use and upgrading of land use, etc.

92Community Revitalization Initiatives
The Group promotes regional development through its business and is actively involved in community revitalization andcommunity development activities in the areas where it supplies properties.

Takaoka Craft Market Street 2022
Since 2021, Takara Leben has participated in the Craft Market Street project, which promotes the attractions of Takaoka City,
Toyama Prefecture, a city of traditional crafts and manufacturing that has continued for more than 400 years, with the keywordof "craftsmanship." In September 2022, Model No Komono & Marche was held at the ANNEX building of LEBEN TAKAOKA MID
RISE TOWER.
The Model-No-Komono program is an initiative to support sustainable living by creating a system to reuse (sell at special
prices) interior goods and other items used in the company's model rooms.
In addition to the exhibition and sale of local traditional crafts, the popular Yamagata specialty "imoni" (stewed potatoes) andorganic agricultural products were also sold at the Marche.On the day of the event, the company's employees also participatedas staff members, making it a very successful three-day event.

Japan Sea Takaoka Nabe Festival
Takara Leben has participated since 2019 in the Japan Sea Takaoka Nabe Festival, a big event representing Takaoka in winter,
where people enjoy nabe dishes full of fresh ingredients. In collaboration with the landowners of LEBEN TAKAOKA MID RISE
TOWER, the company co-hosted the 37th Japan Sea Takaoka Nabe Festival and Suehiro Marche in January 2023, and 14
employees from the company participated in the event as event staff. Imoni, a Yamagata specialty, was a big hit, selling over
900 servings, much to the delight of the local community. We hope to steadily link this initiative to support the reconstruction of
Takaoka City's downtown area.

93Premium Markets
As part of the Leben Craft project, Takara Leben offers a "Premium Market" where residents of Takara Leben condominiums andthe surrounding area can pick up a variety of local delicacies and experience the high quality of the products.
The project is intended to play a part in regional development and to share the excitement with many people through the special
things we have encountered in the development of condominiums in various parts of Japan.
In FY2022, the Takaoka Craft Market Street and the 37th Japan Sea Takaoka Nabe Festival were held under the titles of"Marche" and "Suehiro Marche," respectively, to promote interaction between the producers of agricultural products and crafts
and the visitors to the Marche.

Akabane Noryo Festa 2022
Takara Leben has participated in the Akabane Noryo Festa since 2018 to contribute to the community development of Akabane.
In 2022, the first time the festival was held in three years, 17 employees from the company participated as staff members,
selling giant sausages and drinks in addition to the customary ice cream.
The venue was crowded mainly with local families, and Bon Odori dance and Hula dance were also performed. The company's
food stall products were all sold out before the event's closing time, making it a very successful two-day event.
We will continue to contribute to the revitalization of the community by interacting with local residents as part of our step-bystep participation in community development in Akabane.

94

Social Contribution

Donation to General Incorporated Association, Power for Tomorrow
Takara Asset Management makes donations to the General Incorporated Association, Power for Tomorrow.
The organization supports adults who take on social challenges in order to realize a society in which all children can grow up
with hope. The "Dokodemo Kodomo Shokudo" (Children's Diner) that the organization operates is a system that allows children
in need of food and supervision to eat at local restaurants anytime, free of charge, and with peace of mind.
The organization not only provides meals to children, but also creates opportunities for children to connect with the community
through cooperation between local restaurants and support groups working for children in the community.

Donation to the "Chinju-no Mori Project"
Takara Leben Tohoku (currently Takara Leben) supports and donates to the Chinju-no Mori project.
Chinju-no mori (Shrine Forest) has existed around shrines since ancient times, protecting the local community and the lives of
its people. This project aims to create as many forests modeled after such Chinju-no mori as possible to support Japan, acountry prone to frequent disasters.
In fact, deeply rooted trees mitigated the force of the tsunami in the Great East Japan Earthquake, and disaster prevention
forests played an important role in stopping large fires in the Great Kanto and Great Hanshin Earthquakes.

Photo courtesy of Chinju no Mori project95

Donation to Meals on Wheels Logistics System
Takara Leben Tohoku (currently Takara Leben) donates to Meals on Wheels Logistics System as part of its efforts to help
achieve the SDGs (Sustainable Development Goals) and revitalize the Tohoku area. This activity promoted by the National Food
Support Activities Cooperative Association aims to create an environment where all people, including children and the elderly,
who gather at children's cafeterias and other places across the country can have access to food. We have established a system
to deliver food donated by various organizations and local governments to approximately 2,000 locations for places to stay andchild support groups via 50 logistics centers (locations/warehouses with food freezing/refrigeration facilities and matching
coordination of donated food) and 99 hub locations (branches where activity groups pick up food) across Japan.

Donation to Good Neighbors Japan
Takara Asset Management supports and donates to Good Neighbors Japan, which aims to address ESG issues in a concreteand proactive manner in its daily business operations.
Good Neighbors Japan is a non-profit organization operating in Japan and abroad with a vision of "a society where children are
full of smiles and everyone can live humanely" and a mission of "working with partners in Japan and abroad to eliminate thecauses of poverty and discrimination and the threats posed by disasters and conflict." In Japan, as a project to address childpoverty, we operate the "Good Gohan" program, which regularly distributes food to single-parent households.

Donation to NPO KATARIBA
Takara Asset Management donates to Katariba, an authorized NPO certified by the Tokyo Metropolitan Government. The NPO
provides educational support to children in Japan who have been deprived of opportunities to study due to the disaster orpoverty. Donations are used to support activities such as creating a place for children in free after-school classes, learning
support, and meal support.

96

TABLE FOR TWO
We continuously donate to TABLE FOR TWO International, a non-profit organization that aims to eliminate international foodinequality issues. Since November 2018, we have been donating 50 yen per bag of vegetables harvested at Raven Village, afarm operated as part of our diversity promotion program where people with disabilities work, to be distributed to those whowish to receive them within the company. 28,844 yen was donated for activities in FY2022.

Joining and Donation to the Japan Children Support Association
Takara Asset Management has joined and donated to the Japan Children Support Association, a non-profit organization. With
the mission of permanently resolving the cycle of child poverty and violence, we support the association which works to provide
foster care and childcare support so that children can live in peace, an activity that is also linked to the Sustainable
Development Goals (SDGs).

97

Corporate Version of Hometown Tax
MIRARTH HOLDINGS Group promotes social contribution activities by donating to local governments through the corporate
version of hometown tax payment, thereby contributing to regional development and solving local issues.

Donation to Katsuura Undersea Park Restoration Plan Project in Katsuura City, Chiba Prefecture
MIRARTH HOLDINGS made a donation to the Katsuura Undersea Park Restoration Plan Project, a grant project for thedevelopment of a regional development center in Katsuura City, Chiba Prefecture.
The Leben Solar Chiba-Katsuura Power Plant, which has a power generation capacity of approximately 30 MW, the largest of
our company's plants, was completed in March 2021, and since we lease most of the land for the plant from the city of
Katsuura, we agreed to this plan to further contribute to regional revitalization.
This plan aims to create and develop a new year-round, stay-and-go type of tourism and exchange center by improving andrevitalizing the facilities around the Katsuura Undersea Park.

Donation to Preparation Project for the World Aquatics Championships in Fukuoka by Fukuoka
City, Fukuoka PrefectureWith the aim of contributing to the revitalization of Fukuoka City, Takara Leben made a donation to the Preparation Project for
the World Aquatics Championship s in Fukuoka, etc. through the corporate version of hometown tax payment.
The World Aquatics Championships held in 2023 is the second most important event in the swimming world after the Olympic
Games, and will be held in Fukuoka City for the first time in 22 years. Under the concept of "WATER MEETS THE FUTURE,"
which expresses the hope that all participants in the Championships would meet the future, the event will be efficiently
managed by taking advantage of the compact urban structure that is characteristic of Fukuoka City.

