Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

June 11, 2024
Ichigo Inc. (Tokyo Stock Exchange Prime, 2337)
Representative: Scott Callon, Chairman
Inquiries: Takanori Sakamatsu, Executive Managing Director
Telephone: +81-3-4485-5221 www.ichigo.gr.jp/en

Collinear Begins Deployment Testing of Generative AI Tool Using RAG
With Yokosuka City
As a sustainable infrastructure company, Ichigo is continuing to build upon its existing
businesses to expand its business domain, and drive new earnings streams. Ichigo views
real estate as key infrastructure that is fundamental to people’s lives, and is accelerating
growth and value creation via DX.
Collinear, Ichigo’s wholly-owned subsidiary with deep expertise in driving DX using
generative AI, has begun a deployment testing at the Yokosuka City Municipal ofKanagawa Prefecture in collaboration with their Digital Government Promotion Officeof an AI system that utilizes RAG (Retrieval-Augmented Generation) technology
combining text generation capabilities of large language models (LLMs) with external
information retrieval to increase the efficiency of contract closeout procedures that
require references to numerous manuals and regulations.
1. Project Background and Objective
Yokosuka City is a municipality at the forefront of advanced initiatives such as DX andutilization of generative AI. The city is the first in Japan to implement the use of thegenerative AI service “ChatGPT” throughout the city hall. During Collinear’s
exploration of further efficiency improvements, it became apparent that employees
spent a significant amount of time searching for information contained in numerous
manuals and regulations in order to perform tasks. To address this issue, Collinear haslaunched a project to investigate the possibilities of developing a system that provides
appropriate information based on internal documents and other relevant materials in
response to user questions inputted in plain Japanese. This project, launched incollaboration with Yokosuka City, focuses on contract closeout operations, which
require frequent references to numerous manuals and regulations. The project’s goal isto alleviate the burden on employees via the development of an AI system that utilizes
RAG tailored to their actual tasks. (Test deployment phase: until September-end 2024)
RAG is a technology that combines the text generation capabilities of LLMs withexternal information retrieval. This technology generates responses that incorporate
information unique to a specific municipality or company, while adhering to theirspecific rules, thus allowing the LLM to provide answers tailored to the specific needsof the municipality or company’s employees.

12. Project Overview
For the system to generate appropriate and accurate answers aligned with internal
operations, a thorough understanding of the tasks and approaches was critical. Collinear
conducted interviews with the Digital Government Promotion Office and on-site
personnel to thoroughly investigate their business processes and requirements, including
current inquiries and subsequent actions. Semantic searching and referencing of internal
documents such as contract manuals and regulations were used for the generative AI tocreate answers based on the inputted information.
While humans can read between the lines and ask appropriate follow-up questions toextract necessary information, AI, which is not necessarily proficient at reading between
the lines, may have a hard time surmising or collecting sufficient information to answer
a user’s question. To address cases where there is insufficient information to answer auser’s question, the question is too abstract, or the users themselves are unclear about
what exactly they are looking for, steps to clarify the question through dialogue with theuser will be incorporated. This will allow the system to achieve a level of attention todetail not found in existing packaged services.

About Collinear
Collinear designs optimal solutions for issues faced by companies and works withcompanies to achieve the practical deployment of these solutions. In generative AIutilization, Collinear defines business requirements through the practical understandingof the business, and builds models that fit business challenges. In addition, Collinear
provides solutions not found in existing packaged services, by incorporatinginterrogative steps to extract the information necessary to obtain the answers the user islooking for.
Website: https://clnr.inc/ (Japanese only)
3. Earnings Impact
Although this initiative has minimal impact on Ichigo’s FY25/2 earnings, Ichigo andCollinear will generate new earnings opportunities via the provision of multi-faceted,
DX-driven real estate solutions achieved through the synergies between Ichigo’s realestate assets and Collinear, thus driving shareholder value for Ichigo.

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