Investor Meeting Presentationfor the Fiscal Year ended March 31, 2017

Leopalace21 Corporation

This document and reference materials may contain forward-looking statements, but please understand that actual results may differsignificantly from these forecasts due to various factors.

*Past figures are retrospectively adjusted, due to a change in accounting policy in a subsidiary in the Leasing Business.

May 2017

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Contents

1. About Leopalace21

1-1 Business Model 4

1-2-1 Results Trend 5

1-2-2 Highlights of Results Trend 6

2. FY17/3 Results

2-1 Highlights of Results 8

2-2-1 Summary of Results (Sales & Gross Profit) 9

2-2-2 Summary of Results (Operating Profit & Net Income) 10

2-3 Results of Business Segments 11

3. FY17/3 Overview of Business (Leasing)

3-1 Overview of Leasing Business 13

3-2 Main Indicators (Leasing) 14

3-3-1 Indicator (Occupancy Rate) 15

3-3-2 Indicator (Occupancy by Group) 16

3-3-3 Indicator (Shares of Occupied Units by Groups) 17

3-3-4 Indicator (Occupied Units by Industry) 18

3. FY17/3 Overview of Business (Leasing) (cont’d)

3-3-5 Indicator (Foreign Tenants) 19

3-4-1 Leasing Strategy (Office Expansion) 20

3-4-2 Leasing Strategy (my DIY) 21

3-4-3 Leasing Strategy (Tenant Services) 22

3-4-4 Leasing Strategy (New Services) 23

3-4-5 Leasing Strategy (Services for Foreign Tenants) 24

3-4-6 Leasing Strategy (Security Systems) 25

4. FY17/3 Overview of Business (Construction)

4-1 Overview of Construction Business 27

4-2 Main Indicators (Construction) 28

4-3-1 Indicator (Orders and Sales) 29

4-3-2 Indicator (Offices and Apartment Completion by Area) 30

4-4-1 Construction Strategy (Ideal Land Usage) 31

4-4-2 Construction Strategy (New Brand) 32

4-4-3 Construction Strategy (“Non-sound System”) 33

4-4-4 Construction Strategy (Elderly Care Facilities and

Stores) 34

4-4-5 Construction Strategy (Built-to-order Homes) 35

4-4-6 Construction Strategy (Strengthen After-sale Services) 36

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Contents (cont’d)

5. FY17/3 Overview of Business (Others and International)

5-1 Others (Elderly Care Business) 38

5-2 Others (Domestic Hotels Business) 39

5-3 Others (Resort Business) 40

5-4-1 Others (Solar Power Systems) 41

5-4-2 Others (Roof-lease Solar Power Systems) 42

5-5 Others (Real Estate Development Business) 43

5-6-1 International (Leasing Business Overseas) 44

5-6-2 International (Serviced Apartments/Offices) 45

5-6-3 International (Other Services) 46

Appendix 1. Corporate Data

App.1-1 Corporate Profile 48

App.1-2-1 Quarter Comparison 49

App.1-2-2 Results of Leopalace21 Group 50

App.1-3-1 Indicator (Occupancy by Group) 51

App.1-3-2 Indicator (Foreign Tenants) 52

App.1-3-3 Indicator (Units and Occupancy Rates by Area) 53

App.1-3-4 Indicator (Occupancy Rates by Building Age) 54

App.1-3-5 Indicator (Contract Type) 55

App.1-3-6 Indicator (Partners Offices and Contracts) 56

App.1-3-7 Indicator (“Azumi En” Area Disposition) 57

Appendix 1. (cont’d)

App.1-4-1 Finance (Balance Sheets) 58

App.1-4-2 Finance (Cash/Deposits and Interest-bearing Debt) 59

App.1-4-3 Finance (Cash Flows) 60

App.1-4-4 Finance (Shareholder Composition) 61

Appendix 2. Medium-Term Management Plan “EXPANDING VALUE”

App.2-1 Business and Financial Strategies 63

App.2-2 Numerical Targets 64

App.2-3 Dividend Policy 65

Appendix 3. Market Trends

App.3-1 New Housing Starts 67

App.3-2 New Housing Starts (Leased Units) 68

App.3-3 Number of Households 69

App.3-4 Vacancy in Rental Housing 70

App.3-5 Population Inflows and Outflows 71

App.3-6 International Students in Japan 72

App.3-7 Elderly Population of Japan 73

1. About Leopalace21

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1-1：Business Model

Business model

1. ConstructionPropose construction of apartments to land owners.

2. Master leaseLeopalace21 master leases the constructed apartmentsand pays a fixed rent to owners, regardless of vacancies.

3. RentLeopalace21 attracts tenants for leased apartments.

4. Rental incomeRent received from tenants.

⇒ Prior to the Lehman Collapse (2008), apartment constructionincreased supported by rising occupancy demand from thebooming secondary industry, especially in rural areas.Growth was led by the Construction Business.

⇒ After the Lehman Collapse, corporations laid off personnel,and tenant leave increased in cities near corporate factories,deteriorating Leopalace21’s earnings.

⇒ Leopalace21 is shifting to a “Leasing Business-based”business model, limiting apartment construction to areas ofhigh occupancy demand and cutting leasing costs, as wellas implementing property value enhancement measuressuch as installation of security systems.

Owners

Leopalace21

Leasing Construction

Tenants

2.MasterLease

1.Construction

4.RentalIncome

3.Rent

Leopalace21 is a real estate company with two core businesses: a Construction Business which constructs apartments mainly for single persons, and aLeasing Business which manages these apartments. By strengthening the profitability of the Leasing Business, we are moving forward to establish astock-based business model capable of generating stable profits.

302.7 334.5 342.3 356.6 380.3 383.6 388.5 399.3

410.6 416.5

327.5359.1

237.0107.8 62.9 53.3 63.1 61.3 74.1 74.5

42.7

39.5

40.9

19.9 16.2 17.2 19.1 22.526.7 29.3

672.9 733.2

620.3

484.3459.4 454.2 470.8 483.2

511.5 520.4

71.4

501

-29.7-23.6

4.57.4

13.4 14.8

21.0 22.8

-20

0

20

40

60

80

-200

0

200

400

600

800

FY08/3(Actual)

FY09/3(Actual)

FY10/3(Actual)

FY11/3(Actual)

FY12/3(Actual)

FY13/3(Actual)

FY14/3(Actual)

FY15/3(Actual)

FY16/3(Actual)

FY17/3(Actual)

Leasing Construction Others Operating profit

1-2-1：Results Trend

-5-

Sales (Billion yen) Operating profit (Billion yen)

Results Trend

After the Lehman Collapse in 2008, decrease in occupancy rates and stringent loan screening at financial institutions led to a decrease in apartmentconstruction, and Leopalace21 reported operating losses for two consecutive years. However, through structural reform measures such as leasing costcuts, operating profit was achieved for the fiscal years ended March 31, 2012 - 2017.

-40

1-2-2：Highlights of Results Trend

-6-

Highlights of Results Trend

(Billion yen) FY08/3 FY09/3 FY10/3 FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3 FY17/3

Net sales 672.9 733.2 620.3 484.3 459.4 454.2 470.8 483.2 511.5 520.4

Leasing 302.7 334.5 342.3 356.6 380.3 383.6 388.5 399.3 410.6 416.5

Construction 327.5 359.1 237.0 107.8 62.9 53.3 63.1 61.3 74.1 74.5

Operating profit 71.4 50.1 -29.7 -23.6 4.5 7.4 13.4 14.8 21.0 22.8

Leasing 3.0 -1.5 -47.8 -30.0 5.2 8.7 15.3 20.5 22.8 22.4

Construction 73.2 70.1 29.7 11.9 4.3 2.7 2.9 0.2 3.3 5.0

Net income 0.3 9.9 -79.0 -40.8 1.5 13.3 15.0 15.1 19.6 20.4

Managed units*(1,000 units)

442 506 551 571 556 546 549 554 561 568

Occupancy rate* 92.4% 88.5% 82.3% 80.1% 81.2% 82.9% 84.6% 86.6% 88.0% 88.5%

Orders received 463.0 337.8 250.2 80.3 50.0 73.0 81.1 87.3 86.4 87.1

Before the Lehman Collapse in 2008, Leopalace21’s main profit driver was the Construction Business. After the LehmanCollapse, we shifted our business model through structural reforms, generating profit from the Leasing Business.

*”Net income” refers to “net income attributable to shareholders of the parent”*Figures for managed units are as of the end of the final month for each fiscal year*Occupancy rate is the average value for each fiscal year

2. FY17/3 Results

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2-1：Highlights of Results

Highlights of Results

(Million yen)FY16/3Actual

FY17/3Plan

FY17/3Actual YoY

Comparedto Plan

Sales 511,513 528,000 520,488 +8,974 -7,512

Gross profit 88,909 94,000 92,668 +3,758 -1,332

% 17.4% 17.8% 17.8% +0.4p 0.0p

SGAE 67,823 71,500 69,769 +1,946 -1,731

Operating profit 21,085 22,500 22,898 +1,812 +398

% 4.1% 4.3% 4.4% +0.3p +0.1p

Recurring profit 19,909 21,500 22,355 +2,445 +855

% 3.9% 4.1% 4.3% +0.4p +0.2p

Net income* 19,631 18,500 20,401 +769 +1,901

Both sales and profits increased YoY. Although sales did not meet forecasts, operating profits and recurring profit exceeded forecasts. Netincome largely exceeded forecasts by a recording deffered tax asset of 2.0 billion yen.