Donation to Morioka City, Iwate Prefecture, for Creation of Future Society through Digitalization
Project
Takara Leben donated to Morioka City, Iwate Prefecture's Creation of Future Society through Digitalization Project.
The company has four new condominium projects for sale in Morioka City, and has agreed to participate in this project in order
to contribute to the further upgrading of Morioka City's core urban functions.
This project will promote public-private partnerships to improve the lives of citizens through digitalization by identifying the ideal
ways and issues to utilize digital technology in the local economy and society with a view to the future of Morioka City, and bydefining priority issues to be addressed.

98

Donation to Fukui City, Fukui Prefecture, for Step-up Project for Creation and Expansion of
Relevant Populations and Immigration and Settling in Fukui City
Takara Leben donated to Fukui City's "Step-up Project for Creation and Expansion of Relevant Populations and Immigration andSettling in Fukui City" in Fukui Prefecture. The company agreed to make the donation because it has supplied three newcondominiums for sale in Fukui City to date, and because the "Creating Lifestyles with Value" and "Forming Communities,"
which are key sustainability themes of its Group, are initiatives shared by the city.
This project aims to create and expand the relevant population and promote immigration by providing opportunities for young,creative, community-oriented human resources from within and outside of the prefecture to learn and deepen exchanges withlocal partner companies, while creating commercialization ideas and engaging in activities to solve local issues.

KNB Grand Bazaar "Umbrella Sky"
Takara Leben sponsored the KNB Grand Bazaar "Umbrella Sky" with the aim of revitalizing the Toyama area, which isundergoing redevelopment. KNB Grand Bazaar is an annual event held in July every year by the Toyama area TV station,
Kitanihon Broadcasting Corporation (KNB), with themes including SDGs. In FY2022, the first time the event was held in three
years due to the new COVID-19, Umbrella Skies were placed to celebrate the 50th anniversary of Takara Leben's founding, adecoration with colorful umbrellas in the air. In the SDGs Corner, we exhibited panels showing our SDG initiatives and promoted
our efforts to focus on regional reconstruction and the SDGs.

99

Tohoku-Miyagi Online Revive Marathon 2022
The Tohoku-Miyagi Revive Marathon, which Takara Leben has sponsored since FY2018, is one of the largest marathons in the
Tohoku region, attracting runners with a desire to help rebuild the areas affected by the Great East Japan Earthquake. Since
FY2020, the marathon has been held as the "Tohoku-Miyagi Online Revive Marathon," which can be held even when people
cannot gather due to the spread of the new COVID-19. The runners download a GPS training application to their smartphones
and choose their favorite course from Iwate, Miyagi, or Fukushima to complete the target distance within the event period. (Only
Miyagi for the 2022 convention) For each runner who completes the course within the time frame, 100 yen is donated to areconstruction support organization. In 2022, 15 employees from our group, including 7 new member, participated as runners.

Community Revitalization through Festivals
Takara Leben sponsored the Hakata Dontaku Port Festival (Fukuoka Prefecture) and the Tohoku Kizuna Festival (Akita
Prefecture) with the aim of contributing to regional revitalization and the preservation of Japanese culture. Hakata Dontaku is a
traditional event that has been held for more than 840 years, originating from Matsubayashi, a traditional festival that is said tohave started in 1179. The Tohoku Kizuna Festival is a festival that brings together six festivals in the Tohoku region to not only
attract visitors to the festival, but also to pray for the repose of the souls of the dead and the recovery from the Great East
Japan Earthquake.
Through sponsorship of these festivals, we will foster a festival culture and contribute to reconstruction assistance and local
economic revitalization.

Kodomo Shokudo (Children’s cafeteria)
Leben Home Build has sponsored Children's cafeteria run by Menya Noroshi (Akihabara, Tokyo), operated by OCEAN
Corporation, since June 2022. Menya Noroshi operates the Children's Cafeteria, which procures foodstuffs with sponsorshipfrom companies, organizations, and individuals, and provides all meals free of charge to children up to the sixth grade at any
time.
Through sponsorship of the Children's Cafeteria, Leben Home Build will support the realization of a society where children canlive in peace by reducing child poverty issues and children who eat alone.

100

Yokohama Model Regional Contribution Company Certification
Leben Home Build (formerly Nikko Takara Corporation) has received the highest rating in the Yokohama-type Community
Contribution Company Certification System, which is a system under which the City of Yokohama, a government agency,
evaluates and certifies companies in Yokohama City, Kanagawa Prefecture, that are engaged in excellent community
contribution activities through their core business and other activities. The audit evaluates a company's regional characteristics
and management system from various perspectives, including "local utilization and orientation," "employment," "environment,""occupational health and safety," "consumer and customer relations," "compliance," and "information security."

Winner of Kids Design Award for "Yajirushi" Emergency Shelter
Guidance Signs
As a developer involved in urban development through the sale of new houses, Leben Home Build produces and installs"Yajirushi" signs to guide people to evacuation centers, based on the idea that "in residential areas with few landmarks, signs
are needed to guide people, including small children, to evacuation centers that are easily understood by everyone." To help
educate children throughout the community about disaster preparedness, we have installed them at locations facing the street,such as inside garbage stations in its subdivisions. At the time of installation, we communicated the purpose and significance ofthe project to the residents of the surrounding area, and we have received support from many of them. In the future, we will
provide this service to other companies' subdivisions, governments, and organizations upon request, aiming to contribute todisaster prevention in the local community as a whole. Yajirushi received the Encouragement Award at the 2019 Kids DesignAwards for its high level of creativity in minimizing information and expressions that are easy for children to understand.

101

Cleanup Activities
As part of activities aimed at becoming a company that contributes to the development of local communities, each Group
company engages in cleanup activities. Through cleanup activities, we will fulfill our corporate social responsibility by keeping
the areas we are involved in hygienic and contributing to the healthy development of local communities. In addition to cleaning
up to protect the sanitary environment around condominiums supplied by Group companies, sites under construction, and solar
power plants, we are also actively involved in cleaning up the areas around our offices, which are the bases for our employees'
activities. We will also participate in regular beautification activities organized by local municipalities and neighborhood
associations, aiming to strengthen partnerships and cooperative relationships in the community.

Recognized by the Hanno City Park Beautification Activity
Organization for cleanup activities at a park near the
power plant (Takara Asset Management)

Roads around LS Hanno Misugidai Power Plant after
weeding activities(Leben Community)

Participation in community association-sponsored cleanup Participation in Petit Beautification Campaign organizedactivities at a power plant in Sugito-cho, Kita-Katsushika- by Matsuyama City (Takara Leben Matsuyama Branch)gun, Saitama Prefecture (Leben Clean Energy)102

SDGs Donation-type Private Placement Bonds
Leben Clean Energy raised funds by issuing SDGs Donation-type Private Placement Bonds with Ehime Bank as the underwriter.
A portion of the issuance fee was donated to the Ehime Prefectural Government through Ehime Bank, and a presentation
ceremony was held on October 26, 2022.
SDGs Donation-type Private Placement Bonds are issued by blue-chip companies that meet certain financial criteria, support
the objectives of the SDGs (Sustainable Development Goals) advocated by the United Nations, and wish to contribute to theachievement of the SDGs through donations and contributions. A portion of the issue fee (0.1% of the issue amount) for thisprivate placement bond is donated to organizations working on the SDGs.
Leben Clean Energy, which has been promoting renewable energy to contribute to the realization of a sustainable society under
its vision of "creating a carbon neutral world with renewable energy," has decided to raise funds through the issuance of SDGs
Donation-type Private Placement Bonds to express its desire to contribute to the achievement of the SDGs through its businessactivities. The funds obtained through this financing will be used to fund future projects that will lead to the achievement of the
SDGs.

