Value Creation Process

External Environment
Awareness

Materiality

Input Changes in thedirection of economicpolicy Changes in lifestyles
 Segmentation ofhousing needs Political instability,
economic recession Higher interest rates
 Low birthrate coupledwith an aging anddeclining population
 Requests by powercompanies to control
outputBusiness activities Surge in land prices
as well as raw
material andconstruction (labor)costs
 Difficulty in recruiting
human resources,
shortage of labor, anddecline in employee
quality

Climate change,
natural disasters,etc.
 Increasingly serious
global environmental
issues Incidence of natural
disasters, accidents,
etc.

Support for diversifying lifestyles andglobalization
Responses tochanges to business models
brought by an ageing society anddepopulation
Urban development
and creating towns
Construction andmaintenance of acorporate
governance system
Promotingcompliance
Employee healthmanagement
Encouraging
employment ofdiverse humanresources
Providing safe,
secure products
and services
Improving customer
satisfaction
Improving value ofbuildings
Providing buildings
and spaces thatconsider the environment and culture Acts of terrorism,riots, and war

Responses toglobal warming Spread of infectious
diseases

Initiatives forrenewable energy

Governance, etc.

Effective use ofresources Incidence ofunauthorized accessand cyberattacks

Responses todisasters Insufficient internal
control functions

Purpose

OurValues

Business Development  

Leveraging Real Estate-related Knowledge

OutputOutcomeFinancial CapitalThree Business Pillars

Financial CapitalMarket environment

Our

A sound financial foundation thatenables further investments for growth

Ability to generate stable cash flow Shareholders’ equity¥61.4 billion Interest-bearing debt

¥227.3 billion

Consolidated
Net Sales¥153.4(As of March 31, 2023)

Human Capital
Diverse human resources thatpossess expertise No. of employees

484 Real estate notaries

275

 First-class registered architects

20 Redevelopment planners

4 Training hours per employee

Real EstateBusiness
Knowledge about realestate that underpins
sustainable growth28.3* Scope of calculation: Takara Leben

 No. of employees (consolidated) 1,293

EnergyBusinessDevelopment
Capabilities(FY2022)billionHuman Capital(FY2022)

Encouraging the strong roles ofdiverse employees

 Real Estate Business¥139.1 billion
 Energy Business¥9.0 billion
 Asset Management Business
¥1.0 billion
 Other Businesses¥4.2 billion

Management
Capabilities
Planning
Capabilities(As of March 31, 2023

KPI

Technologies and expertise that
respond to customer requests

Number of units sold New built-for-sale condominiums

45(As of March 31, 2023)

Social and Relationship Capital
Trust, reliability and acollaborative framework

7 Elements of the Medium-Term Major Group companies

10 Business locations9(Including head office and overseas locations)(As of March 31, 2023)

Natural Capital
Effective use of resources Land and the global environment

1,861 units

AssetManagementBusiness Proprietarily branded condominiums
LEBEN and NEBEL(FY2022) New built-for-sale detached houses

189 units(FY2022)

Cumulative number ofunits supplied

Management Plan

38,807 units

1.

3.

5.

Further growthof corebusinesses

Optimized
business
portfolio

Improvement of
productivity andcreationof new services
through promotionof DX

2.
Maximized groupsynergies

4.
Establishmentof a stablefinancial ground

7.
Personnel
development
andestablishment ofthe rewarding
workplace
Proactive ESG
environment
considerations

6.

* New built-for-sale condominiums(As of March 31, 2023)

Humanresources* Scope of calculation: Takara Leben(As of March 31, 2023)

Intellectual CapitalPartners (customersand local communities)

Corporate
governanceCompliance andrisk management

 Housing performance evaluation reportacquisition rate
100% Energy-saving rank certification rate
(Flat 35 for detached houses)
100% of detached houses(FY2022))Social and Relationship Capital
Building regional revitalization andrelationships of trust for the long termwith all stakeholders No. of new built-for-salecondominium contracts
2,242 Increase in the number of units
under management
3,268 units(FY2022)Natural Capital

Number of managed
housing units

72,603 units(As of March 31, 2023)

Rental revenues

5.8 billion(FY2022) Nationwide power generation facilities

Foundation
supporting
value creation Acquisitions by type of qualification
Real estate notaries
275
First-class registered architects
20Redevelopment planners
4 Percentage of women in management
11.0% Percentage of persons with disabilities
employed2.0%

Advaanced technologies and services
that respond to diversifying lifestyles

Intellectual Capital No. of trademark registrations TSR over the past 10 years 125.9%
 Dividend per share¥22 annually

Current power generation
capacity320MW* Including wholesale portion(As of March 31, 2023)

Effective use of resources andinitiatives for renewable energy to
reduce environmental impact Increase in renewable energy
generation capacity
10MW Greenhouse gas emissions3,781t-CO2 Energy consumption 2,040.5 kL(crude oil equivalent)(FY2022)