*”Net income” refers to “net income attributable to shareholders of the parent”

-9-

2-2-1：Summary of Results (Sales and Gross Profit)

Sales Gross Profit

FY16/3 FY17/3 FY16/3 FY17/3

Sales-7.5 billion yen

compared to plan

Leasing -3.9 billion yen

Construction -8.2 billion yen

Gross profit-1.3 billion yen

compared to plan

Leasing -2.5 billion yen

Construction -0.8 billion yen

(Billion yen) (Billion yen)

FYActual511.5

FYPlan528.0

FYActual520.4

400

600

FYActual88.9

FYPlan94.0

FYActual92.6

80

100

-10-

2-2-2：Summary of Results (Operating Profit and Net Income)

Net income*+1.9 billion yen

compared to plan

Operating profit+0.3 billion yen

compared to plan

Leasing -0.9 billion yen

Construction +0.8 billion yen

Operating Profit Net Income

(Billion yen) (Billion yen)

FY16/3 FY17/3 FY16/3 FY17/3

*”Net income” refers to “net income attributable to shareholders of the parent”

FYActual21.0

FYPlan22.5

FYActual22.8

20

25

FYActual19.6

FYPlan18.5

FYActual20.4

15

20

25

Leasing Business sales and profits did not exceed forecast, but corporate demand continues to increase. Construction Business profitabilityimproved YoY and operating profit exceeded forecasts. Elderly Care profitability decreased YoY from facility establishment, but according to plan.Sales and profit in the Hotels & Resort Business decreased YoY due to sales of domestic hotels. In Other businesses, small-claims and short-term insurance business and solar power generation business increased in both sales and profits YoY and exceeded forecasts. In addition, LifeLiving Co., Ltd. contributed positively.

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2-3：Results of Business Segments

Results of Business Segments

(Million yen)FY16/3Actual

FY17/3Plan

FY17/3Actual YoY

Comparedto Plan

Le

as

ing

Sales 410,641 420,500 416,594 +5,952 -3,906

Gross profit 67,337 71,000 68,431 +1,093 -2,569

Operating profit 22,848 23,400 22,459 -389 -941

Co

ns

t-ru

ctio

n

Sales 74,160 82,800 74,566 +406 -8,234

Gross profit 20,268 22,700 21,862 +1,593 -838

Operating profit 3,340 4,200 5,051 +1,711 +851

Eld

erly

Care

Sales 10,798 12,200 11,536 +738 -664

Gross profit -127 -250 -250 -122 +0

Operating profit -1,354 -1,750 -1,650 -296 +100

Ho

tels

&R

eso

rt

Sales 11,427 8,100 7,244 -4,183 -856

Gross profit 4,151 3,300 2,828 -1,322 -472

Operating profit -697 -850 -768 -70 +82

Oth

ers

Sales 4,485 4,400 10,546 +6,060 +6,146

Gross profit 2,188 2,400 3,902 +1,713 +1,502

Operating profit 337 700 1,432 +1,095 +732

Adjust-ments

Operating profit -3,388 -3,200 -3,626 -238 -426

*16.4% *16.9% *16.4%

*27.3% *27.4% *29.3%

*Gross profit/Sales

3. FY17/3 Overview of Business(Leasing)

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3-1：Overview of Leasing Business

Indicator

Occupancy Rate

Occupancy by Group

Shares of Occupied Units by Groups

Occupied Units by Industry

Foreign Tenants

Leasing Strategy

Office Expansion

my DIY

Tenant Services

New Services

Services for Foreigners

Security Systems

Owners

Leopalace21

Leasing Construction

Tenants

MasterLease

RentalIncome

Rent

Leasing Business

Construction

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3-2：Main Indicators (Leasing)

Main Indicators (Leasing)

(Million yen)FY15/3Actual

FY16/3Actual

FY17/3Plan

FY17/3Actual

Sales 399,375 410,641 420,500 416,594

Gross profit 62,822 67,337 71,000 68,431

Operating profit 20,590 22,848 23,400 22,459

Units under management (as

of the end of FY)554,948 561,961 569,000 568,739

Occupancy rate (average) 86.57% 87.95% 89.00% 88.53%

Direct offices(as of the end of FY)

188 189 189 189

Number of corporate salessection (as of the end of FY)

59 60 60 60

Number of employees(non-consolidated, as of the end of FY)

2,989 3,150 3,234 3,284

of which, sales employees 1,558 1,662 1,720 1,701

*15.7% *16.4% *16.9% *16.4%

*Gross profit/Sales

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Occupancy Rate

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg.

FY14/3 83.32 83.67 83.69 83.50 83.84 84.28 84.23 84.31 84.12 85.61 86.92 87.47 84.58

FY15/3 86.00 86.03 85.96 85.63 85.78 86.33 86.14 86.10 85.69 87.24 88.65 89.29 86.57

FY16/3 87.88 87.61 87.59 87.32 87.26 87.70 87.26 87.14 86.89 88.38 89.80 90.53 87.95

FY17/3 88.97 88.55 88.60 87.95 87.78 88.31 87.50 87.41 86.97 88.41 90.18 91.66 88.53

3-3-1：Indicator (Occupancy Rate)

Achievement of long-term occupancy and stable rates due to increase in long-term contracts.Average occupancy rate for FY18/3 is planned to increase 1.0p YoY (FY17/3: +0.58p YoY).

※Target average occupancy rate for FY18/3: 89.5%

(Occupancy rate = Occupied units / Managed units, %)

82%

84%

86%

88%

90%

92%

94%

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

FY 2014/3 FY 2015/3 FY 2016/3 FY 2017/3 FY 2018/3

90.51%

200

300

400

500

600

0

50

100

150

200

250

300

JunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMar

FY10/3 FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3

FY17/3

Managed units (right axis)

Occupied units (right axis)

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Corporate tenants are steadily rising, but increasing the number of individual and student tenants still remains an issue.1. Promote services attending occupant needs, 2. established “Educational Institution Sales Division” as of October 2014,3. established “PCR Division (sales for public offices)” as of May 2016.

3-3-2：Indicator (Occupancy by Group)

Occupied units by Group(Thousand units)

Managed and occupied units(Thousand units)

Individuals (left axis)

Corporate (left axis)

Students (left axis)

*Figures are as of the end of each month*Reference of p.51

Occupancy by Group

49.5% 49.5% 49.4% 51.3% 51.5% 51.4% 51.1% 53.0% 53.3% 53.3% 53.0% 54.5% 54.8% 54.8% 54.8% 56.4%

38.2% 38.3% 38.3% 37.3% 37.4% 37.4% 37.6% 36.8% 36.8% 36.8% 37.0% 36.0% 36.0% 35.9% 35.9% 34.6%

12.3% 12.2% 12.3% 11.4% 11.1% 11.1% 11.3% 10.2% 9.9% 9.9% 10.1% 9.5% 9.3% 9.3% 9.3% 9.0%

458 461 461 480 473 476 474 495 488 490 487 509 500 499 493 521

0%

20%

40%

60%

80%

100%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY14/3 FY15/3 FY16/3 FY17/3

Student-occupied units Individual-occupied units Corporate-occupied units

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Both occupied units and shares of corporate tenants are steadily increasing due to reinforcement of corporate sales.

3-3-3：Indicator (Shares of Occupied Units by Groups)

*Figures are as of the end of each quarter*Reference of p.51

Shares of Occupied Units by Groups

(Thousandunits)

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3-3-4：Indicator (Occupied Units by Industry)

Other

Construction

Food service

Services

Staffing,outsourcing

Manufacturing

Retail

Shares of Occupied Units by Industry

Leopalace21 will pursue strategies of “expanding major business connections” and “cultivating ‘low-use’ business connections”while diversifying industry types of corporate tenants. Approximately 79.6% of listed companies* in Japan use Leopalace21.

*Companies listed on the 1st and 2nd sections of the Tokyo Stock Exchange, regional stock exchanges, and emerging markets

YoY +7.7% +6.6% +5.6% +6.0%

YoY

+9.1%

+3.7%

+5.1%

+1.6%

+13.9%

+0.7%

+7.4%

(Units)

43,472 46,277 47,510 48,913 49,242

24,570 29,105 32,022 34,689 39,51030,218

32,995 35,169 36,911 37,50737,380

39,188 40,878 42,837 45,03414,71014,956

16,63517,509

18,15035,096

39,78344,398

48,48952,920

43,26243,968

45,96547,913

51,461

228,708246,272

262,577277,261

293,824

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2013/3 2014/3 2015/3 2016/3 2017/3

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3-3-5：Indicator (Foreign Tenants)

Leased Units by Foreign Nationals (Excluding Corporate Contracts)

*Reference of p.52

(Units)

Foreign students are able to make lease contracts through our “LAM (Leopalace Alliance Members) school.” In addition to the openings ofoverseas offices, we are strengthening our support system for foreign customers after coming to Japan, such as the distribution of ourservice guide, providing customer services via call centers, and holding group gatherings. Foreign customers make up 3.0% of totalcontracts (7.0% of individual and student contracts). Foreign nationals comprised of students 59% and working-class 41%.