Name

SDGs Donation-type Private Placement Bonds

Issue amount

150 million yen

Term

5 years

Use of funds

Equipment fundDonation to

Ehime Prefectural Government (Ehime Regional Environmental Conservation Fund)

Donation amount

150,000 yen

103Sponsorship

Sponsorship of Sports
KUWATA CUP 2023
Takara Leben sponsored "KUWATA CUP 2022→2023 - Bowling Tournament for Everyone," which singer Keisuke Kuwata held
under the slogan "Maintain Healthy Minds and Bodies" by launching "SKGs" = "Keisuke Kuwata's Sustainable Goals" inconjunction with SDGs.
Under the theme of "Bowling Tournament for Everyone," which anyone in Japan can participate in, the theme song was written
by Keisuke Kuwata & The Pin Boys, and the company sympathizes with the idea of realizing a sustainable society through thechemical reaction of sports and entertainment, and is sponsoring the event.
In addition, as a special project of the Company, which aims to contribute to urban development and regional revitalization, theTakara Leben Special SKGs Present Campaign was held at the same event. The campaign was a gift campaign exclusively forvisitors to the bowling alley, with prizes including an invitation to the finals and a set of assorted local specialty products.

104Kanagawa Ladies OpenTakara Leben sponsored the "Kanagawa Ladies Open 2022 - Charity Golf Tournament" with the aim of fostering culture andlocal reconstruction through sports sponsorship. This event has been held since 2017 with the aim of increasing the golfing
population and social interaction. This year, many players associated with Kanagawa Prefecture and senior professionals
participated in the event.

Nippon TV Tokyo Verdy Beleza
Since February 2021, Takara Leben has entered into a corporate partner agreement with Nippon TV Tokyo Verdy Beleza,
Japan's leading women's soccer team, to deliver the excitement and joy of sports to the public.
In November 2021, a crown game "Takara Leben Day" (against Omiya Ardija VENTUS) was held as an initiative to promote
sports and culture and women's activities. Before the game, elementary school students from Itabashi Ward, Tokyo, where thecompany was founded, were invited to "Takara Leben presents: Itabashi Ward Soccer Festa" to enjoy playing soccer on the
coveted pitch where professionals play.
In December 2022, "MIRARTH HOLDINGS DAY" featuring the Sanfrecce Hiroshima Regina game was held. On the day of theevent, Takara Leben's corporate mascot, "Le Be", and the team's mascot character, "REVERUN", made appearances, filling thevenue with excitement.

105

Revitalizing Local Communities through Sponsorship ofProfessional Sports Teams
As an official sponsor, Takara Leben Tohoku (currently Takara Leben) supports three professional sports teams that call Sendai
home: Vegalta Sendai in the J-League, the Tohoku Rakuten Golden Eagles, a professional baseball team, and the Sendai 89ers
in the B-League. Through sponsorship of each team, we are committed to promoting local sports and community revitalization,
and will continue to contribute to the happiness and development of local communities.

Cultural Sponsorship
SDGs QUEST Mirai Koshien Metropolitan Area Competition
MIRARTH HOLDINGS sponsored the "SDGs QUEST Mirai Koshien Metropolitan Area Competition," in which high school
students present their ideas and action plans for solving social issues in order to think and act for a sustainable future for theearth. In FY2022, the competition was held in 25 prefectures in 11 areas throughout Japan, with a total of 1,087 students in 242
teams from 53 schools in Tokyo and 3 prefectures (Tokyo, Chiba, Saitama, and Kanagawa) participating in the Metropolitan
Area competition.
Each team's presentation introduced a wide variety of ideas, ranging from actions related to global issues with an eye on the
SDGs goals to actions that leverage and expand industries unique to the region.
This competition is in line with our company's mission statement "Our Purpose: To design sustainable environments for ahappier future for both people and our planet." We believe that this event will contribute to the development of "leaders of asustainable society." Through sponsorship, we will further support and promote efforts to achieve the goals of the SDGs andcontribute to resolving issues in each region.

106

Ehime SDGs Koshien
Takara Leben and Leben Community were special sponsors of the "Ehime SDGs Koshien: High School Students' SDGs Practice
Project” (Sponsor: NPO Community Education Support Association), a project commemorating the 50th anniversary of thecompany's founding.
The project aims to raise awareness of the SDGs by helping high school students voluntarily acquire correct knowledge of theSDGs and independently put it into practice. We planned and developed this project with the cooperation of the organizer, NPO
Community Education Support Society, based on the belief that providing students, who will lead the world in the future, with aplace where they can learn on their own initiative for the future will lead to Takara Leben's corporate philosophy, "THINKHAPPINESS AND MAKE THE HAPPINESS."
Twelve teams (84 students) of high school students from Ehime Prefecture who are interested in the SDGs participated in theevent, and many unique presentations were made on their efforts to solve issues in their respective regions and on their plans
to examine SDG issues facing Japan. Team "Save Our Future" from Matsuyama Technical High School in Ehime Prefecture,
which created a disaster prevention card game for junior high school students and appealed for the improvement of local
disaster preparedness, won the Grand Prix for their "Local Disaster Prevention x SDGs: Creating a Community that is Resilient
to Disaster and Can Continue to Live There."107

Environment Photo Contest
MIRARTH HOLDINGS participated in the 29th Environmental Photo Contest 2023 (sponsored by President Inc. and supportedby the Ministry of the Environment and the Institute for Environmental Civilization), in which citizens took photos based on atheme set by companies and express their thoughts and commitment to the environment through joint efforts by companies andcitizens.
Based on our corporate commitment to solving social issues with the keyword "Happiness," we received many entries for the
Takara Leben Award, which was solicited under the theme of "Happiness in Water and Life." After a rigorous screening process,we awarded the Excellence Award to "Excursion," with its beautiful contrast between the straightly planted seedlings and theflowers spreading out on the bank.

Excellence Award "Excursion"

Honorable Mention: "Oh, Happiness?"

Honorable Mention: "'Wow! That feels
good!'"

108

grape Award
The "grape Award," sponsored by the Nippon Broadcasting System Group's web media "grape," is a contest that calls foressays that touch the heart. In FY2022, the sixth year of the contest, 643 submissions were received from a wide range of age
groups from 10 to 89 years old under the theme of "Heartwarming episodes that happened around you" or "Stories that touches
your heart." Takara Leben has been a special sponsor of the "grape Award" for five consecutive years, presenting the "Takara
Leben Award" to works that convey a sense of "happiness," befitting our corporate vision of "THINK HAPPINESS AND MAKE
THE HAPPINESS."

MOMAT Corporate Partnership
The National Museum of Modern Art, Tokyo, a central center for art in Japan, is promoting MOMAT Support Circle, a newmuseum support system in which companies and museums work as partners.
Takara Leben has been a partner company of the MOMAT Support Circle since July 2021 and continued to support the activitiesof the National Museum of Modern Art, Tokyo (including exhibition organization, research and surveys, collection and storage ofartworks, educational outreach activities, and museum management projects) in 2022. By supporting the activities of the
National Museum of Modern Art, Tokyo, which provides happiness to the public through works of art of high cultural value, we
contribute to fostering culture and provide opportunities for our employees to experience outstanding works of art.

109

Pippin the MusicalTakara Leben was the sole sponsor of the Broadway musical "Pippin" (Japanese version in 2022), supporting cultural life as anextension of the home. Pippin is an acclaimed production that has won four Tony Awards, including Best Musical and Best
Revival.
Through sponsorship of Pippin, whose storyline is in line with our company's vision of "THINK HAPPINESS AND MAKE THE
HAPPINESS," we will contribute to the revitalization of the theater world, which has been forced to restrict its activities due tothe Corona disaster, and to the preservation of culture.

