Sansei Landic : 【Delayed】Notice Concerning Revision of Corporate Philosophy and Formulation of Medium-term Management Plan

February 14, 2022

Notice Concerning Revision of Corporate Philosophy and

Formulation of Medium-term Management Plan

Sansei Landic Co., Ltd announces that we have revised our corporate philosophy and formulated a medium-term management plan (2022-2024). Details are as follows.

1. Background to the revision of the corporate philosophy

Since our founding in 1976, we had set our corporate philosophy: "Self-development and self-creation through social contributions with its corporate activities." We have established such principles with a high degree of abstraction so that we can adapt to any business environment. However, the business environment surrounding us has changed dramatically in recent years, and we believe that the pace of change in the business environment will continue to accelerate rapidly in the future. In order to respond to the uncertain changes and achieve further sustainable growth, we need a corporate philosophy that is easy to understand both inside and outside the company, a set of values that everyone can resonate with, and as a guiding principle to help all employees' decision making. For this reason, we have decided to change our corporate philosophy, which we had previously positioned as our "corporate philosophy", "principle", and "vision", to a "mission", "vision", and "policy". This was set to clarify specific policies to ensure that not only our employees but also all of our stakeholders have a clear understanding of the direction we are aiming for.

2. Overview of corporate philosophy

Our new corporate philosophy: mission, vision and policy, is as follows. ⚫ Mission

• ▪ Be a Trailblazer for connecting people and their future

  Since our foundation, our group has grown by breaking through the established concept of real estate. We make the best use of the expertise we have cultivated to have connections with all over the world, and thereby eliminating the imbalances. We also pledge to be a company that delivers enrichment and affluence to society by sincerely addressing social issues such as disasters, aging population, poverty, and environmental problems.

⚫ Vision

• ▪ Self-reliant and self-advancing

  We strive to be a company with flexibility backed by strong will and independence, with a view to the future.

• ▪ Professional awareness

  To fulfill our responsibilities, we enhance our expertise, meet all expectations, and work with pride. We realize Win-Win-Win relationships while maintaining the safety and security of all stakeholders.

February 14, 2022

• ▪ Enjoy changes

  We foster a flexible sensitivity that can adapt to any environment, and welcome the employees' courage to deny the status quo and take on positive challenges. We aim to be a company that is one step ahead of other companies by accepting all kinds of diversity.

⚫ Policy

We will position "Moderation," "Austerity," and "Persistence," which have been our company principle, as our new policy.

• ▪ Moderation

  Maintain well-balanced management in response to social changes

• ▪ Austerity

  Create a streamlined company without the frills

• ▪ Persistence

  Move forward with the power of 80% to perpetuate the company

3. Overview of the medium-term management plan

In order to carry out the above corporate philosophy, our group has formulated a new medium-term management plan for the period from FY12/22 to FY12/24.

Until 2019, we had achieved an average growth rate of over 10%. However, we have set conservative targets for 2024 and are focusing on initiatives for growth from 2025 onwards. This was attributable to the fact that we aim for qualitative enhancement from 2022 to 2024 as we have entered a leveling off period due to COVID-19. We have positioned the listing on the Prime Market in 2025 as a turning point for new growth. Looking ahead to 2025 and beyond, we will strengthen our financial base and accelerate new initiatives through upfront investment.

⚫ Management Indicators

• ▪ In the final year of the plan, we have set a target value of profit by adding the accumulation of new businesses to the initial plan of operating income and ordinary income for FY12/20. Since this is the target that we should have achieved in FY12/20, and we would have been able to achieve it under normal circumstances, we will strive to achieve the target through new initiatives.

• ▪ Specific targets for management indicators are as follows.

(Unit: million yen)

Results	Target
FY12/20	FY12/21	FY12/22	FY12/24
Operating income	847	1,117	1,301	1,800
Ordinary income	709	999	1,142	1,650
ROE	3.6%	6.0%	-	9.0%

February 14, 2022

⚫ Focused Measures

• ▪ Strengthening the business foundation

• ▪ Expansion of existing businesses

• ▪ Expansion of business domain

*For details of the medium-term management plan, please refer to the attached materials.

(Note) The business forecasts and other forward-looking statements herein are also based on information available at the time of publication of this document. Actual results may differ from these forecasts due to various factors.

New Medium-Term Management Plan (2022-2024)

"Transformation to 2024"

-Three years to realize restructuring across the Company and build a bridge to future stable growth-

February 14, 2022

Sansei Landic Co., Ltd.

Review of the Previous Medium-Term Management Plan (2018-2020)

◆ We were experiencing a steady rise in performance until the second year of the medium-term management plan but was affected by the COVID-19 in the final year resulting in unachieved profit target and ROA target.

Operating income

Ordinary income

Consolidated ROA

3,000

3,000

0

2,500

2,000 1,500 1,000

0

2,500

12.0%

2,000

0

1,860

2,000 1,500 1,000

1,900

1,765

500

0

0

20210818

20210919

1,642

1,758

500

2020

20210818

20210919

9.8%

9.8%

0

0

0

0

0

3.6%

0

2020

2018

2019

2020

1