SingaporeOverseassubsidiary

Singapore

IndonesiaOverseassubsidiary

Jakarta

PhilippinesOverseassubsidiary

Manila

Myanmar 1 office Yangon

CambodiaOverseassubsidiary

Phnom Penh

ThailandOverseassubsidiary

Bangkok, Sriracha

VietnamOverseassubsidiary

Ho Chi Minh, Ha Noi

Taiwan 1 office Taipei

SouthKorea

2 offices Busan, Seoul

ChinaOverseassubsidiary

Beijing, Dalian, Shanghai,Guangzhou

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar

FY13/3 FY14/3 FY15/3 FY16/3 FY17/3

China S. Korea TaiwanVietnam Thailand Other Southeast AsiaOther

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3-4-1：Acquiring Individual Tenants (Office Expansion)

Leasing Offices

*Reference of p.56

Direct offices 189 (±0)

of which, domestic 182 (±0)

of which, overseas 7 (±0)

Partners (franchise) 119 (-11)

Total offices 308 (-11)

As of March 31, 2017(Figures in parentheses represent comparison to March 2016)

Leopalace21 will recruit tenants through direct offices including 7 overseas and franchise partners. Concerning Leopalace Partners, we willaim for “quality over quantity” and increase contracts through training. 4 direct offices opened during FY15/3 and 2 direct offices openedduring FY16/3.

* Overseas locations operating foreign realestate brokerage services not included.(Thailand, Vietnam, Cambodia, Myanmar,Philippines, Indonesia, Singapore)

0

50

100

150

200

250

300

350

400

Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec MarJun Sep Dec Mar

FY13/3 FY14/3 FY15/3 FY16/3

FY17/3

(Offices)

Direct Partners

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Contracts (Cumulative total)

Contests

Wall-art ContestWinners paint their work on the wallsof our showroom “Kagoshima-like Rooms”

Students compete in creating roomswhich best represent “Kagoshima”

Renovation PartySelf-renovation event. The concept of therenovation is “living with friends withoutinvesting a large amount of money”

In May 2012, Leopalace21 has started “my DIY” as a strategy for acquiring individual tenants. 32,240 contracts have beenacquired as of March 31, 2017, and we will continue to promote the image of “Customize = Leopalace.”

“my DIY”

Custom wallpaper for free on 1 wall. Thumbtacks,shelves, and scribbling on the wall is OK

No cost for restoring room to original state

More than 100 types of wallpaper to choose from,including patterns

Male-to-female ratio of 50:50, higher percentage offemales compared to overall occupancy (70:30)

3-4-2：Leasing Strategy (my DIY)

(# of contracts)

*"Room-Customize" has been changed to "my DIY" as of October 2016.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

JunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMarJunSepDecMar

FY13/3 FY14/3 FY15/3 FY16/3 FY17/3

32,240

Industry-academia collaborations

Leopalace Online ShoppingShopping web site with many everyday-necessities. Products made specially forLeopalace are also available.

TOKYO METROPOLITANUNIVERSITY (Tokyo)

Show-window display inShinjuku L+ designed bystudents.

KINDAI University(Osaka)Painted stairs by studentin Osaka branch.

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Rent Guarantee Business (from Apr. 2007)

Small-claims and Short-term Insurance

Business (from Sep. 2006)

Plaza Guarantee Co., Ltd(Leopalace21 100% owned subsidiary)Providing comfortable environment to alltenants by guaranteeing debts such as rents,common fees, restoration costs, etc.

Asuka SSI(Leopalace21 100% owned subsidiary)Supporting all tenants’ life by providinginsurances which cover niche fields such asan insurance for furniture and fee of tiding upruins when fire occured.

3-4-3： Leasing Strategy (Tenant Services)

Tenant services which overturn common practices of the leasing apartment industry are available through “MY PAGE,” anexclusive website for our tenants. Also, industry-academia collaborations and internships are implemented by the “EducationalInstitution Sales Division” established in October 2014.

Website for Tenants: “MY PAGE” (from Apr. 2013)

LEONET (Wireless LAN)Use the web without the hassleof contracting with internetproviders. Movies and showsare also available.Wireless LAN services startedas of April 2014.

School festival (Gunma)Participated in school festivalheld by 14 universities andcolleges with the purpose ofvitalizing the community.

Tenants

Paying “Rents”+

“GuaranteeFee”

PlazaGuarantee

LesseesPayment of

“Guarantee Fee”

Guarantee ContractsLease Contracts

Lease GuaranteeContracts

3-4-4：Leasing Strategy (New Services)

STB device “Life Stick”

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IoT with “Leo Remocon”

Open-type delivery locker “PUDO Station”

Expand functions of internet service “LEONET” (started in2002) through STB device “Life Stick” with AndroidTV

Installation planned in 560 thousand apartments

Controlling appliances with asmartphone made possibleie. control AC from outside

Standardly equipped in all newlyconstructed apartments (after Oct.2016)

Industry-first open-typedelivery locker installed inan apartment

Contribute to the localcommunity by improvingthe lives of occupants andneighbors

Life Stick LEONET my-room

LEONET TV

In order to enhance tenant services, Leopalace21 has expanded functions of its internet service and implemented an IoT devicewhich makes controlling appliances with a smartphone possible.

3-4-5：Leasing Strategy (Services for Foreign Tenants)

Global Support Center

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Orientations and exchange student gatherings

A rental management center run by foreignemployees opened in North Shinjuku in June2016

The Global Support Center will support foreigntenants in their native language, in manners suchas leasing contracts, move-ins, departures, etc.

Orientation on move-in manners held periodically

13 foreign employees (4 Chinese, 6 Vietnamese,1 Taiwanese, 1 Korean, 1 Nepalese)

Orientation on move-in manners held nationwide

47 get-togethers hosted in FY March 2017, with620 participants

Orientation on move-in manners

To expand services toward the increasing number of foreign tenants, we have opened a rental management office exclusively forforeign tenants, and hold gatherings for exchange students.

Support system for foreign tenants

Supports English, Chinese, Korean, Portuguese, andVietnamese

171 employees with foreign citizenship(non-consolidated, as of March 2017)

16 overseas offices, 7 domestic offices

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3-4-6：Leasing Strategy (Security Systems)

Orders and Sales of Security Systems

Business alliances with two major security companies

The standard equipment includes fire sensingsystems and emergency systems, in addition tosensors that detect intruders

We anticipate an increase in the percentage offemale tenants

We are seeking to meet demand for security incorporate housing(Large companies emphasize security)

Problem detected

Call subscriber, alert emergency services if necessary

3. Dispatch2. Assign

dispatch

ControlCenter

Emergencyresponse

personnel dispatched

1. Telephone circuit alert

FY16/3Actual

FY17/3Actual

Cumulativetotal

OrdersUnits 30,820 20,868 300,188

Billion yen 6.77 5.66 54.43

SalesUnits 30,099 22,709 279,609

Billion yen 6.81 5.69 52.23

Security systems have been installed in 279,609 rooms as of March 31, 2017, equivalent to 49.2% of Leopalace21 apartments.Security cameras have been installed on 10,223 buildings, equivalent to 28.1%.

Store images of the securitycameras in the cloud

4. FY17/3 Overview of Business(Construction)

-27-

4-1：Overview of Construction Business

Owners

Leopalace 21

Leasing Construction

Tenants

MasterLease

RentalIncome

Rent

Construction Business

Indicators

Orders and Sales

Offices and Sales by Area

Construction Examples

Ideal Land Usage

New Brand

Non-sound System

Elderly Care Facilities and Stores

Build-to-order homes

Strengthen After-sale service

Construction

-28-

4-2：Main Indicators (Construction)

Main Indicators (Construction)

(Million yen)FY15/3Actual

FY16/3Actual

FY17/3Plan

FY17/3Actual

Sales 61,312 74,160 82,800 74,566

Gross profit 13,223 20,268 22,700 21,862

Operating profit 211 3,340 4,200 5,051

Oders 87,395 86,439 94,000 87,139

of which, apartments and

other buildings84,679 86,439 87,139 87,139

of which, solar power

systems2,715 0 0 0

Offices(as of the and of FY)

60 60 60 60

Number of employees(non-consolidated, as of the end of FY)

1,638 1,686 1,697 1,690

of which, sales personnel 418 427 420 381

*21.6% *27.3% *27.4% *29.3%

*Gross profit/Sales

-29-

4-3-1：Indicator (Orders and Sales)

Gross Orders

*Built-to-order homes of Morizou and solar power systems installed on existing apartments are not included in “Gross orders received (buildings)”*Cancellation is not included in gross orders received.

Orders and Sales (Including Solar Power Systems)

FY15/3 FY16/3 FY17/3

Construction orders for FY17/3 trending +0.8% compared to last year.