Hamarikyu Lunchtime Concert
MIRARTH HOLDINGS was the title sponsor of the "Hamarikyu Lunchtime Concerts," a series of performances held annually at
Hamarikyu Asahi Hall (Tsukiji, Tokyo). To commemorate the 50th anniversary of the founding of Takara Leben, a total of 12
performances and one special lecture was held during the year under the title "Takara Leben Group 50th Anniversary
Performance." We are committed to establishing a national brand and providing a rich, high-quality lifestyle.

110

Jyoshu Shogi Festival
MIRARTH HOLDINGS co-sponsored and supported the 11th Jyoshu Shogi Festival 2023 held in Gunma Prefecture in January
2023. Twelve top-class shogi players representing the world of shogi participated in the event, which included games between
shogi players, exchange events with shogi players, the Women's Challenge Cup, and the Children's Challenge Cup. We willcontinue to contribute to the popularization and development of Shogi, a traditional Japanese culture, and to the revitalizationof the local community.

111

Shareholders

Policy and Past Performance Regarding Dividends
Our basic decisions on dividends are not biased toward the dividend payout ratio, but are comprehensive and take into
consideration factors such as dividend on equity (DOE) and dividend yield. We seek to be an appealing company by ensuringthat shareholdings remain stable over the long rather than the short term and are not affected by fluctuations in share prices.

Dividend Per Share

Stock Information

112

Shareholder Questionnaires
We conduct periodic surveys to promote two-way communication with our shareholders. The valuable opinions we receive fromthe surveys are introduced to our shareholders through the shareholder newsletters posted on our website and are reflected inour subsequent IR activities.

Presentation Materials for Analysts Meeting

Corporate Briefings for Individual Investors
In order to actively communicate with individual investors, MIRARTH HOLDINGS regularly holds company information sessions
for individual investors in various locations throughout Japan. In FY2022, we held a company information session in Sapporo in
September to explain our business and medium- to long-term strategies.

To Private Investors

Disclosure Policy
MIRARTH HOLDINGS is disclosing information to everyone based on the following information disclosure policy.

Disclosure Policy

113

Social Data

Social Data
MIRARTH HOLDINGS GroupFY2018

Number of employees(persons)

Average age (age)Average years of service(years)

FY2019FY2020

FY2021

FY2022

Male

618

675

739

815

867

Female

274

298

322

385

426

Total

892

973

1,061

1,200

1,293

Male

37.8

38.2

38.0

39.0

38.9

Female

33.0

33.5

33.9

34.7

35.1

Total

36.3

36.7

36.7

37.6

37.7

Male

4.5

4.8

4.9

4.8

5.1

Female

3.6

4.2

4.0

4.1

4.4

Total

4.2

4.6

4.6

4.6

4.9

114

Takara Leben
FY2018

Number of employees (persons)Average age (age)Average years of service (years)

FY2019FY2020

FY2021

FY2022 (*1)

Male

222

261

292

271

361

Female

74

73

73

72

123

Total

296

334

365

343

484

Male

35.4

36.0

35.9

36.5

35.9

Female

32.8

34.4

35.5

34.9

33.7

Total

34.7

35.6

35.8

36.1

35.3

Male

5.5

5.6

5.8

6.1

6.0

Female

5.1

6.4

6.9

7.2

6.1

Total

5.4

5.8

6.0

6.4

6.0

Male

67

88

99

92

121

Female

6

8

8

7

15

Male

91.8

91.7

92.5

92.9

89.0

Female

8.2

8.3

7.5

7.1

11.0

2.19

2.06

1.98

2.70

2.0

Male

41.4

52.4

52.4

57.8

65.7

Female

66.2

67.9

67.6

69.1

78.1

Total

46.7

55.6

55.4

60.1

68.7

Male

5

12

13

12

15

Female

3

4

3

3

Male

0

0

1

0

Female

3

4

3

3

Male

0

0

7

0

Female

100

100

100

100

83.8

93.5

92.6

85.0

87.9

Number of managers (persons)Management ratios (%)

Employment rate of persons with disabilities (%)

Rate of access to leisure (%)

Number of
subjects

Childcare leave

7

Number ofrecipients46

Acquisition rate(%)

Stress check examination rate (%)-

Training hours per person

(*2)

(*2)

14.2

18.2

28.3

Training cost per person (yen)

(*2)

(*2)

20,61228,01256,046

Happiness survey

-

-

-

-

4.51 / 7.0*1 On October 1, 2022, Takara Leben West Japan Co., Ltd. changed its company name to Takara Leben Co., Ltd. and merged with Takara Leben Tohoku Co., Ltd.
Therefore, data aggregation is being conducted under the new organization.
*2 Data was compiled and disclosed in time for the new personnel system to begin operating from FY2020.

115

Corporate Governance

Basic Approach
The MIRARTH HOLDINGS Group has set "Our Purpose" as "To design sustainable environments for a happier future for bothpeople and our planet." and recognizes that addressing issues related to sustainability is an important management issue. We
will not only pursue profits, but also comply with laws, regulations, and corporate ethics, fulfill our social responsibilities as amember of the corporate community, and aim to sustainably enhance our corporate value.
To this end, our basic approach to corporate governance is to always consider the happiness of all stakeholders, including
customers, employees, business partners, local communities, and shareholders, and to promote sound corporate activities bymaking decisions quickly and responding flexibly to changes in the business environment, as well as ensuring thoroughcompliance and transparency in decision making.

Initiatives to Strengthen Corporate Governance

Details of Initiatives

2010

Introduction of executive officer system

2012

Introduction of stock option plan for stock-based compensation for directors (excluding outside directors) and executive officers

2016

Start of evaluation of the effectiveness of the Board of Directors

2017

Term of office for directors changed from two years to one year

2019

Establishment of Nomination Committee and Compensation Committee

2020

Appointment of outside directors as chairpersons of the Nomination Committee and Compensation Committee

Appointment of female outside directors

2021

Ratio of outside directors increased to more than one-third (4 outside directors out of 12 directors)

Revision of executive compensation system (introduction of non-financial indicators as evaluation items)

Disclosure of the skills matrix
2022
Transition to a holding company structure116Corporate Governance System
MIRARTH HOLDINGS has established a system to ensure the appropriateness of management through careful and prompt
decision-making by the Board of Directors, appropriate supervision of business execution by mutual directors, and auditing andsupervision of business execution by directors by corporate auditors. In addition, the Company has adopted an executive officer
system to clarify the management oversight responsibilities of directors and the business execution responsibilities of executive
officers.

Ordinary General Meeting of Shareholders
Election

Nomination Committee

AdviceCompensation Committee

Audit

Board of Directors(including outside directors)

Audit & Supervisory Board(outside auditors)

Collaboration

Audit
Election/Supervise

Reports

Representative Director
Compliance
Committee
Sustainability Collaboration
Committee

Reports

Executive
Various
Officers Reports Departments

Audit

Accounting
AuditorReports

Risk
Management
Committee

Reports
Collaboration

Reports

Election

Election

Reports

Audit

Direction

Group Internal Audit Office
Audit

Collaboration
Audit
Audit

Group business companies

117Corporate Governance System Trends
There are six directors, four of whom are independent outside directors with diverse backgrounds. The term of office of
directors expires at the close of the ordinary general meeting of shareholders relating to the last fiscal year ending within one
year after their election. 19 meetings of the Board of Directors were held in FY2022.
The Company has three corporate auditors, all of whom are independent outside corporate auditors, and has established asystem that enables it to adequately fulfill its management oversight function from the outside. The Audit & Supervisory Board
works to improve the level of auditing by sharing issues and information among the corporate auditors and requesting
information from the Directors and various departments as necessary. The Board held 12 meetings in FY2022.

