Initiatives for Customers

Thorough Implementation of an Earthquake Resistance Diagnosis and Seismic Reinforcement

Hulic considers earthquake countermeasures as one of the top priorities for a real estate developer in Japan as it is one of the countries where earthquakes most frequently occur. We believe it is our responsibility to provide earthquake-resistant building safety in order for the tenants to conduct social activities with peace of mind. We have therefore established our own earthquake resistance standards^*1 that are stricter than the Building Standards Act, and we apply these standards to all the buildings that we develop or reconstruct, and we conduct a seismic assessment at the time of acquisition. We are working to ensure that by 2029 all of our buildings^*2 (excluding buildings scheduled for reconstruction: by the end of 2025) can withstand earthquakes with a seismic intensity of 7 level.

• *1Earthquake-resistance standards as specified by Hulic are where building performance can safeguard human life and enable continued use of the building with post-earthquake repair in the event of an earthquake with a seismic intensity of 7 level.
• *2Excludes properties for which we do not have energy management authority including master lease properties, residential properties and non-managerial co-ownership properties, and real estate for sale,etc.

Earthquake Resistance Diagnosis, Reinforcement Works, and Confirmation of Validity of Structural Calculation

We diagnosed the earthquake resistance of all Company-owned buildings^* that were built before the new earthquake resistance standards were established in the Building Standards Act revised in 1981, and all buildings that did not meet the standards were seismically reinforced.

• *Excludes buildings with box frame type reinforced concrete construction and buildings that will be demolished for reconstruction.

Proactive Adoption of Earthquake-absorbing and Earthquake-damping Structures

In order to protect human life and functions of facilities from large scale earthquakes, we have imposed high seismic capacity on newly constructed buildings. With the aim of protecting customers' lives and contributing to business continuity, we have proactively adopted an earthquake-absorbing or earthquake-damping structure which is effective at ensuring a high seismic capacity, in addition to other methods to improve the seismic capacity.

Earthquake-absorbing Structures

By isolating the building from the ground with a mechanism called an isolator, seismic energy is absorbed to reduce the intensity of shaking to 10%-50% compared to other general earthquake-resistant structures as a general building structure.

Earthquake-damping Structures

With earthquake-damping materials installed inside the building, internal seismic energy is absorbed to reduce the intensity of shaking from half to one thirds compared with other general earthquake-resistant structures.

Measures Against Ashfall

If Mt. Fuji erupted, the transportation infrastructure could be shut down and electricity and other utilities could be disrupted. Consequently, we are taking tangible action by developing equipment that prevents volcanic ash from entering pipes in storm drains and by installing this equipment in company-owned buildings. In a less tangible way, we have a policy to promote tenants to return home early and organize a system and install the necessary equipment for quick recovery work after an ashfall.

Liquefaction Countermeasures

After the Great East Japan Earthquake, extensive regions including coastal areas in Tokyo suffered from liquefaction, which caused damage such as buildings leaning over and sinking. According to the liquefaction map issued by the government, it was found that four buildings owned by the Company were located on ground with possible liquefaction. However we concluded that these buildings were not significantly affected by liquefaction due to the fact that the planning of appropriate building foundations befitting the sites.

Measures against Water Damage

When electric facilities are damaged by floodwater, the supply of power, which is essential for the use of a building, can stop for an extended period. We investigate the status of buildings with power receiving and transforming equipment and private power generators that are installed in floors expected to be submerged in a flood, and examine application of flood control measures to take necessary measures as needed in supposition for localized heavy rains caused by climate change and tsunamis caused by earthquakes.

Efforts toward the Improvement of Customer Satisfaction

As office buildings, stores, and residences owned by Hulic serve as the infrastructure for customer's social activities, we are aiming to constantly improve their quality under the philosophy of providing customers safety, peace of mind and convenience.
In order to satisfy all customers using buildings including tenants and visitors to the buildings, we thoroughly stick to meticulous quality control, careful maintenance, and security to protect assets.

Customer Satisfaction Survey

We conduct an annual customer satisfaction survey for tenants of Hulic’s properties. Survey items include matters concerning building hardware and software, and things customers have noticed while using our buildings on a daily basis. We carefully go over the customer responses, and then take steps to identify customer needs and make improvements accordingly. In the survey conducted in 2023, we continued to receive high ratings with a satisfaction level of 92.2% (in 2022, 94.6%). We believe the results has mainly reflects our planned facility reinforcement and quick response to the matters requested by customers. Furthermore, the persons in charge responded or replied to customers' opinions and requests after the survey.