Apartments, etc. (including Morizou)Solar power systems (excluding those generated by Leopalace21 Group)

18.1 20.7 22.4 24.2 21.3 21.5 21.7 18.8 22.2 20.525.4

20.8

0.60.0 0.0

1.00.0 0.0 0.9

0.00.0 0.1

0.00.0

0

10

20

30

Q1 Q2 Q3 Q4

(Billion yen)

(Billion yen)

FY15/3 FY16/3 FY17/3

Q1 Q2 Q3 Q4Full-year

Q1 Q2 Q3 Q4Full-year

Q1 Q2 Q3 Q4Full-year

Plan

Gross ordersreceived (Buildings*) 223 277 237 230 967 236 229 223 302 990 244 252 241 215 952

(Billion yen) 18.7 25.2 22.7 20.6 87.3 20.7 21.3 18.8 25.4 86.4 22.4 21.5 22.2 20.8 87.1

Orders outstanding(Billion yen) 46.7 57.3 64.9 58.1 58.1 66.8 65.1 65.4 66.3 66.3 72.6 71.9 74.4 67.2 -

Sales (Billion yen) 11.4 13.1 13.0 23.5 61.3 15.3 19.8 16.1 22.5 74.1 14.2 19.8 15.6 24.4 74.1

-30-

4-3-2：Indicator (Offices and Apartment Completion by Area)

Total 60 offices (As of March 2017)

Tokyometropolitan:

39 offices

Shikoku:0 offices

Hokkaido:0 offices

North Kanto:0 office

Osaka 4 officesKyoto 1 officeHyogo 2 offices

Tokyo 20 officesKanagawa 8 officesSaitama 8 officesChiba 3 offices

Construction Offices Apartments Constructed (FY17/3)

Tokyo metropolitan area makes up 55.2%, and the threemetropolitan areas (Tokyo, Kinki, and Chubu) make up76.8% of construction sales

(Buildings)

*2 offices opened in April 2015 (Tokyo) and 2 offices closed in December 2015 (Mito in North Kanto and Sakai in Osaka)

Chubu:4 offices(Aichi)

Tohoku:3 offices

(Sendai, Kohriyama)

Hokuriku,Koshinetsu:

0 offices

Kinki: 7 officesChugoku: 2 offices(Okayama, Hiroshima)

Kyushu, Okinawa:5 offices

(Fukuoka, Okinawa)

Leopalace21 will continue to place offices and operate in areas where high occupancy rates can be expected, specifically in thethree metropolitan areas (Tokyo, Kinki, and Chubu).

TokyoMetropolitan

366

Kinki101

Kyushu,Okinawa

59

Chubu42

Chugoku33

Tohoku27

Other35

-31-

4-4-1：Construction Strategy (Ideal Land Usage)

Elderly care facilitiesApartments

Matching businessbetween land owners andcare facility operators,

addressing theincreasing number

of seniors.

Products addressingneeds of tenants.Apartments are bulk-leased and managedby Leopalace21.

Built-to-order houses Stores

Construction ofconvenience stores,restaurances, andcomplex buildings withapartments on road-sidesand near stations.

Construction of built-to-order houses and housewith rooms for rent, inwhich rent income can beearned.

Leopalace21 proposes the optimal plan fit for the unique conditions of each land.

Proposals including mega-solar power plants and parking lots.Others

Lang usageproposions ofLeopalace21

Ideal Land Usage

4-4-2：Construction Strategy (New Brand)

-32--32-

“MIRANDA” “CLEINO”

New apartment brands “MIRANDA” and “CLEINO” announced in May 2015. While maintaining basic installments such assecurity systems and the industry’s top class sound-insulation, the launch of two unique brands will strengthen competitivenessand renew brand image.

Concept is “plain.”

A “plain-type” apartment brand that fits and matches toeach occupant’s needs and lifestyle.

Concept is “decorative.”

An apartment brand that proposes unique added valueand new ideas.

-33-

4-4-3：Construction Strategy (“Non-sound System”)

From April 2013, Leopalace21 apartments are standardly equipped with sound-insulating “non-sound system,” including noisereduction walls, soundproof drains, and “non-sound floors” which reduce noise levels by two ranks compared to conventionalwooden structures.

Upgraded Sound Insulation with “Non-sound System”

Sound-insulatingdrainpipesInstalled as a measure against drainagenoise. Decreases noise by 15 dB comparedto conventional models, providingenvironments similar to “libraries or midnightsuburbs.”

Non-sound floor

Reduces noise from upper floors. Insulationimproved two to three ranks compared toconventional models.

Sound-insulatingwallsImproved sound-insulation quality of walls,providing TLD-45 for wooden structures andTLD-50 for steel frame structures.

Down

15dB

Construction example

Cross section

Wooden

TLD-45

Wooden structures

Steel

TLD-50

Steel frame structures

WoodenV-model

Down

1/3

Wooden structuresV-model (option)

Steel

Down

1/3

Steel frame structures

*Figures are images

-34-

Elderly care facility(Setagaya-ku, Tokyo)

Convenience store（Osaka City, Osaka）

4-4-4：Construction Strategy (Elderly Care Facilities and Stores)

Orders and Sales of Elderly Care Facilities and Stores

Since the latter half of the fiscal year ended March 2012, Leopalace21 has started receiving orders and constructing buildingsother than apartments (elderly care facilities, stores). We are strengthening orders of elderly care facilities especially in theKanto and Chubu area.

Elderly care facility(Kawagoe City, Saitama)

Restaurant（Adachi-ku, Tokyo）

Elderly care facility(Setagaya-ku, Tokyo)

Restaurant（Toyokawa City, Aichi）

Elderly care facility(Kokubunji City, Tokyo)

Tutoring school（Tsurugashima City, Saitama）

4-4-5：Construction Strategy (Built-to-order Homes)

-35-

In addition to the luxurious homes made with kiso-hinoki wood built by subsidiary Morizou Co., Ltd., Leopalace21 has launched“○○” (maru-maru) Home, constructed using the SE (safety-engineering) method.Orders of “Taiga” from apartment owners during FY17/3 was 39 buildings (YoY +15 buildings).

Luxury custom-built “Taiga” by Morizou

Nagano-chuo SR, Nagano B

Toyama SR, Toyama B

Saku SR, Saku B

Morizou Club, Nagano B

Showa SR, Yamanashi B

High-quality SR with accommodations

SR with kiso-hinoki experience tourUtsunomiya-nishi SR, Tochigi B

Mito SR, Ibaraki B

Kumagaya SR, Saitama-Gunma B

Maebashi SR, Saitama-Gunma B

Mitaka SR, Tokyo B

Makuhari SR, Chiba B

Morizou Club, Shizuoka B

Nagoya SR, Tokai B

Yokohama SR, Kanagawa B(August 2016 open)

“○○” (maru-maru) Home

Free design is possible, such as spacious chambersand large windows, due to the SE construction method

Adapts to changing family structures by arranging floorplans

Morizou Club, Niigata B

4-4-6：Construction Strategy (Strengthen After-sale Services)

-36-

In order to differentiate from our peers, Leopalace21 has started a new service called “Life-stage Support.”Leopalace21 will support its landowners through various means in creating a optimum asset portfolio.

“Life-stage Support”

In addition to apartment management, Leopalace21 willsupport the management of various assets, such as lifeinsurance, equity, and cash

Sales personnel will periodically visit landowners tointroduce new services and information regarding assetmanagement

Three pillars

1. Asset formationLeopalace21 will assist in creating portfolios withassets such as real estate, insurance, equity, cash,etc.

2. Tax planningLeopalace21 will introduce specialists and offer thelatest information

3. Life planningLeopalace21 will help in vacation planning, offerbenefit programs, and host gatherings

Alliance with specialists

Leopalace21 has ties with banks, insurance companies,lawyers, tax accountants, judicial scriveners, etc.

Through alliance with specialists in various fields, we willoffer the latest information to landowners and help increating an optimum asset portfolio

5. FY17/3 Overview of Business(Others and International)

-38-

5-1：Others (Elderly Care Business)

*Elderly Care Business includes 78 “Azumi En” facilities in Tokyo and 8 prefectures (as of April 1, 2017)*Private residential homes include Group homes

Elderly Care Business

(Million yen)FY16/3Actual

FY17/3Plan

FY17/3Actual YoY

Compared toPlan

Eld

erly

Care

Sales 10,798 12,200 11,536 +738 -664

Gross profit -127 -250 -250 -122 +0

Operating profit -1,354 -1,750 -1,650 -296 +100

Occupancy rate (Day-service) 66.3% 76.0% 72.5% +6.1p -3.5p

Occupancy rate (Short-stay) 92.3% 90.1% 87.6% -4.7p -2.5p

Occupancy rate(Private residential homes, etc.)

92.4% 93.8% 93.0% +0.6p -0.8p

Elderly Care Business is positioned as a growth strategy area, planning to open facilities. 11 facilities opened during April ’16 toApril ‘17 totaling 78 facilities at April 1, 2017 . In order to correspond to Japan’s aging society, we plan to increase the number offacilities. We are planning to keep profitability by controlling cost of sales as well as expanding the number of facilities.

-39-

5-2：Others (Domestic Hotels Business)

Domestic Hotels Business

Hotel LeopalaceSendai

Hotel LeopalaceSapporo

Hotel LeopalaceHakata

(Million yen)FY16/3Actual

FY17/3

Plan

FY17/3

Actual YoYCompared to

Plan

Do

mestic

Ho

tels

Sales 2,124 2,000 1,914 +278 -86

Operating profit 0 -40 -42 -75 -2

Depreciation and amortization 289 250 241 -48 -9

Occupancy rate 81.0% 82.4% 84.4% +3.4p +2.0p

Occupancy rates improved due to increase in usage by client companies of the Leasing Business.*Hotel Leopalace Asahikawa and Hotel Leopalace Okayama were sold in August 2016, and 4 hotels are under operation(Sapporo, Sendai, Nagoya, Hakata)

-40-

Resort Business (Leopalace Guam)

5-3：Others (Resort Business)

(Thousand U.S. dollars)FY2015/12

Actual

FY2016/12

Plan

FY2016/12

Actual YoYCompared

to Plan

Leo

pala

ce

Gu

am

Sales $88,471 $48,100 $47,657 +63 -443

Operating profit 3,871 -1,500 -295 +1,578 +1,205

Depreciation and amortization 14,557 7,700 8,274 +443 +574

Occupancy rate (Leopalace Resort) 60.2% 58.2% 55.9% -4.3p -2.3p

Although tourists visiting Guam have not increased year-on-year, we anticipate stable earnings from an increase in usage byleasing business tenants. Usage by soldiers coming to Guam on exercises started from the end of August 2014.