Fiscal Year

Form of
Organization

Total Number of
Directors

Number of Outside
Directors

Total Number ofAuditors

Number of Outside
Auditors

FY2016Company with Audit& Supervisory
Board

10

2

3

3

FY2017Company with Audit& Supervisory
Board

10

3

3

3

FY2018Company with Audit& Supervisory
Board

11

3

3

3

FY2019Company with Audit& Supervisory
Board

13

3

3

3

FY2020Company with Audit& Supervisory
Board

13

4

3

3

FY2021Company with Audit& Supervisory
Board

12

4

3

3

FY2022Company with Audit& Supervisory
Board

12

4

3

3

FY2023Company with Audit& Supervisory
Board

6

4

3

3

* Transferred to holding company structure as of October 1, 2022.

Ratio of Outside Directors on the Board of Directors
Outside:20%

Internal

80%

Outside:67%

Internal

33%

As of March 31,
2017

118

As of October 1,
2022

Board of Directors
MIRARTH HOLDINGS has six directors, four of whom are outside directors. All outside directors are designated as independent
directors. In principle, the Board of Directors meets once a month. Extraordinary Board of Directors meetings are held asnecessary to ensure decisions are made both carefully and promptly, and that directors mutually supervise each other'sbusiness execution.
Corporate auditors attend these meetings and provide their opinions when necessary. They also collaborate closely with outside
directors to audit and oversee both the functioning of the Board and the status of business execution. Additionally, executive
officers, the head of the Group Internal Audit Department, and leaders of other departments attend Board of Directors meetings
when requested, in line with internal regulations. They provide opinions on agenda items and reported issues as appropriate.
Furthermore, the Company conducts a Group Management Committee meeting once a month. This meeting serves to discussand deliberate on significant plans and proposals related to group management policies, strategies, and overall group
governance, thereby refining the decision-making process.

Executive Officer System
The Company has introduced an executive officer system to clarify the management oversight responsibilities of directors andthe business execution responsibilities of executive officers, and to further accelerate decision-making and strengthen businessexecution.

Audit & Supervisory Board
As a check and balance system for decision-making, all three corporate auditors are outside corporate auditors, and all of them
have sufficient professional experience, track record, and attitude to make objective judgments and checks. In addition to auditsof the Company, audits of affiliated companies are also conducted by attending meetings of each company's board of directors
and conducting interviews with directors, thus maintaining a tense relationship. In addition, we work with the accounting auditor
to understand and coordinate each other's annual schedules, accompany each other on site visits and model room inspections,and exchange information as needed to further improve the effectiveness and efficiency of our audits.

Group Internal Audit Office
In order to enhance and strengthen internal audits, the Company has established Internal Audit Regulations and established theGroup Internal Audit Office as an independent organization reporting directly to the President. In planning and conducting
internal audits, the schedule and content of audits are fully coordinated with those of corporate auditors and accounting
auditors to ensure the efficient operation of each function. Corporate auditors strive to build an effective and efficient audit
system by accompanying and attending operational audits conducted by the Group Internal Audit Office, confirming the content
of the audits, and hearing opinions as appropriate.

119Director Skills Matrix
In order to make objective judgments based on diverse knowledge and experience, the Company has identified the combinationof knowledge, experience, and abilities that the Board of Directors should possess, as shown in the table below.

Directors Skills Matrix (as of June 26, 2023)

Name

Position

Corporate
Management

Finance/
Accounting

Legal/
Risk
Management

Sales/
Marketing

Human
Resources/
Labor Relations

KazuichiShimadaRepresentative
Director
Group CEOGroup COO
President and
Chief
Executive
Officer

◎

〇

〇

〇

〇

Masashi
Yamamoto

Director
Group CFOManaging
Executive
Officer

◎

〇

〇

Kenji
KawadaOutsideDirector〇〇〇

Chiaki Tsuji

OutsideDirector

Keiko
Yamahira

OutsideDirector

NaohitoYamagishi

OutsideDirector◎

GlobalBusiness

Nominating
Committee

Compensation
Committee〇〇〇

Committee
Chairman

〇

〇

〇

〇

〇

Committee
Chairman

〇

〇

〇

IT

〇

◎

◎

〇

〇

〇

〇

◎

* Each director has been given "◎" rating for items that he or she considers to be particular strengths.

Reasons for Appointment of Outside Directors and Number of Board Meetings Attended
Reasons for the appointment of each outside director and the number of board meetings attended in FY2022 are disclosed.

Reasons for Appointment of Outside Directors and Number of Board Meetings Attended

Name

Position

Reason for Appointment

Year ending March 31,
2023
Attendance at Board of
Directors Meetings

Kenji Kawada

Outside Director

He has been involved in management at financial institutions andbusiness companies, and is appointed because of his extensive
experience and track record in management, as well as his broad
knowledge and insight.

Chiaki Tsuji

Outside Director

We have appointed her because of her expertise and extensive
experience and achievements as a lawyer in Japan and Germany.

19/19

Keiko Yamahira

Outside Director

The appointment is based on her extensive experience and broad
insight as a manager in the real estate industry.

18/19

Outside Director

He was appointed because of his expertise and wealth of experience
gained at the National Police Agency over a long period of time, as wellas his track record and experience at the Ministry of Construction(currently the Ministry of Land, Infrastructure, Transport and Tourism).

15/15

NaohitoYamagishi

120

19/19

Nomination and Remuneration Committees
The Company has established the Nomination Committee and the Remuneration Committee as voluntary advisory bodies toenhance objectivity and transparency in the decision-making process regarding personnel matters and compensation of
directors, etc., and to further enhance and strengthen the corporate governance system. Both committees are composed of atleast three directors selected by resolution of the Board of Directors, at least half of whom are independent outside directors,
thereby ensuring appropriate opportunities for involvement and advisory services by independent outside directors. Bothcommittees, in consultation with the directors, deliberate and report primarily on the matters listed below.

Nomination Committee(1) Matters related to the composition and balance of the Board of Directors;(2) Matters related to the selection and dismissal of directors;(3) Matters related to the selection and dismissal of representative directors and executive officers;(4) Matters related to criteria for determining the independence of outside directors; and(5) Matters related to succession planning.

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

Evaluating the Effectiveness of the Board of Directors
In order to improve the functioning of the Board of Directors, we evaluate and analyze the effectiveness of the Board of
Directors. With the cooperation of an outside consulting firm, we conducted an anonymous survey of all directors and corporate
auditors, including outside directors. Based on the responses to the questionnaire, we analyze and evaluate the effectivenessof the Board of Directors. In addition, starting with the effectiveness evaluation in FY2022, the evaluation method was improvedby conducting interviews based on the results of a questionnaire by an outside consulting organization.
The results of the questionnaire and interviews were generally positive, confirming that the Company's Board of Directors isfunctioning effectively to a considerable extent, but some issues were found regarding the nature of the Board of Directors andgroup governance after the Company's transformation into a holding company. In addition, the following issues, which had been
identified as challenges in the previous effectiveness evaluation, were also identified as issues that need to be addressed forcontinued improvement: "Enhancement of discussions on management strategy, including the group-wide crisis management
system and human capital investment," and "Reflection of shareholders' and other investors' opinions."
We will continue to fully consider issues and continue our efforts to improve the functioning of the Board of Directors.

121

Executive Remuneration
Directors’ remuneration is determined on the basis of the degree of each director’s contribution to business expansion andimprovement 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 salary), and the limitation of the special stock option
remuneration to ¥600 million annually is decided by a resolution at the Ordinary General Meeting of Shareholders. Auditors’
remuneration is limited to an annual amount of ¥60 million or less.

