LEOPALACE21 : Investor Meeting Presentation for the Three Months ended June 30, 2016

Investor Meeting Presentation

for the Three Months ended June 30, 2016

This document and reference materials may contain forward-looking statements, but please understand that actual results may differ significantly 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.

Contents

1. About Leopalace21

1. FY17/3 Q1 Overview of Business (Construction)

   1-1	Business Model	4	4-1	Overview of Construction Business	25
   1-2-1	Results Trend	5	4-2	Main Indicators	26
   1-2-2	Highlights of Results Trend	6	4-3-1	Indicator (Orders and Sales)	27
   4-3-2	Indicator (Offices and Apartment Completion by Area)	28
   FY17/3 Q1 Results 4-4-1 Example (Ideal Land Usage)29
   2-1	Highlights of Results	8	4-4-2	Example (New Brand)	30
   2-2-1	Summary of Results (Sales & Gross Profit)	9	4-4-3	Example (High-quality Apartments)	31
   2-2-2	Summary of Results (Operating Profit & Net Income)	10	4-4-4	Example (Non-sound System)	32
   2-3	Results of Business Segments	11	4-4-5	Example (Elderly Care Facilities and Stores)	33
   4-4-6	Example (Built-to-order homes)	34

   2.

   3. FY17/3 Q1 Overview of Business (Leasing)

   3-1 Overview of Leasing Business 13

2. FY17/3 Q1 Overview of Business (Others and Overseas)

   3-2	Main Indicators	14	5-1	Others (Elderly Care Business)	36
   3-3-1	Indicator (Occupancy Rate)	15	5-2	Others (Domestic Hotels Business)	37
   3-3-2	Indicator (Occupancy by Group)	16	5-3	Others (Resort Business)	38
   3-3-3	Indicator (Shares of Occupied Units by Group)	17	5-4-1	Others (Solar Power Systems)	39
   3-3-4	Indicator (Occupied Units by Industry)	18	5-4-2	Others (Roof-lease Solar Power Systems)	40
   3-3-5	Indicator (Foreign Tenants)	19	5-5	Others (Real Estate Development Business)	41
   3-4-1	Acquiring Individual Tenants (Office Expansion)	20	5-6-1	Others (Leasing Business Overseas)	42
   3-4-2	Acquiring Individual Tenants (Room-Customize)	21	5-6-2	Overseas Business (Serviced Apartments and Offices)	43
   3-4-3	Acquiring Individual Tenants (Tenant Services)	22	5-6-3	Overseas Business (Other Services)	44
   3-4-4	Enhancing Property Value (Security Systems)	23

   -1-

   Contents (cont.)

   Appendix 1. Corporate Data

   Appendix 2. Medium-Term Management Plan "EXPANDING VALUE"

   App.1-1	Corporate Profile	46	App.2-1	Business and Financial Strategies	61
   App.1-2-1	Quarter Comparison	47	App.2-2	Numerical Targets	62
   App.1-2-2	Results of Leopalace21 Group	48	App.2-3	Dividend Policy	63
   App.1-3-1	Indicator (Occupancy by Group)	49
   App.1-3-2 Indicator (Foreign Tenants) 50 Appendix 3. Market Trends
   App.1-3-3	Indicator (Units and Occupancy Rates by Area)	51	App.3-1	New Housing Starts	65
   App.1-3-4	Indicator (Occupancy Rates by Building Age)	52	App.3-2	New Housing Starts (Leased Units)	66
   App.1-3-5	Indicator (Contract Type)	53	App.3-3	Number of Households	67
   App.1-3-6	Indicator (Partners Offices and Contracts)	54	App.3-4	Vacancy in Rental Housing	68
   App.1-3-7	Indicator ("Azumi En" Area Disposition)	55
   App.1-4-1	Finance (Balance Sheets)	56
   App.1-4-2	Finance (Cash / Deposits and Interest-bearing Debt)	57
   App.1-4-3	Finance (Cash Flows)	58
   App.1-4-4	Finance (Shareholder Composition)	59

   -2-

3. About Leopalace21