Leopalace Resort Leopalace Resort Country Club

*Non-consolidated figures for Leopalace Guam*Q1-Q3 of Leopalace Guam is from January to September*Westin Resort Guam was sold in April 2016. Above figures do not include Westin Resort Guam.

FY12/3 Q2 FY12/3 Q4 FY13/3 Q2 FY13/3 Q4 FY14/3 Q2 FY14/3 Q4 FY15/3 Q2

Owner-invested Roof-lease (SPC) Roof-lease (Leopalace21 Group)

-41-*2.b.”Installments by Leopalace21 Group” are eliminated on a consolidated basis. (Reference of p.42)

-41-

5-4-1：Solar Power Systems

Solar power installments started in March 2011. Solar power systems were installed on 12,987 buildings as of March 31, 2017(roughly 59% of buildings that can be installed).

Installments by Schemes

Schemes Start FY16/3 FY17/3

1. Solar power systems installed with apartmentowners’ burden

Mar 2011 7,215 buildings (90.5MW) 7,236 buildings (90.7MW)

2. Roof-lease solar power systems Sep 2012 5,749 (91.6MW) 5,751 (91.7MW)

a. SPC and other tie-up installments Feb 2013 1,256 (24.5MW) 1,256 (24.5MW)

b. Installments by Leopalace21 Group* Dec 2013 4,493 (67.1MW) 4,495 (67.2MW)

3.Mega-solar power plants utilizing idle land Sep 2013

Tomisato,Chiba

（1.7MW）Tomisato,

Chiba（1.7MW）

Total: 12,964 (182.0MW) 12,987 (182.4MW)

(Cumulative total)

Installments by Area

(Buildings)

Tokyo-Metro4,367

Chubu2,505

Kinki1,654

NorthKanto1,203

Kyushu,Okinawa

1,171

Chugoku958

Tohoku454

Other675

0

5,000

10,000

15,000

FY15/3Q1

Q2 Q3 Q4 FY16/3Q1

Q2 Q3 Q4 FY17/3Q1

Q2 Q3 Q4

-42-

5-4-2：Others (Roof-lease Solar Power Systems)

Roof-lease Solar Power Systems by Leopalace21 Group

FY16/3Actual

FY17/3Actual

Buildings installed(at terms end) 4,493 4,495

Generating capacity(at terms end) 67.1 MW 67.2 MW

Buildings which started generation(at terms end) 4,492 4,495

Sales from selling generated power (Billion yen) 2.83 3.01

Generated power 74,200 MWh 77,600 MWh

* Includes Fukushima Pilot Project (67 buildings, 1.2 MW)* Sales from selling generated power is included in “Other Businesses”* Generated power corresponds to each period

Roof-lease solar power systems were finished installments. Selling generated power will lead to stable profits.

5-5：Others (Real Estate Development Business)

-43-

Life Living Co., Ltd., a company operating in the development, construction, and leasing of condominiums and apartments, hasbeen subsidized as of July 2016.

NameLife Living Co., Ltd.(Former SBI Life Living Co., Ltd.)

Head officeShibuya HUMAX Building (2F),1-14-6 Dogenzaka, Shibuya-ku, Tokyo

President andCEO

Hideki Suzuki

EstablishedAugust 2015(Establishment prior to company split-up:February 1990)

Businessoperations

Planning, development, sale ofinvestment real estate

OfficesTokyo Head Quarter, Nagoya Brunch,Fukuoka Brunch

Employees 50 (as of March 2017)

Capital 100 million yen

URLhttp://www.lifeliving.co.jp/(Japanese only)

Branche Series Overview of Life Living

Apartments emphasizing design and functionality, fittingsmall or deformed land

Constructing four-story buildings under 10 m is possibleusing the patented “TEN-FOUR CUBE constructionmethod”

Busan

DalianBeijing

Shanghai

GuangzhouTaipei

Introduce Japaneseapartments

Foreign realestate brokerage

Both businesses

Bangkok

Ho Chi Minh

Phnom Penh

YangonHa Noi

Manila

Seoul

Jakarta

Sriracha

5-6-1：International (Leasing Business Overseas)

Leasing Business Overseas

Foreign offices, subsidiaries

South Korean JV “Woori & Leo PMC”

Established with South Korea’s largestresidential property management company

Woori & Leo PMC will provide South Korea’sfirst systematic leasing management services

Full-scale operations started after the locallaw enactment on February 2014, with 1,118managed units as of March 31, 2017

Introduce Japaneseapartments toforeigners

Foreign real estatebrokerage targetingJapanese individualsand companies

Promotingbusinesses ofserviced apartmentsand serviced offices

Traditional

In the future

-44-

China Beijing, Dalian, Guangzhou, Shanghai

South Korea Busan, Seoul

Taiwan Taipei

Thailand Bangkok, Sriracha

Vietnam Ho Chi Minh, Ha Noi

Cambodia Phnom Penh

Myanmar Yangon

Philippines Manila

Indonesia Jakarta

Singapore Singapore

Leopalace21 will expand its leasing business overseas. In addition to introducing Japanese apartments to foreigners, we hae started foreign realestate brokerage services in Southeast Asia targeting Japanese individuals and companies. Also, we have entered the Korean market through aleasing management venture with a local enterprise. We have started operations at a subsidiary in Singapore, with the purpose of gatheringinformation and investigating real estate investments..

Type Location Starting date No. of rooms

Serviced officePhilippines (Makati) November 2015 43 rooms

Myanmar (Yangon) April 2016 14 rooms

Serviced apartment

Thailand (Sriracha) October 2015 8 stories, 72 rooms

Vietnam (Hanoi) August 2016 10 stories + basement, 56 rooms

Cambodia (Phnom Penh) January 2017 (Planned) 14 stories + basement, 56 rooms

5-6-2：International (Serviced Apartments/Offices)

-45-

List of Serviced Offices and Serviced Apartment

Thailand(Serviced apartment)Room

Hanoi(Serviced Apartment)Living room

Cambodia(Serviced apartment)

will open September, 2017

Philippines(Serviced office)

Meeting space

We have started construction and operation of serviced apartments and serviced offices in Thailand, the Philippines, Myanmar, andCambodia.

Hanoi

5-6-3：International (Other Services)

-46-

World Business Support (WBS)

Leopalace21 has started a new service “World Business Support”, in which the company will support the Japanese working overseas. In addition,we will open a serviced office in the Philippines. Also, in response to the shortage of construction labor supply, we have begun supporting theacceptance of technical intern trainees by our partnering contractors (50 since July 2015), in cooperation with the Technical Intern TrainingProgram (TITP).

In cooperation with TITP, we have supported the acceptanceof 50 Vietnamese intern trainees by our partnering contractors

Assigned to companies (builders) after practical and languagetraining in Vietnam and language training in Japan

The fifth group (11 trainees) and the sixth group (8 trainees)assigned from June

Acceptance of Foreign Technical Intern Trainees

Overseas Estate Intermediary

Business Travel Management

Other supports

• Arrangement of flight tickets

• Visa acquisition

• Hotel arrangement

• Arrangement of rental cars, etc.

• Management, sublease, sale ofvacant houses

• Purchase and brokerage of usedcars

• Medical examination, vaccination

• Moving abroad, brokerage

• Overseas estate intermediary

• Operation and management ofserviced apartments andserviced offices

Practical construction training

Language training

On the job training

Appendix 1. Corporate Data

-48-

App.1-1：Corporate Profile

Corporate Data (as of March 31, 2017)

Shareholder Composition (as of March 31, 2017)

Group Companies (as of March 31, 2017)

Company Name Leopalace21 Corporation

Head Office 2-54-11 Honcho, Nakano-ku, Tokyo

TEL. +81-3-5350-0001 (Main Line)

Established August 17, 1973

Paid-in Capital 75,282 million yen*1

President President and CEO Eisei Miyama

Operations

Construction, leasing and sales of apartments,

condominiums, and residential housing; development

and operation of resort facilities; hotel business;

broadband business; and elderly care business, etc.

Employees 7,695 (consolidated), 6,542 (non-consolidated)Authorized Shares 500,000,000

Outstanding Shares 267,443,915

Shareholders 64,976 (as of March 31, 2017)

Hote

ls&

Reso

rtO

ther

Leasi

ng

Const

ru-c

tion

Woori & Leo PMCLeasing management

in South Korea

Leopalace21(Thailand)

Real estate brokeragein Thailand

LeopalaceLeasingCorporate

housing agent

Leopalace21Business Consulting

(Shanghai)Tenant recruitment¥

LEOPALACE21VIETNAM

Real estate brokeragein Vietnam

Plaza GuaranteeRent guarantee

Leopalace21(Cambodia)

Real estate brokeragein Cambodia

Leopalace PowerPower generation

Leopalace GuamResort Business

ASUKA SSITenant contents insurance

Azu Life CareElderly care service

Leopalace EnergyPower producer

and supplier

WING MATEBusiness travel

management

Leopalace SmileSpecial subsidiary

MorizouCustom-built homes

PT. LeopalaceDuasatu Realty

Real estate brokeragein Indonesia

LEOPALACE21PHILIPPINES INC.Real estate brokerage

in the Philippines

Leopalace21Singapore Pte. Ltd.Investment consulting

Life LivingReal estate development

Individuals and Other20.46%

Business Corporationsand Other Legal Entities

2.64%

Foreign Corporations49.71%

Financial Institutions23.57%

Financial InstrumentsBusiness Operations

(Securities Companies)1.90%

Treasury Stocks1.71%

-49-

(Million yen)