Message from an Outside Director

Outside Director

Keiko Yamahira

Evaluation of MIRARTH HOLDINGS
I have a strong impression that MIRARTH HOLDINGS Group has a spirit of challenge and breakthrough, andcontinues to evolve with a sense of speed. In corporate management, the phrase "a snake that does not shed its
skin will die" is sometimes used. In times of rapid change, remaining in place and not changing means stagnationand decline for the company. Despite our 50-year history in business, we have maintained a challenging corporate
culture and breakthrough capabilities. Sales have also tripled in the 10 years through the fiscal year ending March
31, 2022, and this attitude is probably one of the reasons for the company's significant performance growth in sucha short period of time.
On the other hand, having expanded our business domain in a short period of time, I feel that there is a greaterneed to "optimize our business portfolio," one of the "seven pillars" of our medium-term management plan, in the
future. In making this transition to a holding company, I recognize the importance of reorganizing our portfolio tomaximize the synergies of our group.
The full text can be found here.

147KB

Excerpt from Integrated Report 2022

Corporate Governance Report
Corporate Governance Report

656KB

122

Compliance

Compliance Basic Policy
In the MIRARTH HOLDINGS Group, in order to fulfill corporate social responsibility, each organization as well as its officers andemployees are required to comply with laws, social norms, and separately established ethical guidelines, and establish acompliance basic policy that aims to become a norm in society.

Internal Whistle-Blowing System (Help Line)The Group has established an internal whistle-blowing system (helpline) as a means of reporting or consulting on issues suchas harassment and compliance violations. The previous whistle-blowing system was reviewed in August 2018, and weoutsourced responses to inquiries to a law firm with which the Group has not conducted business in the past to serve as an
outside consultation desk; moreover, we established an independent internal consultation desk that directs inquiries to thecorporate auditors. We reinforced the protection of reporting individuals, the subjects of reports, persons who cooperate withinvestigations, and others by establishing a mechanism to prevent access to information concerning consultations and reports
by involved directors and taking other measures. We are working to strengthen compliance management through the early
detection and rectification of improper conduct and other issues.

ハラスメントコンプライアンス
ヘルプライン

職場場で解決できない
ルール違反はヘルプラインへ！

ハラスメント・コンプライアンス ヘルプラインとは、自身や周りで起きている
ハラスメント・コンプライアンス違反などに関する問題の相談・通報を受け付ける窓口です。
疑義レベルでも結構です。
自らの行動が規範に反すると思われる場合、進んで連絡した人には、
その背景・状況等を十分に考慮した上で情状を斟酌します。勇気ある行動をお願いします。

通報者・被通報者・調査協力者や情報の保護は、最優先されます。

Pocket-size card
Investigationof facts andconsiderationof disciplinary
actionExternal Contact

Reporter【 Subject 】

Kotobuki Law Office
External contact independentof the company
Female attorneys are also available

MIRARTHHOLDINGS
Compliance
Committee【 Means 】

Emai / Fax / Phone / Mail etc.
Directors, employees,
loaned employees,
Consultation and Reporting
temporary employees,
and others who haveinternal contact
entered into employment
contracts with the Company,
Auditor of MIRARTH
including those of
HOLDINGS, Inc.
Group companies
Retirees【 Means 】
Business partners
Email / Phone / Mail etc.

* You can choose how and where to report.
* Anonymous reporting is also accepted.

MIRARTH HOLDINGS
Board of Directors
Respondent = Board member

Reporting

ReportingGroup company president/
audit & supervisoryboard member【Members 】
Directors andCorporate Auditors/

MIRARTH HOLDINGS
Disciplinary Committee
Respondent = Non-director

Reporting

For consultation
and reporting
related to groupcompanies

Reporting of results

MIRARTHHOLDINGS
Compliance Reporting of results
Committee

Contact
point for Reporting of results
Reporterreceiving
reports* Response in accordance with theReporting of results
regulations of each group company* Report on the status of whistleblower
monitoring to the Compliance Committeeof MIRARTH Holdings in a timely manner

Monitoring* Not reported to the person related to the reported case123

* Check to see if the whistleblower has been disadvantaged

Tax Policy

MIRARTH HOLDINGS Group Tax Policy
MIRARTH HOLDINGS Group (hereinafter referred to as "the Group") contributes to coexisting and prospering with society
and achieving a sustainable society by conducting proper tax payment and corporate activities based on the Group
Philosophy and Code of Conduct. In addition, the Group ensures fairness and transparency based on this tax Policy andcarries out appropriate accounting and tax management.

1. Tax Compliance
The Group always complies with the Corporation Tax Law, the Consumption Tax Law, and other relevant laws and regulations, as wellas adheres to the standards published by international organizations (such as OECD). The Group also keeps abreast of tax law
revisions in a timely and appropriate manner to fulfill its tax payment obligations properly. Moreover, in international transactions, theGroup complies with the laws and regulations of each country, tax treaties, and international taxation rules.
2. Tax Governance
The ultimate responsibility for establishment and maintenance of the Group’s tax governance rests with its Chief Financial Officer(CFO). The accounting department manages tax and accounting matters, maintains a system and environment for adequate
communication among Group companies, and strives to enhance training for officers and employees.
3. Tax Planning
The Group will engage in fair and proper tax planning in order to improve cash flow in its business activities but will not engage in tax
planning with the intent to reduce taxes excessively.
4. Tax Risk Management
The Group strives to minimize tax risks by consulting with external experts and utilizing a system of prior inquiries to tax authorities
when tax positions are uncertain.
5. Transfer Pricing Taxation System
In transactions with foreign affiliated parties, the Group strives to pay appropriate taxes in each country by conducting transactions at
arm's length in accordance with the transfer pricing taxation systems of each country.
6. Tax Authorities
The Group strives to ensure transparency and build a relationship of trust related to taxation by maintaining fair relationships with tax
authorities, providing tax authorities with timely and appropriate tax information, and responding to tax authorities in good faith.

Employee Awareness-Raising
Takara Leben administers compliance education on a variety of themes to employees and strives to create a corporate cultureof legal and regulatory compliance and respect for human rights.

Personal Information Protection
We consider the protection of personal information to be part of our CSR, and we have established a management system forthe appropriate protection of 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.

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Preventing Unfair Business Dealings
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.

Harassment Prevention
Takara Leben conducts ongoing employee training to ensure that each and every employee is aware of harassment and tocreate a corporate culture that prevents harassment. Harassment training, mainly for managers, focuses on themes such as"laws related to power harassment," "communication in the workplace," and "anger management," to instill the basic concepts
and specific actions needed to eliminate harassment. In addition, we actively hold online training sessions for not only Takara
Leben employees but also managers of Group companies to create a Group-wide culture that does not tolerate harassment.

Dealing with Anti-Social Forces
The Group basic policy against anti-social forces is to adopt a firm stance in dealing with them. In addition to actively
participating in activities to eliminate organized crime under the guidance of our legal advisor, we collaborate with external
specialized agencies, such as local police stations and legal advisors, to establish a system to deal with anti-social forces.
With regard to our trading partners, we are also thorough in implementing measures for the elimination of anti-social forces
through steps such as exchanging memoranda on severing ties with such forces and including clauses on their elimination in
our various contracts and agreements.

Social Media Policy
The Group sees social media as an effective means of strengthening relationships with various stakeholders and has
formulated a Social Media Policy as a guideline on proper use. We comply with laws, regulations, and rules established byindividual Group companies, and, as a member of society with good judgment, we use social media with responsibility for our
conduct and strive to engage in communications through effective information disclosure with an awareness and understandingof our responsibilities regarding the dissemination of information and responses on social media.
We have also established a Privacy Policy as a guideline for employees' business and personal use of social media.