Initiatives for Providing Healthy and Comfortable Spaces

Hulic is undertaking the following initiatives to provide healthy and comfortable properties to our stakeholders.

• Verification of specifications of facilities introduced and interior materials, etc. for existing properties and properties being developed
  (Use of interior finishing materials and fittings that do not contain toxic substances)
• Greening of building surroundings, introduction of natural ventilation and lighting systems
• Introduction of an indoor air quality improvement system using composite ceramic functional materials
• Acquisition of CASBEE Wellness Office certification for developed office buildings as verifications for buildings that support the maintenance and improvement of the health and comfort of the people in the buildings
• Measurement of indoor environment at and periodic measurement after completion
• Active upgrading to energy-saving equipment and other advanced equipment
• Conducting of preventive maintenance before issues arise in building or equipment
• Many of the properties owned are located near stations, providing easy access to transportation
• At all owned buildings, we take the access to the public transportation into account and disclose the access information on our website and building information book.
• At all developed building, we conduct the assessments of access from person with disabilities (barrier-free toilet, wheelchair access, etc.).

Collaborating and Cooperating with Business Partners during and after Disasters

In the event of a disaster, we have introduced an Internet- based safety confirmation system for swift confirmation of the state and to share information with building management companies. We concluded contingency agreements with the construction company of building concerning restoration and recovery, enabling collaboration and cooperation in the event of a disaster.

Introduction of an Indoor Air Quality Improvement System using Composite Ceramic Functional Materials

Hulic is working to improve indoor air environments and to promote the adoption of technologies from Shinshu Ceramics Co., Ltd., a company with unique technologies. HEPA filters incorporating Shinshu Ceramics' proprietary earthplus™ material adsorb 99.9% of and decompose bacteria and virus particles floating in indoor air. To prevent the spread of infectious diseases in facilities for seniors, we have combined HEPA filter units using earthplus™ material with humidifiers that optimally maintain indoor humidity when using indoor heating. We developed a new indoor air improvement system that can be installed in ceilings, which we have introduced in nursing homes we construct.
In addition, we jointly developed a small air purifier called earthmirage2 with a manufacturer that incorporates a HEPA filter using earthplus™ material and started sales in 2021. As a measure against infectious diseases during face-to-face meetings, Hulic has installed this small air purifier in conference rooms at the Hulic Headquarters and the Hulic Annex to ensure the safety and security of our customers.

Holding Regular Management Status Reporting Meetings with Property Management Companies

Hulic regularly holds property management status reporting meetings with property management companies to check the implementation status of management work, including complying with laws and regulations, and receive reports on various problems related to buildings, including the results of measures to fix defects that have occurred in buildings. In this way, we are promoting the maintenance and improvement of quality, as well as unifying the quality of overall property management and operation services.

Quality Evaluation for Management Companies

Each year, Hulic evaluates the implementation status of management work and provides property management companies with feedback to improve and standardize the quality of their work.
We use the results of evaluations as information to decide whether to continue to entrust management work with the current property management companies in accordance with the rules for real estate outsourcing management.

<Primary evaluation items>

• -Confirm to check if maintenance work for buildings and facilities, including complying with legal requirements applicable to buildings, has been performed systematically and thoroughly without omissions as stipulated in the contract.
• -Confirm the status of legal compliance, including the status of renewing the verification due date of measuring instruments, etc. and submission of mandatory inspection results reports to the relevant regulatory authorities.
• -Confirm that defects occurring unexpectedly, including those pointed out during the legal inspection, have been fixed without delay.

Initiatives for Energy Savings in Existing Buildings

In 2022, as part of our initiatives for decarbonization across the entire value chain, we conducted explanatory sessions with our customers—focusing on office tenants—to discuss our commitment to the environment as building owners. Going forward, we will continue outreach to customers and work toward more energy efficiency.

Responsible Marketing

Hulic has set out the principle of “treating clients faithfully and kindly, listening to their requests with sincerity and providing sophisticated, efficient, and high-quality services” in the Basic Principles of Corporate Conduct and endeavors to build positive relationships with clients. In addition, we obtain the necessary permits and licenses for conducting business operations and comply with matters stipulated by various business laws and regulations.
With regard to important company information, we aim to disclose information with accuracy based on the facts, and in a way that is easy to understand in accordance with the rules for disclosure control. Furthermore, we disseminate information through various media by creating a company website, publishing press releases in a timely manner, and setting up signboards at train stations, with the aim of fostering a feeling of familiarity with our company widely among the public.