Q1

Apr – Jun

Q2

Jul – Sep

Q3

Oct – Dec

Q4

Jan – Mar

FY16/3

Actual

FY17/3

Actual

FY16/3

Actual

FY17/3

Actual

FY16/3

Actual

FY17/3

Actual

FY16/3

Actual

FY17/3

Actual

Sales 124,728 125,998 127,878 129,192 124,256 125,443 134,650 139,854

Leasing 102,213 104,413 101,674 103,002 101,421 102,888 105,332 106,289

Construction 15,423 14,339 19,920 19,939 16,149 15,711 22,665 24,575

Elderly Care 2,677 2,770 2,693 2,879 2,701 2,945 2,726 2,942

Hotels & Resort 3,159 3,070 2,379 1,229 2,979 1,464 2,909 1,480

Others 1,254 1,404 1,209 2,142 1,004 2,433 1,016 4,565

Operating profit 4,425 5,646 6,266 5,690 5,238 4,464 5,155 7,095

Leasing 5,746 6,288 6,752 5,461 5,973 5,326 4,376 5,382

Construction -461 -101 856 1,614 461 479 2,483 3,059

Elderly Care -277 -474 -298 -368 -358 -392 -419 -415

Hotels & Resort 97 378 -398 -494 -87 -257 -308 -394

Others 286 419 224 384 19 202 -193 426

App.1-2-1：Quarter Comparison

Quarter Comparison

(Million yen)FY16/3Actual

FY17/3

Plan

FY17/3

Actual YoYCompared

to Plan

Leopalace21Sales 495,146 510,400 499,218 +4,071 -11,182

OP 20,444 21,800 21,704 +1,259 -96

Leopalace LeasingSales 1,848 1,400 1,572 -276 +172

OP 158 200 363 +205 +163

Plaza GuaranteeSales 4,443 4,300 4,278 -254 -22

OP 136 -100 51 -173 +151

Leopalace GuamSales 10,713 6,500 6,573 -4,140 +73

OP 468 200 185 -283 -15

WING MATESales 3,217 3,100 2,544 -672 -556

OP -6 0 -42 -35 -42

ASUKA SSISales 1,595 1,700 1,736 +141 +36

OP 182 200 298 +116 +98

Leopalace PowerSales 2,701 2,700 2,868 +167 +168

OP -0 100 303 +303 +203

Others &Exclusions

Sales -8,241 -2,100 1,695 +9,937 +3,795

OP -386 100 32 +419 -68

-50-

App.1-2-2：Results of Leopalace21 Group

Results for Leopalace21 and Major Subsidiaries

FY15/3 FY16/3 FY17/3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Units under management 550,514 551,545 552,966 554,948 557,017 558,457 560,076 561,961 564,378 565,228 567,008 568,739

A. Occupied units 473,197 476,163 473,862 495,487 487,900 489,771 486,626 508,720 500,045 499,143 493,144 521,298

Occupancy rate (average) 86.0% 85.9% 86.0%88.4%

FY86.6%87.7% 87.4% 87.1%

89.6%FY88.0

%88.7% 88.0% 87.3%

90.1%FY88.5%

B. Corporate-occupied units 243,588 244,967 242,293 262,577 259,923 260,978 257,751 277,261 273,908 273,516 270,022 293,824

Corporate share (B / A) 51.5% 51.4% 51.1% 53.0% 53.3% 53.3% 53.0% 54.5% 54.8% 54.8% 54.8% 56.4%

C. Individual-occupied units 176,885 178,186 178,228 182,142 179,748 180,335 179,883 183,008 179,785 179,393 177,076 180,617

Individual share (C / A) 37.4% 37.4% 37.6% 36.8% 36.8% 36.8% 37.0% 36.0% 36.0% 35.9% 35.9% 34.6%

D. Student-occupied units 52,724 53,010 53,341 50,768 48,229 48,458 48,992 48,451 46,352 46,234 46,046 46,857

Students share (D / A) 11.1% 11.1% 11.3% 10.2% 9.9% 9.9% 10.1% 9.5% 9.3% 9.3% 9.3% 9.0%

*Occupancy rate is the average value for each period (full-year or quarter)*Figures for units under management and occupied units are as of the end of the final month for the relevant period

App.1-3-1：Indicator (Occupancy by Group)

Occupancy by Group

-51-

-52-

App.1-3-2：Indicator (Foreign Tenants)

Units Occupied by Foreign Tenants (Chintai Contracts*)

*Figures are as of the end of the final month for the relevant period*Chintai contracts are long-term (more than one year) leasing contracts with monthly rent payments

Foreign customers make up 3.0% of total contracts (7.0% of individual and student contracts). Foreign nationals comprised ofstudents 59% and working-class 41%. Vietnam, the second highest in occupied units, is steadily increasing.

(Units)

FY15/3 FY16/3 FY17/3

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

China 5,906 6,297 6,652 7,033 6,320 6,336 6,446 6,627 6,056 6,027 5,879 6,490

South Korea 1,272 1,293 1,325 1,336 1,322 1,349 1,438 1,447 1,412 1,415 1,424 1,479

Taiwan 613 618 659 747 706 760 826 949 913 920 918 951

SoutheastAsia

2,018 2,326 2,571 2,859 2,750 2,876 2,987 3,116 3,067 3,194 3,140 3,708

of which,Vietnam

1,231 1,496 1,717 1,995 1,886 1,947 2,063 2,142 2,097 2,186 2,136 2,604

Others 1,993 2,133 2,213 2,391 2,388 2,506 2,633 2,874 2,820 2,885 2,951 3,199

of which,

North America434 444 450 499 496 499 528 567 547 560 562 610

Total 11,802 12,667 13,420 14,366 13,486 13,827 14,330 15,013 14,268 14,441 14,312 15,827

-53-

App.1-3-3：Indicator (Units and Occupancy Rates by Area)

(1,000units)

FY16/3 FY17/3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Managedunits

Occupancy rate

Managedunits

Occupancy rate

Managedunits

Occupancy rate

Managedunits

Occupancy rate

Managedunits

Occupancy rate

ManagedUnits

Occupancy rate

ManagedUnits

Occupancy rate

ManagedUnits

Occupancy rate

Hokkaido 14 86% 14 86% 14 82% 14 82% 14 86% 14 86% 14 82% 14 85%

Touhoku 35 93% 35 94% 35 92% 35 94% 35 93% 35 94% 35 92% 35 94%

NorthKanto

40 83% 40 83% 41 82% 40 85% 40 83% 40 83% 41 82% 41 87%

Tokyo-metro

163 89% 164 88% 165 87% 162 93% 163 89% 164 88% 165 87% 166 93%

Hokuriku,Koshinetsu

41 86% 41 86% 41 85% 41 88% 41 86% 41 86% 41 85% 41 90%

Chubu 88 88% 88 88% 88 87% 88 89% 88 88% 88 88% 88 87% 88 91%

Kinki 80 88% 80 88% 80 86% 80 91% 80 88% 80 88% 80 86% 81 91%

Chugoku 39 91% 39 92% 39 90% 38 93% 39 91% 39 92% 39 90% 39 94%

Shikoku 15 87% 15 86% 15 85% 14 87% 15 87% 15 86% 15 85% 15 90%

Kyushu,Okinawa

50 91% 50 91% 50 90% 50 91% 50 91% 50 91% 50 90% 50 94%

Total 564 89% 565 88% 567 87% 562 91% 564 89% 565 88% 567 87% 569 92%

Managed Units (1,000 units) and Occupancy Rates by Area

-54-

App.1-3-4：Indicator (Occupancy Rates by Building Age)

Occupancy Rates by Building Age (as of March 31, 2017)

Occupancy Rates by Area (as of March 31, 2017)

92.6% 96.8% 97.5% 95.6% 97.8% 93.2% 91.2% 88.5% 91.7%

0%

50%

100%

1 year 2 years 3 years Under 3years

Under 5years

5-10 years 10-15 years Over 15years

Total

96.2% 95.7% 96.5%92.9%

95.8% 97.6% 96.7% 94.8% 93.7%95.9%

96.9% 96.2% 97.1%94.4%

96.5% 97.9% 97.2%95.0% 94.5%

96.5%

94.2% 91.1% 93.7% 91.4% 92.6% 94.5% 91.7% 92.7% 93.0% 92.9%

70%

80%

90%

100%

Tokyo Saitama Kanagawa Chiba TokyoMetro

Aichi Osaka Kyoto Hyogo 3-metroareas

Under 3 years Under 5 years Total

1. Chintai (General) Contract

• No deposit or brokerage fee

• Monthly payments

• Contracts for more than one year

2. Monthly Contract

• Equipped with basic furniture andappliances

• No utility cost

• One-time payment

• Contracts starting from 30 days

-55-

App.1-3-5：Indicator (Contract Type)

Tenants by Contract Type Two Types of Contracts

Due to promotion of long-term tenancies, shares of short-term “monthly contracts” have decreased.

