Message from the President

Leopalace21 facilitates win-win solutions for tenants and property owners

On behalf of Leopalace21, I would like to take this opportunity to convey my gratitude to our shareholders and investors for their continued support.

We sincerely apologize to all of our stakeholders, including tenants and owners, for the distress caused by construction defects in apartments constructed by Leopalace21, confirmed in the fiscal year ended March 31, 2019. I would also like to apologize for the serious impact on the financial results and share price as a result of these construction defects. All officers and employees of the Leopalace21 Group are united in resolving the series of problems as soon as possible, with the aim of ensuring that tenants can live in our apartments with peace of mind.

We will promote reform of our corporate culture to realize the basic policy of benefiting "society as a whole" set forth in our mission statement. In addition, as the most important value for our business activities, we will thoroughly implement "compliance-first" by regularly distributing messages, strengthening compliance training, and introducing personnel evaluations based on measures against compliance.

In addition, as already announced, we have established the Construction Legal Department to confirm compliance with laws and regulations regarding products, review operation methods of the Compliance and Risk Committee, and confirm compliance with laws and regulations related to new businesses, etc. We will fundamental review our management system and strive for firm restructuring. We will also review and implement a detailed review of the Construction Subcontracting Business structure, including improving the development process for new products, providing construction supervision and inspection systems, and ensuring construction quality by implementing appropriate construction management.

Finally, we will revamp our management structure to implement measures to prevent recurrence. We aim to quickly solve problems related to construction defects and to realize an open management that listens to the opinions of stakeholders.

Leopalace21 would like to request the continued support and encouragement of all our stakeholders.

May 2019
Bunya Miyao
President and CEO



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