Leopalace21 : Investor Meeting Presentation for the Six Months Ended December 31, 2021

Leopalace21 Corporation

Investor Meeting Presentation

for the Nine Months Ended December 31, 2021

February 2022

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.

*Reportable segments were changed in FY18/3 and FY21/3.

Contents

1.	About Leopalace21	p.2
2.	Q3 FY22/3 Results, Full-year Plan	p.5

3. Structural Reforms and Occupancy

Improvement Measures	p.13
4. Data Related to Leasing Business	p.20
Appendix	p.27

1

1. About Leopalace21

1-1: Corporate Profile

	Corporate Data (as of December 31, 2021)			Group Companies (as of January 31, 2022)

Established	August 17, 1973
Paid-in Capital	JPY 100 million
Representative Director	Bunya Miyao, President and CEO
Employees	4,462 (consolidated), 3,688 (non-consolidated)
Authorized Shares	750,000,000
Outstanding Shares	329,389,515 shares
(not including 159,748,700 dilutive shares)
Shareholders	51,690 (as of September 30, 2021)

Business Model

Offer 570,000 studio-type units equipped with furniture

and home appliances

approx. 80% of listed companies have used Leopalace21's services

Master lease system to pay rents for all units up to 30 years

	Tenant recruitment		Payment for
	and management		Building	Property
Tenants	Leopalace21
(Individual/			owners
Corporate)	Rent payment		Master-lease rents*

Master lease	Apartment building
and maintenance

			Leopalace		Plaza Guarantee			ASUKA SSI
			Leasing
Leasing		Corporate		Rent guarantee			Tenant contents insurance
	housing agent		Leopalace21			Woori & Leo PMC
			Leopalace Power		Business Consulting			Leasing management
			Power generation		(Shanghai)
					Tenant recruitment			in South Korea
-Inter national *		Leopalace21		LEOPALACE21
				PHILIPPINES INC.
			Singapore Pte. Ltd.
				Serviced Office
			Investment management
				in the Philippines
Develop-	ment*		Morizou
			Built-to-order homes
Elderly	Care		Azu Life Care
			Elderly care service
Others		Leopalace Guam		Leopalace Smile
			Resort Business		Special subsidiary

• Results of the International Business and the Development Business are

reported under the Leasing Business segment

*Payments of master-lease rents are Apartments made to owners regardless of vacancies

(Rents are reviewed every two years)

3

1-2: Results Trend

Decrease in occupancy rates and rent, as well as stringent loan screening caused by the Lehman Collapse led to a decrease in apartment construction, and Leopalace21 reported operating losses for two consecutive years. As a result, the Company shifted the business model to center on the Leasing Business in order to target a stable earnings structure for the mid to long term.

Huge operating losses were recorded caused by construction defects problem during FY20/3. The Company recorded operating losses for the two consecutive years hit by COVID-19 impact despite its effort to be profitable by implementing structural reforms.

Results Trend

Sales (JPY Billion)

Operating profit (JPY Billion)

Leasing	800												80	Sale composition
	733.2
Development
Others			620.3										60	5%
600								520.4 530.8 505.2
							511.5
	50.1 359.1	483.5 458.2	454.2 470.8 483.2
		80.3	76.5		433.5 408.9	40		46%
			237.0	62.9	53.3	63.1	61.3	74.1	58.9	FY09/3
	400		107.8	21.0	22.8	22.9		23.8		49%
					7.4	13.4	14.8				426.3		20
	200		342.3	3.3	388.5 399.3 410.6	421.3 435.5	7.3	388.9 391.9
	334.5
		355.7	379.0383.6								0
	0		-29.7-24.4	Operating Profits					-29.1	-20
												-36.4	-40	4%

Occupancy rate (average)

									90.59%			FY21/3
	88.51%								88.53%		88.34%
90%								87.95%
						86.57%
		82.25%			84.58%					80.78%
			82.94%						96%
				81.16%
			80.09%									78.89%
75%	FY09/3	FY10/3	FY11/3	FY12/3	FY13/3	FY14/3	FY15/3	FY16/3	FY17/3	FY18/3	FY19/3	FY20/3	FY21/3

4