DAIKYO Launches Official Website of Japan's First “ZEH-M” Condominium “The Lions Setagaya Hachimanyama”

TOKYO, Japan – June 7, 2024 – DAIKYO INCORPORATED (“DAIKYO”) and ANABUKI CONSTRUCTION INCORPORATED (“ANABUKI CONSTRUCTION”) announced the launch of the official website^*1 for the condominium “The Lions Setagaya Hachimanyama,” currently under construction in Setagaya-ku, Tokyo. This property has received certification in July 2023 in the Building-Housing Energy-efficiency Labeling System (BELS) as Japan’s first^*2 condominium meeting the standard of “ZEH-M”—the top Net Zero Energy House (ZEH) category—and all units also fulfilling the “ZEH” standard.

Located a 3-minute walk from Keio Line's Hachimanyama Station, “The Lions Setagaya Hachimanyama” is situated in a quiet residential area rich with greenery, characterized by category I low-rise exclusive residential zones.
By conserving energy through measures such as high thermal insulation performance and adopting facilities with high efficiency, and creating energy using solar power generation facilities installed on the roof, this property meets the standards for both “ZEH-M” and “ZEH”. “ZEH-M” requires the entire building to reduce primary energy consumption by 100% or more from the standard level of primary energy consumption, while “ZEH” requires each residential unit to reduce primary energy consumption by 100% or more^*3. It is Japan’s first condominium that meets the standard of “ZEH-M”, the highest rank among the four categories of ZEH-M defined by the government, and “ZEH” for all residential units.
In addition, the property adopts an energy creation and storage system that allows life to continue during disasters, and a landscaping plan that takes into consideration coexistence with the region and biodiversity. These and other factors led it to be selected as one of the Sustainable Building Leadership Projects (CO₂ Reduction Leadership) for FY2023.
The official website will progressively release information on the location, concept, design, floor plans, and ZEH-M benefits. The grand opening of the property’s condominium gallery is scheduled for September 2024.
DAIKYO rebranded its condominium brand to THE LIONS in April 2023. The company will create new value in the lives of its customers to achieve lifestyle one step beyond.
*1 The Lions Setagaya Hachimanyama Official Website(in Japanese)
*2 Calculated from the Official website of the Association for Evaluating and Labeling Housing Performance(in Japanese). This property is the earliest condominium built with reinforced concrete construction to obtain the BELS evaluation certificate.
*3 Comparison with the standard primary energy consumption.

1. Key Features of The Lions Setagaya Hachimanyama

■First condominium in Japan to achieve “ZEH-M”
The Lions Setagaya Hachimanyama combines energy conservation and energy creation—through improving the building’s thermal insulation and energy conservation performance as well as installing solar power generation facilities on the roof—to achieve primary energy consumption reduction of at least 120% for all residential units and at least 110% for the entire building against the standard level of primary energy consumption. This means that the building achieves the “ZEH-M” standard of a reduction of 100% or more from the standard level, which was difficult to achieve in condominiums. It also means that all residential units achieve the “ZEH” standard, which requires a unit to achieve a reduction of 100% or more. This is the first time in Japan that a condominium has obtained certification in BELS of “ZEH-M” for the condominium and “ZEH” for all residential units.

This property suppresses changes in room temperature from outside air by using internal wall insulation to improve thermal insulation performance, adopting aluminum resin composite sashes, and using low-E multilayered glass containing argon gas. In addition, significant energy conservation is achieved through the adoption of facilities with high efficiency. All residential units achieve an average 46% energy conservation from the standard level of primary energy consumption.
Furthermore, the installation of solar power generation facilities for each residential unit on the building’s roof achieves 78% energy creation. Combining energy conservation and energy creation achieves primary energy consumption reduction of at least 120% for all residential units. This reduction in primary energy consumption leads to a reduction in utility costs, expecting an annual savings of approximately 167,000 yen^*4 in utility bills.
*4 Calculated based on estimated utility costs for Type E (2nd floor) at "The Lions Setagaya Hachimanyama" compared with a general residential property under similar conditions.
　 Amount of savings differs for each residential unit and is not guaranteed.
* Amount of reduction differs for each residential unit.

■Adoption of energy creation and storage collaboration system that allows life to continue in homes during disasters
DAIKYO’s original disaster prevention system “SONA-L SYSTEM” was adopted for the condominium. Solar power generation facilities for the common areas and individual residential units are installed on the building’s roof. A battery and household fuel cell cogeneration system (“ENE･FARM”) are installed for each exclusive area, while there is a large storage battery and a well for the common areas. Therefore, even if all lifelines—electricity, gas, and water—are cut off during disasters, it is possible to continue living in the homes for at least a week.
When there is a power outage, such as during disasters, electricity is supplied using the solar power generation facilities, storage batteries, and ENE･FARM during the day, and using the storage batteries and ENE･FARM at night. This allows the use of power outlets, air conditioning, refrigerators, and other appliances in the exclusive areas. Electricity is also supplied to lighting, elevators, water pumps, and other facilities of the common areas.
At the common areas in normal times, besides the supply of electricity using solar power generation, well water is used by the automatic plant irrigation system and water sprinkling of the common areas. This achieves a reduction in maintenance and management costs while mitigating the burden on the environment.

