STATE OF THE HOUSING INDUSTRY PRESENTATION COUNTRY:　　JAPAN NAME OF ORGANIZATION: Japan Federation of Housing Organizations　（JUDANREN） Mission To contribute to improvement of housing quality and living environment Members 9 housing organizations totaling about 50,000 companies Major activities ・Submission of proposals and recommendations to Japanese government and 　 regulatory bodies ・Supply of information to housing industry, consumers, and mass media ・Survey and research on taxation, financing, subsidies, regulations, and other housing related issues

HOUSING ECONOMIC STATISTICS Starts: Percentages: Numbers: year - Single Family 45.4% 418,302 2015 - Multifamily 54.6% 502,235 Gross Domestic Product (GDP) $4,916.8 billion GDP Growth 2.2% GDP Per Capita $38,715 House Price Index ▲0.8% July 2016 Consumer Price Index ▲0.5% Aug 2016 Unemployment 3.1% Home Mortgage Interest Rate Floating% ：0.625% Fixed10Years% ：0.750% Oct 2016 Home Ownership Rate 61.8% Population Growth/Net ▲0.14% 126.9 million (*Conversion rate: USD1 = JPY101.8)

Social Housing in Japan What is the status of social housing? How is social housing being delivered? Public Housings* (Koudanjyutaku) Public rental housings** private rental housings * Apartment buildings constructed by the Japan Housing Corporation (now known as Urban Renaissance Agency) ** Apartment buildings constructed by public sectors Improving frameworks for smooth moving into these public housings Government Subsidies Support As the core of housing safety nets, providing rental housings fairly and adequately to truly housing needy (low-incomes)

Current Housing Industry Status / Situation 2016.6.1 2 year postponement to increase consumption tax from 8% to 10% announced by Gov. ２０１３．４ Increase Consumption Tax （５％➡８％） ２０１３．４．４ Introduce new dimension of monetary easing by BOJ 2016.1.29 Introduce negative interest policy by BOJ 2016.4.14 Kumamoto Earthquake 金利 （％） Numbers of stocks Year/Month

House Damages by Earthquakes 2016.4.14 Kumamoto Earthquake × 2011.3.11 The Great East Japan Earthquake ×

Status of Promoting Earthquake-resistant Housings Target percentage rate of Earthquake-resistant housing in 2020 : 95% Percentage rate of Earthquake-resistant housings in 2013 : ８２％ Houses that old Earthquake-resistant regulation applied 250 houses Houses that old Earthquake-resistant regulation applied 1500 houses Houses built before 1981, but complied with new 1981 Earthquake-resistant regulations 650 houses Houses built before 1981, but complied with new 1981 Earthquake-resistant regulation 600 houses Houses that complied with new 1981 Earthquake-resistant regulation 4350 houses Houses that complied with new 1981 Earthquake-resistant regulation 3700 houses

Expanding housing business in Asia by corporate members of Judanren 社名 国 都市 事業 Sumitomo Forestry, Co., Ltd. China Beijing Single family house Interior decorating Shanghai Dalian Hong Kong Condominium Vietnam Ho Chi Minh Sekisui House Ltd. Singapore Suzhou Town house Taicang Daiwa House Industry Co., Ltd. Hanoi Service Apartment Shaoxing Sekisui Chemical Co., Ltd. Thailand Bangkok Toyota Housing Co., Ltd Indonesia Bekasi Beijing Dalian Taicang Shanghai Suzhou Shaoxing Yangon Hong Kong Hanoi Bangkok Ho Chi Minh City Singapore Bekasi

Sumitomo Forestry Sekisui Chemical （Shanghai, China） （Bangkok, Thailand） Numbers of sales：200 per a year Method：Box-ramen structure Starts of sales：2013 ～ Daiwa House (Hanoi, Vietnam) Numbers of houses for sale：59 Method：two-by-four construction Start of sales：2015~ Sekisui House （Singapore） Toyota Housing （Bekasi） Numbers of houses for sales：114 Method：Light gauge steel and reinforced concrete structure Start /Completion (expected)of sales：2015～2018 Numbers of houses for sale：256 Method：reinforced concrete structure Start /Completion (expected)of sales： 2015～2018 Numbers of houses for sale：3,781 Method：reinforced concrete structure Start/Completion of sales：2011～2013

IHA Enrollment Promotion Activities towards Asian countries Myanmar Construction Entrepreneurs Association (MCEA) now has agreed to join IHA as a member. We are planning to recruit Thailand, Malaysia, Taiwan, and other Asian countries. 2017 Tokyo Interim Meeting Taiwan Myanmar Yangon Thailand Malaysia

Thank You For Your Attention.