(Thousand units)

108(26%)

107(24%)

104(23%)

114(24%)

94(20%)

79(17%)

68(14%)

58(12%)

52(10%)

52(10%)

306336 357 365

370 384 412 438 457 469

414442

462478

464 463480

495 509 521

0

50

100

150

200

250

300

350

400

450

500

550

'08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3

Chintai (General) Monthly

-56-

Partner and Direct Offices, and Contracts by Partners

FY15/3 FY16/3 FY17/3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Partner offices 152 149 143 141 135 132 130 130 127 120 117 119

Direct offices(domestic)

179 179 180 180 180 181 182 182 182 182 182 182

Total leasing offices 331 328 323 321 315 313 312 312 309 302 299 301

Contracts by Partners 6,736 7,079 6,748 9,065 6,317 6,724 6,903 9,068 5,791 5,939 5,819 8,153

Leasing Offices by Area (as of March 31, 2017)

Hokkaido TohokuNorthKanto

Tokyo-metro

Hokuriku,Koshinetsu

Chubu Kinki Chugoku ShikokuKyushu,Okinawa

Partner offices 2 7 5 33 9 16 14 11 5 17

Direct offices(domestic)

9 15 14 49 13 24 25 11 5 17

Total leasingoffices

11 22 19 82 22 40 39 22 10 34

App.1-3-6：Indicator (Partners Offices and Contracts)

*Figures for offices are as of the end of the final month for the relevant period*Contracts by Partners are quarterly based

-57-

App.1-3-7：Indicator (“Azumi En” Area Disposition)

Elderly Care Facilities “Azumi En” Area Disposition (76 as of February 1, 2017)

(Number of facilities)

Tokyo

Kanagaw

a

Chib

a

Saita

ma

Toch

igi

Ibara

ki

Gunm

a

Gifu

Aich

i

Tota

l

Facilities which include elderlyhomes with nursing careservices

1 1 1 3 2 8

Facilities which includeresidential style elderly homes

1 5 2 3 2 1 14

Day-services and Short-stays 4 2 13 18 2 6 3 2 4 54

Group homes 1 1 2

Total 6 4 20 23 7 8 4 2 4 78

★ Elderly homes with nursing care services, Day-services, Short-stays

Elderly homes with nursing care services, Short-stays

■ Elderly homes with nursing care services, Day-services

● Elderly homes with nursing care services

★ Residential style elderly homes, Day-services, Short-stays

Residential style elderly homes, Short-stays

● Residential style elderly homes

○ Group homes

▲ Day-services, Short-stays

● Day-services

Short-stays

Legend

“Azumi En Kisarazu” (the first elderly care facility managed by subsidiary “Azu Life Care”) opened on November 1, 2014.9 facilities opened during FY March 2017.

Gifu

Kasugai

Kakamigahara

Moriyama*Nishi-Funabashi opened in February, 2017

*Grande Sakura opened in April, 2017

*Takasaki opened in April, 2017

SekigawaHorigome

OtaTatebayashi

Hanyu

KanumaUtsunomiya

Yaita

Shimodate

Yuki

KogaKoga-Chuou

Iwai

Nogi

Shinkoga

TsuchiuraKokinuYanagisawa

Showa

Minamisakurai

InaKitamoto

GyodaHigashi-Matsuyama

Honjyo

Chichibu

Ome

Hirasawa

Tatemachi Nakano

Yamakita

Tsurumaki

Tsukuihama

Ichihara

OyumiKatsuragi

WakabaIno

TakaokaNakazawaNamikicho

MisakiTakatsukashinden Tokiwadaira

SakasaiAbiko

Takamihara

KomakidaiSouka

Irumagawa

Sayama

Komuro

MizuhoMihashi

Goseki

Hanasaki-nookaAgeo

YoshikawaGamou

Yashio

Kisarazu

Shimizukoen

Katsu-tadai

Hamura

Tochigi-DaichoIsezaki

Gifu

AnjoAichi

Toyata

Hiratsuka

Higashi-Yamato

KamagayaNishi-Funabashi

●Sakura*

Takasaki*

-58--58-

App.1-4-1：Finance (Balance Sheets)

(Million yen) FY16/3 FY17/3

Assets

Cash and cash equivalents 88,043 104,432

Trade receivables 6,779 6,547

Accounts receivables forcompleted projects

1,992 2,355

Prepaid expenses 2,847 2,827

Deferred tax assets (short-term) 6,377 8,636

Current assets 114,904 133,786

Buildings and structures 57,979 41,827

Machinery, equipment, and vehicles 16,105 14,206

Land 84,241 80,388

Leased assets 9,417 13,652

Intangible assets 9,334 11,642

Long-term prepaid expenses 3,686 3,820

Deferred tax assets (long-term) 16,734 17,486

Fixed assets 212,033 203,489

Total assets 327,609 337,828

(Million yen) FY16/3 FY17/3

Lia

bilitie

s

Interest-bearing debt (short-term) 6,003 5,229

Accounts payable for completed projects 12,193 12,186

Advances received 40,766 40,003

Current liabilities 97,449 97,524

Interest-bearing debt (long-term) 34,107 29,302

Reserve for apartment vacancy loss 3,802 3,183

Lease/guarantee deposits received 7,516 7,152

Long-term advances received 18,950 16,614

Long-term liabilities 85,294 81,433

Total liabilities 182,743 178,958

Ne

ta

sse

ts

Common stock 75,282 75,282

Capital surplus 45,235 45,235

Retained earnings 24,779 39,923

Total net assets 144,865 158,870

Shareholders’ equity ratio 44.2% 47.0%

Balance Sheets

Total assets increased 10.2 billion yen, total liabilities decreased 3.7 billion yen, and total net assets increased 14.0 billion yen YoY.

31.435.6

40.134.5

74.7 75.2

88.0

104.4

-0.42

-0.31-0.33

-0.44

-0.60

-0.40

-0.20

0.00

0.20

0.40

0

20

40

60

80

100

120

FY14/3 FY15/3 FY16/3 FY17/3

(Ratio)(Billion yen)

Interest-bearing debt Cash Net DE ratio

-59-

App.1-4-2：Finance (Cash / Deposits and Interest-bearing Debt)

NDE Ratio

*Net DE ratio = (Interest-bearing debt – Cash) / Shareholders’ equity*Lease obligations are not included in interest-bearing debt

*

-14.0

-8.6

27.5

1.3

-11.0

22.1

-20

-10

0

10

20

30

Cash flows fromfinancing activities

Cash flows frominvesting activities

Cash flows fromoperating activities

-60-

App.1-4-3：Finance (Cash Flows)

Cash Flows

(Billion yen)(Billion yen)

FY16/3 Full year FY17/3 Full year

・Income before income taxes +21.6 bn yen

・Deprecation +9.7 bn yen

・Decrease in advances received -3.1 bn yen

・Income taxes paid -3.8 bn yen

・Dividends paid to non-contorolling interests -5.2 bn yen

・Payment for redemption of bonds -4.3 bn yen

・Repayment of long term debt -1.4 bn yen

・Proceeds from sale of hotels etc . +16.7 bn yen

・Payment for deposit of fixed deposits -11.8 bn yen

・Payment for purchase of intangible assets -5.4 bn yen

・Payment for purchase of property etc. -4.3 bn yen

・Payment for purchase of investment securities

(Development type SPC etc.) -2.7 bn yen91.7

86.8

80

100

Cash and cash equivalentsat end of period

-61-

App.1-4-4：Finance (Shareholder Composition)

*Based on number of stock

Shareholder Composition

Institutional investors make up 71.2% of our shareholder composition, with 49.7% in foreign corporations and 21.5% in trust banks.

2013/3 2013/9 2014/3 2014/9 2015/3 2015/9 2016/3 2016/9 2017/3

Individuals and other 27.5% 19.8% 20.7% 17.1% 16.7% 18.3% 16.6% 15.3% 20.5%

Foreign corporations 42.8% 48.6% 49.1% 46.8% 50.7% 55.3% 54.6% 55.3% 49.7%

Trust banks 12.8% 17.5% 17.6% 23.6% 23.2% 17.6% 21.0% 21.5% 21.5%

Financial institutions other than trust banks 3.6% 2.5% 1.7% 1.9% 1.9% 1.9% 2.1% 2.1% 2.0%

Business corporations and other legal entities 7.8% 7.8% 6.9% 6.6% 2.5% 2.6% 2.4% 2.4% 2.6%

Securities companies 3.5% 1.7% 2.4% 2.3% 3.4% 2.5% 1.7% 1.7% 1.9%

Treasury stock 2.1% 2.1% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%

0%

50%

100%

Appendix 2.Medium-term Management Plan “EXPANDING VALUE”

(Announced May 2014)

-63-

App.2-1：Business and Financial Strategies

Business Strategies

Financial Strategies

Leasing Improve occupancy rates by expanding tenant servicesFY March 2017:Annual average occupancy rate 89.0%

Construction Expand construction variations based on “ideal land usage”FY March 2017:Forecast sales 100 billion yen

Elderly Care Open new facilities in collaboration with the Construction businessMarch 2014: 61 facilities⇒ March 2017: 90 facilities

Hotels & Resort High quality hospitality to stakeholders

Solar Power(Other)

Start roof-lease solar power business utilizing funds raised throughpublic offering

FY March 2015:Installments/generation on 2,900 buildings

International(Leasing, Other)

Start real estate brokerage services in AsiaConsidering development and operations of service apartments

March 2014: 10 locations⇒ March 2017: 20 locations

Basic policy: “Focus on core businesses and challenging itself with new business fields”

Management emphasizing cash flows

Strengthen soundness of financial structure(Improve shareholders’ equity ratio)

FY March 2017: Shareholders’ equity ratio 48.0%Active reinvesting in growth areas

Resumption of dividendsAchieve positive retained earnings (non-consolidated) by stacking up profitsResumption of dividends at an early stage