Social Media Policy
Privacy Policy

125Privacy Mark System Contributor
Leben Community was granted the Privacy Mark in January 2008 and has been working on and updating the management andoperation of personal information. In January 2020, we received a letter of appreciation from the Japan Information Processing
Development Corporation (JIPDEC) for our efforts over the years to maintain and improve our own personal information
protection management system (PMS) and for our contribution to the promotion of the Privacy Mark System. We also focus on
training our employees to raise their awareness of the handling of personal information and to apply this awareness to theirwork. In fiscal year 2021, we conducted training on "Case Studies of Personal Information Leakage Accidents in Condominium
Management" and "Overview of New PMS Standards."
Furthermore, in fiscal year 2022, we revised the "Regulations for the Protection of Whistleblowers and Harassment Compliance
Hotline Reporters" in response to amendments to the Whistleblower Protection Act.

Political Contributions
The MIRARTH HOLDINGS Group complies with the Political Funds Control Act and does not make political contributions.

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Risk Management

Basic Risk Management Policy

The MIRARTH HOLDINGS Group identifies and manages each risk based on its basic risk management policy of ensuring
the safety of customers, partners, officers, employees, and their families, fulfilling our social responsibility, harmonizing
with the global environment, sustaining sustainable business, and enhancing corporate value. In addition, the Risk
Management Committee has been established as a promotion structure to ensure thorough risk management throughout
the Group.

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Risk Management System
MIRARTH HOLDINGS has established Risk Management Regulations to manage the risks of the Group and to continuously
improve corporate value, and in accordance with these regulations, has set up the Risk Management Committee chaired by the
President to examine and report on all risks related to overall management and to discuss or decide on measures andmanagement to be implemented to avoid or reduce these risks. The committee examines and reports on all risks related tooverall management, discusses and decides on measures and management to be implemented to avoid or reduce these risks,and ensures that internal controls are strengthened and misconduct and lack of compliance in overall operations, including
financial reporting, are prevented. In order for the committee to develop and continuously improve the Group's risk management
system, the Board of Directors appoints a Group CRO (Chief Risk Officer) from among the directors or executive officers, andsubcommittees of the Risk Management Committee such as "Business Strategy," "Finance," "IT and Administration," and"Compliance" are established as necessary, so that the committee can make proactive proposals in response to individual risk
management. In addition, the contents of discussions at each subcommittee meeting are reported and verified by the Risk
Management Committee as appropriate based on the Risk Management Committee Regulations, and are reported to the Boardof Directors according to the contents of the reports, thereby ensuring prompt decision-making in the event of risk occurrence.

Board of Directors of MIRARTH HOLDINGS
Reporting & Collaboration

Appointment & Supervision

Supervision

Supervision & Advice

Risk Management Committee
Chairperson: CEO,
General Secretary: CRO
Supervision &Direction

Supervision

Reporting

Reporting

Collaboration

ReportingDirection &Reporting

Chief Risk Officer (CRO)

Audit &
Supervisory
Board

Group Legal Department
First line

Second line
Third line

Business departments ofGroup companies

Administrative
departments

Risk Officers of
MIRARTH Group companies

Risk Officers of
MIRARTH Group companies

Business department

Administrative department

Business department

Administrative department

Business department

Administrative department

Audit
Reporting

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Group Internal
Audit Office

Collaboration &AdvicePreventive 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 MIRARTH HOLDINGS Group has
established crisis management structures and adopted Crisis Management Rules and a Crisis Management Manual. The Crisis
Management Rules define crises and specify procedures from initial responses to the formation and disbanding of responseorganizations. There are also two sets of detailed crisis control rules regarding crisis responses and disaster countermeasures.
In addition, risks in each department are collected and countermeasure plans to prevent their occurrence are prepared with thedepartment in charge and reported at the Risk Management Committee, which meets quarterly. Furthermore, as part of ourbusiness continuity plan (BCP), we are working to develop manuals for business continuity and recovery in the event of an
emergency, and are striving for a preventive approach to risk.

Risk Management Committee
Risk management in a broad sense
Risk management in a narrow sense(Risk Prevention Measures)

Crisis Management

BCP

Risk Control

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CrisisManagement
Rules

ComplianceRisks and Opportunities
As risks that may have a significant impact on corporate activities are becoming more diverse and complex every day, our groupis working to predict possible future events, identify risks and opportunities, and use them to solve social issues and create
value.

Social issues and external environment
Changes in the direction of economic policy

Market environment
Business activities

Response
Pursue new businesses such as PPA
Strengthening of information-gathering activities

Obsolescence of products and/or services

Capture demand generation/growth opportunities
via new products and services
Expansion in demand for compact condominiums
Expansion of business areas

Reflection of purchaser needs
Diverse product offerings
Supply compact condominiums

Deterioration in market conditions including
political instability and economic recession

Increased funding costs due to changes infinancial institution lending attitudes and financing
market conditions
Intensified competition including new entrants,
and rapid environmental changes
Deteriorating supplier operating conditions
Booking of impairment losses

Increase in opportunities to acquire land andproperties
Increase in M&A opportunities

Redouble efforts to diversify financing methods
Implement ongoing performance monitoring,countermeasures
Strengthening of financial management
Strengthening of overseas business

Low birthrate coupled with an aging anddeclining population

Decreasing demand for housing

Increased demand for condominiums among
seniors
Increase in opportunities for proposing solutions
to vacant house issues and aging buildings
Development of compact cities

Supply condominiums in the center of regional cities
Supply compact condominiums
Strengthening of overseas business

Requests by power companies to control
outputDecline in electricity sales revenue

Expansion of Corporate PPA

Implementation of area strategies in energy business

Surge in land prices as well as raw materialand construction (labor) costs

Soaring procurement prices
Decrease in profit
Slower sales due to higher selling prices

Stabilize procurement prices mainly by diversifying
suppliers, decentralizing on a regional basis, and using
long-term contracts

Difficulty in recruiting human resources,
shortage of labor, and decline in employee
quality

Lower product and service quality
Incurring of compensation costs, brand image
deterioration
Occurrence of occupational accidents

Implementation of activities designed to improve
employee loyalty
Personnel system reform, enhancement and upgrading ofvarious training systems
Implementation of branding penetration measures
Housing performance evaluation report acquisition
Holding Safety Conferences, building safe implementation
management systems

Increasingly serious global environmental
issues

Stricter regulations for greenhouse gas usage/
emissions and energy conservation
More stringent building standards due to stricter
laws and regulations

Invigoration of renewable energy market due to
growing interest in environmental issues

Development of renewable energy generation facilities
Reduction of carbon dioxide emissions
Formulation of climate change policy
Building of internal system in compliance with external
evaluation organization standards
Acquisition of green certifications

Incidence of natural disasters, accidents,and other incidents

Raw materials/component supply shortages
Asset damage
Disruption to Group business facilities, supply
chains, and customers

Increased properties needing large-scale renovation
Increased interest in disaster-resistant buildings

Promote earthquake-proofing of buildings and facilities,
implement countermeasures for tsunamis, torrential rain,
and floods
Stockpile emergency supplies necessary for disasters
Conduct disaster preparation drills
Introduction of safety confirmation system

Acts of terrorism, riots, and war

Disruption to Group business facilities, supply
chains, and customers
Geopolitical risk
Supply chain fragmentation

Spread of infectious diseases

Disruption to Group business facilities, supply
chains, and customers
Disruption to business operations
Decline in hotel and tenant occupancy rates

Incidence of unauthorized access andcyberattacks

Leakage of confidential information and stoppagesof production lines and logistics systems
Payment of damages and fines,
incurring countermeasures expenses

Insufficient internal control function

Improper conduct, leakage of confidential
information
Payment of damages and fines, incurring
countermeasures expenses
Delay in response to global environmental problems

Changes in lifestyles

Climate change, natural disasters, etc.

