News Release

Five DAIKYO and Anabuki Construction Projects Selected for Ministry of the Environment’s Fiscal 2020 High-Rise ZEH-M Support Project

Oct 21, 2020

TOKYO, Japan - October 21, 2020 - DAIKYO INCORPORATED (“DAIKYO”) and Anabuki Construction Inc. (“Anabuki Construction”) announced that five of their projects (one from DAIKYO and four from Anabuki Construction) have been selected for the Ministry of the Environment’s Fiscal 2020 High-Rise ZEH-M Support Project*1. A total of 18 projects were selected for this fiscal year.
Together with the projects selected for the Ministry of Economy, Trade and Industry’s Fiscal 2018 High-Rise ZEH-M Demonstration Project and the Ministry of the Environment’s Fiscal 2019 High-Rise ZEH-M Support Project, a cumulative total of 26 DAIKYO and Anabuki Construction projects have been selected.
*1 High-Rise ZEH-M Support Project within the Ministry of the Environment’s fiscal 2020 project to encourage adoption of ZEH-M, etc. in condominiums

■ Overview of the Five Selected Projects

■ About the Initiatives of DAIKYO and Anabuki Construction
DAIKYO and Anabuki Construction seek to address social issues with real estate solutions and aim to be companies that contribute to the improvement of living environments and the development of society and the economy. The undertaking of ZEH-M is part of this effort.
Going forward, DAIKYO and Anabuki Construction will continue to promote the development of condominiums meeting the ZEH-M standard toward achieving the goal of “aims to achieve ZEH for more than half of the ordered stand-alone houses newly constructed by home-makers, etc. by 2020 and for all newly constructed houses on average by 2030” stated in the Government of Japan’s Strategic Energy Plan.

1. ZEH-M Being Aimed at by DAIKYO and Anabuki Construction
ZEH-M is a condominium that uses as little electricity and gas as possible to maintain a comfortable indoor environment by significantly increasing thermal insulation performance and introducing facilities and systems with high efficiency. To promote ZEH-M in pursuit of residents’ comfort, DAIKYO and Anabuki Construction have formulated a new standard of lifestyle friendly to both people and the Earth which takes into consideration health, family budgets, and the global environment.

■ Key Points of the New Standard of Lifestyle Friendly to Both People and the Earth
(1) Comfortable and healthy lifestyle
・Keeping homes warm from corner to corner even in cold winters through high thermal insulation
(2) Energy-saving lifestyle that is friendly to family budgets
・Reducing energy consumption by using highly efficient facilities (such as EcoCute)
・Economical by saving on utility fees through high thermal insulation and use of highly efficient facilities
(3) Lifestyle with consideration for the Earth’s future
・Using energy adeptly and reducing CO2 emissions by introducing facilities and systems with high efficiency
Reference: Lions ZEH & Surpass ZEH(https://lions-mansion.jp/areaspecial/zeh_m/ Open Link in New Window)(in Japanese)

■Related Website
・Sustainable open Innovation Initiative(https://sii.or.jp/moe_zeh_m02/zeh_mh/ Open Link in New Window )(in Japanese)

2. List of Selected DAIKYO and Anabuki Construction Projects
Fiscal year of selection Property name Location Scale and number of floors
Fiscal 2020 Lions Ibarakisho 1-chome C gaiku (tentative) Ibaraki City, Osaka Prefecture 14 floors above ground, 279 units
Surpass Takasaki Renjakucho Takasaki City, Gunma Prefecture 15 floors above ground, 56 units
Surpass Hamamatsujokoen Hamamatsu City, Shizuoka Prefecture 14 floors above ground, 65 units
Surpass Minamigata Residence Okayama City, Okayama Prefecture 11 floors above ground, 60 units
Surpass Fuseishichuokoen Takamatsu City, Kagawa Prefecture 9 floors above ground, 49 units

■ Reference News Releases
・September 26, 2019: Eleven Projects Selected for Ministry of the Environment’s High-Rise ZEH-M Support Project
 https://www.daikyo.co.jp/news/dev/files/20190926_3.pdf Open PDF in New Window[1.1MB] (in Japanese)
・March 28, 2019: Commencement of Sales Activities for Seven Projects Selected for High-Rise ZEH-M Demonstration Project
 https://www.daikyo.co.jp/news/dev/files/20190328_1.pdfOpen PDF in New Window[1.5MB](in Japanese) 
・September 3, 2018: Ten Projects Selected for Ministry of Economy, Trade and Industry’s Fiscal 2018 High-Rise ZEH-M Demonstration Project
 https://www.daikyo.co.jp/dev/files/20180903.pdfOpen PDF in New Window [743KB](in Japanese) 

3. Overview of Fiscal 2020 High-Rise ZEH-M Support Project
To steadily achieve the medium- to long-term energy supply and demand forecast (energy mix), it is essential to position condominiums in the policy goals for 2030 involving ZEH as well as to make clear definition of ZEH adoption in condominiums and specific policy goals in the medium to long term. Therefore, after setting the definition of ZEH adoption in condominiums, the Agency for Natural Resources and Energy under the Ministry of Economy, Trade and Industry formulated a roadmap aimed at spreading ZEH adoption in condominiums and published the “Report by Condominium ZEH Roadmap Examination Committee”*2 in May 2018.
However, even though energy saving in condominiums is an important issue, condominiums have limited area (rooftop area) for renewable energy. Therefore, the difficulty of realizing ZEH at the building level (ZEH-M) is high, and there are currently few cases demonstrating its realization.
Taking into consideration the goals and issues surrounding the adoption of ZEH in condominiums, open applications for projects necessary for the formulation of design guidelines for promoting ZEH adoption in condominiums were therefore solicited. In this project, a portion of the expenses incurred in adopting ZEH in condominiums are subsidized for those operators who provide information regarding design specifications and energy performance. At the same time, the project aims to achieve the spread of ZEH based on the roadmap by introducing a ZEH developer registration scheme*3.

Reference:Open application procedure for High-Rise ZEH-M Support Project within the Ministry of the Environment’s fiscal 2020 project to encourage adoption of ZEH-M, etc. in condominiums
*2 Reference: Report by Condominium ZEH Roadmap Examination Committee on website of Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry
https://www.enecho.meti.go.jp/category/saving_and_new/saving/zeh/pdf/roadmap-condo_report2018.pdf )Open PDF in New Window[1.8MB](in Japanese)
*3 This is a scheme that registers proprietors (condominium developers, owners, etc.) and contractors (construction companies such as general contractors and home builders) playing central roles in the formulation of ZEH-M projects. They are registered and publicly recognized as ZEH developers.

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.”

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