■Achieving net zero CO₂ emissions
Electricity from 100% renewable energy sources is supplied if there is a shortfall of electricity from the solar power generation facilities installed on the roof, storage batteries, and ENE･FARM. For gas, the property adopts city gas^*5 that uses LNG that is essentially 100% carbon neutral. This achieves a carbon-neutral lifestyle.
*5 A system that utilizes LNG, which is considered to generate no CO₂ on a global scale when combusted, to offset (carbon offset) the greenhouse gases generated in the process from mining to combustion of natural gas with CO₂ credits.
* May not apply depending on contractual terms, etc.

■Landscaping plan that uses the region’s climate and characteristics as well as takes into consideration biodiversity
This property adopts a landscaping plan that ensures 26% green coverage of the premises and uses 100% native plant species. To protect existing trees and maintain tree species, a tree bank^*6 is used for some of the trees. Furthermore, in anticipation of visits from wild birds and butterflies inhabiting Musashino, fruit-bearing plants and birdbaths are placed to form a regional ecological network and achieve coexistence with the region and protection of biodiversity.
*6 An initiative to temporarily transplant and preserve trees in condominium construction sites and reuse them after the condominiums are built.

2. Selection as a Sustainable Building Leadership Project (CO₂ Reduction Leadership)
The government supports these leading housing and construction projects that contribute toward the adoption of advanced technologies related to energy conservation and CO₂ reduction and raising awareness about such technologies. The purpose is to help spread initiatives and raise awareness by having the relevant entities widely announce the project achievements and such. This property was recognized for being an ambitious project that achieves “ZEH-M” by combining existing technologies at residential apartments and also taking into account disasters.
* Reference: “Selection of Sustainable Building Leadership Projects (CO₂ Reduction Leadership) for FY2023” announced by the Ministry of Land, Infrastructure, Transport and Tourism on September 4, 2023(in Japanese)

3. ZEH-M Achievements of DAIKYO and ANABUKI CONSTRUCTION
In principle, DAIKYO and ANABUKI CONSTRUCTION—which undertake ORIX Group’s housing development business—are developing all new condominiums with specifications that meet the ZEH-M Oriented standard or higher, and they are leading the industry in the development of ZEH-M condominiums. The two companies have built a total of 51 condominiums with ZEH-M specifications (on a completion basis, as of the end of May 2024).
In July 2018, DAIKYO achieved a primary energy consumption reduction of at least 75% at Lions Ashiya Grandfort and received Japan’s first BELS evaluation certification for Nearly ZEH-M^*7. The two companies are actively carrying out condominium development aimed at environmental consideration and improving residential living.

THE LIONS ZEH website	https://lions-mansion.jp/areaspecial/zeh_m/(in Japanese)

*7 Lions Ashiya Grandfort Receives Japan’s First Nearly ZEH-M Certification (July 10, 2018)[2.53MB] (in Japanese)

4. Overview of The Lions Setagaya Hachimanyama

Address	3-29 Hachimanyama, Setagaya-ku, Tokyo (detailed address undecided)
Access	3-minute walk from Keio Line Hachimanyama Station
Structure and scale	Reinforced concrete, 3 levels above ground
Total units	52
Area	43.00 m2 to 84.31 m2
Layout	1LDK + DEN to 3LDK
Start of construction	December 4, 2023
Completion date	June 2025 (scheduled)
Move-in date:	June 2025 (scheduled)
Design	KYODO ENGINEERING CORPORATION
Construction	ANABUKI CONSTRUCTION INCORPORATED
Seller	DAIKYO INCORPORATED, ANABUKI CONSTRUCTION INCORPORATED
URL	https://lions-mansion.jp/MN220040/(in Japanese)

5. About THE LIONS
In April 2023, DAIKYO’s condominium brand Lions Mansion—which had existed for 55 years since the company started business—was rebranded to THE LIONS. With “Life has value” as the brand statement, THE LIONS will create new value in the lives of its customers by providing not only an abundance of physical commodities but also a good life for the people who live in its condominiums.
Together with the rebranding, DAIKYO launched and is carrying out a new DAIKYO NEXT ONE PROJECT in which all employees will participate in order to build and promote THE LIONS brand. This is a project that investigates, creates, and communicates, where employees anticipate future needs of residents while incorporating the knowledge of outside experts to give shape to ideas not found in other residential brands. Through this, THE LIONS will transform into a brand that takes lifestyle one step beyond to one that people desire.

Special website for THE LIONS	https://lions-mansion.jp/thelions/(in Japanese)

* DAIKYO Rebrands Lions Mansion to THE LIONS after 55 Years since Launch | ORIX Group (April 10, 2023)

Contact Information:
Investor Relations and Sustainability Department
ORIX Corporation
Tel: +81-3-3435-3121

About ORIX Group:
ORIX Group (ORIX Corporation TSE: 8591; NYSE: IX) was established in 1964 and has grown from its roots in leasing in Japan to become a global, diverse, and unique corporate group. Today, it is active around the world in financing and investment, life insurance, banking, asset management, real estate, concession, environment and energy, automobile-related services, industrial/ICT equipment, ships and aircraft. Since expanding outside of Japan in 1971, ORIX Group has grown its business globally and now operates in around 30 countries and regions across the world with approximately 34,000 people. ORIX Group unites globally around its Purpose: “Finding Paths. Making Impact.” combining diverse expertise and innovative thinking to help our world develop in a sustainable way.
For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2024)

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, 2023 – March 31, 2024” furnished on Form 6-K.