Opportunities
Increase in commercialization projects due toutilization of subsidy system
Ongoing low-interest housing loans, eased tax
reduction requirements
Introduction of new systems to replace FIT(Stricter laws and regulations, changes in legal
interpretation and management policy)

Governance, etc.

Risks
Decreased number of commercialization projects
due to subsidy system revisions
Lost business opportunities due to changes in FIT
Stricter regulations for energy conservation
Strengthening of regulations on building
standards(Growth in DINKs, dual-income households,
seniors relocating to condominiums,
development of telework)

Diversification of housing needs

Click here for a larger PDF.

Conducting of credit checks on business partners
Verification of geopolitical risk
Stabilize procurement prices mainly by use of diversifying
suppliers, decentralizing on a regional basis, and using
long-term contracts
Creating demand for new products and services tomeet changing lifestyles

Promote teleworking and enhance workplace healthmanagement
Differentiation of products and services(equipment, meeting of specifications, installation of
telework spaces through renovation)
Strengthening of insurance contracts and information
security systems
Ensuring of confidentiality
Restrictions on external access
Establishment of internal regulations, conducting of training
Identify issues and promote resolutions via Compliance &Risk Management Committee
Enhancement of in-house checking system
Conducting thorough compliance education

441KB

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Response to New Coronavirus Infections
Basic Stance on Response
Since the pandemic caused by Covid-19 in 2020, our group has been promoting the Basic Policy for Responding to Outbreaksof New Coronavirus Infections led by the Crisis Management Committee to protect the health, safety and security of ouremployees, their families and customers, and to continue our business.
We have prepared a response flowchart for cases of possible infection among employees and have been working to prevent the
spread of infection. In the event that an infected person is confirmed, we have established a system to report to the competentpublic health center and promptly report to the general manager of the division to which the person belongs and to the General
Affairs Department of MIRARTH HOLDINGS.
For employees and executives who are confirmed to be infected, rules were clarified until they were able to return to work after
being hospitalized or staying at home under the direction of the public health center, and the details of measures such as taking
PCR tests, staying at home, and working at home, are defined. In addition, offices where infected employees are found are
disinfected as necessary, in accordance with the judgment of the health center with jurisdiction, the office administrator, and theCompany.

Employee Initiatives
To reduce the risk of infection among employees, we continue to implement a variety of measures, including telework andflexible work schedules.
In FY2022, the mutant strain (Omicron strain) infection spread again, resulting in the sixth and seventh waves of outbreaks. We
have established a system for promptly disseminating infection prevention measures to the Group by flexibly monitoring thedomestic infection situation and establishing rules for working systems, and meetings and business dinners including
stakeholders, as appropriate depending on the infection situation.

Initiatives in the Value Chain
Since August 2020, we have been working to alleviate customer concerns by requiring employees participating in previews andinformation sessions in rural areas from the Tokyo metropolitan area (Tokyo, Kanagawa, Saitama, Chiba), where the number of
infected people is high, to prove negative by PCR or antigen testing.
In model rooms, which are the points of contact with customers, basic infection control measures such as "wearing masks andgloves," "regular ventilation," and "sterilization of equipment" were thoroughly implemented, and each staff member strictly
followed "negative antigen test confirmation" and "prompt visit to a medical institution or PCR test in case of positive test
results or symptoms."
In addition, in June 2021, the Group introduced "vaccination leave" to make it easier for employees to receive vaccinations,which not only improves their own health, but also gives their families and customers a sense of security. In addition, we also
support the prevention of infection in the home, and have subsidized the cost of hotel accommodations and other expenses forvoluntary quarantine in the event that an employee or a family member living with an employee tests positive for the disease.
These efforts have been partially suspended since May 2023, when the Covid-19 infection was moved to category 5 infectious
diseases. However, in the event of another pandemic of an infection of its variants or similar infectious disease, we will takeappropriate measures as needed to ensure the safety and security of our customers and employees.

131Third-Party Opinion

Third-Party Opinion

Outside Director

Chiaki Tsuji

MIRARTH HOLDINGS transitioned to a holding company structure in October 2022, as we believe it is essential tofurther strengthen governance and sustainability management, while promoting sustainable growth and building a
structure that enables rapid and flexible management decisions.
In addition, we have newly adopted Our Purpose, which is "To design sustainable environments for a happier future
for both people and our planet." from a broader perspective beyond being a comprehensive real estate developer,
and are strengthening ESG management and proactively developing sustainability activities more than ever before.
I am impressed by the Group's recent efforts to conduct environmentally friendly management not only in the realestate business, such as the sale and management of new condominiums, but also in a wide range of otherbusiness areas, including the energy business, hotel business, urban development/urban redevelopment, andasset management business. Above all, we greatly appreciate their contribution to the overall environment throughcooperation with government and municipalities.
Specific initiatives are reported and discussed at meetings of the Board of Directors, management meetings, andvarious committees. In order to gain a deeper understanding, I have visited construction sites and model rooms ofdevelopment projects in which we participate, and through dialogue with each person in charge, from condominium
site procurement to construction and sales, I have observed how each person is diligently working at his or her
post.
I was particularly impressed by the words of a model room sales representative: "The people who visit our model
rooms are all happy people. We are in the business of making them happier." Many of the people who are
considering purchasing condominiums developed and sold by our group are people who have reached a turning
point in their lives, such as marriage, childbirth, children's higher education, or employment, and are thinking
positively about the purchase of a home. I was able to understand that each employee is working with theawareness of supporting the customers' happier future. On the other hand, we've recognized issues on the groundthat the company needs to address, such as the frequent transfers of sales representatives, the complexity ofadministrative tasks, and working hours.

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One solution to these challenges is digitization through DX promotion. It not only reduces the burden on
employees, but also improves the efficiency of our company's overall operations and reduces the burden on theenvironment. However, model rooms and paper brochures and flyers play an important role in condominium sales.
Therefore, as we move forward with digitization, we need to carefully consider the extent to which these areas canbe digitized.
In our medium-term management plan announced in May 2021, we also set forth key measures such as "DX" and"ESG" to contribute to solving social issues and achieving the SDGs through our business, and to earn the trust ofvarious stakeholders and society and achieve lasting corporate development.
I appreciate the efforts made to achieve this goal and look forward to the Group's further growth and contribution tosustainability in the future.

133

Editorial Policy

Editorial Policy of Sustainability Site
This site has been designed to provide stakeholders with a deeper understanding of the MIRARTH HOLDINGS Group’s
responsibilities and initiatives for building a sustainable society and, at the same time, serve as a form of internal and external
communication.
The Group's has formulated four key sustainability themes to be undertaken in the medium to long term to enhance oursustainability initiatives with the purpose of offering increased, concrete value to society. Based on these four themes, we are
creating new value through our businesses to solve various social issues.
Moving forward, we will continue to work on the transparent and timely disclosure of information. We hope you can provide us
with your opinions and feedback.

Disclaimer
This site was generated based on data as of the end of March 2023. Opinions and forecasts stated in this site are ourassessments at the time this site was generated, and thus their accuracy and completeness are not guaranteed.

Target Period
While the site covers fiscal year 2022 (April 1, 2022 to March 31, 2023), certain information stated in this site falls outside thistime period.

Scope
Nine companies under the MIRARTH HOLDINGS Group134

For Inquiries
MIRARTH HOLDINGS, Inc. Group Corporate Planning Department(Changed company name from Takara Leben Co., Ltd. on October 1, 2022.)
Tekko Building 16F, 1-8-2 Marunouchi, Chiyoda-ku, Tokyo,JAPAN 100-0005
Phone: +81 3 6551 2125

135