Second Step of the MiDD Project: Transforming Management Services through DX
Condominium Management Contract Digitization Service to Launch on August 1
- A non-face-to-face, paperless system to reduce labor and costs -

TOKYO, Japan - July 1, 2020 - DAIKYO ASTAGE INCORPORATED (“DAIKYO ASTAGE”) and ANABUKI COMMUNITY INCORPORATED (“ANABUKI COMMUNITY”) announced that they will commence a Condominium Management Contract Digitization Service on August 1, 2020. Condominium management associations and condominium management companies will complete contract procedures online, and the contracts themselves will be stored in the cloud.

The service will be provided free of charge to management associations that agree management outsourcing contracts with DAIKYO ASTAGE and ANABUKI COMMUNITY. In addition to the management outsourcing contract itself, approximately 20 types of document are exchanged in any given year between management associations and management companies, including order and confirmation forms for various kinds of repair work, and minutes of general meetings. The service will initially digitize management outsourcing contracts, before expanding its scope to include other forms of documentation.

Following the outbreak of COVID-19, proposals for new hygiene measures are being sought in condominium management work processes. The introduction of the digitization service will enable tasks to be carried out in a non-face-to-face manner, and will also allow customers to carry out various procedures without facing time constraints. In addition, since the service conforms to the Act on Electronic Signatures and stores document data online, it enables customers to avoid the risk of document damage or loss in times of disaster; and, because digitized contracts are tax-exempt, the system also contributes to reductions in stamp costs.

Both DAIKYO ASTAGE and ANABUKI COMMUNITY are using digital transformation (DX) to develop a next-generation condominium management service^*1; to this end, starting in July they are rolling out a trial Online General Meeting service. Going forward, the two companies will make use of the knowledge and expertise they have gathered from managing the largest number of units in the condominium management sector^*2 to proactively advance DX.

*1 For further details, please see the June 11, 2020, press release entitled “DAIKYO ASTAGE and ANABUKI COMMUNITY Begins Development of Next-Generation Condominium Management Service Using Digital Transformation”
*2 As of March 31, 2020, DAIKYO ASTAGE and ANABUKI COMMUNITY managed a combined total of 9,640 management associations and 538,333 units

1. About the Condominium Management Contract Digitization Service

In June this year, DAIKYO ASTAGE and ANABUKI COMMUNITY established the MiDD Project and are using digital transformation to promote the development of next-generation condominium management services. These services seek to respond to social issues faced by condominiums, such as the three “aging”—aging buildings, aging residents, and an aging workforce. The first step of this development process was the trial implementation of Online General Meetings; the second step comprises the Condominium Management Contract Digitization Service, which enables various types of essential documentation exchanged between management associations and management companies to be processed and stored digitally. The service will initially digitize management outsourcing contracts, before gradually expanding to cover other types of documentation.

The two companies will be supported by ICT solutions provider NS Solutions Corporation (“NS Solutions”) who, in conformity with the Act on Electronic Signatures, will both guarantee the authenticity of DAIKYO ASTAGE and ANABUKI COMMUNITY signatures and make certain that contracts are stored safely. NS Solutions will also ensure that management associations are not required to acquire digital certification themselves, or carry out any other complex procedures. After contract documents have been converted to PDF files and uploaded to the internet, the service will ensure that contract processes are completed and the documents are stored safely.

If approval is granted at board and general meetings of management associations, DAIKYO ASTAGE and ANABUKI COMMUNITY intend to proceed with the implementation of the system beginning in July.

On June 16, 2020, the Diet passed bills to amend elements of the Act on Advancement of Proper Condominium Management and the Act on Facilitation of Reconstruction of Condominiums; this has accelerated moves to digitize legal documents. In order to increase the efficiency and convenience of management associations, going forward the MiDD Project will continue to consider a variety of different measures.

2. Benefits of electronic contracts

(1) Optimized document creation and storage
Procedures can be carried out via computers, smartphones, and other terminals capable of connecting to the internet, enabling customers to complete contract documents in a place and at a time of their choosing.

(2) Reduced storage space, and prevention of documentation falsification, misplacement, damage and loss.
Since document data is stored in the cloud, customers can avoid the risk of damage to and loss of documents during typhoons, heavy rains, and other severe weather conditions. The need for physical storage space is also eliminated.

(3) Reduced costs
Electronic files exchanged under electronic contracts are not subject to taxation, which reduces stamp costs.

3. Going forward: other management-related documentation

DAIKYO ASTAGE and ANABUKI COMMUNITY intend to expand the range of contracts that can be digitized to include order and confirmation forms exchanged between management associations and management companies for building and equipment maintenance work; they also wish to extend the system to cover payment-related procedures, such as the seals pressed by management association chairs to confirm that management companies have carried out promised work. In addition, the two companies are considering increasing the scope of the system to include verifying and signing off the minutes of general meetings.

About the MiDD Project
Based on the rich knowledge asset obtained from managing the largest number of units in the condominium management sector, this project promotes the development and implementation of services fusing the latest technologies such as information communication technologies (ICT) and artificial intelligence (AI).

Together with providing new residential services realizing condominium lifestyles of the future, it will create next-generation condominium management that aims to shift away from a labor-intensive management model such as through streamlining and manpower saving.
The project’s name comes from Mirai (future), Digital, and Design which are the keywords from its concept of designing the future using digital technologies.

Contact Information:
ORIX Corporation
Corporate Planning Department
Tel: +81-3-3435-3121

About ORIX:
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 37 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2020)

Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2019 – March 31, 2020.”