Nurturing a culture of trust
Messages from the Outside Directors

Ensuring the diversity and effective supervisory functions of our outside directors

Since our founding, we have contributed to society by making high-quality yet affordable housing widely available. In recent years, we have also been implementing various social activities based on the concept of “corporate social responsibility” in relation to the construction and supply of housing and other related businesses, with the aim of becoming a trusted company. In our current medium-term business plan, in particular, we have set “CSR management” as one of our management policies and formulated a CSR Action Plan based on our four main CSR themes (creating attractive living spaces, building a company worth working at, protecting the precious environment, and nurturing a culture of trust) as we proactively address various environmental and social issues so that we can achieve a sustainable society.
Going forward, we will leverage the achievements and experience we have cultivated to date, introducing new technologies such as IT and AI, and focusing on technological innovation that utilizes DX. We will thereby strategically work to solve issues in the development of our business on both the hardware and software fronts, from improving the productivity of design and construction to improving the convenience of people's lives, as we contribute further to society.
By creating “shared value” with society and stakeholders, and by improving social and environmental value while also raising economic value through corporate growth and performance improvement, we aim to turn the HASEKO brand into something steadfast and unwavering, while the Company continues to be a trustworthy entity in society.

One of the roles of an outside director is to provide oversight of the company's management in order to protect the interests of the general shareholders. I draw on my experience as an attorney, operating officer of an investment corporation, and outside auditor of a company listed on the stock exchange, to make objective assessments and express my opinions from a position that is independent of the Company's management team.
The construction industry faces a number of challenges, including rising labor and personnel costs, restrictions on overtime work, and a decline in the number of skilled construction workers. The condominium construction business is also expected to see difficult times in terms of growth, due to factors such as the declining population and the decreasing amount of land available for construction. It is precisely because of these difficult times that I think it is necessary for our Company to continue to use its strengths in acquiring and providing information on sites for condominiums, proposing attractive plans, and using reliable construction techniques to provide safe and secure condominiums and contribute to society. As an outside director, I would like to provide as much support as possible toward these efforts.
With this fiscal year being the final year of our medium-term business plan (Plan NS), we plan to hold more discussions on the next business plan. In order for Haseko Corporation to respond to changes in society and achieve sustainable growth, it is also important to grow in our Real Estate-Related Business, Service-Related Business and Overseas-Related Business. I believe that in order for our investors to understand our strengths, growth potential, and approach to capital efficiency in each business area, we need to provide them with detailed information. I would like to actively participate in discussions from the perspective of a shareholder.

When interacting with executives and employees as an outside director, I feel that this company possesses two unique strengths rarely seen elsewhere.
The first strength is the company’s unique business model, whereby condominiums are built on land acquired through dealings with landowners in good faith and then handed over to developers. Even if they don’t know the company name “Haseko Corporation,” almost everyone is familiar with the commercial jingle in Japanese with a meaning in English of “For all things condominiums, it’s Haseko.”
The second strength is the experience of having been through a crisis that threatened the company’s existence over twenty years ago. Based on this experience, a system has been established whereby Board of Directors meetings and other checks are carried out at all key points during business expansion.
On the other hand, considering the market environment and other factors going forward, further company growth is unlikely without taking on challenges in new fields. Furthermore, the speed of societal change is only increasing.
In such a context, relying too much on these two strengths could result in significant missed opportunities. Nonetheless, it is crucial to always bear in mind that these two strengths are the cornerstone of our business operations.
Fortunately, our executives and employees are fully aware of this and are conducting operations accordingly. However, as an outside director responsible for providing advice and oversight on key matters of corporate management, I will continue to strive to ensure that the Company can sustainably grow based on these two strengths, thereby further enhancing its corporate value.

Every year, our Company holds a questionnaire survey for all directors and corporate auditors to analyze and evaluate the effectiveness of the Board of Directors. This year's survey also revealed a variety of opinions on issues related to the institutional design of the Board of Directors and the adequacy of deliberations, but what surprised me the most and left the strongest impression was the large number of opinions submitted in the free-response section. It was several times higher than in previous surveys. This shows that the sense of ownership among directors and corporate auditors has greatly increased, and that the atmosphere at the Board of Directors meetings has become more open, encouraging free and lively debate. I was very happy to find a comment that the opinions and questions from outside directors led to a wide-ranging exchange of opinions. I believe that the current management team has the humility to address issues that they hadn't realized as problems and to sincerely work on new demands from society and the market.
Through a positive spiral of the aforementioned humility of the management team and management that makes the most of the positive energy of our employees to achieve numerical targets, which has always been our strength, we will continue to support the Company in its efforts to become an even more trusted company.

The condominium business includes everything from design and construction to property handover, spanning a long period of time. Changes in the market environment during this period pose risks. Additionally, there are risks associated with acquired land, such as fluctuations in market value and low liquidity. Furthermore, when it comes to condominium construction, careful consideration and response to the concerns of the surrounding community is indispensable.
We established, at an early stage, a unique business model of building condominiums under exclusive contracts under which land is provided for project owners. Through years of innovation and experience, we’ve addressed these risks and challenges, becoming the leading company in Japan as far as achievements in condominium construction are concerned.
However, the circumstances surrounding us are changing year by year, and it is essential to continually check and review our measures for addressing these risks and challenges.
In addition, in recent years there has been a significant increase in the cost of materials and labor, as well as an intensification of the competitive environment. Furthermore, natural disasters such as floods, landslides, and earthquakes have been occurring frequently in many areas. Moreover, a declining birth rate, an aging population, and a decrease in total population is increasingly having a significant impact on the sustainability of local communities and the ease of securing talent across various industries.
The Company is taking a variety of measures to appropriately address these diverse challenges. However, as outside directors, we feel it’s necessary to contribute our expertise in monitoring operations, as well as provide relevant advice.
We also believe that by appropriately disseminating and explaining the outcomes of discussions and considerations in Board of Directors meetings and such, we can enhance understanding and evaluation of stakeholders and the market, leading to sustainable growth for the Company.
The condominium business lies at the core of the Haseko Group, and we will continue to make efforts like this in the future to enhance the group's comprehensive strength and meet the expectations of our shareholders and other stakeholders.

Skills matrix for outside directors