-64-

App.2-2：Numerical Targets

Medium-term Management Plan “EXPANDING VALUE” Numerical Targets

(Billion yen)FY14/3Actual

FY15/3Plan

FY16/3Actual

FY17/3Plan

FY17/3Actual

Sales 470.8 483.2 511.5 528.0 520.4

Operating profit 13.4 14.8 21.0 22.5 22.8

Recurring profit 11.3 13.4 19.9 21.5 22.3

Net income 15.0 15.1 19.6 18.5 20.4

Shareholders’ equity ratio 35.7% 40.4% 44.2% 48.0% 47.0%

ROE 18.9% 13.2% 14.6% 12.0% 13.4%

EPS (yen) 66.3 57.7 74.7 70.4 77.6

ROA 5.5% 5.1% 6.2% 5.6% 6.1%

Average occupancy rate 84.6% 86.6% 88.0% 89.0% 88.5%

Profit targets exceeded plan for tree cumulative years.Operating profit: Plan 56.0 billion yen ⇒ Actual 58.6 billion yen, Recurring Profit: Plan 52.0 billion yen ⇒ 55.6 billion yen,Net income: Plan 47.0 billion yen ⇒ 55.1 billion yen

App.2-3：Dividend Policy

Dividend Forecast

FY15/3 Actual(March 31, 2015)

FY16/3 Actual(March 31, 2016)

FY17/3 Plan(March 31, 2017)

Q2 0.00 yen 0.00 yen 10.00 yen

End of FY 0.00 yen 10.00 yen 12.00 yen

Annual 0.00 yen 10.00 yen 22.00 yen

Total Cash Dividends (Annual) 0 million yen 2,628 million yen 5,783 million yen

Dividend Payout Ratio 0% 13.4% 28.3%

Dividend Policy

Concerning the dividend payout ratio, we will set a medium term goal of 30% (in respect to consolidated netincome), in addition to maintaining a stable dividend.

Aiming to maximize mid- to long-term corporate value and increase EPS (earnings per share) throughinvestments in matters such as real estate, overseas businesses, mergers and acquisitions, IT, and research anddevelopment.

-65-

Year-end dividend of 10 yen per share paid at the end of FY16/3, the first dividend in seven years.Dividend payout ratio of 31.3% planned in FY17/3.

Appendix 3. Market Trends

-67-

App.3-1：New Housing Starts

New Housing Starts by Fiscal Year

After the Lehman collapse, new housing starts have been on an increasing trend, +5.8% yoy during FY17/3 meaning increased two consecutiveyears. Negative effects of the rush demand from the increase in consumption tax began to fade and new housing starts of leased units such asapartment constructions are increasing aiming tax-reduction.

*Excerpted from “Housing Start Statistics” (Ministry of Land, Infrastructure and Transport)

YoY

+11.4%

+2.6%

+6.8%

-5.1%

-0.7%

Consumption tax increased from 3% to 5% in April 1997

Leased units starts +9.3% yoy, total housing starts +9.8% yoy in FY1996

Leased units starts -16.3% yoy, total housing starts -17.7% yoy in FY19971,5611,485

1,630

1,341

1,1801,226 1,213

1,173 1,146 1,174 1,1931,249

1,285

1,036 1,039

775819 841

893

987

880921

974

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

(Thousand units)

Leased units Condominiums House for sale Owner-occupied houses Company housing

-68-

App.3-2：New Housing Starts (Leased Units)

New Housing Starts of Leased Units by Fiscal Year

Leased units starts during FY17/3 increased 11.4% yoy, of which leased units under 30 ㎡ increased 25.5% yoy.

*Excerpted from “Housing Start Statistics” (Ministry of Land, Infrastructure and Transport)

(Thousand units)

+25.5%

+8.7%

YoY

149 117 126 128 114 102 80 80 97 104 108 113 123 128 112 11760 39 31 31 36 48 61 76

652

574 564

616

516

444426 418

442 455 459 467

518538

431 445

311292 290

321

370 358384

427

0

100

200

300

400

500

600

700

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Leased units under 30㎡ Leased units over 30㎡

Number of general households are predicted to decrease, but single-person households, which are Leopalace21’s main targets,are expected to increase, especially in the age group over 35. Single-person households in the working age population, whichare also our target, is expected to stay flat for the next 20 years.

-69-*Excerpted from “Future Estimates of Households in Japan” (2013, Institute of Population Problems)

App.3-3：Number of Households

Number of General Households by Family Category Number of Single-person Households by Age

(Thousand units) (Thousand units)

2,178 2,060 1,901 1,885 1,760 1,645 1,515

2,971 2,999 2,810 2,531 2,441 2,311 2,147

5,4446,745 6,737 7,175 7,440 7,464

7,172

3,865

4,9806,970 6,679 7,007 7,298

7,62214,458

16,784

18,418 18,270 18,648 18,718 18,456

0

5,000

10,000

15,000

20,000

2005 2010 2015 2020(E)

2025(E)

2030(E)

2035(E)

under 25 25-34 35 - 64 over 65

14,457 16,785 18,417 18,270 18,648 18,718 18,457

9,63710,269

10,718 11,037 10,973 10,782 10,500

14,64614,474

14,288 13,814 13,132 12,340 11,532

4,1124,535

4,747 5,338 5,558 5,6485,645

6,2125,779

5,161 4,594 4,127 3,7433,421

49,06351,842

53,331 53,053 52,439 51,23149,555

0

10,000

20,000

30,000

40,000

50,000

60,000

2005 2010 2015 2020(E)

2025(E)

2030(E)

2035(E)

Singles Married couples

Married couples with child Single parents with child

Others

(29.5%) (32.4%) (33.3%) (37.2%)(36.5%)(35.6%)(34.4%)

1,834

2,3362,619

3,520

3,978

4,4764,601

12.4%

14.3% 14.3% 17.4%18.8%

20.1% 20.0%

0%

5%

10%

15%

20%

25%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1983 1988 1993 1998 2003 2008 2013

Number of vacant houses for rent or sale (left axis) Vacancy rate (right axis)

-70-

App.3-4：Vacancy in Rental Housing

Number of vacant rental housing and vacancy rate in Japan

*Excerpted from “Housing and Land Survey” (2013, Ministry of Internal Affairs and Communications)

Vacancy in Japan’s rental housing has been increasing consistently. Since nationwide recovery in demand is not desirable,strategies such as building apartments in areas where high occupancy rates are expected, developing competitive products, andvalue-adding measures meeting the needs of tenants.

(Thousand units)

-71-

App.3-5：Population Inflows and Outflows

Net population inflows (“-” represent outflows)in 3-metro areas

*Excerpted from “report on internal migration in Japan derived from the basic resident registers” (Ministry of Internal Affairs and Communications)

Net inflow of domestic migration into the three metro areas (Tokyo, Chubu, Kinki) continues, and Leopalace21 concentratesapartment construction in these areas with high leasing demand.

(No. of people) 2014 2015 2016

Tokyo 76,027 84,231 74,324

Saitama 18,375 18,077 21,702

Kanagawa 14,887 17,276 16,093

Chiba 6,759 8,039 13,163

Tokyo-metro 116,048 127,623 125,282

Aichi 7,978 10,518 8,968

Osaka -1,666 906 404

Kyoto -1,529 -638 -1,028

Hyogo -7,407 -7,366 -6,305

3-metro areas 113,424 131,043 127,321

(No. of people) 2014 2015 2016

Sendai 2,050 1,140 615

Nagoya 4,442 6,252 5,934

Kyoto 721 917 -121

Osaka 6,525 11,076 8,846

Kobe -1,129 -396 -550

Okayama 345 -162 -667

Hiroshima -528 289 119

Fukuoka 6,564 7,680 7,287

Net population inflows (“-” represent outflows)near Leopalace21 offices

*Excluding Tokyo-metro area

163,697 161,848 161,145

184,155

208,379

0

50,000

100,000

150,000

200,000

250,000

2011 2012 2013 2014 2015

People

Private156,367

75%

Public52,01225%

-72-

App.3-6：International Students in Japan

International Students in Japan

*Excerpt from “Result of an Annual survey of International Students in Japan 2015” (Japan Student Services Organization)

International students in Japan are increasing every year.75% live in private housing (not set up by schools or government), leading to continuing leasing demand.

International Students by Housing

75% of international students inJapan live in private housing(+5,306 year-on-year)

Public housing are set up byschools, local government, etc.

(As of May 2015)(People)

-73-

App.3-7： Elderly Population of Japan

Japanese population

The elderly population of Japan, as well as the ratio of people certified for long-term care/ support needs, is expected to increase.

2010 2016 2025 (compared to 2016)

Total Population 128,050 127,000 120,650 (-6,350)

Over 65 (thousand people) 29,480 34,610 36,570 (+1,960)

Ratio to total population (%) 23% 27% 30% (+3p)

Over 75 (thousand people) 14,190 16,970 21,790 (+4,820)

People certified for long-term care/support needs (thousand people)

4,870 6,210 7,150 (+940)

Ratio to people over 65 (%) 16% 18% 20% (+2p)

*Excerpt from “Survey on Long-term Care Insurance” (Ministry of Health, Labor and Welfare)

0

1,000

2,000

3,000

4,000

5,000

6,000

10,000

10,500

11,000

11,500

12,000

12,500

13,000

2010 2012 2014 2016 2025（E）

Total Population(Left Axis)

65-75(Right Axis)

over 75(Right Axis)

0

5

10

15

20

25

(Thousand people)(%) (Thousand people)

16%17%

18% 18%

20%

People Certified for Long-Term Care/Support Needs (Left Axis)