Message from the President

Our business is to provide solutions to people and housing related issues through our corporate philosophy: Creation of New Value.

We would like to thank all of our stakeholders for their continued support. With a corporate philosophy of creating new value, we have been providing all kinds of values to the society through housing-related businesses since our establishment in 1973. The provision of studio type apartments equipped with furniture, home appliances, and Internet connectivity is the typical examples of our solutions. We have now grown to a scale where our sales exceeded JPY 400 billion. On the other hand, we are very sorry for the concern and inconvenience we have caused to our stakeholders since the revelation of the construction defects problem in 2018. Currently, we are putting compliance as the top priority,taking thorough measures to prevent recurrence of the problem and strengthening governance as the basis of our business management.

In the current fiscal year ending March 31, 2024, we will pursue business activities based on the following three itemized management policy.

• Strengthen profitability and stabilize financial base
• Promote structural reforms and DX
• Carry on repairing construction defects

We plan to restore the occupancy rate in the fiscal year ending March 2025 to the level of the fiscal year ended March 2018 to generate profit and further increase ownership equity. At the same time, we will increase capital efficiency to aim at realizing shareholder return as soon as possible. Through structural reforms, we will continue to transfer or withdraw from non-core and unprofitable businesses, and we will implement a new human resources strategy from the current fiscal year. In terms of DX we will focus on installing smart locks in the managed properties to differentiate ourselves from the competitors, to improve customer convenience, and to increase operational efficiency. As for dealing with the construction defects, we will reinforce the structure and accelerate the pace of repair works in order to complete the repair of obvious defects by December 2024, and continue to carefully respond to owners, tenants, and related ministries and agencies.
Through the growth of our business, we will continue to solve issues related to people and housing, and aim to be a company that is needed by society. We look forward to your continued understanding and support of our operation in the future.

May 2023

Bunya Miyao, President & CEO