Leopalace21 Corporation has been implementing various measures to promote operational efficiencies, such as centralization of business operations, as well as promoting the introduction of digital technologies such as smart locks, under the DX strategy announced in August 2022. In the past, the Company considered the convenience of the customers and kept multiple leasing sales offices in areas with a lot of apartments under management. However, the increase in the number of apartments with smart locks and the promotion of non-face-to-face service through web-based customer service and web- based room viewing have reduced the necessity for the customers to visit sales offices to receive the keys and other things.

Consequently both of those initiatives enabled the Company to integrate sales offices. As a result of the introduction of digital technology and increased operational efficiency, the Company announced that 37 of the total 109 directly managed leasing offices (36 in Japan and 1 overseas) have been integrated into existing offices. The streamlined 72 sales office structure is now ready, and the Company remains committed to further improve its capital efficiency.

The Company will integrate the said sales offices on November 1, 2023 as follows: Before Integration: 103 offices in Japan, 6 offices outside Japan, totaling 109. After Integration: 67 offices in Japan, 5 offices outside Japan, totaling 72.